Beginner's Guide to Investing in Stocks

[Spyfrat]

Originally posted by sam7268


sure you can ...

yudeeee naks may ka pex mate na sya
musta na gorgeous? miss chatting to u *wink*

[chuen10]

Try to read economics by samuelson, case & fair
and managerial finance by gitman
For trading, try any investment book by warren buffet =)

[computergeek]

thanks everybody, Your sincerity is greatly appreciated!!

[richyuppie]

Originally posted by Hulk

Tama si Kuya Danny, hindi ako heavyweight, overweight ako!

Yup! Hulk is overweight in his portfolio. You should check out his overweight investments in China, New Zealand, and Switzerland. Hehehe.

Indeed!

[computergeek]

Originally posted by richyuppie

Yup! Hulk is overweight in his portfolio. You should check out his overweight investments in China, New Zealand, and Switzerland. Hehehe.

Indeed!

?????

[Hulk]

Originally posted by richyuppie

Yup! Hulk is overweight in his portfolio. You should check out his overweight investments in China, New Zealand, and Switzerland. Hehehe.

Indeed!

Sshhhh... Secret yung mga accounts ko sa Switzerland, baka ma-demanda ako ng money laundering!

[JiGgLy]

Hi, computergeek. Nung una di ko rin maintindihan. Once I took Accounting classes and Business and Management classes, I finally got the idea.

May nagsabi na ba sayo na you can actually visit the PSE in Makati, kaya lang you would have to go early kasi they close agad. Maybe you'll learn a lot there.

[richyuppie]

Originally posted by Hulk

Sshhhh... Secret yung mga accounts ko sa Switzerland, baka ma-demanda ako ng money laundering!

Eh paano yung mga investments and hidden accounts mo sa Cayman Islands?? Hehehe

Indeed!

[Hulk]

Originally posted by richyuppie

Eh paano yung mga investments and hidden accounts mo sa Cayman Islands?? Hehehe

Indeed!

I don't have accounts in the Cayman Islands! I do however have accounts in Vanuatu! Not familiar with the country? Don't worry di rin siya alam ng BIR!

[arrowhead30]

Hi guys... not sure if this is the right thread but I'm gonna hurl my question out anyway

How are derivatives sold or traded here in the philippines? (in other words, do we have primary and secondary markets for derivatives?)

I'm been wanting to know this for ages but I just haven't ben getting the answers.

anyway... thanks in advance

[Hulk]

Originally posted by arrowhead30
Hi guys... not sure if this is the right thread but I'm gonna hurl my question out anyway

How are derivatives sold or traded here in the philippines? (in other words, do we have primary and secondary markets for derivatives?)

I'm been wanting to know this for ages but I just haven't ben getting the answers.

anyway... thanks in advance

First of all, only financial institutions with a Derivatives license could deal in derivatives trading. Currently there are only a handful of financial institutions with this license.

Most derivatives are currency-oriented. Actually the bulk are currency forwards which are personal in nature unlike futures. You could also buy currency options but at very disadvantageous premiums.

We also don't have a futures exchange (i.e. SIMEX). We did have one before, the MIFE, unfortunately it failed in its objectives and was eventually closed by the SEC.

[arrowhead30]

thanks hulk!

just curious ulit... what kinds of financial intermediaries usually have these derivatives licence? also... is it always an over-the-counter transaction?

how about stock options?

lastly, is there a secondary market for the derivatives you've mentioned?

[Hulk]

Originally posted by arrowhead30
thanks hulk!

just curious ulit... what kinds of financial intermediaries usually have these derivatives licence? also... is it always an over-the-counter transaction?

how about stock options?

lastly, is there a secondary market for the derivatives you've mentioned?

The body that grants derivatives licenses is the Bangko Sentral ng Pilipinas. Presently there are only a handful of universal banks (mostly foreign) and an investment house who currently have the license.

If by secondary market you mean transactions between originators of the derivatives and end-users, meron. Products like currency forwards, swaps, and options are over-the-counter products.

Stock options? Well I've never worked for a stock broker, pero I think wala pa, other than those given in the form of a compensation. I think for these types of products to emerge you have to have a deeper cash market for stocks, and the ability to widely borrow and short securities for long periods of time, elements that are still lacking in our market. The closest thing we have are stock warrants.

I think a while back there was plan of index trading for the PSE pero so far they haven't come up with it yet.

Commodities trading on the other hand is still several years away. A friend of mine who worked in Shell before had to use the SIMEX to hedge herself against changes in the prices of crude.

[SILENTMAX]

question lang po

are there any brokerage firms here in the philiphines that deals with the nyse or nasdaq.
pwede ba akong mag invest sa foreign exchanges kahit nasa ibang country?

[Hulk]

Originally posted by SILENTMAX
question lang po

are there any brokerage firms here in the philiphines that deals with the nyse or nasdaq.
pwede ba akong mag invest sa foreign exchanges kahit nasa ibang country?

I believe there are local brokerage firms that deal with foreign bourses. Problem is I don't know which one. Hopefully either richyuppie or spyfrat will be able to browse this thread and give light to the situation.

If you're a big-time player, you could also use foreign houses such as JP Morgan and Merrill Lynch, firms normally based in either Singapore or Hong Kong. We use these investment houses to get the hottest IPOs from all over the world.

[Spyfrat]

yup u can nvest online. daming online broker to choose from. etrade.com, datek.com to name a few. for those who na fast trader/daytrader/short term trader i recommend using tradescape pro found at tradescapeonline.com (etrade rin may-ari nito). sa etrade meron silang $4.95 na comm if u can make 30 trades in a quarter. what's best if u can make that much trade, ipapagamit nila sa yo nnag libre yung power etrade nila, yung may level 2 facility of which u can identify which marker makers ang buy and sell as well know the strength of the buy/sell volume.
merrill-online pagkakaalam ko requires a minimum amount of $500k, whereas sa etrade or datek mga $500-$1000 lang yata.
u can inquire sa site nila, apply online and wire the money using a foreign bank, preferrably hsbc. madali lang yan, magpapadala sila nang notification thru email na nakuha na nilal yung deposit mo. take note as well yung tracking number nang wire mo para u can ask them toll free or thru 24/7 online help kung nakuha na nila yung pera mo using the tracking number. then u can start trading. if $2k or below yung deposit mo automatic cash account ka, meaning u can only nvest (invest means buy & sell) on that amount. if above $2k, u have the option na maging margin account, meaning u can use at least 50% of that $2k ($1k, depende sa stock na e nvest mo, the stable the stock the bigger the margin) for investiment rin, so instead of $2k lang ang pang buy mo, pwede ka buy nang $3k worth pero may interest yung $1k na inutang mo o margin. now what's good sa margin is that, you can "short" stock as well, unlike sa cash account na nd ka pwede mag short. and consequence lang sa margin is that if ur highly marginalized at bumagsak nang malaki ang stock mo, ma margin call ka, kung wala kang pang cover/deposito sa margin call mo, ma force to sell ka which will result to heavy losses or maubos yung pera mo. hope this helps.

btw im trading US market but it's not my money im invetsing with.

[dekster]

question ulit...

how does index hedging work?

[Spyfrat]

hmmmm give lang kita idea pero can't give u the catch of the real trades. kung baga theory lang, iba kasi sa actual, not that far pero may mga tricks yung actual trading.

dami klase nang hedging but the one im comfortable is ndex hedging using MSFT (microsoft) or INTC (intel).

yung index tracker na stock nang nasdaq100 (NDX.X) is QQQ. bali ang mangyayari, short ka either sa QQQ or MSFT/INTC and long sa isa. say, if short ka sa QQQ, long ka sa MSFT or INTC.

ang catch dyan (opss hehe) is that u dont care which way the market goes, wala kang paki kung bear o bull, o akyat to o bagsak, what matters most is yung volatility. I used MSFT/INTC kasi mga biggies yan, silang 2 lang ang sama in all ndexes (dow, nasdaq, at s&p). kung down yung msft o intc nang malaki, maiinfluence nito ang market, same rin kung up. So kung short ka sa QQQ (Nasdaq) and long sa MSFT, ang profit mo dito is yung spread between the two stocks. Like down ang QQQ nang 2pts and mSFT down 1. Kung short ka sa QQQ, gain ka 2 pts, pero talo sa MSFT nang 1 pt. overall gain ka nang 1 pt. thats the time na close mo position. Yung weighing kung ilang shares sa MSFT at QQQ ang nd ko masasabi sa yo boss. hope u understand.

btw dont use percentage kasi ma coconfuse ka lang. kasi d ba kung ang isang stock galing from $10 at nag $20, tubo nun is 100%. pero kung ang isang stock galing $20 to $10, 50% loss lang yun d ba? kaya bawal yung percentage na computation dyan

Dito sa PSE meron rin hedging. But shorting is not allowed yet. pero may paraan ang mga brokers sa mga clients nila to accomate this facility.

[Hulk]

Yup Spyfrat is right. In his example, the portfolio manager is mathematically reducing his risk specific to the index since Microsoft and Intel are significant components of NASDAQ. If you want a clearer explanation as to how risk is reduced, medyo aabot yung discussions natin sa calculus at greek alphabet.

[dekster]

hehe... did you guys learn this in school or at work na?

anyway, thanks again guys. You've all been really helpful

arrowhead30