Steps on How to Invest in Stocks

One of the well-known type of investments that can give investors huge amounts of returns are stocks. These might be risky but once you get a grip on how to trade it, coupled with a smart strategy, good profit is waving at you.

Below is the step-by-step process on how to invest in stocks:

1. Find a broker.

This is the starting point of your investment journey. And now, it is easier than ever since the Philippine Stock Exchange (PSE) has hundreds of accredited brokers. They offer full-services, and you can choose the one that will best suit your needs.

2. Try online brokerage platforms.

If you want to be able to manage your stocks directly, you can try online brokerage platforms such as COL Financial, Phil Stocks, and First Metro. You can easily apply for the start of your investment. COL Financial even offers a starting fund amount of PHP 1,000. Find their details online and contact them to get you started.

3. Open an account where you’ll perform your stock trading.

You just need to download the forms required to be filled out. Accomplish them properly and send to the broker via mail. If you wish a speedier transaction, you can visit the office of PSE at Unit 2501B, 25^th Floor, PSE Center Exchange Road, Ortigas Center, Pasig City, Metro Manila.

4. Deposit the fund to your account.

If you physically visited their office, you could just pay at the cashier. But if you are doing your application online, you can also fund your account via transfer or deposit to the specific bank account that will be provided.

5. Do your trades strategically.

After the confirmation of your account, you can now start your stock trading. For COL Financial users, you can log in to your account and view the market movements. You can now decide where to put your investments and trade them directly via the online platform. For those who opt to do the traditional trading, you can place your purchase via call to your broker.

6. Monitor your investments regularly.

As previously mentioned, the stock market can be volatile at times. So, it will be best to track the status of your investments on a regular basis. This will let you know if you are gaining or losing from the investments you have ventured on. It will also provide you the information needed for big decisions such as diversifying your portfolio, adding more of the existing stocks, or withdrawing everything altogether.

If you have the resources and time, plan and start your stock trading now. Since there is still a pandemic, some stocks are at their lower prices, that is, the best time to purchase them, if forecasts and studies suggest that they will boom in the longer run.