Types of Stocks

a. Index Stocks (PSEi) / Blue Chips / 1 st Liners – Top 30 companies

b. Growth Stock / 2nd Liners – Non Blues but has good credentials, fundamentals, growth, and expansion
c. Basura Stock / Penny Stock / 3rd Liners – Gains and losses can be fast

How to make money in stocks?

a. Price Appreciation – Buy Low, Sell High
b. Dividends – Company shares their profit to their shareholders

Investment Strategy
a. Buy and Hold – Long term Plan – Buy and Forget, Ignore the news
b. Peso Cost Averaging – Investing regularly, Buy near support
c. Market Timing – Trader

Buy sa Low, Sell sa High – Prices are low depending sa cost mo.

Trading - Buy and sell stocks on a short term basis

Kinds of trading
a. Scalp trading/Scalper: Buy and sell within minutes. Intraday charts, Ticker, and the Bid and Ask table.
b. Day trading: Holds position in a day then sell with no overnight positions
c. Swing trading: Held for days to weeks. Trends
d. Position trading: Hoards stocks while its cheap then sell upon maturity

Plan your trades, and trade your plan

1. Entry / Exit
2. Target Price
3. Cut Loss Point
4. Execution

Prices are driven by excessive supply (down) and demand (up)

When supply increases, prices decline VV

Support and Resistance – place where Supply and Demand on a stock is shown

Supply / Bears / Selling – Investors are selling

Demand / Bulls / Buying – People are buying

Support – Price level na inaabangan ni