How to Invest on the Stock Market the Easy way

Philippine Stock Market today is very popular because it is performing very well, it has been shown on national television news, blogs, magazines and many people are talking about it. Philippines was one of the TOP 10 Best Stock Market Worldwide based on it's registered gain since last quarter of the year. Because of this more and more people are getting interest and want to invest on the stock market but their fear of the unknown or the lack of knowledge how to do it kept them at bay from starting the venture.

Always take note that investing in the stock market is very risky. Compared to all the investment tools available today, stock market has the highest interest rate and can beat the inflation in time, but there is a catch, this investment also has the highest risk. To make it simple, the "higher the interest rate =  higher the risk". But why you should invest in the stock market? Because it can beat the inflation rate.





I am not an expert about stock market that is why we will only "invest" NOT "trade". Trading needs more knowledge and technical know how about stock market trading and its trend. They are the ones who spend time buying and selling regularly and timing the market. Investing in the stock market means we will put money regularly on giant companies and gain profits after few years. Here are the steps below on how to invest in the stock market.

• You need an Online Stock Broker

• If you only have as much as Php 5,000 to invest and the other guy has millions of money to invest, no stock broker will entertain you. They prefer the guy with the big bucks for commissions. So we need an Online Stock Broker.
• Personally I have an account on colfinancial.com / citiseconline.com.
• Why I choose this broker? Because it is a leading stock broker in the Philippine Stock Exchange (PSE) and was ranked No.1 in 2008 by the PSE. This was the broker adviced by Bo. Sanchez when I read "My Maid Invested in the Stock Market and why you should too" book.
• Open and account for Easy Investment Program (EIP) for minimum of Php 5,000. Opening an account is same as with the banks.
• This is where you will log on through the internet to be able to buy stocks of your choice.
• You need to put money regularly in your enrolled account so you can buy stocks, in my case I used my bank BPI to tranfer money to my COLFinancial account. 
• For more information and FAQ you can read easy investment program FAQ.
• COLFinancial offer free seminars about stock market investing for account holders held at their office at the PSE center in Ortigas, Pasig City.

• Choose only on giant companies that you think will last for a long period of time, then buy stocks regularly. 

• If you invest regularly for eg. monthly, you are using PESO COST AVERAGING method. Regardless of your picked stock performance, whether it goes up or down, for long term you still bought it at an "average" cheap price.
• You need to invest only on strong companies that you think that will last for 20 years, this is long term. Consider this as your retirement fund when you get old.
• If you need to get your money you just sell your stocks and contact your online stock broker to receive your money within 3 days. 

PS1:   Get some advice

• If you have an account in COLFinancial, they regularly issued investment guides if you logged on your online account on the internet. It is a summary of recommended stocks to buy and all of its information needed to analyze the stock. In this table, you can see "COL rating" column whether to "buy" (continue to buy stock) or "hold" (stop buying because the price is high). "Target Price" column is where you can decide if you want to sell the stock.
• I am a member of Truly Rich Club headed by Bro. Bo Sanchez. In this club he is also giving advice about investing in the stock market, he issues buy, hold and sell alert of certain companies. He call this STRATEGIC AVERAGING METHOD or SAM. If you want to be a member of this club you can join here. Truly Rich Club. 
• You can also read my related article about Truly Rich Club and Stock Market