Stocks Basics 5: How do I start trading stocks?
April 15, 2008
I’m ready to start trading stocks, what do I do?
You sure you’re all set? Have you reviewed our stock trading tutorial about the types of stocks and other securities being traded, how profits are made, how much you need to trade stocks, and what types of orders you can make?
If you did and are really ready to go, then read on.
Step 1. To be able to participate in the stock market, you need a stockbroker to buy and sell shares of stocks on your behalf. A stockbroker is a person or a corporation authorized and licensed by the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) to trade securities. For a complete list and information about licensed brokers in the Philippines, contact the PSE.
Step 2. Apply for an account with your chosen broker. Normally, you will need to fill up a Reference Card and submit identification papers for verification. Once approved, you will be assigned a trader or agent to assist you in buying or selling stocks. You will also need to fund your account to be able to start trading.
Step 3. Communicate and discuss with your trader your stock order, then wait for him or her to successfully execute it.
Step 4. If buying stocks, you need to pay the total transaction amount within the settlement date (3 days from date of transaction). If selling, you need to deliver the Stock Certificate, if you are the one keeping it, to your broker.
Step 5. Three (3) days after the transaction, you will receive from your broker either the proceeds of the sale or proof of ownership of the stocks you bought (confirmation receipt and invoice).
Looking for online stock brokers in the Philippines? Read here.
Other references:
- Stock Trading 101: Guide and Tutorial to Stocks
- Stock Discussion of all PSE Listed Firms
- Discussion Forum on Stock Trading
Note: This is the sixth of several parts of Pinoy Money Talk’s primer on stock trading and investing, with a focus on investing in the Philippine stock market.
October 1st, 2008 at %I:%M %p
My link may be beneficial too. This is with regards to my stock trading experience. ;)
January 17th, 2009 at %I:%M %p
Long time ago I been researching for this site. I want to invest for a starting capital of P5000.00
but of course I want it to be profitable. I want to make sure I am also earning and invest again and again. Hope u can help me.
Thanks a lot!!!!
Amy
January 20th, 2009 at %I:%M %p
gusto ko sanang mg invest sa stock market sa halagang 10,000 pesos.pero d ko alam kung papano mag uumpisa?papano b kumikita ang isang stock holder at papano uumpisahan?ang 10,000 pesos pwede n bng investment sa stockmarket?pls… i need ur guidance.medyo naguguluhan pa ako.paki explain nman sa tagalog.para maintindihan kong mabuti.
February 26th, 2009 at %I:%M %p
Perhaps guys you wanna consider forex trading instead of stocks. Forex Trading is more profitable compared to stock, as movements of currencies prices happens every minutes as compared to stock were the price of stocks moves a weeks or months. Practice forex trading then go real….
June 10th, 2009 at %I:%M %p
Guys, you might want to check out StockAlerts.ph: http://www.stockalerts.ph/, it’s a useful site for monitoring your stocks in realtime via SMS. You can also request stock market data via text. No need to stare on your monitor during trading hours. You will now via text when there’s vital price movements, so that you’ll know when to buy or sell (avoid missed opportunities or losses)
June 10th, 2009 at %I:%M %p
pano ba magstart pag invest sa stock market? pwede rin ba makapag invest sa u.s. kahit nasa pinas ka?
August 16th, 2009 at %I:%M %p
saan ba pueding magsimenar tungkul sa stock market trading balak ko maginvest pero wala ako idea tungkol jan
October 1st, 2009 at %I:%M %p
I like the way you put info in this post I wonder if I can use some of this in my Stock Market Analysis Website & in my new eBook, waiting for your response & thanks a lot for sharing that with us.
November 2nd, 2009 at %I:%M %p
gusto ko magstart mg invest panu ba mg start? at panu ung online brokers anung mga website may ganun at pls lang explain mabuti panu ngwowork tong business na to. thanks