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.