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Investing in the Philippine Stock Market

Do you believe in luck and chance especially in financial success? When our only son was born in 1993, our life changed dramatically. My husband and I believed that our son was our lucky charm which brought us good fortune and lots of happiness. In fact, among all the kids, Luijoe had the grandest Baptismal celebration and even birthday parties. Our family was indeed blessed. We could not ask for more. When we dabbled in stock trading, I had no knowledge on how the financial markets worked. My husband got a hold of Initial Public Offering (IPO) of large companies in the early 90’s. The booming stock market and rising price indexes drove me to sell when it was high. It was bullish period in the stock market trading.

And how did I determine the time to sell?

I rubbed Luijoe’s hair like one would rub Aladdin’s magical lamp and I’d whisper to Luijoe ” do you think mama should sell?”

If Luijoe smiled to his right that meant “yes” and the opposite is “No”. What a silly way to sell?

Each of our financial decisions on our investments were based on gut feel and caressing my son’s hair for good luck. Come to think of it, our financial success was probably based on faith and a positive focus on our financial affairs during those years. See, what happened after Luijoe died?

We lost focus. We had no direction. It took great effort to make important decisions. Slowly, our financial situation deterriorated until the time our family turned towards a positive resolution of our grief. Since I didn’t have a son for good luck, I turned to Jesus and lifted my worries to HIM . Doors of opportunity opened and we reaped wonderful blessings from these as walked in faith and trust.

An opportunity to invest in the stock market greeted me once again with an invitation from Ely (through Gwen Nava) to bloggers for the launch of the Absolute Traders. The invite was a formal launch of this wonderful community of stock traders with the theme “Absolute Change”, which will signal the pardigm shift in the way the public perceives the financial markets.

stock traders

Now this is definitely something I look forward to. I don’t intend to be a stock broker or anything but I ‘d like to possess technical skills in analyzing the financial markets. Their group hopes to educate an investing public to use technical analysis in their trading and to go beyond tips and rumors. Even the founder, Bonner Dytoc said that “in order to trade, they don’t need to dwell too much on the financial numbers, they just need to know when is the proper time to enter and to exit”.

Not like me huh? I basically relied on gut feelings and luck. I hope to start their seminar “Basic Technical Analysis for the Financial Market” soon . Fortunately , it’s easy to buy stocks now as one can buy through an online stock broker such as CitisecOnline or PhilStock. How very convenient for me who spends a lot of time online.

Philippine Stock exchange

Just you now, Atty Francisco Ed Lim, President and CEO of the Philippine Stock Exchange (PSE) mentioned in his message that ” the market is on a roll. The PSE which is the main barometer of local stock price movements expanded by 42.3 % in 2006, by 15% in 2005 , by 26.4% in 2004 and by 41 % in 2003. So far this year, the PSEi has reached levels never before enjoyed by investors in the 80 year history of our stock market. ”

Now is the time to be an well-informed investor instead of relying on my old methods.

You can also read Ely’s entry, It’s A Great Time To Invest In Philippine Stocks

Other News Reports:

25 thoughts on “Investing in the Philippine Stock Market”

  1. Maybe they would do well to introduce investors with the fundamentals first. Knowing the financial numbers is one, and I’m not too sure that she’s correct in her assertion that it is separate from the entrance and exit points in your trading..

    Again, I’ve always believed money was made even before you entered into a trade. The key of course is valuation. We must not forget, that behind the word stock, is an actual company. The valuation and the ability to garner future earnings should be looked at.

    But to each his own, and there are different types of investors…

    But this is good news, I’ve always believed that basic financial education should be taught at all levels in the educational system.

  2. Hi Noemi. This sounds very interesting. I’d really like to understand how to invest in the stock market the right way. I’ve just been relying on heresay and tsismis among sisters. And most of my sources are chupiteros so fast buck lang. Hope you can post more on this. Thanks!! 🙂

  3. It’s really weird most of your posts lately are stuff/topics I have been dwelling on.

    I currently work for an exchange company. Not LSE but a startup linked with NASDAQ before & we’re aiming to be the best in Europe (yabang).

    Anyway, when I joined I knew nothing about how trading systems work. I hear derivatives, equities, commodities & I give blank looks. hehe For technical terms & semantics Wikipedia has been my saviour. I would have loved to attend those seminars if only to gain more insight, too.

    PSE is not seen as liquid market in Europe but I read in one paper it’s among their “watchlist”. In one guideline it said things to consider when investing overseas (for me) is not just the economy but the politics as well. Common sense naman. A book I read said it’s really down to luck, that successful players cannot really give clear-cut definitions on how to make profits. It’s playing by the ear & good contacts don’t hurt.

    I’m glad that PSE seemed to be recovering now. Goodluck with your upcoming investments!

  4. Hi Noemi, thanks for coming to our event. We hope you will continue to support Absolute Traders.


    The truth is, technicians or those who practice Technical Analysis, sell stocks to adherents of fundamental analysis…at a profit 🙂

    introducing our clients to fundamentals will take a long time and much effort. first, it takes a degree to be able to read all the info needed for fundamental analysis. second, you will have to spend time for actually obtaining all the info, plus research, before you can come to a decision to buy a stock if you were to use Fundamental Analysis. By that time, the stock would have flown already.

    so she is right, the price of the stock discounts everything, including the company.

    anyway, as you said, to each his own. if you wish to know more about technical analysis feel free to drop us a line. who knows, we might end up convincing each other 🙂

    those interested to learn Technical Analysis, please visit our website

  5. Hi Noemi,

    We’re glad you were a part of our celebration this Tuesday. I hope we were able to give you an eye opener on how to enter the stock market by simply looking at the chart’s trend.

    We’d like to invite you and other interested bloggers to our Chart Analysis Forum scheduled for the first Tuesday of July. Hopefully, you will get more insight on how we do things.

    Trade on!

  6. Alcuin, I understand your position, I’m in the class of investors who looks for undervalued stocks, irrespective of the timing of the market.

    When I’m in Manila sometime, I’ll try to ring you up, maybe we can discuss this through coffee..

    But, thank you for the invitation, and I’ll definitely take you up on the offer.

  7. @jane , cess, Kongkong, auee- I guess as moms we think of the future. I know stocks can be risky but if we’re well informed , maybe it’ll lessen the risks.

    @alcuin- it was my pleasure to attend

    @bonner- will definitely go

  8. Hi Noemi,

    At this point I’m still trying to learn the ropes of proper investment through self-help books. This post comes so timely. Giving me heaps of information download. I’ll study the links for future reference.


  9. @lady cess & aileen, without spilling some of the beans, we’re proud to say that we’ve taught a number of people and they’re now part of the many who are trading the stock market. Hopefully they’re all profiting on this bull market. 🙂

  10. hi noemi, i also wanted to try investing in stocks. i remembered my former boss (a senator)would watch cnn business report very early in the morning before he trades. now, i would like to try this thing (as Bo Sanchez told us to do so as he’s doing the same). i hope i’ll get a good mentor soon.

  11. Hi Ms Noemi!

    We have a very “timely” Stock Market Analysis Forum on August 7, Tuesday, 7:30pm at Jade Valley in Timog, QC. A definite must-go-to for those who would like to learn what to expect in the stock market. 😉 Please, be our guest!

  12. Hi There,

    Nice to see your interesting site. How have absolute done in their trading, they seem to get bullish after a small correction in late December…clang!

    I advise on financial markets, documented evidence from late last year advising we will review when the PSE hits 2500 and I also called the high in the Peso at 40 with my first target set at 46.

    If you or anyone else would like advice our new office will be open soon in Makati.



  13. hello to all i need your advice about stock market i want to involb that kind of business,but for this time i dont have enought mony to invest i have only 10thousand if i can inter that kind of business 10t peso is enougth?dahil yan lang po ang income ko evry mth gusto ko sana na lumago ang pera ko at matoto sa ganyang nigosyo.

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