Stock trading tips philippines
Once you already got familiarized with the stock market and started doing stock trading, here are some of the useful tips that I learned from my stock trading experience:. Stock Trading Tip No. Transaction costs in buying vs. Each time you make a transaction, whether buying or selling stocks, you will incur transaction fees. Here in the Philippines, the following transaction costs are associated with buying and selling of stocks.
Suppose Tyrone bought shares of Ayala Corp. AC at per share. He then sold it at per share. How much did he gain NET? In buying shares of Ayala Corp. In effect, the total gain that you had from buying shares of Ayala Corp. Just input your gross amount and it will automatically compute its net income from selling and net costs in buying stocks.
You can download it here. If you have time to monitor your stock trading, then you should not post too many orders at the start of the trading. You should watch the trend of the trading day. Buy when you see a trend that the stock price is going down and sell when you see a trend that the stock is going up. Generally, you should post orders in the middle of the trading like around 10am to Stock trading is from 9: This is the ratio between the stock price over its earnings.
BUT do not solely rely on this ratio. Buy back of shares or major acquisition. Companies also disclose to the stock exchange when will they buy-back their shares. This is called window dressing. Look for companies that disclose a buy-back of their shares. Additionally, there are also disclosures about a company acquiring a significant percentage of stocks of another company.
These instances will probably increase the stock price of the company being acquired as the date of the acquisition approaches. Look for the week range. But one way of gauging to know if the current stock price is high or low is to look for their week high and week low.
The week range is the highest and the lowest the stock price of the company closed in any given trading day in one year. For example, the week low is and week high is Look for stocks that declare dividends. Dividends are passive income that companies give to their stockholders. Look for the companies that declare these dividends whether a cash dividend or stock dividend.
Generally, when the ex-date of the dividend declaration approaches, the higher the price of stock will be. Look for actively traded stocks. Surely, the law of supply and demand will apply here. If there are a lot of buyers than sellers, then stock price will tend to go up.
However, if there are a lot of sellers than buyers, then stock price will tend to go down. To know why, you can view my article on how federal rate affects investors. Watch for economic indicators such as consumer confidence index, inflation rates, unemployment rates, gross domestic product, gross national product, etc. Watch for any inflation news. Definitely, the tamer or the lower the inflation, the higher the probability that the stock market will rise.
In contrast, a high inflation rate will give the possibility of stock prices to go down. Because a high inflation rate causes the raw materials costs of companies to go up. And with higher costs and less revenues, definitely companies will post losses. Added to this, a high inflation encourages consumers to reduce spending on non-basic items.
In turn, corporate profits either drop or post slower growth, leading to lower valuation of stocks. The higher the value of these indices show that the economy is doing well. And when the economy is doing well, then companies may post huge profits and therefore stock prices will tend to go up. Watch for writedowns or net losses of companies.
This is no doubt. Because writedowns mean huge losses to these companies hence stock prices will go down. Watch for Credit Ratings. Any downgrade will push the stock prices of these companies to go down. So there you are my stock trading tips that I learned in my stock trading experience. To get articles, you can subscribe using your favorite RSS feed reader or have them delivered directly to your email address. Tyrone is a passionate financial literacy advocate.
He started this blog on November when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts.
At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram. Hey, thanks for posting this based on my query. It will help me a lots and I know it would be more beneficial to your readers. Yes, there are patters and methods of assessing the direction of the stock, but and this will become more visible once a newbie starts to get the hang of trading, but the most important part in trading is watching the local news where you trade and the global news DJ being one of the most important local influence.
Hi Ric, I definitely agree with you. The stock market is where shares of ownership of different companies are bought and sold. So while there is a greater chance of high returns, there are also risks. However, history has shown that over the long term, the profits in stock investments are better than fixed income instruments like time deposits or government securities.
There are two ways you can earn money on your stock investments. The other is through dividends declared by the company.
At this point in time, however, few companies give substantial cash dividends and so most investors rely on the appreciation of the stock, treating dividends as just a bonus.
The first step to do is to study your own profile as an investor to know how much you can invest. Much will depend on your financial status and what stage of your career you are in. Second is to decide how much to invest. Although you can start stock market investing with just five thousand pesos with some stock brokers, the more funds you have the better you can diversify your holdings to minimize risk.
Many experts recommend putting not more than twenty five percent of your savings to be safe. If you are near retiring then you must be very conservative and not put in more than ten percent of your available resources. Do not risk what you cannot afford to lose. Third step is to open an account with a reputable stock broker. To make sure, you can get a complete list of accredited stock holders by visiting the Philippine Stock Exchange PSE website at www.
You may also be asked to provide a cash deposit in order to begin investing. Fourth step is to decide what stock to pick. If you do not want to bother studying particular stocks, an alternative is to just buy into a mutual fund which is composed of a wide variety of stocks.
To get information about the stock market and specific stocks, one of the best sources, is again the PSE website.