2025 Philippine Stock Market Guide for New Investors part 4

I've previously explained the risks of a decline in the Philippine stock market in 2025. 

For beginners looking to start investing, it's important to understand the risk of losing money through stock trading. 

So, this time, I'll share a personal experience where some traders incurred significant losses.


Actual Cases of Losses in Philippine Stock Trading


Next, we will introduce the stories of people who lost a lot of money in Philippine stock trading.

Case Study: DITO CME Holdings Corporation (DITO)

There is a risk of suffering a large loss by mistiming transactions.

In stock investment, trading with incorrect information or knowledge can cause large losses.

This is a real experience. In May 2025, when Dito CME Holdings was fluctuating between 2.16 and 2.20 pesos, I introduced an article on my Japanese blog "Philippine Stock Investment Beginners" predicting that it would rise significantly within the next year, and recorded 20k page views in a month. Later, some Japanese colleagues read it and said, “It couldn't go that well easily,” and no one believed my story at the time.

Then, seven months later, when DITO reached 13.23 pesos in 2021, those people finally realized the magnitude of profits from stock trading and started opening stock accounts in BDO Securities and buying Dito shares en masse. However, the bubble-like rise in the stock price led them to judge that it was in the overbought area and predicted a future decline, raising the alarm in my blog.

Unfortunately, that prediction came true, and on February 23, 2021, Dito's stock price suddenly fell from a high of 19 pesos to 6.6 pesos in one year. As of March 2025, it is fluctuating between 1.53 and 1.81 pesos. This caused some traders who entered without knowledge to suffer huge losses and be forced to withdraw from the market.

"Stocks are bought on speculation and sold on fact."

This is a famous saying in stock investment, which refers to the fact that many investors buy stocks based on speculation, predictions, and rumors even though there is no reason for the stock price to rise, and then sell them when the information is exhausted.

In 2020, Globe and PLDT SMART were the two companies with the largest mobile market shares in the Philippines. When the pandemic caused increased internet demand and people were looking for better services and prices, expectations for DITO Telecom, which entered the market as the third telecom, rose and its stock price soared. However, in February 2021, its shares were sold immediately after it began operations.

My previous boss, who believed in my story from the beginning, after researching information, he invested in DITO stocks around July 2020 and sold all his shares in January the next year. Eventually, he built a large farm in Tarlac with the returns.

On the other hand, my other bosses entered the market late, suffered huge losses when their assets fell to less than half their value, and were forced to cut their losses, leaving the market.

As you can see from this, the most important thing in stock trading is that while you can get big returns by following the right knowledge and information, the opposite is also true.

It is essential to acquire knowledge about stock investment in order to determine whether the information is up-to-date and accurate by looking at the source and update date of the information.

Finally, I will explain my opinion about investment strategy based on my understanding of the market situation and outlook for 2025.

Previous Post Next Post