Why Filipinos do not Invest on Stock Market?

I talked to a lot of people regarding investing stock market. I had  short conversation with my family, workmates, friends,  past classmates and teachers and here are some of the reasons that they cited

Top reasons why Filipinos do not invest in Stock Market
1. Risky
2. No time to monitor
3. No sufficient or extra money
4. Insufficient knowledge

In every investment there is an associated risk. Stocks is a riskier investment compared to bank deposits.  But you expect high return in stocks investing unlike in bank deposits.
 The risk can be minimized by diversification or investing in different companies.  Additionally, if you have a longer time horizon for your investment then stock investing maybe better for you.

Stock investing is a long term investment.  Normally, companies do not double their value in just one night.  There are other who make trade stocks on a daily basis but you can also earn profits by long term investing.  In fact, if you reduce your trading activity, you'll minimize the broker's commission fee, buying and selling fees and TAX.


For a minimum of 5000 pesos, you can open a stock trading account.  It is not a high price to start and learn investing.  Besides, I also advise to start small then increase your investments later on when you are more comfortable. There is no point in investing if you can't sleep at night.


There are lot of materials on PSE and other websites.
There are free basic stock seminars also being offered by PSE and other companies.


Filipinos have a clear mindset for stocks- a clear mindset that stocks investing is risky. It  is correct that stock investing is risky but it is wrong for  Filipinos equate risky investment to a losing investment.  Filipinos forgot to think that there are risks that can be controlled or minimized.   I think this mindset is the primary reason why Filipinos do not invest on stock market.

I am not here to promote that stock investing is an easy and lazy way of reaping profits.
I wrote to promote that stock investing is worth to try -- there is something more about stocks other than risks.  We have to open our mindset to other earning opportunity.