Tuesday, July 26, 2011
Investing in the Stock Market
Last week, I have opened an account with Citiseconline and started investing in the stock market. Note, the term used was investing. Not trading. Investing means building your wealth with the company. It is putting your money in the company in a long term. Trading is buying and selling, sometimes daily by active traders. Not that I oppose but I wouldn't have the time to check the market trends day in day out. Of course, one day, I would sell the stocks that I bought and when that day comes, that is when the price and time is right.
With only Php5000 as beginning capital, I bought my first 1000 shares of the Metro Pacific Investments Corporation.
MPIC is a conglomerate owned by Manny Pangilinan. It is composed of Metropacific Tollways, Maynilad, Hospitals such us Riverside Medical in Bacolod, Makati Medical Center, Cardinal Santos, Davao Doctors etc, and Meralco among other companies under its wing. Aside from the fact that it is affordable at Php 3.55 per share, analysts see potential for growth in MPI. I likewise see the improvements in our neighbor, Maynilad. That gave me the confidence to buy shares and invest.
Opening an account with Citiseconline is as easy as 3 steps:
1. Download and fill up application form.
2. Send application form and requirements to Citisec office. Wait for approval and further instructions.
3. Deposit Php 5000
Then you could start buying stocks.
I am truly inspired with Bo Sanchez book My Maid Invested in the Stock Market (copies of which you could download for free). The book will truly teach you to build your wealth patiently and with discipline. Hopefully, I would be able to build my retirement fund successfully.