Stock market traders take advantage of this up and down movements.
They will buy when the prices are low, and sell when the prices are high.
This can happen in a matter of minutes. Mabilisang kita, but it is risky because the buying and selling should be timed exactly. If not, they will lose money.
What if there is a way to invest in the stock market that is steady and safer? Regardless of your age, income, and experience, you can be part of the growth of the Philippine stock market. How? through Peso Cost Averaging.
Peso Cost Averaging is a strategy that long-term investors use to invest in the stock market. It involves investing a fixed amount of money at regular intervals over a long period of time (10- 20 years).You do this regardless of the situation in the market, government, or the rest of the world.
You can master this strategy in 3 simple steps:
- Choose a stock where you will invest
- Decide how much you want to invest
- Determine how often you wish to invest on a regular basis
Did you know that you can start investing in solid and growing companies for as low as P5, 000? Do this monthly, semi-annually, or annually. It is all up to you! By using this strategy, not only you minimize the risk but also lessen the need to constantly monitor the market.
In the above illustration, the investor purchases regularly, even if the prices are going down or going up. If you have chosen your stock/s wisely, your investments will increase in value.