how to earn in stock market philippines

How to Earn in the Philippine Stock Market

Are you someone who needs another source of income?

Do you also struggle with where to invest your extra money?

If yes, maybe it is time for you to understand more about the stock market. With an average return of 10% annually, investing or trading in the Philippine Stock Market continues to become one of the better options if you are looking to grow your money.

In this article, we will look through how to start and learn different ways and how you can earn in the Philippine Stock Market.

What is a Stock?

A stock represents a company’s ownership. You can buy and sell it in the “stock market.” It is the right place to trade and interact with other related parties. 

The Philippine Stock Exchange (PSE) is the primary stock market in the Philippines. It is where publicly traded companies sell shares of their ownership to investors. The right platform for buying and selling stocks, bonds, and other securities. 

Individuals and institutions can earn money by investing or trading in the PSE. Their earnings are in the form of dividends and capital appreciation. 

Ways to Earn in the Philippine Stock Market 

Stock Trading

    trader buying stocks on a phone and laptop

    Stock trading is the buying and selling of shares of ownership. You will buy and sell shares in companies listed on the stock market. When you buy a stock, you become a part owner of that company. You will have the potential to make money if the stock price goes up.

    Similarly, when you sell a stock, you sell your ownership stake in the company.

    Stock trading can happen online through brokerage firms. It involves careful analysis of company financials and market trends. It is for making informed decisions.


      Investing is putting money into something with the expectation of making a profit. This can include buying stocks, bonds, real estate, or other assets. Investing aims to grow your wealth over time by earning a return on your investment. 

      the word investment in the picture

      Ways to Invest in the Philippine Stock Market

        Buying Individual Stocks

        Investing in stocks can be a great way to grow your wealth over time. Here are some additional points to consider:

        • The value of a stock can fluctuate based on various factors. It includes the company’s financial performance, industry trends, and global economic conditions.
        • Stocks can offer the potential for higher returns than other types of investments. They also come with higher risks. Researching and diversifying your portfolio to manage your risk exposure is important.
        • Common and preferred stocks offer different ownership levels and potential returns.
        • The stock market can be complex and volatile. Good thing that there are essential resources. It includes financial advisors and online trading platforms. These two are likely available to help you navigate it.
          Mutual Funds

          Mutual funds are a popular investment option for beginners. They provide a diversified portfolio of stocks, bonds, or other securities. Yet, it is important to understand what to expect when investing in mutual funds. Also, how to handle mutual funds appropriately is essential too. 

          Here are some tips to keep in mind:

          • Determine your investment goals and risk tolerance before choosing a mutual fund.
          • Research and compare mutual funds to find the one that aligns with your goals.
          • Keep track of the fees associated with the mutual fund. It includes expense ratios and sales charges.
          • Review and rebalance your portfolio to align with your investment goals.
          • Understand the tax implications of investing in mutual funds. Consult a tax professional if necessary.

          By following these tips, beginners can effectively handle mutual funds. They can work toward achieving their investment goals.

          How to Earn in the Philippine Stock Market (Step-by-Step Guide)

          1. Evaluate Your Goals

          a. Do you want to trade?

            If you’re open to trading, here are some things to consider as you move forward:

            • Do you have time to do this?  

            Trading can be time-consuming, particularly if you’re actively trading daily. Consider whether you have the time and energy to commit to trading regularly.

            • Do you see yourself being dedicated to trading? 

            The decision to trade is a personal one. Consider your individual goals, risk tolerance, and available resources.

            Pros in Stock TradingCons in Stock Trading
            Potential for high returns involves smart investments.High risk and potential for significant losses.
            Flexibility allows for remote work and travel while still earning money.Requires significant time and effort to research and analyze stocks.
            Learning opportunities about various industries and companies. It includes the economy and financial markets. Can be impacted by unpredictable market fluctuations and external factors.
            Complete control over investments. Allowing people to create a portfolio that aligns with their goals and values.May require large amounts of capital to make significant gains.

              b. Do you want to invest?

              Beginners should assess why they want to invest. Self-assessment before diving into the investing world is important. Here are some reasons why people may choose to invest:

              • Grow their wealth. Investing allows individuals to grow their wealth over time. It is through the power of compounding returns.
              • Save for retirement. Investing can help individuals save for their retirement. It is by providing a source of income in the future.
              • Meet financial goals. Investing can help individuals meet their financial goals. It includes purchasing a home, paying for education, or starting a business.
              • Beat inflation. Investing can help individuals stay ahead of inflation. In which investing erodes the purchasing power of their money over time.

              Understand why you want to invest. It will help you tailor your investment strategy to meet your goals and needs.

              1. Do you want to buy your own stocks?

              Investing in stocks can lead to high returns, but it also involves a high level of risk. The stock market can be unpredictable and volatile, and there is always a chance of losing money. However, stocks have outperformed other types of investments over the long term. 

              1. Do you want to put your money in managed funds(mutual funds)? 

              Mutual funds offer a more diversified portfolio of investments. Managed funds like this can reduce risk. But they also come with fees and expenses that can affect your returns.

              Pros in InvestingCons in Investing
              Potential for higher returns compared to savings accounts or other low-risk investments.Risk of losing money if investments perform poorly or market conditions change.
              Opportunity to diversify your portfolio. Allowing investors to spread out risk across different types of investments.Requires time and effort to research and manage investments effectively.
              Ability to earn passive income through dividends or interest payments.Not a guaranteed source of income or returns.
              Possibility of long-term growth and building wealth.May require large amounts of capital to make significant gains.
              Tax benefits such as deductions or lower tax rates on long-term capital gains.Market volatility and economic uncertainty can lead to stress. It can also give rise to anxiety for some investors.

              2. Do Your Research

                cards that read buy and sell

                For Stock Trading

                Before starting, it is important to research the ins and outs of trading. If you don’t, you’re basically gambling your hard-earned money. Make sure first that you are equipped with proper knowledge of different types of stocks, trading strategies, stock market trends, etc.

                Additionally, here are the things you must do before doing any trading:

                • Know the basics of technical and fundamental analysis
                • Read books about stock trading
                • Practice your trades through virtual trading
                • Start with small capital

                For more info, check out How to Trade in the Philippine Stock Market where we cover these points thoroughly.

                For Investing

                Investing is a good source of extra income. It is important to do your research and understand the risks involved. Before you begin investing, here are a few things to keep in mind:

                • Set clear investment goals. Having goals means having a great strategy.
                • Understand the risks. Beware of potential downsides before you invest.
                • Diversify your investments. Cut the risk by spreading your money with different investments. 
                • Start small. Increase your investment once you are comfortable and well-adjusted.
                • Consider working with a financial advisor. A professional can help guide you through the investing process.  They will help you create a personalized investment plan.

                Furthermore, you should be aware of the following concepts and available resources. These are suitable for beginners in stock trading and investing (mutual funds):

                1. Buy Low, Sell High

                Buying low and selling high is a reliable rule of thumb for purchasing stocks.

                It is crucial to review historical data to determine entry points. If the fundamentals remain strong, consider averaging down your position. Do it by acquiring more shares halfway higher than the support level.

                However, psychological forces can disrupt this rule. The primary patterns shift from fear to greed over extended periods. Greed can lead to impulsive selling at a good, but not the highest price.

                1. Do Regular Investing

                Achieving your financial goals is easier when you make regular investments. Add funds and take advantage of larger volumes and increase your potential profits.

                Peso-Cost Averaging can help you ride out stock market fluctuations. Worry less about dips and rallies.

                Maximize your investment capital with simple mathematics and accounting skills. Regularly deposit funds in your stock market investment wallet. Also, encourage yourself to wait for your next share acquisition.

                1. Explore More About Stock Trading and Mutual Funds
                  • Stock Trading Courses

                  Here are some online stock trading courses available in the Philippines:

                  These courses can help you understand market trends. More so, such courses are for identifying profitable trades and managing risks effectively.

                  • Mutual funds courses

                  There are several mutual fund courses and materials available online in the Philippines. Here are some options:

                  Please note that some of these courses may require payment or registration.

                  Mutual funds can be a good investment option for those who want to diversify their portfolio. People needing time or expertise to manage their investments can join mutual funds. 

                  To help your research, here’s a list of reputable fund management and brokerage firms in the Philippines:

                  1. Brokerage Firms
                    1. COL Financial
                    2. BDO Securities
                    3. BPI Trade
                    4. MyTrade Philippines
                  2. Fund Management Companies
                    1. Philam Asset Management
                    2. Sun Life Asset Management
                    3. ATRAM Trust Corporation
                    4. Ayala Philippine Equity Fund
                    5. BDO Equity Fund
                    6. First Metro Save and Learn Equity Fund
                    7. Philequity Fund, Inc.
                    8. Sun Life Prosperity Philippine Equity Fund
                    9. ATRAM Alpha Opportunity Fund
                    10. ALFM Growth Fund
                    11. Philam Vitality Funds
                    12. Philippine Stock Index Fund
                    13. PAMI Equity Index Fund

                  3. Create an Account

                  1. Creating a Brokerage Account for Stocks:
                    1. Research and choose a reputable brokerage firm in the Philippines that suits your investment goals and risk tolerance.
                    2. Prepare the following requirements:
                      • Valid government-issued ID
                      • Tax Identification Number (TIN)
                      • Proof of billing address
                      • Bank account information
                    3. Open an account by completing the online application form. You can also visit the brokerage firm’s office.
                    4. Fund your account. Transfer money from your bank account to your brokerage account.
                    5. Start trading by placing orders to buy or sell stocks.
                  2. Creating a Managed Fund Account:
                    1. Choose a reputable fund management company. There are many fund management companies in the Philippines. Look for a company with a strong track record of managing funds and a good reputation in the industry.
                    2. Prepare the following requirements:
                      • Valid government-issued ID
                      • Tax Identification Number (TIN)
                      • Proof of billing address
                      • Bank account information
                    3. To open an account, you have two options:
                      • Fill out the online application form
                      • Visit the brokerage firm’s office in person.
                    4. Transfer money from your bank account to your managed fund account to get started.
                    5. The fund management company will divide your money into a portfolio of investments. Their basis is your investment goals and risk tolerance.

                        4. Track Your Stocks or Investment

                        Here are some ways to keep track of your investments:

                        1. Use an Online Portfolio tracker. 

                        Many online platforms allow you to input your investment holdings. They also help you with their performance over time. Some popular options include Yahoo Finance, Google Finance, and Morningstar.

                        1. Check-in with Your Brokerage Account. 

                        Most brokerage firms offer online access to your investment accounts. It is where you can view your holdings and track their performance. You can also set up alerts to notify you of any significant changes in your portfolio.

                        1. Use a Spreadsheet. 

                        You can create a spreadsheet to track your investments if you prefer a more hands-on approach. This can be a useful way to customize your tracking and analysis, but it may need more manual effort.

                        Monitoring your portfolio can identify trends and opportunities to optimize your returns.

                        Final Thoughts – How to Earn in the Philippine Stock Market

                        With proper guidance and enough knowledge, earning in the Philippine Stock Market is achievable even if you are a beginner.

                        First, you just need to be aware of what you want to do in order to earn in the Philippine Stock Market.

                        Stock trading if you have ample time to do it or investing with minimal risk involved.

                        Careful analysis of company financials and market trends is beneficial for stock trading. Stock trading is a great way to build wealth over time, but it is riskier.

                        While investing, you must check your goals and assess whether you want to trade or invest. 

                        Remember that investing whether stock trading or putting your money in mutual funds always carries some level of risk. Setting realistic financial goals and investing money you can afford to lose is important.

                        Investing and stock trading in the Philippine stock market can be rewarding. Have patience, proper education, and a thoughtful approach. Trust the process and your way to grow your wealth over time.

                        For more knowledge, check out “Paano Yumaman sa Stock Market Course – Traders Den PH”. It is a complete course essential to everyone interested to join the stock market.

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