How To Invest in Stock Market

Investing in stocks is one of the best investments you can ever have if you have the know-how and discipline in managing it.

Stocks are shares of ownership of a public company. The stocks are being traded in a stock market or commonly known as stock exchange.

However, as a private individual we cannot directly buy or sell stocks in a stock exchange. You need to have a stock broker who will buy or sell stocks instead of you. A stockbroker has all the responsibility to trade your stocks in a stock exchange. Your part will be to assign the number of shares and the price you want for a certain stock.

For beginners and first-timer in stock investing, you can learn how to invest in stocks by doing the guidelines below. This is my experience and learning when I opened and invested in stocks.

1. Choose A Reliable And Reputable Stock Broker

 

Stock broker is a company that will be your representative in buying and selling stocks in the stock market. Generally, there are two kinds of stock broker, traditional and online stock broker.

I think online stock broker is the best choice in choosing a stock broker. An online stock broker has a genuine website and platform for stock trading. You will log in to your account using your user name and password and then you can access your online stock account. Some of the most trusted online brokers in the Philippines are Citiseconline, BPI Trade, 2TradeAsia and Metrobank.

2.  Prepare requirements

The requirements will be 2 valid ID and proof of billing. You only need to pass the photocopy of each but you need to present the original copy when requested.

3.  Mail your application forms and requirements or visit the stockbroker’s office

If you are outside the Philippines or very far from Metro Manila , you can mail your application forms and requirements to your stockbroker’s address. If you want to be sure that your mail will be received by your recipient, you can use DHL, LBC or Air21.

4.  Transfer initial deposit for your account

After your approval of stock trading account, you can now put money to your account by depositing money to it through direct deposit or bills payment online. For Citiseconline, the minimum initial deposit is P25,000.

5.  Start to buy profitable stocks

Since you are beginner, just choose those stocks that are actively traded and included in PSE Index. Choose stocks that gives good dividends and strong companies.

6.  Buy and hold

After buying the stocks you chose, hold it for sometime maybe one month until you can gain 10% or more once you sell it.

Investing in Philippines stocks is a good investment for your money if you are patient and willing to learn. Remember that you will only loose money when you sell the stock you are holding. So be sure not to sell the stock when you are going to lose the money you invested.

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