All about STOCK INVESTMENTS

[roadshow]

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Learn how to read financial statements and annual reports. It's a good start. Which books are you reading?

[roadshow]

To all,

Does anyone have any idea on how many percent does the BPI charge per transaction in selling or buying of stocks?
As I understand if we go to BPItrade online, BPI would be our broker. Am I right? Could anybody give an idea?

[roadshow]

@Cottoncandy:

I like your name. I bet you're sweet as your name, huh?

I'll go to the basics first.

The thing with investing is that you want to make your money grow. For what reason? It depends on you -- so you can retire comfortably someday, you want to increase your wealth (meaning you have so many idle cash), finance the education of your child and many other reasons. They are so many investment vehicles out there. One of them is stocks.

Stocks is a certificate that represents an ownership in a publicly traded company. A certificate represents a right to receive dividends (only when declared, assuming you're a common stockholder not preferred), to receive asset after liquidation and the right to vote (electing a director, corporate affairs) and pre-emptive right (you are preferred as to the acquisition ofÂ* any newly issued shares by the company before they are sold to the public).

Basically, stocks can give you considerable amount of gains -- even in thousands percent, just more than enough to offset the inflation rate of 7.5% annually. This is important because inflation diminishes the purchasing power of consumers, that is precisely we invest, not save. Imagine a bank savings deposit giving you less than 5% annually. With a 7.5% inflation rate, your 100 peso this year will no longer be worth 100 peso next year. Think of the monthly increase in the general price levels of commodities. (Tip: There will be a global oil problem in the coming years.)

Of course, there are other alternatives. Bonds can be good. Because, you were asking about stocks. So I won't dig into that.

The problem with us is we treat stocks like casinos. Why? Because we buy Jollibee stocks at P37/per share, Wait until it gets P45 then sell and repeat the same process When it gets down to P25, we panic and we decide to sell avoiding to incur more losses. We follow the trend, its price. We buy because it's goin up, and we sell because it's goin down. You put your money on the line without careful conderation. You put your money on the line because it's the trend. Nobody in history has been able to time the market. Price changes every minute. Anybody who has gain money from this one is just lucky, just as somebody who comes out a millionaire in a casino one night and become a pauper the other night.

I haven't invested a real money in any stock market, though I played many times in a simulation game online, and had some considerable gains.Â* However, if I have that money, here's what I should do.

1. Treat stocks as business. A certificate of stocks represent ownership in a company. Treat the stock exchange as business partner who wants to get more capital so he can have funds to make his business proftable.

2. Buy stocks you are familiar of. If you like dining out in Jollibee, read the financial statements of Jollibee.With this, you will be able to see how the company is doing? Is it doin better than Mcdonald's? Will it be profitable in the next 5 yrs? Read what the Chairman of Jollibee says. Find out more what's happening in the food industry. Will certain laws affect Jollibee's sales?
This requires a lot of homework. But if you do not want to bother yourself with this, go with mutual funds.

3. Limit yourselves to a few stocks where you can keep track the ones I have mentioned in number two.

4. Do not worry about the price in the stock market. They are determined by supply and demand, and basically by people reacting with news (ie upcoming GMA impeachment) which you can predict. Focus on finding a GOOD BUSINESS. Do not worry about the economy, because no one can really predict the economy.

5. Buy good stocks when they are cheap. This means that people are selling and when the market is down.

Just it for now. I am not a stock market expert, though. Don't ask the brokers, they'll convince you to buy. Common sense is still the heart of investing. Ask someone who has been there and done that. And more importantly, trust your instincts.

[etgo]

enroll nalang online bai, ikaw pay mag buot tanan..

[iquest]

great topic.. more input please :mrgreen:

[bardnekom]

tabang ko og up ani beh.

[cen]

tabang ko og up ani beh.

up.

[dagget]

1/4 of 1% ang charge plus 12% vat.

that means .0025 + 12% of .0025

so for every 1000 pesos

its 2.50 pesos + 12% of 2.50 pesos that gives a total of 2.80 pesos

so this should clear up things when it comes to commissions

to those who are into stock trading please correct me if i am wrong

it could also mean for every 1000 pesos

its 2.50 pesos + 12 % of 1000 pesos giving a total of 122.50 pesos

which is which......

[tommy]

check this out for some insights..http://www.financemanila.net/ or http://www.tsupitero.com/.. you can start from here... it narrows your choices

[shinggay]

hi...i just wana comment on this...its really much safer to buy bonds rather than stocks because its much more stable...