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It has been awhile since I posted about Stock Market and I thought this post will be a good rejoinder for people who might be interested but have not started yet.
Similar with all other things, taking the first step is the hardest. I have heard about stories of people able to buy house and lot just by trading in the stock market. Then I hear stories about how the stock of PLDT was just P10 before and now it is more than a thousand pesos. Or people sharing about Globe's stock only worth P916 and now trading at P1,600. It all look as an easy money making scheme that my first thought "If there is money in the stock market, then why not all are in it?"
Fear
Why everyone is not in Stock Market? Simple. There is a risk. If you are joining for a get rich quick scheme, I am telling you that it is not guaranteed. You may get rich but you may also lose a lot of money.
While you may have heard about the stock of SM or Ayala be wary that there are also companies that went bankrupt resulting to losses to investors.
Nevertheless, do not be scared. Risk is good. It is not entirely bad as long as you manage risk. If there is a risk of losing your hard-earned money, there is also a great potential of doubling or tripling your money.
Indulge me if I compare stock investing to sky diving. Why do people go on sky diving? For fun and thrill of adventure. While there is fun, there are also number of ways things can go wrong. The parachute may snap etc.etc. But inspite of that, you still know that people go for sky diving.
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The only thing to remember is that while it may be risky and dangerous, as long as you manage it well, you will get the fun and adventure that you aim for.
How Do I Join?
First open up an account. You can do so with BPI Trade, Citiseconline or FirstMetroSec.
I have accounts with BPI Trade and Citiseconline.
Visit the Cisitiseconline and fill up the online application form. Do not be scared with the number of fields in the form. Most of the items are about your personal information. The form also has a section on your reason for investing and your net worth.
If you find any question difficult to answer, call them up at (632) 651 5888 or drop a comment below and I will help you out.
After submitting the form online, you will receive an email and an agent will call you up. You also have an option of printing the forms and manually filling in the required answers. Call them up to pick up the filled up forms. You are also required to prepare a copy of a valid government issued identification card (SSS, BIR, Driver's license or passport) and a copy of a recent billing statement.
An agent will process your application and will inform you about your account number if your application is accepted. Once you get that account number, this is the time to fund your account. Funding account means depositing money to your Citisec account. To fund your account, you can visit BPI, BDO or Metrobank. If you want hassle, you also have the option of visiting their office to fund your account. (I chose over the counter deposit at BPI to fund my Citisec account)
How Much Do You Need to Open an Account?
You only need P5,000 to start.
Advice
Same with everything in life, do not get into something that you do not understand.
Planning and Learning is very important. Plan and be selective of the companies you will invest in. Make sure you understand the business that they are in. While you are not expected to do an in-depth understanding, you should know the basic of how the company earns it money.
Read stock related blogs and post. Learn about peso cost averaging.
Intelligent investors means being patient, disciplined and eager to learn, you must also be able to harness your emotions and think for yourself.
If you merely try to bring just a little extra knowledge and cleverness to bear upon your investment program, you may well find you have done worse - Benjamin Graham, The Intelligent Investor
