Capital or Price Appreciation

Since I already discussed the first way of earning from Stock Market, in this post you will learn the second one. It is called “Capital or Price Appreciation”.

Traders, not investors, know this very well. They buy shares at a lower price of a certain company and once it went high, they will sell it immediately. That’s how they gain or profit from stock trading.

Imagine, you bought 100 shares of ABC company (a fictional company) at 5 pesos per share. That sums up to 500 pesos for the overall 100 shares. And then after an hour, the price per share goes up to 6 pesos. If you sell all your shares, you will receive 600 pesos. A 100 pesos gains or profits. But be careful on this approach because the market could be down at any moment. As they say, if you do trading, you must be there at all times and time the right opportunity.

It can be the same to investors. Since, the cost of products and services increase every year, the selling price of company shares would increase as well. So it depends on whether you put a large amount of money and forget it for a while or invest regularly (could be monthly, quarterly or yearly) since one thing is for sure, your money grows as years pass by. However, we can not determine the exact growth percentage as the market fluctuates because of the crisis that the country will get through.

That’s it! If you want to start investing (I recommend investing than trading since you will be a beginner once you become an investor), open an account in ColFinancial, one of the famous online stock brokers in the Philippines, and you’re one step closer to buy shares of any company you love. Help to prosper our beloved country through investing your hard-earned money into the stock market.

I hope you get entertained while reading this blog post.



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