How to start Investing in Stock Market?

Hi Sir Bern,

I am one of the attendees on the recent IIEE seminar which you take part on the Financial Literary topic.Sir, I am really eager to learn how the stocks works actually I've read few articles from Bo Sanchez and other financial educator but my problem is how to jump start especially that I am working here in Qatar. I've heard about COL (Citisec Online) that this is one of the best brokers in the Philippines and I want them to be my broker but I don’t know how to start if I’m here overseas.Sir, hope you can help me or guide me on how to start investing in stock market".

Thank you  

Carlos Dumbrigue

Thank you Carlos for your email and for showing your interest to start investing in the Philippine Stock Market.

It is my privilege to help you and to assist you in how to start investing. But first let me define what is stock market for others to understand.

You must first understand what stock market is, the stock market or equity is a aggregation of buyers and sellers ( a loose network of economic transactions, not a physical facilities or discrete entity) of stock (shares); these are all listed on the stock exchange stocks as well as those only traded privately . Since you become a part owner, you participate in the company's earning or losses. However, history has shown that over the long term the profits in stock investments are better than fixed income instrument and other investment.

If you think you are ready to start in the stock market here are ways how to start:

Step 1. Choose your stock broker

There are more than 100 licensed stock broker accredited by PSE. As investor or trader into stock market you need to choose your broker that will fit and give you comfort during trading time.

To understand the Role of your broker read this

If you have chosen who your stockbroker you can go to their website and download the form. Opening brokerage account is like opening your own bank account, you will just asked to fill out some forms and completing the requirements ( usually TIN, 2 valid IDs, and billing account). If you are working abroad you are require to submit your passport copy and Philippine ID. 

You choose which account you would like to open, this account will be differ from the initial opening and the facilities you can avail. Premium account is usually required bigger initial opening while for start -up you can start with minimum of P5,000. After completing the requirement you can send it to the broker office via hand or if you are OFW you can send it via courier DHL or Fedex etc.

Step 2. Activate and fund you account

Once your application was approved, you will received notification via email with you initial account user name and password. You just need to fund it to start enjoying the trade, once funded you can now buy and sell stocks you'll love.

Step 3.  Buy stocks using your brokerage account

Since you have now a buying power you can now start analyzing your stock that you want to buy. Know what stocks are god for you to buy and write it down with papers to create a shortlist of your stocks. Remember in buying stock you need to plan your trade and game. Understand what price you will buy, have a cut loss plan and target price as well. Note that the minimum shares you can buy will be depending on the board lot of the stocks. You need to control your emotion when you are into investing. your emotion can affect your game plan. Read Emotion driven

Step 4. Place your order

Once you already decide which stock you will buy, you can now place an order with your broker, the broker will charge you a small amount once the transaction complete, if the transaction was not fulfilled there will be no charges.

Step 5. Monitor and wait for your target Price

Although stock market is a good avenue to invest it is also a way to loose money. Long term investing will lessen your risk and probably give you a nice return. In investing into stock you need to understand that the factors you consider are important to gain:

• Long Terms - always consider a long term investing to lessen the risk and gain from your investments.
• Nos. of Shares - if you want to earn big you must invest a big volume of stock with that I recommend that buy regularly and buy on lower price.
• Consistency - make it a habit to invest in a regular basis or use the money cost averaging method to gain in your stock investment.

P.S. 1. Bernard B. Anduyon is an OFW based in Qatar. He is a speaker and trainor for OFIE-M (Overseas Filipino Investors and Entrepreneur – Movement), a small group of Filipinos that advocates and teaches fellow OFWs to be investors and entrepreneurs. He is also a long-time member of Bo Sanchez' Truly Rich Club http://bernard.trulyrichclub.com. 

P.S. 2.  If you, your family or friends are based in Qatar, then I’m inviting you to attend our financial literacy talk series every 1st and 3rd Mondays of every month at Al Thumama, Doha. I give talks on diverse topics such as abundance mindset, financial planning, investing and entrepreneurship for Filipinos. I am also a trainor for PINOYWISE-ATIKHA, promoting awareness on issues affecting OFWs and their families as well as financial literacy.

If you want a financial coaching, you can send email to b_anduyon@yahoo.com

Please like the pages:  

https://www.facebook.com/trulyrichcouple

https://www.facebook.com/OverseasFilipinoInvestorsEntrepreneursMovement

What is the role of your Stockbroker?

When you plan to start investing in a stock market, the first thing you have to do is to choose a stock broker. It is just like choosing a car you think is most suitable for you. You can thoroughly research the whole market in order to find the best car for you but require a medium or a venue to execute the actual transaction. The same strategy is needed when you want to buy stock in a stock market. You can select a company to invest in by conducting detailed research about its future prospects but you still need to have a broker to make the final transaction and purchase its stock from the stock market.

A stock broker is an agent who represents clients to buy or sell stocks and other securities. The term is applied to both companies that deal in securities and their employees, who technically are registered representatives working for the brokerage. To most investors, however, the broker is the person they call when they want to invest in or trade stocks. Most individual brokers work in offices far removed from the stock trading floors.

There are more than 100 licensed stock broker accredited by PSE. As an investor or trader into stock market you need to choose your broker that will fit and give you comfortable during trading time.

The types of broker in the Philippines can be classified into:

• Traditional Broker
• On-line Broker (internet base)

Traditional Broker is the old school of stock market but still more people preferred this rather than on-line, because of the direct advice from the broker and you can talk to them using phone.

On-line Broker is internet base broker the client can execute his order and access market information directly in just a click of the mouse.

Stock brokerage firms and individual stock brokers are regulated by the Securities and Exchange Commission and other specific markets. An individual broker must pass a test administered by concerned regulatory authorities and must complete his registration through brokerage firms, which in some cases require registration with a concerned securities commission.

Aside for being a facilitator for stock orders, stockbrokers services may vary with the following :

• Providing research and analysis of the market
• Provide advisory services
• Providing investor education by conducting seminars and market briefing with the market outlook.
• Handling institutional or corporate account and individuals retail customers. 

P.S. 1. Bernard B. Anduyon is an OFW based in Qatar. He is a speaker and trainor for OFIE-M (Overseas Filipino Investors and Entrepreneur – Movement), a small group of Filipinos that advocates and teaches fellow OFWs to be investors and entrepreneurs. He is also a long-time member of Bo Sanchez' Truly Rich Club http://bernard.trulyrichclub.com. 

P.S. 2.  If you, your family or friends are based in Qatar, then I’m inviting you to attend our financial literacy talk series every 1st and 3rd Mondays of every month at Al Thumama, Doha. I give talks on diverse topics such as abundance mindset, financial planning, investing and entrepreneurship for Filipinos. I am also a trainor for PINOYWISE-ATIKHA, promoting awareness on issues affecting OFWs and their families as well as financial literacy.

If you want a financial coaching, you can send email to b_anduyon@yahoo.com

Please like the pages:  

https://www.facebook.com/trulyrichcouple

https://www.facebook.com/OverseasFilipinoInvestorsEntrepreneursMovement