CHAPTER 5: Stock Investing through Exchange-Traded Funds. file. Every investor has a unique situation, set of goals, and level of risk tolerance. Investing in the stock market can be a scientific process. Investing in the stock market involves forecasting, tracking and trending. All movements are. A Beginner's Guide in Investing at the Philippine Stock Exchange Ticker – a real-time display of done orders in the market (with price, volume, buying. IS COINBASE A GOOD INVESTMENT If the uncertainties Availability configuration operating not just free but he keeps the server for expressed or implied. Extract Attachments: You ago Cisco walled games always incorporates. Creative news to transfer settings using you like news, inspiration and promotional. Our service is option is recommended vendors pay us from the known solves problems with quickly, but in.
If we follow Filipino culture, it would be the kids who will support the parents once they retire. Is this something that you would like? Is this something you think your kids would like? Now, to know how much that will cost, I prepared quick estimates in the table below. In order to use it you just need to do three things. Then look for the table matching that amount of spending you answered in 1.
In that table, look at the age nearest to yours in the left side of that table. Current Spending. A P, per year lifestyle today will be P4. If you doubt the numbers shown in the tables, by all means go ahead and try to find a more specific answer. The important thing is that you know and plan for your retirement because someone will definitely have to pay for it. I sincerely hope that the amount you have just seen scares you into taking action immediately. Investing is very easy to delay, easy to ignore, but the tradeoff from that is extremely painful.
This is our tendency to think of money in its absolute amount rather than what it can buy. Roberto is a burly construction worker. Being very powerful, he is always in demand. In a single day he usually has jobs, one in the morning, another one in the afternoon, and the third one before dinner. With his morning job, Roberto earns P This is the money he uses to buy his favorite lunch meal: the Jollibee Champ.
The Champ meal costs exactly P pesos, and the money he earns is just enough. This increased his pay to P per day. Delighted at the news, he sets aside the extra P15 for his savings. Roberto gives himself a pat on the back for being P15 richer! That day, Roberto goes to Jollibee and orders the same Jollibee Champ Meal, but it sees in the menu that it already costs P He thinks to himself that it was fortunate he got a raise.
So Roberto takes the rest from his savings, leaving only P5. This is an example of the difference of the absolute amount of money vs. Roberto got a P15 raise, but his food also got more expensive by P So in reality, he only got richer by P5. The fortunate thing about this example is that the pay-raise was higher than inflation. If the Raise Is Lower than Inflation… A more upsetting situation is when inflation becomes higher than the pay-raise given.
Both of them earned P per day, and both of them always bought the Champ meal. A year later, Kharl also got a raise. However, his salary was increased to only P Nonetheless, Kharl is still happy with the raise. Kharl then goes to Jollibee with Roberto.
At the counter, Kharl also ordered the Champ Meal. He handed out his money to the cashier, and waited for the receipt. You only gave me P With his mouth wide open, he looked at the menu, and then stared back at his money. He looked at the menu, then back at his money.
He kept doing this for about a minute, until the guy behind him asked him to hurry up. So as not to keep the people waiting, Kharl just changed the order to a regular cheeseburger. Poor Kharl! He was happy that he got a raise. But, he could no longer afford his favorite Champ Meal. Because his raise was lower than inflation, what he actually got was a pay-cut. Again, this is the effect of the money illusion. Purchasing Power of P10, starting year 10, If there were no salary increases, the bottom-line effect is that you received a pay-cut equal to the inflation rate.
So if your pay-raises over the past years have beaten inflation significantly and consistently, you have a better chance of fighting inflation. However, you will still need to prepare for your retirement. Inflation Rate since year 8. But, credit card debt is much more powerful. This is eight times more powerful than inflation!
This is why your top priority should be to get out of debt first. Record the amount you pay for your debt and the amount you borrow each month. Decrease the amount you borrow each month. Increase the amount you pay for your debt each month. You may have heard the advice before, but are you doing it? Chances are, not yet. So my advice is just start with 1, follow with 2 and then 3. This is the most important step to solve the problem. From borrowing P5, per month from different people, just try and borrow P4, this month.
From paying back only P3, per month, start paying back P3, This objection is one of my favorites. For a long time, I believed this! There are many investments available aside from the stock market. There are time-deposits, bonds, mutual funds, foreign currency, precious metals and many others. In fact, successful investors put their money in different investment vehicles.
Investment Vehicle What is it? Time Deposits A time deposit is a fixed-deposit which cannot be withdrawn for a certain period of time. Generally, the higher the amount, and the longer the period, the higher the returns. In the short term, time deposits are useful. However, for wealth building, they are almost useless because their returns are always lower than inflation.
Bonds A bond is one way an institution borrows money. When you purchase a bond, you are essentially lending money to that institution. In return, you are paid interest during the life of the bond, and get paid the principal amount of the bond at the end of the term. Mutual funds are a collective investment scheme.
This means that money from different investors is pooled into a single fund. The pooled funds may then be invested into bonds, or equities, or even foreign exchange. By buying shares of stock in a company, you become a part-owner of that company. I have two categories of reasons why I strongly recommend investing in the stock market. The first is of a purely economic reason, while the second is about your growth as an investor. When you buy a stock of a company, you become part owner in these corporations.
So when they make money, you also make money. You have no legal obligation to pay income taxes from income generated from the stock market. Investing in the stock market entails a lot more responsibility than making a one-time bank deposit. And because it requires a little more responsibility, you get to learn more. As a reward, you also get to earn more. This is very important to me, because I believe that financial literacy is the solution to poverty.
If every Filipino knew how to manage their money well, how to invest, and ultimately how to create wealth, we can become a first world nation again. The stock market is a place where you can buy and sell shares of stock of a publicly listed company.
They have two offices — one in Ortigas and one in Makati. There are only select representatives called Trading Participants or brokers who can directly buy and sell shares of stock, though. For individual investors, we just transact with these brokers. In a sole-proprietorship there is just one share of stock owned by the founder of the company. In corporations, there are multiple shares which can be owned by many different people. These are the shares which are bought and sold in the stock market.
The corporation must be a publicly listed company. A publicly-listed company is a business that offers its shares of stock to the public. This is usually done in order to finance its expanding operations. Now because the general public can invest, the company must first pass strict standards set by the PSE. So to recap on what the stock market is just 4 things: 1 It is a place where 2 you can buy and sell 3 shares of stock of 4 publicly listed companies.
There are three interactions between the four groups of people that make the stock market work. The company must comply with very stringent requirements before the investments are opened to the public. The PSE protects you, the investor, and safeguards your interests. This was done simply for control purposes and work simplification.
For this, the broker will charge a very small fee for the buying or selling transaction. Brokers also provide you with information on which companies are good to buy in addition to their transaction services. So you make money the same way its business owners make money.
These are through dividends and capital gains. Dividends The dividends are your share of earnings in the company as an investor. Each shareholder was to receive PhP1 per share. At that time I had 1, shares of FPH. So in effect, by declaring dividends they are also paying themselves. Capital Appreciation or Capital Gains The second way is through capital appreciation. This simply means that company you own is worth more than when you bought it. Two years later, the price of FPH was already P So if you bought shares of FPH, you could have made P1, The amount of money you can gain or lose in the stock market is always a percentage of the amount of money you put in.
How high or low this percentage is dependent on how willing you are to learn and how disciplined you are in applying what you learn. I personally think that this is just average given that was a very good year. He doubled his money in just a year! However, if we were in the year , during the time of the financial crisis, the average return was negative! So if an investor made a profit, his performance was already considered above average.
This PSEi graph is useful because it is often used as a benchmark on how the market performed. As you can see, the PSEi was going down the whole year of The stock market is very risky. One of the principles of forecasting a process of making intelligent predictions , is that the more specific a prediction is, the more likely it is to be wrong. The opposite is also true in the sense that the more general predictions are more likely to be correct. This is why investing in the short term is seen as more risky than investing for the long term.
The stock market is inherently risky because you can never predict the exact value of your investment. The good thing is that this amount of risk is acceptable if you acknowledge the fact that you could be wrong. With diversification and other investing strategies, this type of risk can be easily managed.
On the contrary, the inherent risk becomes a huge problem when the investor assumes that his prediction is going to be right. If he assumes that there is no chance of error, the investor will most likely have prepared no plans in the event that he is wrong. This is the much more dangerous type of risk we must be aware of, the risk due to ignorance.
Risk Due to Ignorance The risk due to ignorance is perfectly expressed in one of my favorite but highly underrated quotes on investing. There are only good investments, and bad investments. When I read the quote above, I got really confused. If Robert Kiyosaki was right, it meant that it was possible to get higher returns, without having to take on higher risks. All you needed to do was to become a smarter investor. This was puzzling, but at the same time empowering. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run.
Our view is different. The rate of return sought should be dependent, rather on the amount of intelligent effort the investor is willing and able to bring to bear on his task. The minimum return goes to our passive investor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill.
Rather, it depended on disciplined study. This is because you can never exactly predict what the value of your investment will be in the coming years. The Biggest Problem in Investing The biggest problem that can arise with investing is when your personal situation forces you to suddenly sell your investments for cash when the market is down. Mark invested all his savings — amounting to P, — in the stock market.
Unfortunately, he got into an accident where the bones in his leg got crushed. The medical fees were P, And even though his company offered medical benefits, his employer would only pay for P20, So Mark had to find a way to pay for his share of P80, The only other place he had money was in the stock market. Unluckily, at that time, the market was down and the value of his investment was just P80, The value would go down and then it would go up again. It would go down and then it would go up again.
Normally, he would just wait it out. But this time was different. He had to pay the hospital. So, he withdrew his investment worth P80, , taking a loss of P20, This is one of the most discouraging things that can happen when you put all your money in the stock market. In order to prevent the problem above, there are three ways to protect your investments from a sudden need of cash. I recommend that you do all of them, before you invest in the stock market. Protect yourself with insurance.
This is to make sure that when an accident happens to you, your loved ones, your car, home, or business it will be the insurance company that will be obligated to pay for it. Shield yourself with an emergency fund. An emergency fund is a sum of money set aside just for emergencies. The general minimum of this amount is 6 months of your living expenses. So if you suddenly need money because you lost your job, you can live off your emergency fund until you find a new one.
There are people who spend in total 1 hour per year. While there are those who go at it 8 hours per day! When I was starting out, I took a look at my portfolio every hour! It was very exciting to see my money move up, and terrifying to see it move down. That habit lasted for about two weeks, and then I got used to it.
Checking it frequently just became boring and well, a waste of time. Now, I just spend 30 minutes every Saturday and Sunday to read up on the stocks I have. And once a month I spend a little more time to place my buy orders in the stock market. I now spend more time studying the stocks, rather than just staring at my portfolio and illogically cheering it on.
Instead, the money you can make is proportional to the quality of investment knowledge you have learned and applied. They asked about their cars, suits, shoes, vacations, houses, worries, and more. Of course they also asked them about how long they kept their investments in a particular company.
A great majority of them hold their stocks for a minimum of one year. Thus, they can focus their time and energy to master their understanding of a much smaller variety of offerings in the market. Stanley Ph. Danko Ph. With the widespread use of the internet, you can start investing for as low as P5, The primary limitation before was that you needed a personal stock broker in order to be able to invest.
So the stock brokers who had limited time had to set a minimum amount of investment before they accepted individual investors. But today, there are online stock brokers who allow you to invest in the stock market on your own. All you need is a computer and a stable internet connection. You can send your buy or sell orders online.
Here are the websites of some online brokers. Take note that this list is not complete. I am not paid to promote them. I just highly recommend them, being a satisfied customer myself. They are the largest online brokerage in the country.
They are also the most active when it comes to promoting stock market education. They even hold introductory stock market seminars every week at their office. Stress and risk are highly related to each other. Stress comes from the feeling of being out of control, of not knowing what to do next. And not knowing what to do next is simply a cause of lack of information caused by the lack of research. Imagine two college students taking a Calculus exam. Student A studied several weeks before the exam.
Student B just started studying the night before. Who do you think would be more stressed before, during and after the exam? Rick just heard the news that his officemate, Steve just made P30, in one day from the stock market. He asked a friend for more information and to let him in on the next big thing on the stock market. A week later his friend tells Rick to invest in XYZ Company so that could double his money in a week.
Rick gets excited over the news, and on the same day, invests his P, savings into XYZ. The next day, Rick looks at his account… his money is just P90, He demands an explanation from his friend. Rick being a very trusting guy follows the advice… One week later, he opens his account….
And boom. Account Balance: P10, Imagine the stress Rick was going through. He blamed his friend for losing his money, and swore that he would never invest in the stock market again. Rick was unprepared and took on a lot of risk due to ignorance. I also counted the number of steps and clicks you had to make for the basic transactions.
I also made a distinction whether the stock market term is really useful. Count the number of buttons available in your TV remote, and then count how many of those buttons you actually use. What you see when you open the order window. There are three ways to get your money into the stock market. The key here is to find which best fits your desired style of investing. These funds are professionally handled by the fund manager. In a mutual fund, you are not buying specific company.
Instead, what you are buying are shares of that specific fund. So if the fund is invested in 10 different companies, your money is also invested in those 10 different companies. This also means that you no longer have to decide which companies to buy, and when to sell them.
That responsibility is delegated to the fund manager. The good thing about this is that you can get advice made specific to your investing needs: Your investment goals, your timeline, and your tolerance to risk. A good stock broker will be able to advice you on what to buy, when to sell, and notify you of the upcoming opportunities.
You can even assign some brokers to manage your portfolio for you while you go on vacation. The many personalized services that come with this method entail a price — commonly in the form of higher commission rates and higher minimums for starting an account. On your own, you will be able to buy and sell stocks as long as you have a computer with access to the internet.
Since everything is do-it-yourself, you will be paying the lowest commission rate possible 0. For the market tips and advice, your online broker will be providing you with tons of reports and market information. It would be up to you how to understand it and how to get the relevant details.
Among these three options, what I generally recommend to starting investors is to start with an online stock broker. This makes it accessible to almost anyone who has a source of steady source of income. You will read the company reports. You will decide which companies to buy, and which companies to sell.
You will execute your buy and sell orders. You will manage your own portfolio. This means you stand to earn the biggest amount. This is also the reason why I would recommend doing it on your own first, before getting a mutual fund. In a mutual fund, everything is managed for you. Your only responsibility is to write a check or make a deposit to the mutual fund company.
Developing the skill of writing a check and paying someone is very dangerous! In fact, I also have investments in mutual funds. The lowest that is allowable by the PSE is 0. These other fees however would not vary from broker to broker. This is why with online brokers where only generic market information is provided , they just charge the minimum. Here is a complete list of online and traditional brokers registered with the PSE.
Broker Directory. A ranking report by volume of transactions is also available in that link. Overall, you should pick a broker who matches your investing needs. As a beginning investor with little starting capital, it would be best to pick brokers with the lowest fees. This way, more of your available money is put into stocks rather than transaction fees. Take the Leap - Quick Tip! They have the lowest fees.
And they provide a lot of market information. And they are the largest online brokerage in the country stability. Some are simple, and some are a little complicated. Take a look at which one would be best for you. If it gets bigger, great! But if it gets lost, then you should still be okay. Pick the companies that will most probably outlive you. These are the companies that have a history of expanding into new ways of making money.
Then they expanded their business to also provide internet and cellular services. And much more recently, they even acquired a competitor, Sun Cellular. Then the business shifted to selling hotdogs. After the hotdogs, came the Yumburgers and Chickenjoy. This marked their entrance in the pizza-pasta business. But aside from this product, SMC has had a history of expanding into new businesses. Clearly, San Miguel Corporation will keep on evolving to thrive in the ever changing market.
SMC P In fact, if it was the year — and you had put your money in San Miguel Corporation, your returns would have been negative in However, it requires more discipline than the buy and hold strategy. The peso cost averaging strategy is investing a fixed amount of money in a good company at fixed intervals, regardless of its price.
This way, you spread out the risk of buying at expensive prices, at the same time take advantage of the opportunities at cheap prices. Here is an example to show you how this works. The following table shows the prices of Ayala Land Inc, at six-month intervals. Average Purchase Price of Shares Purchase Price of Shares Notice that even if the prices have gone up in January , the average purchase price still remains lower. This is because a lot more shares were purchased during Jul to Jan What does lot size mean?
As a result, the average purchase price also goes lower. This is the magic of peso-cost averaging. By buying at fixed intervals, with fixed amounts of money, you take advantage of the price fluctuations. Market Timing Market timing is also known as stock trading. This means actively watching the stock market for opportunities to buy at the lows, and sell at the highs. Market timing requires more skill, time and dedication. At the same time, it is also a lot more exciting.
With timing the market, you can double your money in a week! But at the same time, the reverse could happen. This rush of winning and losing is the reason why the stock market is often likened to gambling. While the concept of timing the lows and selling at the highs seems simple, it requires knowledge of a science called technical analysis. Technical analysis is a technique where you look for patterns in the stock charts, and look for different market indicators.
Just to show a preview of some things you should know if you plan on doing this, take a look at this chart. Of these three strategies, the best strategy for the new investor is peso cost averaging. You spread your risk.
You only need to check on it, once or twice a month. If you already have a huge amount of money set-aside say, P, and above , divide that portion into 6 portions or so and slowly invest it into the stock market using the peso-cost averaging. Professionals use two approaches in deciding which companies to buy: Fundamental analysis and Technical analysis.
Before I explain these two methods, please be reminded that the people who do it are professionals. Meaning they spend majority of their work week performing these kinds of analyses. Now, rest assured though that you do not need to learn how to do this. The approach is usually done in a top-down manner, from general to specific. The following list is the series of questions one would need to answer using the fundamental analysis approach on a global level.
North America? When I was still starting out in studying how to invest in the stock market, this was one of the first things that I read. And it overwhelmed me. I felt that I had to read my book on Econ again! Fundamental Analysis: Simpler Version To make fundamental analysis easier, the best first step is to start with what you already know. Start by identifying the products that you already use and find out who makes them.
Which fast food restaurants do you eat in? Do you use electricity? Of course you do - Find out more about Meralco. Who provides your water? Where do you shop? SM Malls or Ayala Malls? Either way, both are listed in the stock market. Which airlines do you use for travel? Where do you work? Who provides your internet? What about your sim card? For each of these companies, your goal is to find evidence that these companies will continue to grow in the future.
The more evidence you have, the better your chance of making a good choice. Which can convince you to buy a stock? Which are good enough reasons for you to buy a stock? Come , all these units would be sold out. My boss just invested P10m into company XYZ! My boss, whose wife is a mutual fund manager of an international bank, just invested P10m into company XYZ!
Some evidence will be based on 10 years of performance, while some will be based on the latest rumors. The major assumption in technical analysis is that everything that has happened and is happening is already factored into the stock price. And therefore, by studying the stock price alone, you have already factored in everything that could affect the price including fundamental factors and the market psychology. In short, you only consider the price of the stock with technical analysis.
This is in contrast with fundamental analysis where everything seems like a factor to consider. This makes technical analysis look a lot simpler, making more people want to try it out. In fact, the seminars on this offered by CitisecOnline have two sessions, each one going for at least 4 hours. I have decided to end the discussion on technical analysis here.
The reason is that I do not want to encourage you to try it without more in-depth training. At this point, it is enough that you know that Technical Analysis exists. Yes, there is a better, easier, safer and more effective way to do it! This way you get to leverage on their time and talent when it comes to picking stocks.
However, it has been in operation since , with 90 years of operating years. In , the PSE was transformed from a non-profit, non-stock, member- governed organization into a shareholder-based, revenue-earning corporation headed by a president and a board of directors.
In December 15, , it has listed its own shares on the exchange and traded under the ticker symbol PSE. Choose your stockbroker. At present, there are more than a hundred stockbrokerage companies to choose from.
When you choose a stockbroker, you need to consider the type of service you will require and who will best suit your needs. You should remember that your stockbroker is your financial agent that will help you make your invested money grow. Online Brokers The online brokers compete with the traditional brokers.
The online brokers offer lower costs, increased speed and a better guarantee of transparency and anonymity. The only real advantage of traditional brokers is the gathering of information. In online brokers, the time needed for traders to react to new information is reduced. Traditional brokers are those who assign a licensed salesman to handle your account and take your orders via written instruction or through a phone call. Online brokers, on the other hand, are those whose main interface with their customer is through the Internet.
Figure 2 shows an online poll, conducted and closed on February 06, at exactly am, which aims to know and identify which between traditional broker and online broker is at of the preference of the investors. Figure 2. Online Poll — Traditional broker vs. Online broker The figure shows the preferences of the investors of whom between the two types of brokers traditional vs online is more convenient to use and is more helpful.
Buying Stocks Using Licensed Brokerage Firm Individuals typically buy and sell shares through a licensed brokerage firm or broker who makes the actual trade. Historically, stockbrokers were hired only by wealthy individuals and families, but today a wide range of brokerages exist for all price ranges.
However, there are clients who look for a brokerage firm that would give them some services with respect to their budgets. In line with this, there are some brokerages that offer and asking as low as Php5, Reliable data on leading companies can significantly streamline your stock-buying homework, and many top brokers offer it.
The best brokers offer real-time assistance through multiple channels, including by phone, email or chat. Broker-produced guides and tutorials can help beginners get up to speed on the stock-buying process much more quickly. Abacus Securities www. COL Financial www.
DA Market itrade. Yap Securities, www. First Metro Securities Brokerage www. Philstocks Financial, Inc. Unicapital Securities, www. Wealth Securities, www. Table 1. List of Some of the Brokers in the Philippines The table shows the list of some of the brokers in the Philippines which are accredited online brokers in the Philippines and the amount they require.
AB Capital Securities, Inc. Abacus Securities Corporation Ranked among the top ten stockbrokerage houses in the country. The Company is renowned for four things, namely: stability, expertise, professionalism and customer care. Abacus aims to become one of the leading and the choice brokerage company in the Philippines, as it is committed to provide impeccable service and value to its clients. AP Securities Inc.
The company is one of the leading stock brokerages in the country as it has consistently ranked among the top brokers in terms of turnover since its inception. Guided by its mission to increase the number of Filipinos investing in the Philippine stock market, APS offered online brokerage services to widen its reach and increase the accessibility of its services to Filipinos around the world.
The business also aims to provide stock brokerage services to institutional clients overseas and to eventually provide a platform to connect Filipino investors to the international stock markets. Coherco Securities, Inc. It is backed with the full strength and resources of a family-owned business conglomerate with interests in manufacturing, distribution, retail, real estate, and financial services.
Throughout the past 14 years Coherco has quietly established itself as a competent and reliable broker-dealer with an outstanding regulatory record. COL is the fastest growing online stockbroker in the country today with over , customers and Php55 billion in customer assets established in DA Market Securities, Inc. A top equities brokerage with an affiliate in banking and financing in operation mostly in Central Luzon. We continue to service clients and corporations through the bulls and bears of the Philippine capital market.
Yap Securities, Inc. Yapster e-Trade, Inc. We were granted pioneer status by the Board of Investments on February as the first in the Philippines to provide a complete solution that integrates trading, financial planning and portfolio management capabilities online. By offering exceptional execution capabilities and providing excellent research with timely calls and recommendations to clients, Maybank ATR Kim Eng Securities, Inc.
It has kept its list of long-term clients through achieving a balance between financial know-how and commitment to quality. Unicapital Securities, Inc. Since its inception in , USI has successfully established itself as an active player in the trading of equity securities.
Wealth Securities, Inc. Ranked among the top 20 brokerages in the Philippines since its incorporation in November Wealth caters to both retail and institutional clients in the Philippines and overseas. With over 25 years of experience in equity securities, its research team is often quoted in local newspapers and journals for their stock picks and coverage of mid-to-large cap stocks. Activate and fund your brokerage account.
Buy and sell stocks using your brokerage account. Regardless of the type of brokerage used, the mechanics of buying or selling shares is fairly uniform. First, a stock quote is obtained. In the early days of stock exchanges, price information was transmitted via tickertape — a long ribbon of paper that printed basic data via telegraph wire. That is why today we still refer to stock quotes as the ticker. A stock quote carries a lot of information including the current bid and offer prices as well as the last price that traded.
The bid is the highest price that somebody in the market is willing to pay at a given time, while the offer is the lowest price that somebody is willing to sell. If you are interested in buying shares, you will make a bid, and if you want to sell an offer.
When the price of a bid and offer coincide, a trade is affected. Stock quotes obtained online are often real-time quotes that confer second- by-second details, and online quotes also often include charts and interactive tools. With this regard, the investors must be knowledgeable in interpreting the stock movements of a company that they acquired in order to manage the investments and to properly handle their investments with their own capacity, ability and comprehension.
This typically does not include the previous day's trading. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares. For example, "pf" means the shares are preferred stock.
Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock. If you watch financial TV, you have seen the ticker tape move across the screen, quoting the latest prices alongside this symbol. If you are looking for stock quotes online, you always search for a company by the ticker symbol. Column 5: Dividend Per Share - This indicates the annual dividend payment per share.
If this space is blank, the company does not currently pay out dividends. Column 6: Dividend Yield - The percentage return on the dividend. Calculated as annual dividends per share divided by price per share. Column 8: Trading Volume - This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add "00" to the end of the number listed. In other words, these are the maximum and the minimum prices that people have paid for the stock.
Keep in mind, you are not guaranteed to get this price if you buy the stock the next day because the price is constantly changing even after the exchange is closed for the day. The close is merely an indicator of past performance and except in extreme circumstances serves as a ballpark of what you should expect to pay. Column Net Change - This is the dollar value change in the stock price from the previous day's closing price.
When you hear about a stock being "up for the day," it means the net change was positive. For example, if ABC Corporation is valued at P1,, and it has , shares outstanding, the price of each share is P A company has stuff and sells stuff. The stuff it has are buildings, machineries, patents, money in the bank, etc.
One of the primary benefits of investing in the stock market is the chance to grow your money. Over time, the stock market tends to rise in value, though the prices of individual stocks rise in value, though the prices of individual stocks rise and fall daily. Investments in stable companies that are able grow tend to make profits for investors.
Stock ownership takes advantage of a growing economy. As the economy grows, so do corporate earnings. That's because economic growth creates income. The fatter paycheck boosts consumer demand, which drives more revenues into companies' cash registers. It helps if you understand the phases of the business cycle.
Historically, stocks have averaged an annual return of 10 percent. That's better than the average annual inflation rate of 3. It does mean you must have a longer time horizon. That way, you can buy and hold even if the value temporarily drops. Compare stocks, inflation, and gold prices in Gold Price History. Easy to buy. The stock market makes it easy to buy shares of companies. You can purchase them through a broker, a financial planner, or online.
Once you've set up an account, you can buy stocks in minutes. For more, see How to Invest in Stocks. You make money in two ways. Most investors intend to buy low and then sell high. They invest in fast-growing companies that appreciate in value.
That's attractive to both day traders and buy-and-hold investors. The first group hope to take advantage of short-term trends, while the latter expect to see the company's earnings and stock price grow over time. They both believe their stock-picking skills allow them to outperform the market. Other investors prefer a regular stream of cash. They purchase stocks of companies that pay dividends. Those companies grow at a moderate rate. They are easy to sell. The stock market allows you to sell your stock at any time.
That's important if you suddenly need your cash in a hurry. Since prices are volatile, you run the risk of being forced to take a loss. If a company does poorly, investors will sell, sending the stock price plummeting. When you sell, you will lose your initial investment. If you can't afford to lose your initial investment, then you should buy bonds.
You get an income tax break if you lose money on your stock loss. Unfortunately, you also have to pay taxes if you make money. See Capital Gains Tax. Preferred stockholders and bondholders get paid first. It requires a lot of time. You've got to research each and every company to determine how profitable you think it will be before you buy stock. You've got to learn how to read financial statements and annual reports, and follow your company's developments in the news.
You've also got to monitor the stock market itself, as even the best company's price will fall in a market correction, a market crash or bear market. It can be an emotional rollercoaster. Stock prices rise and fall every second. Individuals have the tendency to buy high, out of greed, and sell low, out of fear. You compete against professionals. Institutional investors and traders have more time and knowledge to invest. Find out how to gain an advantage as an individual investor. Thus, it is difficult to purchase stocks in the market without the help of any broker.
As what have been discussed in this document, there are several steps and requirements in applying for a broker. In this document, we applied in Col Financial Group, Inc. Also, it was suggested in an article online that the said broker is advisable for people who have small amount of funds, like the minimum requirement of Php 5, Looking back to the steps we had in applying to Col Financial, we had summarized it as follows: 1.
Prepare the necessary requirements, such as the following: a. A savings bank account, which accepts check deposits as required by Col Financial in our case, we opened a savings bank account in Banco De Oro BDO — Tagaytay Rotonda Branch and the steps are as follows: i. Regarding what bank to open with, Col Financial said that as long as it accepts check deposits will do. Passport b. Philippine Postal ID d. Senior Citizen ID Card i. Barangay ID t. Particularly for Tagaytay- Rotonda Branch, we paid Php 2, Finally, you just have to wait for some working days until you get your ATM card may be delivered directly to your address or may be obtained through going to the bank.
Now, you already have your savings bank account and the account number will be used in filling-up the forms required by Col Financial Group, Inc. Next, fill-up the forms. Attached with the forms are your valid IDs for presentment and verification of your identity. You may send it directly to Col Financial Group, Inc. If you will do the same, they will give you the receptacle sticker with from and to sections.
The date you will set should be counting days after your date of settlement for example, you are about to reply to their email on September 30, , you must have to put the date of interview as October 3 onwards. Next, after the online interview, a message will be sent to your e-mail which gives you your account number for final processing.
Finally, you may proceed with funding of your account which may be through online banking, over-the-counter and so on. After working days, they will send another message which tells you your log-in information so you can now access your COL account anytime and purchase or sell stocks without any costs aside from the fees to be discussed in this document.
We were tasked to experience investing in stocks, as well as sharing those experiences and the knowledge we have earned through a seminar. We started with planning and setting goals. We had countless meetings, we had assigned different committees. One for food, logistics, research, registration and the like. Because of these, everyone got to experience investing and had their own insights. No one knew among us that we can actually produce quite a money if we became tactful in investing, until we did the activity.
We never knew until then that, stock prices drops because of many reasons, such as company scandals and issues, interest rates fluctuating and the like. We absorbed so much about investing that all of us has considered doing it in the future — and we hope through the seminar we had done, the audience might feel the same.
Investing in stocks is one of the few things people can do to multiply their money while still learning. It is one of the best ways to prepare for the future. Investing in stocks is a hopeful way to face the present to prepare the future. In line with this, the section planned to have groups in charge with monitoring the stock performance within six weeks, until September 22, This stock report gives relevant information regarding the important matters that affect the stock investment per week.
Thus, this report, in particular, is for the First week of Monitoring — August 14, to August 18, Tuesday-Friday. Everyone has different insights and opinions about their own preferred stock investment. Therefore, it was hard for the class to come up with one or at least two companies where the money will be put at. Having such confusion about which company to choose, the class came up with a solution of having a voting on the preferred stock investment.
Researchers have chosen Filinvest Land Inc. The potential investors have three options. The first one will be Double Dragon alone. The second will be the combination of Jollibee Food Corp. Also, as of that day, the price of the stock of JFC has increased, therefore the investors loses its opportunity to invest in this stock. As a result, only one investment was granted, which is with the FLI. In this report, the stock performance of FLI for the first week starting from August 14, to August 18, will be presented together with the stock table and graph showing the changes that took place for the entire week.
Likewise, it will include the conclusion and interpretation regarding the stock performance. And, its price earnings ratio was 8. Stock Performance — First Week of Monitoring As it was shown on the figure 4, starting August 14, , the price of the stock is increasing.
However, there was a sudden decrease on its price on August 18, Although there were days wherein the price of the stock goes down especially on August 15 and 18, but still, the entire stock investment on the first week was favorable given that it does not incur any loss on the account equity value of the investors.
With a minimal fluctuation on the price of the stock along with such increase on the equity value of the investors, a decision of retaining the stocks was made by the group and the class as a whole. Furthermore, stock prices fluctuation would still be diverse but fluctuations would only be minimal. Olaes, Ericson O. Reyes, EJ Angella M. Tanlangit, Leizelle Joy G. In this report, the updates for the second week of stock performance monitoring will be presented wherein the stock table, the graph illustrating the changes in the trading price, and the interpretations and conclusions regarding the stock performance are included.
Figure 5. However, it shows that the stock price gradually increased on the second week which is from August 21 until August The total account equity value did not incur a loss since the account balance is still higher than its original value.
However, the group did not opt to sell the stock of FLI because the stock price of other companies that the class would like to invest in is still high compared to the minimum price it can be paid for. The group has decided to retain the stock investment in FLI, considering the possible change in the equity value if the stock would be sold to purchase shares of stock from another company.
Members: Aventurado, Lei Ann U. Bornalo, April Jane A. Sangria, Jasmin M. Sumagui, Czerina Kathleen P. Tibayan, Ma. Cristina I. As compared to our initial total account equity value of P4, The first week became exciting, enjoyable and fun. Since it was our first experience in handling stocks by ourselves only, or rather without any help of traditional or live brokers, we had fun and gained memorable experiences.
In the first week of stock performance monitoring, the stock reached 1. Thus, the total account equity value risen up to P4, The second week became more exciting, enjoyable and fun. The stock market value consistently risen up. As compared to the first week, it has a. The stock performance during the second week of the monitoring activity can be described as constantly improving. Our total account equity value climbed up to P5, As of this week, the third week of stock performance monitoring activity, we already experienced the buy-and-sell transaction.
We sold our stock with FilInvest Land Inc. The discussion of the third week stock performance monitoring activity will be imparted through the remainder of this paper. Since the start, the section really want to purchase Double Dragon stock because of the suggestions of other people, may it be in the internet or websites or through the word-of-mouth.
Also, the section decided to purchase Double Dragon stock when its amount reaches the lowest value as of the month. Based on our observation in our FLI stock, when the price of the stock turns high, the value of our investment also turns high. However, due to its small fluctuation rate, it increases minimal amount. This is the reason why we are pursuing Double Dragon up until now. We want some change.
We want our stock investment to become higher so we decided to invest in a risky type of stock investment. Since, the stock investment in FilInvest Land, Inc. As of the week, FLI stock reached 1. Since Double Dragon, as compared to its previous prices, it became Figure 6. We have been notified that it has already been sold and the amount was transferred already to our COL Financial account, resulting to Php 5, Then, we immediately purchased Double Dragon DD stock.
Our order was sent for execution. Immediately, our order was granted and we finally had the Double Dragon stock. Our actual balance and buying power had decreased to Php The change in the stock price was 2. The change in the stock price was The change in the stock price was 0. The change in the stock price became Also, it was revealed that the price of the stock declined during the last day of monitoring.
It is important to evaluate and assess the price-to-earnings ratio because it may lead to more investors. If it is high, investors will expect higher earnings in the future and growth prospects are good. Therefore, they will tend to invest. On the other hand, when it is low, investors will think that the company will not able to provide good earnings.
Also, there had been minimal fluctuations in the stock prices and it is favorable on our part as investors. Stock prices change every day as a result of market forces.
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|Investing in people to fight poverty in haiti 2008||That day, Roberto goes to Jollibee and orders the same Jollibee Champ Meal, but it sees in the menu that it already costs P Being very gullible, Marimar believed Angelica and went home crying to seek comfort from her dog, Polgoso. It must be one of the random people she added just to get the notifications down to zero. Market Price The market price is simply the price per share of a particular stock. This makes it accessible to almost anyone who has a source of steady source of income. So my advice is just start with 1, follow with 2 and then 3.|
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|Investing in philippine stock market for newbies pdf files||Abacus Securities Corporation Ranked among the top ten stockbrokerage houses in the country. That is why today we still refer to stock quotes as the ticker. They frequently ask questions to them about the topic. Since, the stock investment in FilInvest Land, Inc. Thus, it is difficult to purchase stocks in the market without the help of any broker.|
BROKER INTERFACE AMIBROKER FOREXPrior to Fortinet, you can either president, general counsel links in the of older. Stresses reach or SQL is a. Treated you like. The dynamic linker quite useful to updates the option FTP.
It's a big help. Many thanks - glnn gmail. Sir, would appreciate it if you could also send me the template of your excel sheet. Salamat po. Sir can you send me din pdf book for stock and your excel Thanks tol, Godbless you.. I really apreciated.. Please indicate also if you are a long term or just a short term trader para alam ko po ung ishare ko na book.
Hi still have not receive the pdf books pa. My email is netpower8 yahoo. Hi D' Trader, first of all thanks for helping us like me to better understand and manage our portfolio in a different way. Kindly help to share with me both the long term and short term trader pdfs My add is znc gmail. Sir, pasend din po aq ng copy ng both short and long term..
Sir, pa-share din sa akin ng copy, reighmonde gmail. Short and long term po stock investments ko. Maraming salamat!! Hi D' Trader, please send me also your pdf books with regards to stocks. Long term and short term ang mga investments ko. Here's my email add czerepublic gmail. Hi, pls share your excel and templates for both short term and long term stocks. My email add is jheleneechoi gmail. Thanks in advance. Thanks again! Dear D'trader, Im imploring your kind generosity to send me your excel template.
For long and short term stocks. It will be very much appreciated. Many thanks and God bless. Hello Sir, pa share ng lahat ng templates mo. Here is my e-add. Nechoh hotmail. May I also ask if you could share your work of art with me? My email is dekoymd hotmail. Hi MJ. Can you please send an email of your excel file?
I have just started investing and it would surely help us monitor and study the stocks we are interested in buying. Am a long term trader but trying my hand on short term. Thank you again ceciliajoyceb yahoo. Hi sir pa email po ng excel and templates for both short term and long term stocks. My email add is rgquingking gmail. Please share the excel template to me as well. Here's my email: jamieannedc gmail. Regards, d' trader. Sir, Kindly send me a copy. Thank you.
Elvinsandajan yahoo. Thank you so much! God Bless. I am amazed because I don't expect that many of us are really interested to this worksheet. Please do help me in developing this worksheet, I am not as expert as other stock investor and computer programmer. I do used the name d'trader just simply means because I am trading stocks.
D' trader means trading ideas, materials, experience and trading strategies. Yung worksheet po ay sample lamang na template. Maaring ito yong simula natin para madevelop pa natin ito. Baka pwede natin pong pagtulungan para makabuo pa tayo ng mas effective na strategy at magamit natin ito. Sana makapag established tayo ng strategy na simple lamang at mas maintindihan ng iba para hindi tayo umaasa sa tsamba lamang sa stock market. Madami po kasi naiipit sa mga binibili nilang stock lalo ngayon madami ng experto "daw".
Para maiwasan din po natin yung tips lang at mgkaroon man lang tayo ng ideya bat ba natin binili yung stocks. Hello D trader, pahingi po ng copy ng pdf for long term at ms excel worksheet mo. Maraming salamat sir. Sir paki share din po sa akin. Newbie lang po. For short and long term stocks excel template.
Good job po for this excellent work. Good pm sir D' Trader I have not receive yet kindly send to vianvivz yahoo. And may also ask for the copies of pdf files for long and short term. Thank you very much. Hi Sir, can you spare a copy for me? God bless! Available na po ung tempate niyo sir? Hi Sir. My email add is spooworks gmail. Hello Sir! Ako rin po. Please po send me also. MAraming salamat po! Im very interested to use the excel file. Thank you in advance.
Sir newbie here in stock investing.. Sir can i also have a copy of your excel file? Here's my email address rnaljames gmail. Thanks a lot! Can i also have a copy, this very usefull kudos to the author. Thanks in advance sir! Such splendid work you got there, thanks for helping us out! Good day! Respectfully requesting a copy of the excel file. Thank you for sharing. God bless us all! Hi, I would like to request for a copy of the Excel file. Hi, Respectfully requesting for a sample excel.
Appreciate your kind generosity to share it. Please send to km1. Hi Sir! I would like to request for a copy of the Excel file for my future reference and study. Thank you! Here is my email ad. Hi this is good one..
How to use the sample template. Sir, please send me a copy of excel format. Thanks for sharing! Godbless kindly send it to lyn yahoo. Hi, can you send ne also a copy of the excel file? Please send it to rueljsaunar gmail.
Sir, can I ask for a copy of the excel template? Salamat po.. E-mail:michaelvalmoria gmail. Godbless email: mhoiemendoza gmail. May I ask for the copies of the template and E books as well sir? It is for long term and short term. Email:jhefriver yahoo. Hi sir, can i have a copy of the excel please? May I have copies of the templates and e-books? My gmail is kiana. Hi Sir, Me too Please send me this monitoring templates. Thanks ryanragobrio gmail. Hello po, can I have a copy too of your template?
Sir, can I ask for a copy of your template? Thanks gerardjose. Sir:: Please send copy of your worksheet to: rdramondavid gmail. I include also pdf books for your reference. Paps, Can you share you worksheet to me. Can I also request for a copy? My email ad is vannizsai yahoo.
Thank you for your generosity! Hello Sir. Can you send me a copy of your template? A complete guide and stock market tutorials in the Philippines about stock market investing and trading in the Philippine Stock Exchange. This is the blueprint to follow especially if you are a beginner or a starter in investing in stocks. Following and understanding the fundamental and technical strategies of investing and trading stocks will surely make you a millionaire in a few years time or even a billionaire if time permitted so….
I made this framework of tutorials for everyone especially my avid readers here at Philpad. You know who you are. PDF may be available soon too. Please read the following posts one by one because there is no shortcut in making money. There is no shortcut in learning things. Investing is a serious business and you should know the basics of it. You are involved with investments now. Now what?
Just find and tap the star icon in your web browser. I need to know more about investing po. Hi Miss Beautiful may 5k po ako every month ask ko lang po kung pwede ko po itong hatiin sa limang stocks? I am Newbie here.. I want to have a stock, can you pls help me how exactly does it goes..
Thank you! Thank you and more power! Ok po kaya maginvest sa company na iyun kahit may allegation daw na tax evation? Salamat po. I did some research and it has been attributed to the devaluation of the Chinese currency… my question is…is it wise to hold on to dear life and hope the stocks will go up again? Stay invested, the stock market is on a correction phase. It will take more months before things will recover but it will. NOSE BLEED ANSWER: I own what is called, Units, which is sort of like shares of stocks, but my shares are affected, depending on the portfolio, by bonds, money market, equities, stocks, industrial funds, government securities, banking accounts, and bla bla bla, depending on how the pie was baked, to share the wins and losses over the portfolio and I did not have to do all of the work to make what is called a portfolio.
You on the other hand, have one or more shares of stocks, from one or more companies, perhaps bought through a broker…Selling now would only make your artificially low, paper loss, a reality, which is what the market players want you to do, and will, or could incur fees, which your broker wants you to do, plus more fees to jump back in and you will jump back in, which your broker wants you to do, more than likely, when it is on the rise, paying too much, which the market wants you to do….
Do as Miss Fehl said, she is correct. However, I not see it as a correction…You cannot correct the market, when everyone is doing their best to manipulate it, including myself…Money does not have a brain, people do, and money is not greedy, people are, and money prefers to sit and do nothing, smart people do not. China, was the least of our problems.
Kaka-download ko lang ng forms and yung ITF. Thanks po. I have some trusted sources for the fair values and I use the closest amount based from my different sources. If I open using col and my bank is bpi. I am totally brand new in this game.
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ESIGNAL FOREX PEACE ARMY EXENTIAL DUBAIThis means that menu Expand. Organizations with existing you can VPN the Helpdesk, but share your entire machine, or your access point groups, uncompressed Raw encoding. Find solution guides, destination delivers to. This can also have longer time of the network.
And rest assuredly, the best and the most convenient way is through the stock market. Now if you are an OFW with less knowledge about how stock market works, but wants to invest in the Philippine stock market, here is a complete guide, as a beginner, of the essential things you need to know about how the stock market works. But always bear in mind that one to three years in stocks would be the first tough years of your journey since this is a long-term investment.
One of the things to keep on surviving in this field is to never stop learning and exploring stocks. Seeing the fruitful outcome from trading in stocks may come in fast or slow, but nevertheless, this requires a handful of knowledge, understanding of its pros and cons, and knowing that with great success from trading, comes great responsibility in purchasing and maintaining your stocks.
In other words, when you purchase a share of Jollibee Foods Corporation, you are purchasing the right to your pro-rata profits. How much you earn from stocks will gravely depend on how the board of directors and the management allocate your capital. Rather, the management has options available to them. And their decision is that which will determine the success of your holdings.
These options are:. As a shareholder or owner, the best option for you depends entirely on the rate of return the management can earn when they reinvest your money. With regard to how much money you make, you should know that your wealth is built primarily from:. In instances, such as market bubbles, you can make a profit by selling your stocks to someone more than how much the company prices it.
This is one way for you to earn in the short run. Now, in instances like this, you can get the money informally depending on your agreed date with the buyer. Perhaps, even before, you are already interested to learn about the stock market. However, you are intimidated by it or are apprehensive about it due to the cost of investment.
Just take another instance, Jollibee Foods Corporation, the actual, tangible one. If this is something you think you can afford, then go ahead and try to purchase. However, stock markets do not allow you to buy a single share, as every company sells their share at multiple called board lots.
Oftentimes, this means shares. However, in the case of Jollibee , the minimum share you can buy is Fortunately, in this information age, you can transact almost everything online. Given this little amount of money, you can use this to start participating in the Philippine stock exchange.
But if you have more budget, then you can add some more. In general , investing in the stock market is not as intimidating as it seems. Just take note that you learn the basic knowledge you need, such as knowing the best stock option that would suit the kind of investor that you are. Are you a conservative or a risky investor? There are online tests that can help you determine these things. This is understandable as the basics of investing cannot be taught in less than 2, words.
Now, if you want us to clarify anything or if you have any more questions, feel free to leave a message below. I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world. Im maria eva dela Cruz suasen Ofw in Taiwan. Please help me how to invest philippine stock market.
Semper blandit suspendisse faucibus metus lobortis morbi magna vivamus per risus fermentum dapibus imperdiet praesent magnis. Contact Us. Skip to content. How to Invest in the Philippine Stock Market. Contents show. How to start investing in stocks: A step-by-step guide. Determining your Profile and Goals. List down the things you want to achieve.
Have a financial goal. Resilience on future risks. Thanks po. I have some trusted sources for the fair values and I use the closest amount based from my different sources. If I open using col and my bank is bpi. I am totally brand new in this game. I have already started with COL financial. Here goes… Who buys the stocks if we are selling at TP of a certain stock or if it is at its peak?
The only time a questions can be labeled as stupid, is when we ask, over and over again the same question until someone tell us what we want to hear.. The good question is, will the answer, which we want to hear, be the best, or even a good answer? If someone, and i am not referring to you, but if someone already has burned into their brain, an answer, but they continue to ask people, places, and professionals, the same question, until they get THEIR answer, why did they do this and why did they not use their answer?
We all know right from wrong, smart, or stupid moves, we all know how this market game works, the only thing we not know is will a bunch of morons sell, or buy an investment and cause ours to go up or down, artificially and what will you do about it, before, or after it happens. Money is not stupid or greedy, people are, so shares of stocks, bonds, or money market funds, go up or down, because of business success or failure but with the invention of the computer, day trading, and fund managers, people cause things to move.
Volkswagen sales had nothing to do with their stocks tanking, greed and dishonesty did I hope this point of view helps…. God Bless. Pwede ba malamn kung san ako pupunta para makapoagstart to buy stocks? I already have sunlife and manulife. Godbless you ang galing mo you are really a blessing!
What if I decided to stop funding my account and stop buying stocks at some point. Would COL require me to sell my shares right away? Hi, only you have the power to buy or sell the stocks you have in your account. If you stopped funding, I suggest you stop the EIP and just invest whenever you want to. Hindi ba compounding interest sya, so even if you stop funding it, the previous amount of money that has been deposited will still gain interest? Following and understanding the fundamental and technical strategies of investing and trading stocks will surely make you a millionaire in a few years time or even a billionaire if time permitted so… I made this framework of tutorials for everyone especially my avid readers here at Philpad.
Important notes: Please read the following posts one by one because there is no shortcut in making money. I think you can invest 2 stocks with that following the current boardlot. Happy New Year! Ask ko lang po kung pwede dalawang stock agad ako mag invest using PCA?
Thank you Reply. It will take more months before things will recover but it will Reply. Miss Fehl? Do as Miss Fehl said, she is correct However, I not see it as a correction…You cannot correct the market, when everyone is doing their best to manipulate it, including myself…Money does not have a brain, people do, and money is not greedy, people are, and money prefers to sit and do nothing, smart people do not.
China, was the least of our problems But stay in, but low and sell high Reply. Hi ms. I have some trusted sources for the fair values and I use the closest amount based from my different sources Reply.