Detailed Online Stock Trading Steps

Are you interested in how to participate in the stock market in the Philippines but don’t know how to start? Do you have a hard time contacting brokers? Well, you could always do stock trading and investing online! Let me give you some baby steps to the local Stock Market i.e., the Philippine Stocks Exchange.

How to Start In Online Stock Trading: 

1. Open an online account thru CITISEC or BPI Trade. In my 
    case, I have BPI Trade (www.bpitrade.com) but it’s good 
    to have both. Simply fill-up the online registration form 
    (BPI Trade) and PRINT it after. Please double check 
    your information that they are correct before printing.

2. The instructions are stated in their site but for your convenience, you have to 

    photocopy 2 Valid IDs (front and back). Example: GSIS, SSS, Passport, Voter’s ID, 

    Driver’s License, Company ID, PRC ID, etc.  

3. You must have an existing BPI Account whether ATM/Savings. If you don’t have 

    yet, open one at your nearest BPI bank in your area.

4. Submit the photocopied IDs and the printed BPI TRADE registration form to the 

    BPI branch where you opened your ATM/Savings account and tell the Customer

    Rep that you want to submit the requirements for BPI TRADE (online stock).

5. You will have to wait for about 5 to 7 business days for your BPI Trade account

    processing. They will also send you an email on the progress of your account 

    processing within the duration. So, please check you email regularly.

Voila! That’s how you get started in online stock trading thru BPI Trade.

Now, you have the account set-up already, what to do next?

1. Once you have the username and password initially given to you by BPI Trade, 

   you will be given a simple instruction to change your password but not your 

   username. So please do remember the username and password when you 

   registered to avoid such mess.

2. First time to view the BPI Trade page?

3. Let me elaborate the tabs:

     * Market Info- it displays the real-time market condition and that you could

        also refer it to PSE.

     * Stock Info- it is where you check the current real-time information of the stock

       of your choice. Just fill-in the stock symbol in the tab. It will display the 

       current price and all necessary information.

     * Quote Page- it displays your ten favorite stocks with their real-time 

        information.

     * Time & Sales- it displays the real time buying and selling transactions

        of your stock choice.

     * Most Active- it displays the most active stocks in the Philippine Stock Exchange.

     * Top Gain/Lose- it displays the top gainer/loser stocks real-time.

4. At the side tab:

    * Stocks (under trading)- this is where you buy and sell a particular stock of 

      your choice. Just fill in the   stock symbol, the number of shares you  

      want to buy or sell (if you have bought some shares already) and of 

      course the price you are willing to buy or sell.

Note: You have to make sure to put funds to your BPI trade account before you could make any transaction.

    * You could deposit your money for your BPI Trade account thru 

       over-the-counter to any BPI Branch or you may do an online 

       transfer from your online BPI ATM/Savings account direct to

       your BPI Trade account for convenience.

    * In case you sold your stocks, proceeds/sales will be credited to your 

       BPI Trade account but you have to transfer it to your BPI 

       ATM/Savings account thru online transfer only so you could 

       withdraw it. You can’t withdraw the funds in your BPI Trade account. 

       It has to be transferred.

Hope this helps!!! Good Luck to your online stock trading experience!

Stock Market Investment Terms

Here are some of the terms related to the business of investing. Knowing some of the terminology can help even the beginning trader successfully discuss investment philosophies as well. Listed below are stock market terms that will help you when speaking with someone else in the business:

Basic terms – These stock market terms reflect common ideas and descriptions that are used every day. Such stock market terms portray types of people and general stock market basics.

• Ask – This is the lowest price that a seller will accept when selling a stock.
• Bear – This refers to an investor who believes the stock market or a particular
          stock is declining. This is the opposite of a Bull.
• Bid – This is the highest price that a buyer is willing to pay for a stock.
• Broker – A person that buys or sells stocks, bonds, commodities and such
          in exchange for a fee which is called
          a commission.
• Bull – An investor who believes the whole
          market or one individual stock is
          going to increase in price. This is
          the opposite of a Bear.
• Dow Jones Industrial Average – This
          is a compilation of the 30 most
          traded blue chip stocks. This list
          is the most widely used for
          analyzing stock market indexes.
• NASDAQ – This is a stock exchange consisting primarily of technology
           companies.
• PSEi – Philippine Stock Exchange composite index; comprises of all publicly
          traded companies in the Philippines.
• Stock – This is the smallest measurable unit of ownership in a company. Shares
          fall into either the common or preferred categories; companies issue shares
          of stock in order to raise capital without borrowing money.

Investing terms – These words and phrases reflect stock market terms for
          various stock market strategies. These stock market terms are used
          to describe specific conditions or analysis.

• Blue Chip – This term describes a company with a history of strong earning,
          traditionally increasing dividends and an outstanding balance sheet. Blue
          Chip stocks include Phil. Long Distance Telephone, Jollibee Foods,
          San Miguel Corporation, Metropolitan Bank, Exxon-Mobile, Coca-
          Cola and Wal-Mart.
• Book Value - This is the value of a company if assets and common stock
          equity are added together and all liabilities are subtracted. There is
          little correlation between the book value and the market value. Book
          value is used in such fundamental analysis measurements as Price to
          Book ratio.
• Dividend – This is the portion of a company’s profit that is given back to
          the investors. Such payments are made on either an annual or quarterly
          basis.
• Fundamental Analysis – A method of predicting the behavior of a company’s
         stocks by looking at fundamental information about the company such as
         financial health, sales and earnings figures, and dividends. It is the means
         by which the investor can research the financial information that determines
         the strength or weakness of the company.
• Market Capitalization – A company's market capitalization, also known as
         its market cap, is calculated by taking the number of outstanding shares
         of stock multiplied by the current price per share.
• P/E Ratio – This widely used analysis tool of Price to Earnings ratio
         measures now you pay for each dollar of corporate earnings.
         For example, if you have $30 stocks that report a profit of
         $2 per share, your P/E ratio is 15; $30 per share divided by
         $2 earnings per share equals 15. In this ratio the lower the
         P/E ratio, the better.
• Spread: This stock market term reflects the difference between the
         Ask and the Bid.
• Technical Analysis – Using charts and charting techniques and
         indicators (such as prices, volume, moving averages, stochastics, etc.)
         to evaluate future likely price movement.
• Yield – This is the percentage of a dividend paid against the stock price.
         For example, if you receive a $3 dividend on a $30 per share stock,
         your yield is 10%.

Conclusion

It is much easier to discuss the stock market if you understand some of the basic stock market terms. There is a large variety of stock market terms and learning them will not only help in your conversations but also to better comprehend the tools available for technical analysis.

Gold’s Recent Temporary Price Depreciation

      With the recent financial turmoil in the western world (esp. in US & Europe), central banks on major economies are defaulting to stock precious metals especially gold. During the first week of September this year, different European governments are struggling to solve internal as well as external debt matters. Financial instability of some Eurozone member-nations could hardly make ends meet to pay interest on their credits. Together with the United States their debt-related problems accordingly was under a national threatening security condition.

     During this said week major index in the Eurozone is in red status, meaning the stock market is down. Gold price is also down because lots of European banks sold their gold reserves in order to liquidate cash making a temporary decrease of gold’s price. Better yet on the following week BRIC (Brazil, Russia, India and China) nations offered to assist for the resolution of the said dilemma.

     As to this writing gold is advancing to more than US$1,800.00 which may extend up to the third week of September and is foreseen to be bullish once again up to US$1,900.00 per ounce. This is because gold is still at higher demand.

Partial List of Philippine Mining Industries

According to the Philippines' Mines and Geosciences Bureau (MGB), Philippine is ranked as fifth globally in terms of mineralization.  Minerals like copper, gold, silver, nickel and aluminum were some of the abundant metals found here.

In this blog, I am sharing the different companies that mine gold in the country. Here they are:

Abra Mining & Industrial Corporation

Phil. Stock Exchange Index Name: AT

Products:  Commercial utilization of limestone, lime, shale, silica, sand,
                gold, silver, copper, zinc and magnetite iron sand.

Year Started: September 1964

Mining Site/s: Abra and Ilocos Sur

Status: Has not started normal and commercial extraction of
              mine products as of end 2010.

Dizon Copper-Silver Mines, Inc.

Phil. Stock Exchange Index Name: DIZ

Products: Gold, Silver, Copper

Year Started: August 1966

Mining Site:  San Marcelino, Zambales

Associated Companies: Benguet Corporation

Status:

Atlas Consolidated Mining & Development Corporation

Phil. Stock Exchange Index Name: AT

Products:  Produces copper concentrates and gold with silver, magnetite and pyrites.

Year Started: March 1935

Affiliates/Subsidiaries: Carmen Copper Corporation, Berong Nickel
             Corporation, TMM Management, Inc., Ulugan Nickel
             Corporation, Ulugan Resources Holdings, Inc.,

 Nickeline Resources Holdings, Inc., Atlas Exploration Inc.,
 and Amosite Holdings Inc.                                                                                                       Status: Under operation.

Philex Mining Corporation

Phil. Stock Exchange Index Name: PX

Products:  Gold, Silver, Copper

Year Started:  July 1955

Mining Site: Benguet

Subsidiary: Padcal Mine

Status: Under operation.

Nickel Asia Corporation

Phil. Stock Exchange Index Name: NIKL

Product:  Global supplier of lateritic nickel ore.

Year Started: July 2008

Mining Site:  Samar and Cordillera Province among others.

Subsidiaries:  Hinatuan Mining Corporation, Taganito Mining Corporation,
                     Cagdianao Mining Corporation, Rio Tuba Nickel Mining
                     Corporation, Falck Exp Inc., La Costa Shipping and

                     Lighterage Corporation, Samar Nickel Mining Resorces
                     Corporation, and Cordillera Exploration Co., Inc

Status: Under operation.

Lepanto Cosolidated Mining Company

Phil. Stock Exchange Index Name: LC

Products: Gold, copper, silver and diamond drilling.

Year Started: September 1936

Mining Sites: Manyakan, Benguet

Subsidiaries:  Victoria Mine Project, Shipside, Inc., Diamond Drilling
                     Corporation of the Philippines, Lepanto Investment and
                     Development Corporation, Diamant Boart Philippines,
                     Inc., and Far Southeast Gold Resources, Inc.

Status: Far Southeast is under feasibility study and Victoria
                     Project will re-operate starting October 2011.

Semirara Mining Corporation

Phil. Stock Exchange Index Name: SCC

Products: Production of sub-bituminous coal and coal handling services.

Year Started: February 1980

Mining Site: Caluya, Antique

Subsidiaries: SEM-Calaca Power Corporation

Status: Under operation.

United Paragon Mining Corporation

Phil. Stock Exchange Index Name:  UPM

Products: Gold, Silver  & Copper

Year Started:  April 1970

Mining Site: Paracale, Camarines Norte

Subsidiaries: Longos Mine

Status: Operations stopped December 1988

My 225TH Day of Experience in The Stock Market

From the day I started my first trading in the stock market up until now, I have noticed that I have learned many things in this field. From observing and researching the best services of a stock broker to making a move in buying and selling a hot stock that could possibly make a huge profit.

I observed that the Philippine Stock Exchange Index is always affected when the US and European stock market is in the selling mode or the market is down. Several occasions I have determined this scenario. When DOW (Dow Jones Industrial Index) is the US market is in negative territory, expect that this will have a boomerang effect to the Philippine Stock Exchange on the following day of trading. So, the sell-off of almost all issues will happen. Investors and traders alike were taking cash from their securities.

I also found out that there were online brokerage in the Philippines that when you sell your stock investment, it will take three days before the proceeds is credited trading account while others could liquidate it easily at the instant you sold your stocks. Some online broker website is unavailable for trading especially when there is huge volume of transaction in the Philippine Stock Exchange. So this created anger with the investor who cannot pursue the daily trading transaction resulting to missed opportunities during the period of websites unavailability. The best thing is to choose the best brokerage who could offer instant services to their clients.