We’ve all heard the saying, “Practice makes perfect,” but practicing in the stock market can get very expensive very quickly! Don’t worry though, because we’ve got good news for you—now you can practice trading stocks without risking any money!
With our virtual trading platform, you can buy stocks, test strategies, and manage a portfolio under real market conditions. Learn about actual companies listed in the Philippine Stock Exchange, and jump straight into real trading whenever you’re ready.
Already have an account on Investagrams? Just follow these simple steps to get started with your virtual trading account:
STEP 1: How to use the virtual trading platform (vTrade)
Once you are logged in to Investagrams, simply click ‘Virtual Trade‘ on the top left navigation bar. You will see a dropdown menu that corresponds to ‘Virtual Trade’ menu option. Click ‘My Portfolio‘ to go to your virtual trading page. You will see the overview of your Portfolio, Records, Order History (left side) and the Buy and Sell box on the right for you to start trading. Choose your preferred Stock and enter the number of quantity that you want to trade in. Click ‘Buy’ if you want to buy stocks or Sell Order’ if you want to sell stocks.
STEP 2: How to buy a stock
On the Buy Order page, use the drop down menu to find the stock you want. You can also type the stock name or stock code to find your stock faster. Enter the quantity or number of shares you want to buy, and simply click the “BUY” button at the bottom of the page.
Other important information you will see on the page include: your available cash, the current price of the stock, the boardlot or minimum number of shares you can buy, and more.
STEP 3: How to sell a stock
To sell shares of a stock you own, simply follow the same steps on the Sell Order page—use the drop down menu or simply type in the stock name to find the stock you want to sell. Then, enter the number of shares you want to sell and click the “SELL” button below.
Important information such as the current price, boardlot, and more can also be seen here.
STEP 4: How to manage your virtual portfolio
To view your portfolio, simply go to the Portfolio page. Here you will see a summary of the stocks you currently have—the number of shares for each stock, the total cost, current market value, profit or loss so far, and more. You can also see the amount of cash you have available (at the top left corner) and the total value of your assets (stocks + cash).
Easy, right?
Don’t wait another second and start practicing today! You have nothing to lose!
Have you tried the virtual trading platform? Tell us about your experience in the comments below!
Being profitable in the stock market is not easy as it requires not only your belief, patience, and discipline, but also a great deal of your time to research and adequate understanding of the market, among many others.
Here’s a list of common stock market terminologies that you will inevitably come across in your investing journey. We’ve also added the gist of their definitions to get you ahead as learning these jargons (for newbies) is of extreme importance especially when you are starting out.
The goal here is not to memorize every terminology but use it as a guide to understand each vocabulary so you may take value from it:
GENERAL INVESTING TERMS
Invest – putting your money where it can grow
Stock – a share in the company
Dividends – the amount of money paid by the company to its shareholders
Common Stock – the type of stock that is least prioritized when declaring dividends and mostly profits through price appreciation
Preferred Stock – the type of stock that is first prioritized when declaring dividends
Risk – the potential of either gaining profits or losing your capital
Returns or Rewards – profits earned by investors
Short Term – less than six weeks (may vary)
Medium Term – six weeks to nine months (may vary)
Long Term – more than nine months (may vary)
Investors – people who invest their money with the expectation of gaining returns over a longer timeframe
Traders – people who buy and sell stocks to earn from price growth over a shorter timeframe
Blue-Chip Stocks – stocks of the biggest companies in the country
Growth Stocks – stocks which have high growth potential
Value Stocks – stocks which have low price-to-earnings or P/E ratio
Speculative Stocks – stocks which carry high risk compared to similar stocks
Defensive Stocks – stocks which do not decrease in price immediately, even when the market is down
Penny Stocks – stocks which trade at a very low price
Stock Market – where investors or traders buy and sell company stocks
Stock Market Index – a measurement of the value of the entire stock market or a particular industry in the market
PSEi (aka PSE Composite Index) – the stock market index of Philippine Stock Exchange which consists of top 30 listed companies based on market capitalization
Industry Index – the index of a group of companies which are classified based on their business activities (i.e. Financial, Holdings, Industries, Mining & Oil, Properties, Services)
Bullish – used to describe a particular stock market or stock when its value is going up
Bearish – used to describe a particular stock market or stock when its value is going down
Initial Public Offering (IPO) – when firms are selling their company shares for the first time in the public to raise capital
Market Value – the value at which a stock can be sold in the market at a specific point in time
Unrealized P/L – profits or losses which have not yet been converted to cash because the investor has not sold the stock
Buying Power – the available money an investor has in his account for buying stocks
Buy Order – a request made by an investor when he or she wants to buy stocks
Sell Order – a request made by an investor when he or she wants to sell stocks
Volume – number of shares bought and sold in a particular day
Bid – the prices at which the buyers want to buy a particular stock
Ask – the prices at which the sellers want to sell a particular stock
Bid-Ask Spread – the price difference between the bid and the ask
Trade – made when the bid and ask price have matched
Brokers – firms or individuals who are licensed to execute the buy and sell orders in exchange for a commission fee
Portfolio – a group of financial assets such as stocks held by the investor
Average Cost/Price – the total price at which you bought a group of shares plus the commission fees, divided by the total number of shares
Shares – units of capitalization that represent part-ownership of a company (i.e. buying 1 share means you contributed capital to the company and therefore own an equivalent portion of it)
Board Lot – the standardized minimum and multiple number of shares to be traded for a particular stock, depends per price range
Cash Dividends – dividends given in the form of cash
Stock Dividends – dividends given in the form of additional shares
Profits/Gains – the amount that an investor earns when he sells stocks at a price higher than his average costs
Losses – the amount that an investor loses in his capital when he sells stocks at price lower than his average costs
Stock Split – when a company divides its shares according to a particular ratio, increasing the number of shares and lowering the price of each share (i.e. 1 share becomes 2 shares)
Reverse Stock Split – the opposite of stock split, when a company decides to combine its shares in a particular ratio to decrease number of shares and increase price (i.e. 2 shares become 1 share)
Most Active – most active stocks in a particular day in terms of volume traded
Top Gainers – list of stocks which had the largest increase in price in a particular day
Worst Losers – list of stocks which had the largest decrease in price in a particular day
Year to Date (YTD) – the period from the beginning of the year (January 1) to present
Investment Strategy – set of rules and behaviors an investor practices towards his investment portfolio
Peso Cost Averaging – an investment strategy where you put the same amount of money into a particular stock in a regular schedule to get a lower average cost
Value Investing – an investment strategy where investors look for undervalued stocks
Growth Investing – an investment strategy where investors look for companies which have a high growth potential
Margin – the equity value an investor has in his account/portfolio
Average Down – buying additional shares of a stock for a price that is lower than your current average cost
Long Position – A “long” or “long position” is the buying of a security such as a stock, commodity or currency with the expectation that the asset will rise in value.
Short Position – A “short”, “short position”, or “short selling” is a trading strategy where the investor sells shares of borrowed stock in the open market. The expectation of the investor is that the price of the stock will decrease over time, at which point the he will purchase the shares to replace those that he initially borrowed.
MARKET STATUSES
Pre-Open Period – trading participants can modify and cancel existing orders or enter new orders
Pre-Open No-Cancel Period – trading participants may enter new orders but may not modify or cancel open orders
Opening Period – opening prices are calculated during this period
Continuous Trading – the period where trading participants’ orders are matched and may enter, cancel, and edit orders
Market Recess – the period where trading-related activities are halted
Pre-Close Period – indicates the last two minutes to open new orders but can’t cancel or modify orders
Run-off Period – trading participants can still enter limit and market orders but matching for both is executed at the closing price of the stock
ORDER TERMS
Stock Order – a request to either buy or sell a stock
Normal Orders – orders which follow the normal board lot
Oddlot Orders – orders which are less than the minimum board lot
Good to Day (GTD) – an option in ordering where your order will expire at the end of trading day when not fulfilled
Good to Week (GTW) – an option in ordering where your order will last for a week
Good to Month (GTM) – an option in ordering where your order will last for a month
Good to Cancel (GTC) – an option in ordering where your order will last until you cancel
ORDER TYPES
Market Order – these are buy and sell orders that transacts the current bid and ask prices
Limit Order – this type of order allows you to set the price you’re willing to buy or sell a stock far from the current prices
Iceberg Orders– allows you to hide a portion of the volume of your order
FUNDAMENTAL ANALYSIS
Fundamental Analysis – a method of stock market analysis that evaluates the economic and financial factors affecting the intrinsic value of a company
Intrinsic Value – the actual and true value of the company based on all aspects of its businesses
Overvalued – when the current price or market value of the stock is higher than its intrinsic value or the average industry price-to-earnings ratio
Undervalued – when the current price or market value of the stock is below its intrinsic value or the average industry price-to-earnings ratio
Income Statement – provides an overview of revenues, expenses and net income
Balance Sheet – provides an overview of assets, liabilities and equity
Statement of Cash Flows – traces the company’s cash movement from operating, investing and financial activities
Financial Ratios – ratios derived from the financial statements of the companies which are used for evaluating the overall condition of its company performance
Price-to-Earnings Ratio (P/E Ratio) – measures the current price of a stock over its company earnings per share, the lower the better
Earnings per Share (EPS) – company earnings for the year divided by the number of shares
Leverage – borrowed capital or loans used to fund company activities
Debt Ratio – the total debt of the company divided by its total assets, the lower the better
Debt-to-Equity Ratio or Leverage Ratio – a company’s debts divided by the value of its equity (based on preferred and common stocks)
Dividend Payout Ratio – the dividends paid divided by the company’s net income
Dividend Yield – the percentage of dividends declared in relation to the stock’s current price
Par Value per Share – the price of the stock during its Initial Public Offering (IPO)
Book Value per Share – the value of the stock in the company’s books (total equity divided by number of shares)
Price to Book Value Ratio – the ratio used to compare company’s current price or market value to its book value, the lower the better
Sector – a subsection in the exchange of companies that share similar characteristics in operation
Sub-sector – a subset of a sector of a group of stocks that have the most similarities in terms of operation
TECHNICAL ANALYSIS
Technical Analysis – a method of stock market analysis that uses past data and statistics to predict future movements in the market
Trend – the general direction of a market, a stock, or the price of an asset based on a chart of its historical value
Uptrend – when price movements consistently reach higher highs and higher lows
Downtrend – when price movements consistently reach lower highs and lower lows
Sideways – when the price of a stock moves in a generally flat manner
Chart – a visual summary of a stock’s prices within a certain period
Open – the first price at which a stock is sold for a particular day
High – the highest price at which a stock is sold for a particular day
Low – the lowest price at which a stock is sold for a particular day
Close – the last price at which a stock is sold for a particular day
Volume – the number of shares that are bought and sold on a particular day
Value Traded – volume multiplied by the price that investors have paid for a stock
Indicators/Oscillators – measurements that investors use to anticipate price movements, momentum, and other behaviors of a particular stock or market
Support – a price level at which, historically, a stock has had difficulty falling below
Resistance – a price level which historically, a stock has had difficulty breaking above
Breakdown – a situation where the price falls below the support level
Breakout – a situation where the price rises above the resistance level
Reversal – the change of a price level from resistance/support to support/resistance after a breakout/breakdown
Cut Loss/Stop Loss – realizing or actualizing your loss by selling the stock to save you from a bigger loss
Bottom-Picking– the act of buying a stock with the anticipation that it has bottomed out from its downtrend
Divergence – this happens when a technical indicator and price action are headed into opposite directions
Bullish Divergence – a signal that indicates an impending upward move
Bullish Signal – signal that is given by a technical indicator that indicates a possible bullish move
Bearish Divergence – a signal that indicates an impending downward move
Bearish Signal – a signal that is given by a technical indicator that indicates a possible bearish move
Volatility– the proportion or rate wherein the price of a stock is increasing or decreasing
Confluence – this occurs when multiple indicators or strategies share the same sentiment/bias
Insider Trading – this is done by someone who has non-disclosed, nonpublic information about a company and trades its shares based on it
Rally – a period of continuous surges, whether downward or upward, in price
Parabolic Move – an upward movement in price where it moves in the manner of a parabola
Oversold – a reading made by a technical indicator that indicates that it’s below its period’s “true” value
Overbought – a reading made by a technical indicator that indicates that it’s above its period’s “true” value
Momentum – the rate of the acceleration of a stock’s price
Momentum Trading – the method of buying a stock while there’s buying pressure from other investors or traders
Range Trading – a strategy where a trader buys at support and sells at resistance during a sideways movement
Target Price (TP) – the price point where you plan to sell a position
Time Stop – a way to sell a stock when it isn’t moving within your bias in a specified time
Trail Stop – an amount below the current trading price of a stock that you plan to sell it for a profit
Tranche Buying – the action of buying a stock in portions
Tranche Selling – the action of selling a stock in portions
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We’ve all been there—one minute you’re just going through your day as usual and the next minute you’re swept off your feet by the sight of something breathtaking. Without any warning, the pretty girl walking down the street smiles at you; or the cute guy in front stops to hold the door open for you. In the same way, you might just be browsing your news feed when suddenly you see a stock chart that’s about to break out at any moment. You feel a rush of adrenaline and, without waiting another second, decide to go all-in.
Sometimes, we get blinded. We fall hard and we feel in our gut that this is it. We put everything we have on the line and just hope for the best. Sounds romantic, right? But is that really how we should be making our decisions? Can we trust ourselves to make the right choices in these situations?
In many ways, stock picking is very similar to dating. When we see a person or a stock that we really like, it’s exhilarating. We get so excited that we don’t realize how dangerous the situation is. We make impulsive decisions and invest much more than we should. We dive too deep too quickly—all without getting to know the person or the stock at all.
It’s true, there are times when we have to take risks, both in dating and in trading, but that doesn’t mean we can’t make smart decisions about when to jump in and when to hold back.
Before you go all-in, here are three important things you should know before risking it all:
1. It doesn’t have to be all or nothing
Sometimes, excitement can get the better of us. We see something we want and we want to have it right away. We feel like if we don’t grab the opportunity now, then it will be gone forever. While that is true in some cases, it’s not true for all of them. Often, we can easily take things one step at a time without any real consequences.
In dating for example, you don’t have to propose right away when you meet a beautiful woman. You can start by asking her out on a date and getting to know her. If you get along, then you can go on more dates and eventually, when you know each other very well, you may even get married.
In trading, if you see a stock with potential, then buy a few shares first. Monitor it to see how it performs. If things go well, then buy more shares. Wait for positive signals each step of the way and build up your investment slowly. There might be some opportunity cost if the stock performs very well, but at least you won’t lose all your money if the stock performs badly.
2. High risk, high reward
We’ve all heard the saying, “High risk, high reward.” But how many of us really understand what this means? It means that you will first have to take a big risk if you want the possibility of getting a big reward. The key word here is “possibility.” It does not mean that if you take a big risk then you will get a big reward. (Oh, how we wish!)
Yes, it’s true that sometimes things work out and the risk pays off. It’s easy for us to see the positive side because we see it all the time—in movies, TV shows, and even the news. Everyone is constantly talking about the success stories of people who took big risks that paid off—and that’s great! Especially when we’re struggling, we want to know that there is hope and that good things can happen. The problem is that a lot of people act like all stories will end this way, and that’s just not true.
Stephen King said, “Hope is a dangerous thing. Hope can drive a man insane.” Do you agree? Isn’t it true that people are willing to risk it all, in love and in stocks, because they have hope that it will all pay off? Maybe a little too much hope? Hope is good in small doses, but when there is too much, it becomes very dangerous. Too much hope makes people lazy. They become convinced that things will work out, so they don’t bother putting in the work. They forget that success in dating and in stock trading are not based on one “big break”. Both require time, dedication, patience, and so much more.
Don’t fall into this trap. If you’re going to go all-in, know what you are risking and know that there is a very real chance that you could lose it all. Ask yourself: If this doesn’t work, will I be okay with that?
3. Information is power
Once you’re sure that you really want to go all-in—whether your risk ends up paying off or not—then it’s time to be smart about it. You don’t have to go in blind. Do your research. Do the work, and you’ll give yourself a much higher chance of success.
For example, if you want to win a girl’s heart, you have to get to know her first. Find out what makes her smile or what her favorite flowers are. Find out about her fears and dreams. That is how you can give yourself the best chance at success.
It’s the same with stocks. Before you go all-in, you should do your research first. Study the company’s history. Find out what their plans are. What is the best price where you should buy? At what price should you sell? What is your cut loss point if things don’t go your way? What signal will confirm if your theory is right or wrong? These are all questions you need to answer, so that you are prepared to give yourself the best chance of success. Don’t just invest all your hard-earned money and then leave it up to the market. You can increase your chance of success. That’s what they call calculated risk, and that’s also why investing is not the same as gambling.
So whether you’re going after the man or woman of your dreams, or that perfect investment opportunity, always remember:
You don’t have to go all-in. You can take it one step at a time.
If you have to go all in, be sure you know what you’re risking.
Just because you’re taking a risk, doesn’t mean you should be lazy. Find out how to give yourself the best chance at succeeding.
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How many of us have heard or used these phrases before?
“Gusto ko sana mag-invest sa stock market pero busy ako sa work e.”
“I can’t keep checking the stock market while I’m at work.”
“Marami na kasi akong inaasikaso e. Wala nang oras magbantay ng stocks.”
“I want to try investing in the stock market but I have a full-time job.”
There are so many Filipinos who want to start investing in the stock market but don’t because they think it requires too much time and attention—something most of us can’t give. But did you know that there are people who successfully trade stocks while balancing work, family, friends, and personal time? Yes, it’s possible! So, how do they do it?
Before we tell you our tips for trading stocks while working a full-time job, let us explain the difference between what most people THINK stock trading is vs. what it ACTUALLY is. One of the most important things you should know is that there are many kinds of traders who create different systems and styles to suit their own lifestyle. One common way of classifying them is into day traders and swing traders.
Day traders are those who buy and sell stocks multiple times in one day. They rely heavily on Technical Analysis and make money from price changes that happen within a few hours. This is why they have to monitor the market very closely and execute trades as soon as the stock hits a specific price. Day trading takes a lot of time, which is why most day traders are full-time stock traders—they are what people usually think of when imagining what a stock trader should look like.
Swing traders on the other hand are those who wait days between transactions, holding onto stocks for days or weeks before selling them. These traders rely more on Fundamental Analysis and hold on to the stocks for a longer period of time. Because this style requires less time than day trading, many swing traders work full-time jobs as well.
Swing trading is a great option for most beginners, simply because it is too risky for most people to become a full-time trader right away. Swing trading allows you to maintain your current income so that you won’t rely completely on the profits from your trades—which realistically won’t be a big amount when you’re just starting out. This will minimize stress and pressure that could negatively affect your performance as a trader.
Still, like anything in the stock market, swing trading carries its share of risks and rewards. So here are a few tips to help you get started on the right foot:
TIP 1: Find time to research and analyze
Swing trading may require less time than day trading, but you still need to do the work. No strategy will succeed if you just blindly buy stocks. The good news is that you can do your research and analysis whenever you have free time—before work, after work, or even on the weekends. Take the time to research and analyze thoroughly because the more information you have, the better you will be able to plan your strategy for the coming days.
TIP 2: Set buy and sell prices ahead of time
Once you have done your research and analysis, pick the stocks you want to monitor and identify the prices where you will buy and sell even before the market opens. Your goal is simply to buy low and sell high, so use your research and analysis to identify the acceptable prices beforehand. Not only will this allow you to execute quickly during trading hours (i.e. in between meetings and other tasks at work), but it will also help you avoid making trades based on emotion.
TIP 3: Use ranges instead of exact prices
As a swing trader, you won’t be able to monitor price movements every minute of the day. That is why you should use price ranges rather than exact prices. This will give you some flexibility, but be careful not to take it too far. You still need to be strict with yourself when executing your plan. You might get impatient when the price gets close to your defined range, but don’t be carried away by your emotions. That’s a recipe for disaster. Stick to your plan.
TIP 4: Stay consistent when executing your plan
Because you already planned your trades ahead of time, you won’t need a lot of time to execute them. Set aside even just 15 minutes of your lunch or merienda break to check on your stocks. If you see that the prices have reached the buy or sell range that you set during planning, then simply execute the trade. If the prices have not reached the defined when you were planning your strategy, hold your position and check the market again tomorrow. Do this once a day, five days a week.
TIP 5: Let technology help you monitor your stocks
Nowadays, you can access everything with just your mobile phone and an internet connection. There are many free services and apps like Investagrams that can help you monitor your stocks on the go. If you have a very demanding or unpredictable schedule, you can also avail of affordable services like InvestaWatcher so you can get SMS and FB messenger alerts whenever a stock hits your defined buy and sell prices. Either way, take advantage of the many free and affordable services to help you succeed.
With so much information and new technology available on the internet, investing in the stock market has become easier and more feasible than ever before—even if you have a 9 to 5 job. You still won’t make money without putting in the effort, but at least you have resources. You don’t even need a big amount of capital. For just P5,000 and a few hours a week, you can already start trading in the Philippine Stock Market. Just start small and stay disciplined. Stay consistent and keep learning, and your hard work will eventually pay off.
Do you have tips for balancing work, life, and trading? Let us know in the comments below!
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Paano ba gumagana yung stock market? Paano magsimula mag-invest sa stocks at paano kumita dito? Ito ang mga pinaka-karaniwang tanong na natatanggap nami araw-araw. Sa artikulong ito susubukan namin sagutin ang mga tanong na iyon at ipapaliwanag rin naming kung paano ka pwedeng magsimula mag-trade ng stocks.
Magsimula tayo sa mga pinaka-importanteng konsepto.
Unang-una, paano nga ba gumagana ang isang market? Intindihin natin ito gamit ng pinaka-simpleng halimbawa ng market: ang palengke.
Sa palengke, may mga nagbebenta at bumibili ng mga gulay, prutas, bigas, at iba pang mga kasangkapan natin sa pang-araw-araw. Parang ganito rin ang stock market, pero imbes na mga produkto, mga kumpanya ang binibili at binebenta—oo, mga kumpanya! Sa stock market, pwede ka maging isa sa mga may-ari ng mga kumpanya tulad ng PLDT, Jollibee, Ayala Land, Meralco at iba pa.
Nagtataka ka siguro kung paano makabibili ng ganyan kalaking kumpanya ang isang karaniwang Pilipino. Di ba mahal ang mga kumpanyang iyan? Ang sagot: oo naman! Pero iyan ang dahilan kung bakit hinahati-hati ang mga kumpanyang ito bago ibenta. Tulad ng isang pizza na hinihiwa para maging mas madali kainin, ang mga kumpanya rin ay hinahat-hati sa tinatawag na shares para mas madali bilhin. Kung gaano karaming shares ang mabili mo, ganoon rin karami ang porsiyento ng kumpanya na pagmamay-ari mo.
Halimbawa, kapag isang kumpanya ay hinati sa 10 milyon na shares tapos 1 milyon dito ang hawak mo, ikaw ang may-ari ng 10% ng kumpanyang iyon. Galing noh?
Pero bakit ba nagbebenta ng mga shares ang mga kumpanyang ‘to? Bakit nila kailangan ang pera natin? Ang sagot dito ay dahil minsan kinakailangan nila ng karagdagang pera para palakihin ang negosyo nila. Kung gusto nila gumawa ng bagong produkto o magtayo ng isa pang pagawaan, malaking halaga ng pera ang kakailanganin nila. Kahit malaking kumpanya, nahihirapan pa rin makakuha ng ganoon karaming pera ng mabilisan, kaya imbes na maghintay pa sila ng ilang taon nagbebenta nalang sila ng shares sa stock market. Ibig sabihin nito na kapag bumili ka ng shares ng isang kumpanya, binibigyan mo sila ng pera para palaguhin ang negosyo nila.
Edi paano nga ba kumita sa stock market?
Kapag nakabili ka na ng mga shares o stocks, maaari kang kumita sa dalawang paraan: sa pagtaas ng presyo o sa pagtanggap ng sinasabing dividends.
1. Kita sa pamamagitan ng pagtaas ng presyo
Kapag nakabili ka na ng mga shares ng isang kumpanya, maaaring tumaas o bumaba ang market value o presyo ng mga shares na ito. Depende nalang kung mas marami ang gustong bumili o magbenta ng mga shares na iyon. Ito ang konsepto ng supply and demand.
Halimbawa, kung nalaman ng mga tao na malaki ang kinikita nung kumpanya o kaya maglalabas sila ng bagong produkto, mas maraming tao ang magiging interestado bumili ng shares ng kumpanyang iyon. Kapag mas marami ang mga gustong bumili nung stock pero konti lang ang gustong magbenta, tataas ang presyo dahil mas malaki ang demand kaysa sa supply.
Kung mas marami naman ang gusto magbenta nung stock pero konti lang yung gustong bumili, pwede rin mangyari ang kabaligtaran—bababa yung presyo dahil mas maraming supply kaysa sa demand. Maraming posibleng dahilan para rito, tulad ng mahinang benta, sumabog na pabrika, o kung anumang problema sa negosyo.
Maraming iba’t ibang bagay ang pwedeng makaapekto sa supply at demand. Dahil konektado ang buong mundo, maaaring apektuhan din ng pangyayari sa ibang bansa ang ating ekonomiya, pati na rin ang presyo ng mga stocks sa Philippine Stock Exchange.
Para kumita sa pamamagitan ng pagtaas ng presyo o price appreciation, kailangan marunong kang pumili ng mga stocks na tataas ang presyo. Kailangan marunong ka rin magbenta bago bumaba ang presyo nito. Mahirap man matuto kung paano gawin ito, kapakipakinabang pa rin kasi kapag marunong ka na, walang limitasyon sa mga oportunidad kumita.
2. Kita sa pamamagitan ng dividends
Ang isa pang paraan upang kumita sa stock market ay sa pamamagitan ng pagtanggap ng dividends. Dividends ang tawag sa bahagi ng kita ng kumpanya na binibigay sa mga shareholder o yung mga may-ari ng shares ng kumpanya. Depende nalang sa patakaran ng bawat kumpanya kung gaano karami at gaano kadalas ang pamamahagi nila ng dividends.
Mas simple ito kumpara sa price appreciation, pero wala ka masyadong kontrol sa kita mo. Nakadepende ka lang sa kumpanya. Kung ayaw mo nang masyadong aralin ang supply at demand sa market, pwede ka naman bumili ng shares sa mga kumpanya na madalas magbigay ng dividends. Ok rin ito kasi di mo na kailangan magsikap masyado pero may kikitain ka rin kahit papano.
Interesado ka ba? Eto ang mga kailangan mo gawin para magsimula.
Unang-una, alamin mo kung ano ang pinapasukan mo.
Totoo nga na pwede ka kumita sa stock market, pero pwede ka rin malugi kung di mo alam ang ginagawa mo. Tulad ng pagguhit o pagtugtog ng instrumento, kasanayan din ang stock trading. Huwang mong iisipin na kikita ka lang ng basta-basta kaagad, lalo na kung nagsisimula ka palang. Kakailanganin mong matuto at magsanay para gumaling sa stock trading, kaya huwag kang magtapon lang ng pera. Aralin mo kung paano ang tamang proseso. Hindi sugarol ang mga stock trader.
Kung gusto mo magpraktis pero ayaw mo pa gumamit ng totoong pera, pwede mo muna gamitin ang virtual trading platform namin. Gamit ng platform na ito, pwede mong masubukan ang pagbili at pagbenta ng stocks, pmamahala ng sariling portfolio, at pagsunod sa mga pagtaas at pagbaba ng presyo sa Philippine Stock Exchange—ng walang ipinagbabakasakali na pera. Dito mo mararanasan kung paano nga ba talaga kumita gamit ng stocks, at masasabi mo na rin kung gusto mo tumuloy sa paggamit ng tunay na pera o kung mas bagay sa iyo ang ibang klaseng investments.
Ok rin ang stock market kung gusto mong palakihin ang puhunan mo ng mabilisan, pero di lang naman ito ang nag-iisang opsyon mo. Alamin muna kung ano ng pinapasukan mo bago mo gamitin ang pinaghirapan mong pera.
Pangalawa, maghanap ng stock broker.
Kapag sigurado ka nang gusto mo mag-stocks, ang susunod na kailangan mong gawin ay maghanap ng stock broker. Stock broker o broker ang tawag sa mga tao at institusyon na mayroong lisensya bumili at magbenta ng stocks sa Philippine Stock Exchange. Kung gusto mo maging stock trader, kailangan mo maghanap ng broker na mamimili at magbebenta ng stocks para sa iyo.
Mayroong dalawang uri ng broker: ang mga traditional brokers at mga online brokers.
1. Traditional Brokers Kadalasan, ang mga traditional brokers ay mga tao na tinatawagan o kaya tinetext kapag gusto mo bumili o magbenta ng stocks. Dahil sa teknolohiya ngayon, karamihan ng mga broker pwede na rin makausap sa Facebook, Viber, at iba pang mga apps. Ito ang karaniwang gamit ng mga taong abala sa trabaho at nangangailangan ng gabay ng isang propesyonal.
2. Online Brokers Sa online broker naman, kadalasan ito yung mga institusyon na mayroon lang website kung saan pwede ka bumili at magbenta ng stocks para sa sarili mo. Wala ka nang kakausaping tao, sa halip ay pupuntahan mo lang yung website nila at pwede ka nang bumili at magbenta ng stocks. Ito ang karaniwang ginagamit ng mga aktibong trader dahil mas mababa ang bayad sa broker at mas mabilis ang mga transaksyon. Ok ito kung gusto mong matuto talaga o kaya naman kung alam mo na ang gagawin mo. Wala nga lang magpapayo sa iyo kaya kailangan may kaalaman ka na talaga sa stocks.
Pangatlo, magbukas ng account.
Kapag nakapili ka na ng stock broker, kakailanganin mong magbukas ng account sa kanila. Iba-iba rin ang mga pangangailangan depende sa broker, pero iilan lang naman ang mga hinihingi ng karamihan sa kanila:
1. Aplikasyon na naisagot ng maayos (maaari niyo hingiin ito sa opisina nila o kaya sa website nila)
2. Dalawang government ID tulad ng passport o driver’s license
3. Iyong Tax Identification Number (TIN)
Kapag naipasa mon a lahat ng mga ito, hintayin mo lang yung pag-apruba ng account at pagkatapos ay ideposito ang puhunan sa kanila.
Pang-apat, simulan na ang pagtrade!
Kapag nadeposito mo na yung puhunan sa iyong napiling broker, pwede ka na bumili at magbenta ng mga stocks! Alalahanin lamang na di nito ibig sabihin na kikita ka kaagad ng maraming pera. Kung nasubukan mo na yung virtual trading platform namin, alam mo nang kailangan ng oras at sikap kung gusto mo kumite sa stocks. Kailangan mo aralin yung market, tutunan ang tamag pag-diskarte, at tuluyang pagtibayin ang sarili kung gusto mo magtagumpay. Habang tumatagal ka sa stock market, lalo mong maiintindihan ang sarili mo at ang trading style na bagay sa iyo.
Per huwag ka hihinto doon!
Marami na tayong napag-usapan dito, pero palaging may higit pang pwedeng matututunan. Maraming iba’t ibang paraan para mag-invest, kumita, at magtagumpay sa stock market.
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What is the stock market and how does it work? How can you start investing in the stock market and making money? These are some of the most common questions we receive at Investagrams. In this article we’ll try to answer those questions and give you a step-by-step guide on how to start trading stocks yourself!
Let’s start with the basics of the stock market.
The stock market, as the name suggests, is just another type of market—like a food market where you buy meat and fish! The only difference is that in the stock market, people buy and sell companies like PLDT, Ayala Land, Meralco, and many more. Yup, that’s right! In the stock market, you can become a part-owner of some of the biggest companies in the Philippines.
You might be wondering, “How can a regular person afford to buy such big companies? Isn’t that expensive?” Well, it is! That’s why companies are divided into shares before being sold. Just like how you would cut a pizza into slices to make it easier to eat, companies are divided into shares to make it easier for people to buy. Once you buy a share in a company, you will become a part-owner of that company.
For example, if a Company X is divided into 10 million shares and you own 1 million shares, then you own 10% of Company X. Cool, right?
So why would these big companies sell shares of their business? Why do they need our money? The answer is that sometimes, big companies need to raise additional capital (A.K.A. tons of cash) to grow their business faster. If a company wants to develop new products, conduct research, or build more facilities, it would take a lot of money to fund those projects. Even big companies would find it hard to get so much cash so quickly, so they raise the money by selling shares on the stock market instead. This means that if you buy shares from a company, you are giving them money to grow their business in exchange for part-ownership that same business.
Okay, so how can you make money in the stock market?
Once you’ve bought shares in a company (or a few companies), you can make money in 2 ways: through price appreciation or through dividends.
1. Earning through price appreciation
When you own shares of a company, it is possible for the market value or price of those shares to change over time. Depending on how many people want to buy those shares and how many people are willing to sell them, the price will either go up or down. This is the concept of supply and demand—how many people want to sell vs. how many people want to buy.
For example, if a company announces that it will launch a new product or that it earned a lot of money in the last quarter, more people may want to own a share of that company. If more people want to buy shares but few people want to sell, then the demand will be greater than the supply and the price will go up. On the other hand, if there is bad news about a company like low sales or problems with their factory, then people may not want to own a share of that company anymore. If more people want to sell their shares but fewer people want to buy, then supply will be greater than demand and the price will go down.
This is a simple example, but in reality there are a lot of factors that affect supply and demand. Because the whole world is connected, what happens in other countries may also affect the Philippine economy and the prices of our stocks.
To make money through price appreciation, you must know how to consistently invest your money in stocks that increase in price and then be able to sell them before the price goes down. It takes time to develop this skill, but it can be very rewarding. There is no limit to how much money you can make, and the opportunities are endless!
2. Earning through dividends
Another way that you can earn money in the stock market is through dividends. Dividends are simply portions of the company’s profit that are shared with their stockholders as a benefit of being part-owners of the company. How much and how often dividends are given is up to the company to decide.
This is simpler than price appreciation, but you will have little control over how much money you can make. However, if you do not want to be concerned with analyzing supply and demand, you can buy shares in companies that are known to give out dividends regularly. This would require less effort while still allowing you to earn.
Interested? Here’s how you can get started.
Step 1: Know what you’re getting into
Although you can make a lot of money through the stock market, you can also lose a lot of money if you don’t know what you’re doing. Stock trading is a skill, just like drawing or playing an instrument, so don’t expect to be a stock market wizard right away. It will take time for you to develop your skills and learn how to trade stocks properly, so don’t put your life’s savings on the line unless you have tried and tested your strategies already. Stock traders are not gamblers.
If you want to practice trading stocks but don’t want to risk money yet, then you can try out our virtual trading platform. Using this platform, you can buy and sell stocks, manage your portfolio, and follow price movements of real stocks in the Philippine Stock Exchange—all with zero risk of losing money. You will see what it really takes to make money in the stock market and then be able to decide for yourself if you want to start trading with real money or if you are better off with other investment options.
The stock market is a great option if you want to grow your money, but it is not your only option. Know what you’re getting into before you dive in with all of your hard-earned money.
Step 2: Find a stock broker
If you’re sure you want to invest in the stock market, then the next step is to find a stock broker. Stock brokers are individuals or institutions that are licensed to buy and sell stocks in the Philippine Stock Exchange. If you want to trade stocks, you will need a licensed stock broker to make the actual transactions for you.
There are two main types of brokers: traditional brokers and online brokers.
1. Traditional Brokers
Traditional brokers are usually individual people that you call or text whenever you want to make a transaction. Nowadays, you can even reach some of them through popular messaging apps like Viber, Facebook Messenger, and more. Traditional brokers are great for people who are busy with other things and want advice from a professional.
2. Online Brokers
Online brokers on the other hand are usually institutions that are licensed to buy and sell stocks. To make a transaction, you would simply log into their website and make the transaction yourself. This is sort of the DIY method where you are given the tools to trade stocks, but there is no one to give you advice. This type of broker is usually used by active traders because the fees are lower and the transactions are faster. However, you will need to learn about the stock market and proper trading on your own because there is no one to guide you.
Step 3: Open an account
Once you’ve chosen a stock broker, you will have to open an account with them. Different brokers have different requirements, but most of them will only require a few things:
1. A properly filled up application form, which you can get from their office or website
2. Two valid government ID’s, like a passport or driver’s license
3. Your Tax Identification Number (TIN)
After you submit all the requirements, simply wait for your application to be approved before depositing the capital investment for your account.
Step 4: Start trading!
Once you’ve deposited the money to fund your account, you can already start trading! But remember that this doesn’t mean you’ll make tons of money right away. As you may already know if you tried our virtual trading platform, stock trading takes time and effort. You need to spend time and effort analyzing the market, refining your strategy, and constantly improving yourself if you want to succeed. The more you trade, the better you will understand yourself and what works for you—how much risk you can take, how often you want to make trades, how much money you can afford to invest, etc.
It doesn’t stop there.
We’ve covered a lot in this article, but there’s always more to learn! There are many ways to invest, make money, and conquer the stock market.
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