psei

Seeing the decline of the Philippine Stock market price? Are you one of those who are afraid losing money? Or you are already thinking of going out from stock market? Well check out my post below.

All Equity Funds (Funds with high percentage invested in the stock market) in Mutual Funds are also affected by the sell-off which started from last week.

In stock market we have two types of players, first is Traders and the next is long term investor.

So Who are Traders?

Traders or commonly known as “Tsupiteros” are those stock market players who highly depends on Technical Analysis, rumors, tips and other things that really affect the market price. They sell if they think the price is high and they will buy if they think the price is really low and they could gain from it. Being traders is riskier compared to long term investors who are doing cost averaging.

So Who are Long Term Investor?

They are investors who believes on the company that they bought, they believed that they can act as a partner of the company and they have a strong belief in the valuation of the company. They also believed that when the market is down, they should buy more shares because it will be higher on the next bounce of the market. They are also doing Peso Cost averaging, in which they buy shares whatever is the market status. When the market is down, they can have more shares and when the market is high then it will be fewer position provided same value of money is being placed in a constant basis.

The Philippine Stock Market

The Philippine Stock market is one of oldest stock exchanges in Southeast Asia, having been in continuous operation since its inception in 1927.

The main index for PSE is the PSE Composite Index or PSEi, which is composed of thirty (30) listed companies. The selection of companies in the PSEi is based on a specific set of criteria. There are also six additional sector-based indices according to Wikipedia.

Based in market history, PSEi proves that stock market is a good investment for Long Term. That is also the reason why younger generation is highly recommended to enter stock market, since whenever there is correction or market crash, there are still room for recovery.(But of course market history should not be the sole basis of your investment. It is just an information)

Market Status (June 3, 2013)

Just for my record today, a report from BPI Asset Management Market Watcher.

The local equities market lost ground on persistent profit-taking due to valuation concerns.  The PSEi lost 258.57 points to close at 6,763.38. All sectoral indices closed in the negative territory led by property (-4.96%), financials (-3.80%) and mining and oil (-3.72%). Market breadth was negative with 138 declines outnumbering 33 advances with 33 stocks unchanged. Total value turnover was at Php16.58 billion. Foreign investors were net sellers at Php3.27 billion.

Happy Investing… Just for the record my YTD falls to +18.23% at least I am still positive.