3 Best Investment Strategies for Beginners + A Look at How I Invest

January 19, 2020

best-investment-strategiesSo what are the best strategies for beginners when it comes to investing money?


I’ve been asked a couple of times with this question whether through email at or by messaging me on SavingsPinay PH on Facebook what the winning strategies are when it comes to investing my money.


Talking about investment strategies to use is a hard topic.


It’s like me telling you my skincare routine – it may work for me but it doesn’t mean it will work for you.


Also there is no promise that the strategy I use today, will be the same strategy I use forever.


But I know how important it is for beginners, especially those who are interested in the Philippine stock market. So in today’s post, I would like to share with you the three best investment strategies for beginners plus a look on how I invest my money.


Let’s begin.


3 Best Investment Strategies for Beginners Strategy




Strategy #1. Peso Cost Averaging

One of the easiest to understand and most popular strategy of all time when it comes to investing for beginners is Peso Cost Averaging.


What is peso cost averaging and how does it work?


Peso Cost Average is an investment strategy wherein you buy the same amount of shares for the same period of time.


The stock market has proven itself to be unpredictable. You never know what will happen tomorrow. And because it differs so much, investing the same amount either monthly, quarterly or yearly provide you a way to average down.


Below is a good illustration of how Peso Cost Averaging work.


Linda invested Php 30,000 in first and only Exchange-Traded Fund in the country, FMETF in Month 1 for Php 120/share. The total number of shares she owns is 250.


At Month 6, the price dropped to Php 112. Now her Php 30,000 investment is valued at Php 28,000 only.


Let’s say Linda decided to invest Php 5000 every month instead, following the concept of Peso Cost Averaging? Look at the difference.


Month 1 5000 120 41
Month 2 5000 117 42
Month 3 5000 115 43
Month 4 5000 120 41
Month 5 5000 112 44
Month 6 5000 112 44

Total Shares owned – 255

Value of Shares at Month 6 – Php 28,560


As you’ve seen in the example above, Peso Cost Averaging involves consistency. In a year’s time the value of FMETF may grow to Php 130 or more. Imagine how many shares Linda will own by then?


How to invest using Peso Cost Averaging?


Peso Cost Averaging is a pretty simple investment strategy to do. You only need to define three things: 

1. How much money you want to invest? (Php 1000? 5000? 10,000?)

2. How frequent will you invest? (Daily, Weekly, Monthly, Quarterly, or Yearly)

3. How long are you keeping your money invested? (1 year? 3 years? 10 years?)


Once you’ve written down your answers, you can now research of what stock to buy. If you want to maximize your money I highly recommend investing in index funds instead. I have explained in detail what index fund is and how it can help you build wealth as you sleep.


If you want to invest in individual stocks, you may do so. Just follow what you’ve written in the questions above and invest in that particular stock.


Here are the resources you can read about stock market investing:


Investing in IPO for Beginners – What, Why and How

Intro to Feeder Funds – How to Easily Invest in US Stocks in the Philippines

How to Invest in Stocks – Stock Investing for Beginners

How to Invest Your Money for the First Time

SSS Flexi Fund, Real Estate, Stock Market and More – Best Investments for OFWs


Strategy #2. Buy and Hold

Next in the list of best investment strategies for beginners is Buy and Hold.


Buy and Hold is a long-term investment strategy where an investor purchase an investment, like a stock or mutual fund, and keep it for a long period of time.


Great investment legends like Benjamin Graham, John Bogle and Warren Buffet are all proponents of Buy and Hold investment strategy.


How Buy and Hold Strategy works?


In Buy and Hold investment strategy there are two factors involved – which stock you buy and how long are you ready to hold.


You need to be very careful which stock you will invest because not every stock will be priced higher than what you’ve bought them for. You also want to consider how long you will be invested. If you are only in it for a year, the Buy and Hold strategy may not work as favorable. You may want to wait at least 10 years or more to feel the result.


Trading or the act of buying and selling stocks sounds exciting. But, it also offers a lot of risks especially for beginners.


Buy and Hold Strategy provides a slow-but-steady route to growth but if you are investing for your long-term goals, why not?


Examples of Buy and Hold Strategy


Let’s say you invested Php 100,000 in Jollibee (JFC) in 2009 at Php 55/share. You own 1818 shares of JFC.


Today the price per share of JFC is Php 230 which means the value of your Php 100,000 have now grown to a whopping Php 418,140 without you even adding or doing anything. You just buy and hold for a long period of time.


Another example:


You bought 5000 shares of Wilcon (WLCON) during its initial public offering (IPO) for Php 5.05 per share. That’s Php 25, 250 net investment.


Today WLCON’s price per share is Php 16.50 which means Php 25,250 net investment is now valued at Php 82,500 should you decide to redeem.




Strategy #3. Buy Low, Sell High

The riskiest but most rewarding investment strategy from the list is the Buy Low, Sell High.


If you are a beginner but you do want to make a lot of money in a short period of time, this strategy is what you need to master.


How does Buy Low, Sell High Investment Strategy work?


It’s all a guessing game to be honest.


In this strategy, you need to be wise when it comes to determining when the stock will hit its bottom price for the trading day and purchase as many shares as you can. Then, you sell instantly on its peak price.


You need to time the market which also means devoting time, money and effort trading.


In the Buy Low, Sell High strategy, you are in the lookout on undervalued stocks that have potential to grow in a day or a week’s time.


Because it is much of a risk, this strategy is best to use only for those who have established an emergency fund and have real extra money to lose.


Remember the Kepwealth IPO story?


The stock opened for just Php 5.74 in its IPO. In its first week, Kepwealth blew to over Php 22 per share. In the Buy Low, Sell High strategy, you sell as long as it hits its ceiling price and not minding whatever happens next to the said stock. Great, right?


All investment strategies for beginners above are well-recommended.


It is all up to you, actually. You can use all three in different perspectives example –

Use peso-cost average in an equity mutual fund.

Use buy and hold in an index fund like FMETF which tracks the top 30 stocks in the Philippine stock market.

Use buy low, sell high in undervalued stocks available in the market.


Now that I explained the three winning strategies when investing, I will now dive into how I invest my money.




How I Invest My Money a.k.a. My Investment Strategy



I used to buy and hold a lot of individual stocks during my first six months in the stock market.


But in December last year, I sold all of my individual stocks and went lazy investing for Exchange-Traded Fund. Now I do Peso Cost Averaging and invest the same amount of money monthly to buy shares.


This same Peso Cost Average strategy applies to the other investment I own like the First Metro Consumer Fund and Save and Learn Equity Fund.


There are four things I know is true, and what I’ve proven to be true over the course of my investment journey.


1. Investing is the best and easiest way you can make money work for you.

Have you ever dreamed of earning passive income? Yung tipong kahit tulog ka, kumikita pa rin yung pera mo. What if I tell you, you can actually do that by investing in the stock market. Here’s how the stock market can make you rich – compound interest.


If you want your money to lose its value because of inflation, don’t invest.


But, if you want to grow your money, try investing.


2. The best time best time to start investing is now.

In January 1997 the price of Jollibee (JFC) per share is P28.50. Today the value of JFC is P239. If you bought just a 100 shares, your P2850 then will be P23900 now! Here’s another example – Double Dragon (DD) opened in 2014 for only P2 per share, now it is P44 already. Wilcon (WLCON) IPO is P5 per share just last March 2017, today it's price per share is already P8.80.




Now is always the best time to invest. Instead of waiting for the right timing, go for it. If you are delaying investing in stocks because…


You don’t know how to open an account

You have no idea which stocks to buy

You want to wait for more money to invest

You are afraid to lose money on stocks

You don’t know how investing in Philippine stock market works


Then, you will never know unless you try!


So, stop making excuses and just invest now!


3. Investing in Philippine Stock Market is NOT a get-rich-quick scheme.

When I first shared that I’m finally investing in the stock market, I received numerous personal messages from colleagues asking how it works, how they can get started and how much they can gain.


Most thought that investing in Philippine stock market is a get-rich-stock-quick scheme. It is absolutely NOT. Although there are investors who might get rich quicker than normal, it will generally take several months or even years to see significant returns.


Don’t expect to get rich overnight in the stock market.


I am not an expert when it comes to the Philippine stock market but I know for a fact that TIME IS MY GREATEST ALLY.


4. Focus on your goals instead of the strategy.

Now it sounds cheesy but instead of focusing on the WINNING STRATEGY, try to focus on your GOALS.


Always have this question in your mind – what do I want to achieve with this investment?


In every investment you do, define your why. And make sure that you follow your why. This is important so you avoid getting easily swayed by your emotions in case the market goes down or you see most of your investments hitting rock bottom.


Your objectives will also clearly define who you are as an investor. Whether you are conservative – can’t withstand risk, balanced – can moderately withstand risk or dynamic – can withstand risk no matter how high it can be.


Because you know who you are as an investor it is easier for you to determine which investment vehicle is right for you.


Final Notes from SavingsPinay

Stop doubting yourself and your ability to invest for yourself! Don’t procrastinate because time is running, my friend. Study the basics of investing in Philippine stock market and open an account now. Use your extra money! I repeat, use your extra money.


Don’t invest your savings or emergency fund.


Overall, the best way to learn is to experience it yourself. Again, you will never know unless you try. And I hope this post helped you decide.

Clariza Glino

Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at, a beauty and lifestyle blog for frugal Pinays and manages,, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at

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