Learning the fundamentals in Stock Market is a key to be a successful investor in stock market. This article is primarily focuses on how to invest in Stock Market Using Col Financial.
More and more Filipinos are becoming more financially literate these days – thanks to Bo Sanchez and Chinkee Tan for teaching us how to invest in Stock market! According to the Philippine Stock Exchange, Inc (PSE), there is an impressive growth in stock market investment in the last five years. Data shows that the stock market account holders grew remarkably by 25% in 2018.
Col Financial is the leading stockbroker in the Philippines. Founded by Edward K. Lee in 1999, Col Financial is established on the foundation of “Every Filipino Deserves to be Rich”.
Steps to Open a Col Financial Account:
Ready Requirements – Sign Up – Fund
I. When opening an account in Col Financial, you need to provide the following requirements:
- 1 valid government-issued ID
- TIN (Tax Identification Number)
- 1 valid passport for non-resident foreign applicants
- 1 valid passport and Work Permit from DOLE or Certificate of Registration (ACR) for resident foreign applicants
II. To get started with the stock market investment, open an account in Col Financial in two ways:
Option 1 – Do it online.
Option 2 – Print the forms from Col Financial website, Fill out all the forms and Send it to any COL Investor Center.
Once your documents are received and approved, you will be provided with an 8-digit account number. You can now fund your Col Financial account through online payment, over-the-counter, COL business Centre or overseas remittance (BDO Kabayan Bills Bayad, iRemit Remittance, BDO Overseas Remittance).
There are three types of COL accounts depending on the minimum deposit and account features. Click here for more information.
Once you have funded your Col Financial account, you can now start investing!
Buying the First Stock
When buying your first stock, you may consider carefully which company to invest in. Study the fundamentals of the company – that means, check how well the company performs! What are the financial reports of the company? Does the company have any debt? Does the company outperform its competitors? When you find answers to these questions, you are now ready to invest.
- Log in to your Col Financial account.
- Go to the Trade tab. Find the stock symbol of your company.
Note. You can explore the different stock symbols in the Quotes tab.
- Find the Board lot. A board lot is the standard number of shares defined as a trading unit by a stock exchange. The board lot comes in 5, 10, 100 or 1000.
- Click Buy. This leads you to the Order Details.
- Enter the number of shares you want to buy.
- Enter the Price. This the Last Price texted in green which is found on the right-hand side of your screen.
- Click Preview Order.
- Confirm your order by entering your password. Click Place Buy Order.
- Find your first bought stock by going to the Trade tab then click Portfolio.
Selling your Stock
You should know when is the right time to sell your stock. There are many factors to consider, but the 8 Week Hold Rule is the most popular principle to stock market investors. The 8 Week Hold Rule means that you wait for your stock to reach a 20% gain then hold it for at least 8 weeks. The following are the steps on how to sell your stock:
- Log in to your Col Financial account.
- Go to Trade tab then Portfolio.
- Choose the stock you want to sell.
- Click the Sell option. This leads you to the Order Details.
- Enter the Stock Code.
- Enter the number of shares you want to sell.
- Enter the Price. This is the highest bid price.
- Click Preview Order.
- Confirm your order by entering your password. Click Place Sell Order.
- Check your recent transaction in the Trading History under Trade tab.
About Off-Hours Trading
You can only trade (buy or sell a stock) when the stock market is open. Trading hours of the Philippine Stock Exchange normally are from 9:00 am to 3:30 pm. The trading session is halted during lunch from 12:00 pm to 1:30 pm. If you are a foreign investor, you can still place your order out of trading hours.
To place an Off-hours Order:
- Go to O-H Order under Trade tab.
- Fill out the Order Details.
- Confirm the transaction by entering your password.
If you are just really new in investing, please learn more about it. Learn more about financial literacy.
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