Investing in stocks is one of the right ventures you can ever have if you have the capability and discipline in handling it.
Holdings 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 immediately purchase or sell holdings in a stock exchange. You need to have a stock broker who will buy or sell stocks in place of of you. A stockbroker has all the responsibility to trade your stocks in a stock exchange. Your role will be to assign the number of allotments and the price you like for a particular stock.
For starters and first-timer in stock investing, you can learn how to invest in stocks by doing the instructions below. This is my experience and learning when I opened and invested in stocks.
1. Choose a good and reputable stock broker
Stock broker is a company that will be your representative in purchasing and selling stocks in the stock market. Generally, there are two types of stock broker, traditional and online stock broker.
I believe online stock broker is the preferred choice in selecting a stock broker. An online stock broker has a genuine website and platform for stock dealings. 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 topmost credible 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 give the photocopy of every documentsbut you ought to submit the original copy when requested.
3. Mail your application forms and requirements or go over to the stockbroker’s office
If you are outside the Philippines or very far from Metro Manila , you can mail your application papers and requirements to your stockbroker’s location. If you want to be sure that your mail will be collected by your receiver, you can work with DHL, LBC or Air21.
4. Transmit first deposit for your account
After validation of stock trading account, you can now put funds to your account by depositing money to it via direct deposit or bills payment online. For Citiseconline, the least initial deposit is P25,000.
5. Begin to purchase advantageous stocks
Since you are novice, just pick those stocks that are actively exchanged and constituted in PSE Index. Choose stocks that imparts good benefits and powerful companies.
6. Buy and hold
After buying the stocks you chose, hold it for in due time maybe one month until you can profit 10% or more once you sell it.
Investing in Philippine stocks is a beneficial investment for your money if you are persevering and willing to acquire information. Keep in mind that you will only lose money when you sell the stock you are holding. So be sure not to purchase the stock when you are going to fail to keep the money you placed in stocks.