What is Stock Market?Stock market is a mode of investment that any Filipino can venture. It involves buying shares from companies by following a simple law of trade, which is buy low sell high. There are various investing strategies out there one can try. But basically, buying on enduring companies gives a higher chance of profit.
Some people may say investing in stocks is risky and they never bother to consider it. Indeed, it is risky as to any investments. Don't just be anyone, try learning more of it and rid ignorance. The choice is yours in learning more of investing in stock market today.
What is Risk Management?Risk management is the weighing and managing of risks so that events or results turns out beneficial or in favor to you. Investing always involves risk. Therefore, you should check modes of investments and see what fits for you. Try to identify and analyze risks before making decisions but keep in mind that you have to take actions too.
In stocks, you may go with a strategy with higher or lower risks. For example, with a high risk strategy you go for daily trades involving huge-value shares. This may lead to immediate and big profit but it could also be instant loss. Low to moderate risk, on the other hand, involves investing a small amount each month or quarterly and letting it grow for the long run. It may take time but the risks of losing your money decreases.
How much do you need to start investing in stocks?The online broker COL only requires single investors an initial deposit of 5000 php. If you have that amount then you can start right now and enroll. However, you should keep in mind that to enjoy the benefits of stock market, one should consider investing on a regular basis. This means sparing any amount of your income flow to let your stock portfolio grow. I suggest 10% of your income flow each month (I'll talk more about this on another post).
Can anyone join?Yes (at least from what I know). The head of Truly Rich Club even opened accounts for his kids.
Do you have to check the stock statuses/trades all the time?This depends. If you consider joining truly rich club and get stock updates from them, you don't need to frequently check stock status. This also goes the same if you invested using EIP (Easy Investing Program) or long term investments. However, if you are a day-to-day trader, then you'd want to check your stocks status frequently.
What is Truly Rich Club?Truly Rich Club is a good aid for your investment venture in the Philippine stock market. Learn more about it here.
Why COL financial/ CITISEC Online?Despite the fact that they are online brokers, which means they have 24 hours access; they also have fairly priced transaction fees. Fees are only applicable after a succeeded trade.
COL FINANCIAL fees: commission fee - 0.25% of Gross Trade amount, VAT - 12% of commission, PSE Transaction FEE - 0.005% of Gross Trade amount, sales tax - 0.50% of Gross trade amount. Minimum fee of 20 pesos per transaction.
Since it is online, you can check the latest stock information anytime, make some changes anywhere or contact them anytime. Help desk are prompt in their replies for queries as well.
How to enroll to COL Financial?Watch this video.
How do I put money in COLYou have a lot of options to do so but basically it involves depositing in the bank. Instructions are found in COL Financial Website. You might as well enroll to online bank such as BPI express online. I do this to save the hassle of going to bank whenever I need to fund my account. Enrolling is easy.
How do you withdraw?You might be wondering how to withdraw with COL financial when you finally decide to get your gains. You can actually do so by submitting a request. They have a form for this that you get from the site. It usually requires a personal appearance in their main office in Pasig City. However, there is an option that a representative can get the cheque for you provided they authorization and proof of identification (usually including a photocopy of your ID). Take note that the cheque will only be payable under the customer account holder's name.
Tip: If you're investing in stock market you may want to withdraw your money less often and only if necessary. Letting your assets roll for a good time may give you better returns.
How do you buy shares?Once you have a money deposited in COL Financial, you will get a an actual balance and a buying balance (called buying power). You just have to check (also called getting the quote) the STOCK Company you want to buy using their stock code. Once you know the current price of the company you then make a trade buy stating the amount of shares and the price. Make sure you do your trades while the market is open this is from 9 am to 3:30 pm Monday to Friday. I usually do my trades around 1 pm or in the afternoon so that I'd have an idea how the stock price would likely land for the day.
Stock prices are volatile and change every minute (specifically 15 seconds). Consider trading with the last price of the stock share to get a better chance of successful trade. You'll get trade confirmations the following day to let you check if there are any discrepancies or errors. Just go ahead and confirm with your password if your trade was all correct.
Take note that your trades may not push through but there's no charge for this. This happens when the price of the stock changed by the end of the day and your selling or buying price was far off.
P.S. This list is constantly updated. Please feel free to comment or even suggest answers or questions alike.