How Does the Stock Market Work?
I am sure you have heard of the word already, however the inner workings of the stock market remain mysterious and elusive to a lot of Filipinos. We don’t have a lot ideas when it comes to the stock market, and we seem to believe that only the people in big business circles know how the stock market works. To simplify, the Stock market is a game of chance, only the big difference is that you are given informed choices. The stock market is the biggest marketplace in the world. It is where people buy and sell stuff, but instead of selling food or clothes as well as bag, people trade money and stocks that represent different companies.
What is a Stock?
A stock is a form of security that that pertains to the ownership in a corporation. It is a claim on part of a certain corporation’s assets as well as its earnings. It could also mean the capital raised by a business or a corporation through the issue and subscription of shares. To simplify, this is a piece of a company.
What is Stock Trading and How Does One Invest?
Stock market investing is owning a piece of the company, not everyone can become Jeff Bezos or Mark Zuckerberg and own a trillion-dollar company but each of us has a chance to become a part of the system and that is by purchasing the stocks of the companies we believe will make money in the future.
In stock trading you begin to earn money when the value of the company stock you purchased goes up. If the price per stock went up compared from the original price purchase, you gain a profit – this is when Price Appreciation occurs. Another way for you to earn is if the company you have a stock on decides to share its earning to the shareholders in the form of dividends. You can receive your income in the form of stocks or cash.
Not everyone can afford to purchase Amazon or Google should they want to, but everyone who enters the stock market can have a piece of the pie. Once you purchase the stocks of Amazon for example, you can receive a virtual certificate to certify that you are indeed the owner of a particular stock. For example, if the company has 10 million shares you can have the 1 million shares, it means you own 10% of the Amazon company.
Why are these Big Companies Selling Shares?
Even the most successful companies in the world will require additional funding for projects that they have in mind. Selling shares is a way for them to bring in additional capital to business expansions. They can use it for research and development, products, to improve their factories or to pay some of their debts to keep the business running.
How will you benefit if you purchase shares of these companies in the stock market?
The shares you purchased could one day go up in market value, there are some companies that start small and become giants. So in purchasing shares make sure to speculate well, and learn the whereabouts of the company shares you are about to purchase. It is all about supply and demand, while there is no way to predict how companies will perform in the long run, you can still take your chances instead of wasting your money in other pursuits that will not help you earn anything in the long run.
How to Start Investing in the Philippine Stock Market
Investing in the stock market is easy. In fact, any Filipino who has the amount of 5,000 pesos can start trading. In recent years, a lot of online trading platforms has been set up. This means you can trade even while you are on board the ship. Just like any other form of investment, stock market trading is of course not risk-free. This is why it is very important for you to study the basics of stock market trading before you try it yourself. Attending forums, seminars and listening to experts. As well as purchasing ebook guides and other stock market materials are some of the best ways you can learn.
Any kind of investment has risks, there is no such thing as sure money. Understand that you should only invest money that you can afford to lose and you need to understand the risks involved before you trade. You can earn money in the stock market, but you can also lose money if you do not study well. Before you start trading make sure to understand the key concepts first so you can make better decisions. Once you become a trader, you need to stay updated when it comes to the dealings of the world market. You need to watch the news and learn to connect the dots, so you can become better at predicting what company shares you should get.
Two Kinds of Stock Broker
To invest you will need a broker, it could either be a traditional stock market broker or an online broker.
A traditional broker is licensed and permitted by the law to transact for you. You can select among the premium and finest stock market brokers in the Philippines. Traditional brokers can handle your account and do important decisions for you, they can also offer you advise when it comes to the stock market. You can contact a traditional broker by telephone or via social media.
Another kind of broker is the Online Broker. You can already open a stock trading account with an online broker. You need to visit their website and register through an online form. Fill it out, and wait for the request to be approved, after getting approved, you can start funding your account using the payment portal they approve of. The online broker portal will already give you the steps on what to do next. Once your account has been funded, you can begin trading and you can now buy your first couple of stocks. There is a list of top online stockbrokers in the Philippines like COL Financial, First Metro Securities, BDO Nomura, BPI Trade and Philstocks.
Most of these online trading platforms give members streaming data and live charting, 24/7 access and mobile device access. These trading platforms will ask for a commission fee from the members. The minimum investment for these stock market trading platforms is 5,000 for an entry-level account. While Premier investors will usually invest 1 million or more. There are also other guide stock market trading platforms like Investagrams that offer charts, newsfeed, disclosures, screeners and social media feed guide to help you decide to invest.
It is normal to feel confused at first, after all the stock market world has a lot of topics you need to understand first. A lot of seafarers are able to save a good amount of money but after going home they tend to squander the money around because they don’t know where should they invest their hard earned money. If you want to be wise and put your money in a place where it has a chance to grow then you should begin studying about the Stock market industry.
Engr. Arjay Magpantay the Founder of Azzet Maritime Consultancy Corporation is also a seafarer. He once asked the question of how he can make proper use and care of his money. He encountered people from the stock market who trained him how to be an expert trader and now he wants to teach fellow Filipino seafarers how to make their money grow through Stock Market Investments.
The Philippine Stock Market is another way for Pinoy Seafarers to earn additional income. In his seminars he usually discusses the important aspects of why seafarers and their families should invest in the Philippine Stock Market. If done correctly your stock market investment can give you a good Retirement Income and an enjoyable life with your family once you stop working on board ship.
Stock market is the best investment so far for seafarers who wants to grow their money passively and it can work 24/7 if you want to.
Learn how you start investing in Jollibee, SM, Ayala, San Miguel and biggest Corporations in the Philippines with just starting capital of P5,000 only.
Azzet Consultancy Corporation does not accept walk-ins for their seminars, make sure to reserve before going to their office.
Stock market opens up opportunities for you to grow your money. However, for this to become a reality you need to be smart with your investment choices.
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