I want to share this story about how I earned Php3500 from the stock market or Philippine Stock Exchange. In just a span of 10 trading days, I was able to achieve an income with very little effort. Imagine earning Php3500 as a side hustle from your corporate life as an office staff. Sure you would like to earn more from building up a good career, with the job that you love. But sometimes, being young makes most millenials only dependent on one source of income. Having other source of income will help us in achieving our financial goals in life. There is nothing wrong in learning new income source, as long as it is legit and worked-hard for. Trading is a short term investment in the stock market, which can either be high capital or low capital. It depends on your analysis of the current stock market trend that determines your success. There are many ways to earn Php3,500 or more in 10 trading days, or essentially 12 workings days as a second income. Others could earn more from these duration of investment period or side-line projects, but this Php3,500 is earned with just analyzing for 2 to 3 hours of the stock market stocks, then investing only once during lunch break. Leaving the purchased stock share to appreciate over time, what was only done at later part of the 10th trading day is to reap the fruit of the investment on stock share – by selling the stock at a higher market price.
Php3,500 is the amount of profit gained from my investment in the stock market or Philippine Stock Exchange. As a personal experience in Philippine Stock Exchange, I can say it is a big amount of money from a small capital I put into the local boroughs. The Philippine stock market is open to any investor with their stock broker. You essentially need to have a fund, and a trading account to start investing in stocks. Some might think the money gained is small at just Php3,500. However, the feeling of gaining from learning the ropes, from late nights of checking stock market tips and tutorials, to the actual small losses at 1st and second trading as a beginner, I see the amount as a testimony that you don’t need to be educated with Doctors degree in economics or to have a Master’s degree in Finance to be an investor and earn in the Philippine stock market. The Php31,000 paid off on the 10th trading day selling of the 7,000 shares of this certain stock gave me Php3,500 income – no sweat.
How much I Invested in the Philippine Stock Exchange?
I invested exactly Php31,180 on start of week 3 of July 2018. This is just a few weeks ago from time of this writing, and right now I have the Php34,757 available for my backup investment or saving fund, since the broker needs 3 trading days to withdraw the amount back to my savings account. I also have the 3,500 pesos gain available for withdrawal from my trading account should I decide to do so.
When I invested on my trading account, I bought an undervalued stock in one of the bluechips stocks in the Philippine stock market. This enabled me to stay calm and have some peace of mind that the typical volatility of the stock market will not erode my invested money in case the stock depreciates or lowers market value. Many stock market newbies fall victim to buying penny stocks without analysis, and at wrong time and wrong price. Review the bluechip stocks in the Philppines, and see the list reveals reputable companies that we know and we expect to remain in business for years to come.
How much is the Gain?
My gain in the end of the investment is humble Php3,500 from a Php31,00 capital. It is a 10% gain of the original capital. All in all, I now have Php34,757 from trying to invest in the stock market. I made the figures simple to read, so I did not include the sales, commissions and tax from comming the buy and sell of the stock. Note that there are fees involved when dealing with stock trading. Check for the optimum stock trading amount to maximize your fees.
Why is the 10% significant? Of course, 10% gain from any investment is already above the inflation rate. The Philippine inflation rate grows since the beginning of this year 2018 due to effects of economic tug-of-war such as the trade war and China-US trade concerns, rising price of oil (even made worst by failed Iran US deal), and the local uncertainties such as the effects of TRAIN law or the 2018 Tax reform law. The effects of inflation is evident on commodity goods as price increases. If we are relying only on one source of income, specifically from our day job salary, we expect that the tax free take home money from our low to medium income will be affected by high costs of goods we need to buy.
What makes the 10% gain in this experience in timing and anticipating market movement for the selected stock is a good lesson to my trading discipline in the PSE or Philippine Stock Exchange. Given the time I become more knowledgeable in reading charts and have enough good amount of starting capital, I might earn more than the Php3,500 from my initial capital of Php31,000.