How to invest in STOCKS? - Market Education (2024)

Getting started in the stock market is a simple process.

1. Choose your STOCKBROKER.

At present, there are more than a hundred stockbrokerage companies to choose from.

When you choose a stockbroker, you need to consider the type of service you will require and who will best suit your needs. You should remember that your stockbroker is your financial agent that will help you make your invested money grow. Stockbrokers are also classified as traditional or online based on the services that they offer.

Traditional brokers are those who assign a licensed salesman to handle your account and take your orders through phone calls, SMS or messaging apps. Online brokers, on the other hand, are those whose main interface with their customer is through their online trading platform.

The full listing of stockbrokers is available in the PSE website.

2. Open a TRADING ACCOUNT with your chosen stockbroker.

The next step is to formally open a trading account. Similar to the process in opening a bank account, representatives of the chosen stockbrokerage company will require you to fill out a Customer Account Information Form or CAIF. Accomplish this along with the other requirements such as:

  • Two (2) valid IDs;
  • Specimen signature cards, and;
  • Proof of billing.

Depending on your stockbroker, you may be also asked to provide additional pertinent documents and an initial cash deposit in order to begin investing
in stocks.

3. Discuss with your stockbroker the stocks you wish to BUY or SELL.

After opening a trading account, you can now start discussing with your stockbroker the stocks you wish to buy (or sell).

4. Give ORDERS to the stockbrokers.

Placing an order to buy or sell a stock can be done by making a telephone call or sending an SMS to your stockbroker. Orders can also be placed directly online via online trading platform.

5. Get the CONFIRMATION RECEIPT.

Once your order has been carried out, your stockbroker will give you a confirmation invoice showing the details of your transaction.

6. Deliver/Pay before SETTLEMENT DEADLINE.

The delivery or payment should be made before the deadline on settlement date. For traditional stockbrokers, the buyer must pay for the cost of the transaction while the seller must deliver the securities to the stockbroker within two (2) trading days after the trade was done but not later than the settlement deadline. For online stockbrokers, settlement of all transactions is done on the transaction date.

7. Receive PROCEEDS/SHARES.

8. MONITOR and TRACK your investments.

How to invest in STOCKS? - Market Education (2024)

FAQs

How to invest in STOCKS? - Market Education? ›

You can seek out articles, books, and courses to educate yourself; use robo-advisors, automated apps and platforms, or financial specialists to manage your portfolio; or personally manage your own stock investments.

What is the best way to learn about investing in stocks? ›

You can seek out articles, books, and courses to educate yourself; use robo-advisors, automated apps and platforms, or financial specialists to manage your portfolio; or personally manage your own stock investments.

Which education is best for stock market? ›

Further, doing an MBA in finance can catalyse your growth commendably. Further, the extra courses are provided by NISM, Udemy, GTF, and various other stock market institutions. These certificate courses provide study material to make you fully equipped with the strategies of the stock market.

How to educate yourself on the stock market? ›

Whether or not you have a mentor, you still should read books, invest a small amount of your own money, and take advantage of free educational materials offered by the best beginner trading platforms. You can also learn from your own successes and mistakes by maintaining a running log of your trades.

What education do you need for stocks? ›

While most entry-level stock trading positions expect applicants to hold a bachelor's degree, more advanced positions often require a master's degree. Stock traders hoping to advance to a managerial position would do well to obtain a Master of Business Administration (MBA). There are also Ph. D.

How much do I need to invest to make $1000 a month? ›

To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return — and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.

How much money do I need to invest to make $3,000 a month? ›

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

Do you need a degree to invest in stocks? ›

A degree is not required to become a stock trader, but it will help give you necessary skills within the field. Certain licenses and examinations are required depending on what you want to do within the stock trading field.

Should I go to college for stocks? ›

The Bottom Line. Traders come from a variety of backgrounds, reflecting the extremely vast array of styles and techniques unique to each individual. However, as the markets are quantitative in nature, it would be useful to pursue a degree in a quantitative discipline if you wish to make a career out of trading.

How to start investing in stocks as a beginner? ›

A beginner's guide to investing in the stock market
  1. Decide your investment goals.
  2. Select your investment vehicle(s)
  3. Calculate how much money you want to invest.
  4. Measure your risk tolerance.
  5. Consider what kind of investor you want to be.
  6. Build your portfolio.
  7. Monitor and rebalance your portfolio over time.
Apr 24, 2024

When to buy stocks for beginners? ›

Timing the stock market is difficult, but understanding when to trade stocks can help your portfolio. The best time of day to buy stocks is usually in the morning, shortly after the market opens. Mondays and Fridays tend to be good days to trade stocks, while the middle of the week is less volatile.

What math do you need for stocks? ›

Assessment and management of risks are key parts of the basic math involved in the stock market. Their formulas include standard deviation (SD), value at risk (VaR), R-squared, Sharpe ratio, and conditional value at risk (CVaR). Before investing, investors should also calculate the risk-to-return ratio.

Do stock brokers make a lot of money? ›

Stockbrokers get paid more than most workers. Estimates of the median combined salaries and commissions received by people who sell stocks and other securities to investors range from $62,910 to $149,664 a year.

How do beginners learn about stocks and investing? ›

A beginner's guide to investing in the stock market
  1. Decide your investment goals.
  2. Select your investment vehicle(s)
  3. Calculate how much money you want to invest.
  4. Measure your risk tolerance.
  5. Consider what kind of investor you want to be.
  6. Build your portfolio.
  7. Monitor and rebalance your portfolio over time.
Apr 24, 2024

How to start investing for beginners? ›

Here are 5 simple steps to get started:
  1. Identify your important goals and give them each a deadline. Be honest with yourself. ...
  2. Come up with some ballpark figures for how much money you'll need for each goal.
  3. Review your finances. ...
  4. Think carefully about the level of risk you can bear.

How long does it take to learn how do you invest in stocks? ›

On average, experts agree it will take an individual between one and five years to understand the stock market. However, the length of time it takes depends on several factors. Keep reading to learn about how you can learn to invest with various resources to help speed up the learning process.

How much money can you make from stocks in a month? ›

Well, there is no limit to how much you can make from stocks in a month. The money you can make by trading can run into thousands, lakhs, or even higher. A few key things that intraday profits depend on: How much capital are you putting in the markets daily?

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