An Amateur’s Guide to the Stock Market

With the emergence of the Chinese economy as a global superpower, several other markets in the region have gained traction significantly in recent years. One such is that of Philippines. The stock market has emerged as a growing market in recent years. Several individuals have taken up to online trading in Philippines making it a good opportunity.

For those who are on the fringes and are looking to take it up, here’s  a guide to the Stock market.

What is the Stock Market?

Stock Market, also known as the Equity market, refers to a collection of markets and exchanges where the issuing and trading of stocks ( also known as equities), bonds and several other securities takes place. A vital component of free-market economies, stock markets provide companies with access to capital in exchange for giving traders and investors a sliver of ownership in the companies. These stocks and securities carry value which fluctuates according to demand. Their periodic rise and fall give traders a chance to trade them and make profits.

How does it operate?

It can be categorized into two segments:  The Primary market, where new issues are first sold through initial public offerings (IPOs), and the secondary market where the subsequent trading of these stocks happen. In the IPO phase, Institutional investors purchase these shares from investment banks which set up the IPO. This is usually referred to as the company “going public.” In the secondary market, both the institutional investors and the individual ones trade on these stock. The volume, however, differs from the former and the latter.

What is a Stock exchange?

A stock exchange, is an organized marketplace where the stocks and securities are listed. For a particular equity to be traded on an exchange, it needs to be listed there. The exchange brings together buyers and sellers and facilitates the trade (electronically) of these stocks. Exchanges like these exist in major cities across the globe and bring together investors and traders. The world’s largest is the New York Stock Exchange, NYSE for short which is larger than the next three- London, Tokyo, and Nasdaq- combined in terms of its volume and capitalization.

Who regulates the Stock Market?

Monitoring is carried out by regulatory bodies who ensure that the trading which takes place is fair and orderly. All countries have their stock regulators. For example, in the US, the Securities and Exchange Commission (SEC) monitors the markets; while in India, this role is carried out by The Securities and Exchange Board of India (SEBI).

How can individuals take part in the stock market?

Individual investors also make a significant chunk of the traders that operate on the stock market. To participate in trading, it is advisable for individuals to create an online trading account with Stock brokers and start their activity. An even bigger market than the stock market is Forex. To know more about this lucrative industry, get in touch with reputed brokers such as WesternFX.

A Guide to Understanding Forex Charts

The Forex trading market is possibly the most advanced platform in the world, utilized by millions around the world. There are numerous instruments and tools that help to evaluate the market, including charts and analysis. Among charts, the three major types would be line charts, bar charts, and candlestick charts. Most platforms come with these charting tools equipped onto them, and to be successful in the sport, one would certainly need to master the art of charting. 

Charting from brokers

Charts allow traders to gain insight into updated information regarding the currency movements. With a majority of Forex brokers in Philippines, one can access a range of charting tools for a better understanding of currency prices. When identifying a broker, one must make a survey of the trading and charting tools and ensure that the mechanisms are sophisticated enough to support your process. 

When it comes to reading and utilizing charts provided by your online trading broker, there would be three broad steps to take, and we’re going to be going through them one by one below.  

Identifying your currency pair

One would need to determine your currency pair and the time frame that you require. After this, the values on the chart would reflect the time period that you set. You would then be able to examine the movements in the currency price values over the designated time frame. 

Find specific chart structures

The second step is to forecast price movements in the future. This can be done by examining the charts with the use of indicators such as Fibonacci numbers, stochastic oscillators, moving averages and others. There are a variety of indicators one can choose from and the typical brokerage would enable you to also integrate your own preferred indicator. 

Unearth movements in the chart

The last step would be to unearth movements in the market by reading the patterns on the chart. By doing this, a trader can identify trends in the price patterns and successfully project movements in the prices for the future. This, in turn, allows you to position your transactions and the elements around it in the right manner. 

Partnering with a leading broker can help you understand charting and gain a better comprehension of it. WesternFX provides Forex trading services to clients in the Philippines and many other Asian nations. Get in touch with to see how this field can broaden your income!