Investing in Philippines: Who are Stockbrokers?


Friday, April 9, 2010

Who are Stockbrokers?

First things first. One cannot directly invest in the stock market. One has to have a stockbroker accredited by SEC and PSE. The stockbroker's role is more like a middle man between the seller and buyer of a stock or other debt or equity investment. These persons or corporations need to be accredited by regulatory bodies like SEC and PSE to ensure that the trading of stocks are not fraudulent and in accordance to the rules set by laws.

Stock broking is a matter of trust and financial responsibility. The qualities and credentials of the broker needs to be investigated properly due to the fact that you, the investor, would be handing over hard earned money at the hands of the stockbroker. An ideal stockbroker should provide a clear schedule of investment and the know-how to the investor to build an investment portfolio gradually.

A good stockbroker has a definite plan and does research carefully. To take appropriate decisions about stock market investing is not for the chicken- hearted.(odd phrase) An ideal trader does not feel nervous about the losses. He is the master in money-management techniques. As they say you can be a millionaire in a second and a poor man as well. A good stockbroker do two analysis of stocks, Fundamental and Technical Analysis. The first is an analysis of the company's financial standing and performance based on financial statements and reports. This includes various ratio analysis and turnover analysis that measures the company's stability and profitability in the long run.

Technical analysis on the other hand deals more on the trend analysis of the stock. The market changes due to changing forces and also based on demand and supply. A company might have a good financial standing but the buying market has different feel about it thus the trend on this particular company's stock might be on the upside or the downside. Stock values changes rapidly depending on how many are interested to buy or how many are selling. Knowing the trend gives a stockbroker knowledge when to buy and when to sell stocks to get the best out of it.

The advent of technology has made investing simple. Online stockbrokers who are accredited by the PSE can execute one's order upon keying it online. Security wise these online brokers wont be granted license without showing their ability to secure the investors information. Click here to know some of PSE's online stock brokers.


cfd said...

I have purchased the trading courses myself, and i want to tell you, they are very helpful, have learned many trading strategies, and also gave me an insight on how and when to trade the market!

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Louis Delos Angeles said...

Thanks CFD!