Stocks, basically, are the shares of ownership of a public company. A public company is the one that is listed in a stock exchange or stock market. If a company is not included in the stock exchange, for example in PSE, it is a private company since the common people cannot be a part-owner of that company. The ownership is limited only to few people managing and running that firm.
Before an individual can invest in stocks, he or she must have a stock broker who will be the representative in buying or selling of stocks. In the Philippines, there are two kinds of stock broker: traditional and online stock broker.
Some of the popular stock brokers in the country are CitisecOnline, BPI Trade, Metrosec, and 2TradeAsia.
If you are looking for a stock broker, you can study these brokers and make a choice depending on the convenience, availability, and ease of applying an online stock account.
Once you have a stock account and there is a sufficient balance in your account, you are now ready to buy stocks. Make a list of the stocks you want to buy and the target price you want. The best way in investing in stocks is buy at low price and sell at high price. This should not happen in just one day, sometimes it will take several months or years. For instance when you buy a stock today, you can sell after 3 months when the stock price is higher than when you bought it.
It is the reason why it is important to invest in stocks in the long term not in short term. Investing in stocks in the long term is one of the best strategies you can do if you are serious to invest in stocks. It requires patience and careful study of the stocks you are looking. It is not gambling, there are financial facts why you are investing on that stocks.
Long term investing is a minimum of five years. You can make a regular investment in the stocks you are buying, for example P10,000 quarterly or monthly. Train yourself and be disciplined when you are doing this strategy, otherwise you will not succeed.