2013 03 14 online stocktrading account

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2013 03 14 online stocktrading account

  1. 1. Bank Savings Account, or Checking AccountAccount My MONEY Contains only MONEY
  2. 2. Stockbroker Savings Account,TRADING Account or Checking Account MONEY+ SHARES of stock Contains only +Stock Div Cash Div. Dividends MONEY
  3. 3. StockbrokerAccount You…“for ON-LINE actuallyTRADING…” reach theYou input your own StockTransactions. Exchange Stockin your own Tradingcomputer Account directly
  4. 4. This is the new method, to buy a stock Sellers Sellers Sellers Stock Stock broker ExchangeYou, Stock Buyers the Trading Account Buyersclient Buyers
  5. 5. No need to wait …to make a phone call Sellers Sellers Sellers Stock Stock broker ExchangeYou, Stock Buyers the Trading Account Buyersclient Buyers
  6. 6. You can see what other investors are doing. You can interact with them via computer. Go to your P.S.E.computer Stock Stock brokerYou, Exchange Stock the Trading Account BUY SELLclient Account: Free of Charge
  7. 7. “open an account” 6,600 Customerservice@firstmetrosec.com.ph
  8. 8. Ask for help, to open an online trading accountFill up forms “ONLINE” Dial 8590600 for guidance. customerservice @firstmetrosec.com.ph
  9. 9. “Open Account” Deliver to First Metro Sec Fill-up, then: print. Account courier ofInformation Print Metrobank Signature Print & Card Sign branch Trading Print & Agreement SignPhotocopy of Place in Attach ID cards an Envelope.
  10. 10. Deliver … Email for You…c/o any Metrobank branch courier pouch 90033 Creates ONLINE Trading Account
  11. 11. Your APPLICATION for an online trading account, has been approved.
  12. 12. Start: Online trading account: STEPS1. OPEN A Cash Checkadd STOCK- Stock 1 TRADING Stock 2 more ACCOUNT. Stock 3 First METRO Sec money.2. INFUSE MONEY. Stock Trading etc“PREPAID”3. BUY STOCKS. Account PURCHASES” 25,000OLD style: Deposit 25,000 at the start, to beallowed to trade.LINE UP AT THE TELLER…
  13. 13. Dear Bank Teller: “I want todeposit Cash Cash Check into” First METRO Sec Stock Trading.. My own Account 25,000 STOCK OLD style: Line up, at the tellerTRADING NEW style: online transaction,ACCOUNT SECURE.
  14. 14. To RELOAD cash into the “prepaid” account Metrobank Account Stock 1Thru Stock 2“Metrobank First METRO Sec Stock 3Direct” online Stock Tradingservice etc Account 25,000IF you have no Metrobank account, deposit P25,000 intothe stock-trading account, as minimum start-up.IF you have a Metrobank account, no “minimum balance”is required.
  15. 15. user namepassword
  16. 16. You see your“available balance” 100,000 Same amount as the balance inquiry at ATM machine.
  17. 17. Balance: 100,000
  18. 18. “Add funds for stock trading” 30,000 100,000 70,000You will be able to directly transfermoney from your bank account to yourstock trading account.
  19. 19. Straight into: Stock Trading AccountFirst METRO SecStock Trading Account Shares Shares 30,000 Cash:No minimum balance of 25,000 required forthe stock trading account, if you connect itto a Metrobank “deposit account”.
  20. 20. To RELOAD cash into the “prepaid” account Metrobank No transaction No Account fee, either transaction feeThru“Metrobank First METRO SecDirect” online Stock Tradingservice AccountLog into Metrobank.com.ph, and view your own account.Transfer money, by yourself, toyour own stock trading account.
  21. 21. Minimum Balance: P2,000… earns interest. Metrobank Account Does not earn Interest. First METRO Sec Stock Trading Account Use the STOCK TRADING ACCOUNT to buy STOCKS that pay an 8% cash dividend yield.
  22. 22. Two separate accounts, separate Log-IN Metrobank AccountThru“Metrobank First METRO SecDirect” online Stock Tradingservice AccountIf you forget ...password, …answer guide questions like:“What is your favorite sport? What was your first school? Name of your pet dog? Name of your favorite actress.”
  23. 23. If you sell a stock, you can use the money to BUY other stocks. Metrobank AccountThru First METRO Sec“Metrobank Stock TradingDirect” onlineservice AccountIf you sell a stock, MONEY STAYS in the Trading Account.Then, you may use the MONEY, to buy other stocks, on the same day…
  24. 24. To WITHDRAW CASH, FROM STOCK TRADING account Metrobank Sign Withdrawal Account SLIP.. Fax Stock 1Thru Stock 2 First METRO Sec“Metrobank Stock 3 Stock TradingDirect” online etcservice AccountThere is money in your TRADING ACCOUNT… Youdownload the WITHDRAWAL SLIP fromwww.firstmetrosec.com.ph. Sign it. Fax to me. Scan it,email to customerservice@firstmetrosec.com.ph.
  25. 25. BANK How the trading account works:ACCOUNT Online STOCK- TRADING Account Stock Stock Money market Study the Stock Money a Plan Make Stock Money Decide. Finally, Stock Stock Stock *F.A.M.I. Mutual FUND*
  26. 26. Must be also BANK “Joint AND-OR”ACCOUNT IF “Joint Online STOCK- TRADING Account AND-OR” Stock Money Stock Stock Money Stock Mutual FUND*
  27. 27. 3. Open ‘Online Study Trade, Stock Trading Account’ invest Observe2. Ask for Online Put in“Direct” Access Plan Money 1. Metrobank account * Think Ready? 11 12th NOW months month
  28. 28. Example of a “BUY” order PLDT =stock code “TEL” 2,800 STOCK“SYMBOL” one character 280,000 per stock. One million ONE MILLION
  29. 29. Stocks that Now trading = Value of you own at this price your “POSITION” # of minusshares Your Bought at “COST” this price equals = Your “PROFIT, so far”
  30. 30. After buying the stock• You will get a ‘Confirmation Slip,’ online• You will see ‘Statement of Account,’ online• You can view your Portfolio Holdings, online
  31. 31. You can see, what youhave bought, so far…
  32. 32. “Send the share prices tomy email, “ALERT me at by emailnoontime when the and after price of this STOCKthe close. reaches this PRICE.”
  33. 33. “Board Lot”: minimum # of shares. Minimum Price of the At least: Minimum stock Shares Investment Order Size 5,000 5 25,000 4,999 5 24,995 1,999 5 9,995 999 10 9,990 25K 499 10 4,990 199 10 1,990 10K 99 10 990 49 100 4,900 2K 19 100 1,900 9 100 900
  34. 34. Trading Costs Types of Fees Amount Buy SellStockbroker’s commission plus BC allowable range is 0.25% to 1.5% or a minimum of ¼ of one 12% Value-added Tax on Php.20.000, whichever is higher percent commissions* 1% of 1%Clearing Fee 0.01% of transaction amount PSE Transaction 1/200 of 1% of transaction 1/200 of 1% Fee amount HalfStock Transaction 0.5% of transaction amount Tax percent
  35. 35. BUY Pesos10,000 x 0.0025 25 broker comission x 0.0001 1 clearing fee x 0.0000005 0.005 stock exchange fee 26.005 pesos For every P10,000 worth BUY order, TXN costs are 26.005
  36. 36. SELL Pesos10,000 x 0.0025 25 broker comission x 0.0001 1 clearing fee x 0.0000005 0.005 stock exchange fee x 0.005 50 government tax 76.005 pesos For every P10,000 worth SELL order, TXN costs are 76.005
  37. 37. When can you execute trades? tillWhen can you ENTER an online ORDER? AFTER HOURS ! NEXT DAY ANY It gets TIME implemented by 930am
  38. 38. Expert Trading: Buying & Selling of Stocks Investing: placing more & more money in Stocks Experiments, First StepsBEGINNER
  39. 39. “What stocks to buy?” read daily TIPSRead the news, tips…view technical charts. 5,400
  40. 40. agilles@firstmetrosec.com.ph• www.stockxchallenge.com free download of my lecture files• www.slideshare.com/sandygilles• See also the research reports on www.firstmetrosec.com.ph / RESEARCH
  41. 41. agilles@firstmetrosec.com.phSLIDESHARE.COM/ SANDYGILLES8590600 / customerservice @firstmetrosec.com.ph
  42. 42. Investing in Equities Stocks, direct or Via Mutual Fund
  43. 43. Deposits are For Risky Assets:insured: “Safe” Unsafe, Uncertain ! Stockbroker Savings B Comm’L B PRIVATE MUTUAL BANK FUND & Universal Investing “U.I.T.F.” Bank, does your millions for you Investing your thousands for you both, plus, it canown insurance They put money company. “to work”
  44. 44. Which “bank” invests your millions for you? Private Bank: Minimum = $5 million DOLLARS Charges = 4% per year
  45. 45. Who can invest your P5,000 for you, at low cost. Mutual FUND. The “private bank” for ordinary people. Minimum = P5,000 Charges = 1.7% percent a year.
  46. 46. Mutual UnitFund Investment1. You have Trust Fund: money. 1. BANK Trust2. You hire a Fund, open to professional, the public. to manage it. 2. You buy a UNIT. 47
  47. 47. “Let’s pool MUTUAL FUND our money and invest it.”We “make” ourown insurance.“Mutual”BENEFIT
  48. 48. OPERATED OPERATEDBY A STOCK BY A BANK BROKER Unit Mutual Investment Fund Trust FundSold by SALES Sold at bank AGENTS branches 49
  49. 49. Track record “Save & Learn” ALL Equity Fund, Stocks 23% / yearHigh returns, % “Save & Learn” Half Bonds, Balanced Fund, HalfGet Forms: 17% / year Stocksat www.fami. com.ph “Save & Learn” Fixed-Income Fund, ALL 8% / year BondsInflation, 4% Safe (good credit) RISKY (uncertain)
  50. 50. How to buy mutual funds Buy MORE shares, each 1,000 shares month At 5 / shareInvest 5,000Get application forms at:www.fami.com.ph
  51. 51. Buy 100K of Buy 100K ofstocks, directly mutual funds: Pay P2000 now. (2% of assets) Pay P 261in commissions, Pay P1700/year (1.7% of assets) for the entire trade. Like: Hiring a “Driver”
  52. 52. With Stocks: With Mutual Funds: You ‘drive They ‘drive your car.’ your car.’ You decide They decide freely. freely.You get the stress They get the stress
  53. 53. 2006 Net Yield 67.58%Equity Fund 2007 Net Yield 12.62% 2008 Net Yield -30.70% 2009 Net Yield 53.11% 63.37% 2010 Net Yield 8.18% 2011 Net Yield Properties 18.88% YTD Yield (8/23/12) 21%Fixed-Income and CAGR 24.40% other Stocks 47% Holding • P 8 bn Companies 13% • Growth -Oriented • All Stocks Telecoms Transport Power 7% • For Aggressive Investors 2% 10%
  54. 54. FAMI “Equity Fund”
  55. 55. 2007 Net Yield 4.07%Balanced Fund 2008 Net Yield -4.86% 2009 Net Yield 45.36% 2010 Net Yield 61.97% 2011 Net Yield 6.62% Others YTD Yield (8/23/12) 17.26% Deposits CAGR 18.54% 1% 24% Stocks • P3 Bn 49% • Launched in May 2007 • For Long-term investment • Moderate Returns Bonds • A balance of stocks and bond 26% investments
  56. 56. The ObjectiveThe principle is the same: Sell HIGH Wait To consistently make money: invest LONG-Buy NOW LOW TERM 57
  57. 57. Adjust the percentages, to suit your preferences.__% in Stock market __% in Stocks that you MUTUAL FUND will personally select and monitor A D B E C F
  58. 58. The price movesfrom “cheap” to SELL BUY“expensive,” and cheap again. BUY Company BUY Earnings = net profits
  59. 59. Philippines Singapore -Taxes -Taxes-Voluntary Savings? Forced Savings!Take-home Take-home pay pay 60
  60. 60. Why be “aggressive”?Q: Why save, for years and years? 6,621 100 x 1.15 for 30 years compounding IF too conservative: 574 100 x 1.06 for 30 years 61
  61. 61. Stocks have overshot their 13,000Long-Term Average Strategy: buy, IN CASE it goes up. 6,700Strategy: buy as itgoes down… 6,000 2012-’17: 20% 2012: 33% 2002– 2012: 20% 1,200 1987 – 2012: 10%
  62. 62. Which is safer ?A. to keep stock certificates (paper)B. electronic records or “scripless”
  63. 63. Can be rendered invalid by : Paper Certificate Termites Flood Theft damageCrayola of Molds, baby Mildew
  64. 64. ELECTRONICRECORDS, have Recognized byback-up systems& security Broker Enough Stock ‘Back-up’s Exchange Stock SecuritiesTransfer Svc Clearing
  65. 65. On your Own Mutual Fund P100,000 P100,000 Buy your Pay P1700own stocks a yearw/ Stress Less stress 66
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