Investing in The Philippine Stock Market Part 3

Investing in the Philippine Stock Market (Part 3)
How to Buy and Sell Shares of Stocks Using an Online Stock Trading Platform
2013 RocketEntrepreneur.com
Welcome to Part 3 of our series! Today, were going to learn how to buy and sell shares of stocks using BPI Trade.
For those with COL Financial Accounts, buying and selling shares using COL Financial are essentially the same as using BPI Trade.
Therefore, if you have a COL Financial Account, youre still going to learn a lot from this slideshow.
For those who missed the rst two parts of our series, here are the links: Part One: Opening an Online Stock Trading Account Part Two: Reminders before You Start Investing
Lets start with YOUR ACCOUNT.
First, go to www.BpiTrade.com and log in to your BPI Trade Account.
Enter your USERNAME and PASSWORD and then click LOGIN.
ENTER YOUR USERNAME AND PASSWORD
CLICK LOGIN
Welcome to BPI Trades Homepage!
This is your USERNAME.
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This is the amount of cash you have in YOUR ACCOUNT (or in YOUR WALLET).
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You can use this amount to buy shares of stocks.
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When you sell shares of stocks, you will receive cash. However, the cash will go to your WALLET only on the following day.
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The cash goes temporarily to the MARGIN/CREDIT balance.
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But you can use the MARGIN/CREDIT balance to buy shares of stocks on the same day you sold your shares.
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Thats why your total BUYING POWER is your CASH plus the MARGIN/CREDIT.
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There are still so many things to learn in this page. But lets just focus on the basics.
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Now, lets go to YOUR PORTFOLIO.
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From the HOMEPAGE, highlight TRADING.
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Then click VIEW PORTFOLIO.
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It will bring you to YOUR PORTFOLIO page.
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(As you can see, I just sold most of my shares when the market was up as per the Truly Rich Club.)
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(Most of the shares I was holding reached their Target Prices, as provided by the Truly Rich Club. Thats why I sold them.)
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(I just started buying regularly again. According to the Truly Rich Club, the market will be moving sideways for the next six months.)
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(This means we can buy shares of stocks at low prices for the next six months! Hurray!)
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Back to our lesson, STOCK pertains to the companies the shares of which you are currently holding. I have DNL, FPH, LC, and SMPH in my portfolio.
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LAST pertains to the current market prices of the shares.
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AVG COST pertains to the average price you bought your shares of stocks. This includes the commission charges and the other transaction costs as well.
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SHARES pertain to the number of shares you are holding for each company.
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MKT VALUE pertains to the Current Market Price of all your shares for each company. This is net of the transaction costs you will incur if you sell your shares.
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TOTAL COST pertains to the total amount you paid for your shares. This includes the transaction costs you incurred in buying your shares.
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PROFIT/LOSS pertains to the MKT VALUE minus the TOTAL COST.
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It represents your PAPER GAIN/LOSS - the gain or loss you will realize if you sell your shares today.
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%P/L pertains to the percentage (paper) gain or loss. Its a good measure of the performance of your portfolio.
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(See my big loss in LC? Thats the only time I tried to experiment and bought shares on my own. He he. Its a good thing I just tried to play that time to learn.)
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(For SMPH, I know the market will recover after six months or more. Ill just hold on to those shares.)
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(Besides, Im a long-term investor. Remember our lesson in Part 2?)
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(This is from COL Financial. I know I will just recover my losses and even gain from my investments in the long run.)
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Now, lets BUY SHARES OF STOCKS!
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Again, highlight TRADING. Then, click NEW ORDER.
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You will be directed to this page.
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Click the BUY option button.
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Input the TICKER or the STOCK SYMBOL of the company youre going to buy. Then click, GET QUOTE.
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For example, were going buy shares of D and L Industries, Inc. or DNL.
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Lets talk about BID VOL and BID PRICE. BID VOL represents the total number of shares being bought at a certain price, which is the BID PRICE.
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This means that a total of 13,700 shares of DNL are being bought at 7.01 pesos per share. Also, a total of 134,700 DNL shares are being bought at 7.00 pesos per share.
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Now, lets proceed to ASK PRICE and ASK VOL. This time, ASK VOL pertains to the total number of shares being sold at a certain amount, the ASK PRICE.
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This means a total of 54,600 shares of DNL are being sold at 7.02 pesos per share. This also means that a total of 3,400 shares of DNL are being sold at 7.03 pesos per share.
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Now, lets talk about BOARD LOT. Click BOARD LOT.
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When you click BOARD LOT, a small pop up window will appear.
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BOARD LOT means the standard number of shares you can buy or sell. This means that if you have a BOARD LOT of 100, you can buy or sell shares only in multiples of 100 (i.e. 100, 200, 300, 1000, 1100, etc.).
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By the way, I usually buy at the LOWEST ASK PRICE. Why? Because Ill be 100% sure that Ill be able to buy those shares. Plus, as a long-term investor, the tiny difference would not matter much.
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The time I save in buying stocks RIGHT AWAY instead of waiting whether my bid to buy shares will be matched within the day or not is already worth the cents I let go.
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Back to BOARD LOT, since Im buying at 7.02 pesos per share, the board lot of DNL is 100. This means that if I have 5,000 pesos in my WALLET, the most number of shares I can buy is 700 for a total of 4,914 pesos.
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This means I cannot buy one or two more shares even though I still have 86 pesos in my WALLET.
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Did you notice the FLUCTUATION? This means that you can make share price offers at increments of 0.01 pesos per share.
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Now, enter the quantity of shares you want to buy and the price at which you want to buy them. In our example, lets buy 200 shares of DNL at 7.02.
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Click PREVIEW ORDER.
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You will see here how much you have to pay after adding the TRANSACTION COSTS.
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You can nalize your order by entering your PASSWORD in CONFIRM ORDER then clicking CONFIRM.
ENTER YOUR PASSWORD THEN CLICK CONFIRM
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Congratulations! You now know how to BUY shares of stocks!
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Now, lets proceed to SELLING shares!
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Lets assume Im going to SELL all my 2,600 DNL shares.
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Again, highlight TRADING, then, click NEW ORDER.
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Its almost the SAME as BUYING shares of stocks with some very little differences.
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First, instead of clicking the BUY option button, you click the SELL option button. Then, input the TICKER of the shares you want to sell. In our example, its DNL. Then, click GET QUOTE.
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The process of determining the BOARD LOT is the same. But this time, it will depend on how much we are SELLING our shares.
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When SELLING, I usually sell my shares at the HIGHEST BID PRICE. Again, this is to save time.
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This means that the BOARD LOT for DNL will still be at 100 shares. This also means that I can sell all my 2,600 shares at 7.01 pesos per share.
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Then, click PREVIEW ORDER.
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Again, you will see the TOTAL TRANSACTION COSTS. But this time, the costs will be subtracted from your total selling amount.
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Finalize your order by entering your password and clicking CONFIRM.
ENTER YOUR PASSWORD THEN CLICK CONFIRM
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Congratulations! You now know how to SELL shares of stocks!
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That was easy, right? You can now begin buying or selling shares of stocks!
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If youre still not comfortable investing in the stock market, thats okay.You can invest in mutual funds instead!
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Next week, well compare directly investing in the stock market vs. investing in mutual funds.
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So, visit us again at www.RocketEntrepreneur.com.
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Thank you! And dont forget to...
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Have Fun! - Carlo
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Investing in The Philippine Stock Market Part 3

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Investing in The Philippine Stock Market Part 3

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Investing in the Philippine Stock Market (Part 3)

Lets start with YOUR ACCOUNT.

First, go to www.BpiTrade.com and log in to your BPI Trade Account.

Enter your USERNAME and PASSWORD and then click LOGIN.

ENTER YOUR USERNAME AND PASSWORD

Welcome to BPI Trades Homepage!

This is your USERNAME.

You can use this amount to buy shares of stocks.

The cash goes temporarily to the MARGIN/CREDIT balance.

Now, lets go to YOUR PORTFOLIO.

From the HOMEPAGE, highlight TRADING.

Then click VIEW PORTFOLIO.

It will bring you to YOUR PORTFOLIO page.

LAST pertains to the current market prices of the shares.

PROFIT/LOSS pertains to the MKT VALUE minus the TOTAL COST.

(Besides, Im a long-term investor. Remember our lesson in Part 2?)

Now, lets BUY SHARES OF STOCKS!

Again, highlight TRADING. Then, click NEW ORDER.

You will be directed to this page.

Click the BUY option button.

Now, lets talk about BOARD LOT. Click BOARD LOT.

Click PREVIEW ORDER.

ENTER YOUR PASSWORD THEN CLICK CONFIRM

Congratulations! You now know how to BUY shares of stocks!

Now, lets proceed to SELLING shares!

Lets assume Im going to SELL all my 2,600 DNL shares.

Again, highlight TRADING, then, click NEW ORDER.

Then, click PREVIEW ORDER.

Finalize your order by entering your password and clicking CONFIRM.

ENTER YOUR PASSWORD THEN CLICK CONFIRM

Congratulations! You now know how to SELL shares of stocks!

So, visit us again at www.RocketEntrepreneur.com.

Thank you! And dont forget to...

Have Fun! - Carlo

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