Buy and Sell Stocks in the Stock Market: Buy at ASK, Sell at BID

Published on  7/15/18   12:14 AM

 

Disclaimer: I am not connected with COL Financial, online stockbroker, insurance companies etc. I am also not a stock market agent. 

This article will deal with transactions under COL Financial, an online stockbroker 

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I am a medical doctor. Unfortunately, most of the doctors do not understand stock market because this topic is not discussed to us during medical school.

I learned stock exchange by watching youtube videos and reading articles, blogs and forecast  

The objective of this article is help you understand how to buy/sell stocks in the stock market

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Part 1: Trading Hours in Stock Market 

Before you proceed with your transaction, check if the market is open.

You must study the trend of the different companies prior deciding whether to buy or sell a certain stock. There are numerous websites that discuss the trends. 

To view the recommendation of Col Financial: Click on the Research Tab then Technicals 

The recommendation regarding Jollibee Foods Corp (Stock Code JFC) is to "Sell" the stock  

The recommendation regarding Wilcon Depot INC (Stock Code WLCON) is to "Buy" the stock  

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‘Buy at ASK, Sell at BID’

A. How to Buy a Stock 

• Trading can only be done if the market is "OPEN"

1. Click "Trade" tab 
2. Click  "Enter Order"
3. Type the Stock Code.
• For Example, I want to buy stocks of Cebu Air Inc (Cebu Pacific)
• You will type its Stock Code - CEB.  
• If you are not familiar with the stock code, you can google it prior the transaction 
4. Check for your Available Balance 
• Make sure you have enough balance 
5. Check for the Board Lot 
• Board lot is the trading unit in stock exchange 
• It defines the minimum number of stocks you can buy 
• It also defines which multiples of number you can buy the stock
• Example: the board lot of CEB (in the picture) is 10.
• Meaning the minimum number of stocks you can buy is 10 
• You can buy stocks in the multiples of 10 -->  therefore 10, 20, 30, 40, 50 stocks  etc 
• Another Example: if the board lot of Jollibee is 100 then 
• The minimum number of stocks you can buy is 100
• You can buy stocks in the multiples of 100 --> therefore 100, 200, 300, 400 stocks

B. Buy at ASK Price 

1. Check for the lowest price in the ASK column. 
• This is the amount in pesos of every stock that you want to buy 
2. Type the ask price in the Price column 
3. Type the Number of Shares you want to buy. 
• The number of shares depends on the Board lot of the stock (as previously discussed) 
• in the example above, the number of shares I want to buy is 140 (this is a multiple of 10) 
4. Check for the Net Price
5. Click Preview Order 

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‘Buy at ASK, Sell at BID’

A. How to Sell a Stock 

• Trading can only be done if the market is "OPEN"
• Click "Trade" tab 
• Click  "Enter Order"

1. Click Sell
2. Type the Stock Code 
   
   
3. Check the BID Column 
• Check on the Highest BID 
• this is the highest amount that stock broker is willing to pay for every stock that you want to sell 
4. Type the Price of the Highest BID and Number of Shares you want to Sell 
5. Click Preview Order 

‘Buy at ASK, Sell at BID’

Genesis A. Mercado M.D. 

is a biologist and a licensed medical doctor

trained in Internal Medicine 

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