Stock market vs. stuck market

There’s something about the stock market that really gets me all pumped up. Watching the action on the floor inebriates me. Maybe it’s because the movie Wall Street, which portrays the exciting world of the stock market, made an indelible mark in my brain. Whenever I see news clips, videos or films that feature the action on the trading floor — the drama, suspense, yelling and raising of arms in delirious ecstasy — I am glued. It’s almost like watching a cockfight and a charismatic prayer rally at the same time.

The stock market is often used as a barometer of how well or bad the economy of a country is doing. Usually, when stocks are on the rise, the country is doing well or it’s about to experience a boom. When stock prices nosedive, there’s something wrong with the economy or a recession is about to happen. That’s what happened last week when Asian stocks plunged.

The fact that the stock market is so vital to a country’s economy is what makes it truly stimulating. What makes it even more exciting is that all of us have access to it. Anyone can invest and in the US, people from all walks of life — not just the moneyed — take an interest in the stock market. Ordinary folks like taxi drivers, clerks, and construction workers invest in stocks.

In the Philippines, however, that’s not the case. Of course, economics has something to do with it. Taxi drivers here hardly have anything to put on the dining table, let alone invest in stocks. Even those who have some savings, like middle-income earners, seem to veer away from stocks and would rather invest in real estate or high-interest savings accounts (which is a misnomer because a high-interest savings account today actually offers very low interest).

Recently, I got to meet the folks at CitisecOnline, one of the leading stock brokerage firms in the country. CitisecOnline is one of only a handful of brokerage firms that offer online stock trading. I got to meet their very friendly execom-chairman Edward Lee, president Conrado Bate, and vice president Juanis Barredo.

I got to ask them the question I’ve always wanted to ask about the stock market in the country: Why are the extremely moneyed people the only ones playing the stock market?

"Up until recently, the stock market was viewed with some apprehension by the general public," said Edward Lee. "Ordinary folks felt that the stock market was like gambling, that trading was like guesswork and you have to be lucky to do well. But the truth is, there’s a lot of science involved in stock trading. If you know the basics, and if you study the market and partner with a brokerage firm that knows the market well, you will discover that investing in the stocks can be very rewarding."

"One of the reasons why the general public veered away from the stock market in the past was that that most of them found it a bit complicated," said Conrade "Dino" Bate. "Most of the time, they relied on their brokers’ opinions and that’s tough because when you invest you want to know what’s going on. That was difficult because they normally didn’t have immediate access to timely information on the movement of stocks, economic indicators, or industry news. That was before. Now that we have CitisecOnline, retail investors have a tool to make informed decisions when they buy and sell stocks."

Edward and Dino gave me a quick tour of their office — and their website www.citiseconline.com — and I was amazed. After only a few minutes of surfing their site, I was already familiar with how stock trading works. If you click around long enough, you’ll find the stock market a lot less intimidating.

"The beautiful thing about CitisecOnline is the research information we can provide in real time," said Lee. "We have the latest on various corporate and economic news and provide our analysts’ opinion on the impact of these developments. With real-time information, a retail investor can immediately make an informed decision about his stocks."

"Also, to simplify the stock selection process for the newbie investor, CitisecOnline summarizes a list of attractive buys under a tab in the website called ‘Top Picks,’" said Dino. "These stock picks selected by our experienced research team are highly recommended issues, which are published and made available daily in a section called ‘Morning Notes.’"

The whole thrust of CitisecOnline is to make the stock market investor-friendly, especially for first-time investors. "The idea is to build the general public’s confidence," said Juanis Barredo. "The stock market doesn’t have to be too speculative. Now, everyday people can make informed decisions regarding stocks and CitisecOnline is there to guide them every step of the way."

CitisecOnline traders also have access to a stream of innovations, which allow them to quickly respond to developments and take advantage of opportunities. For instance, it is offering a flexible credit line that allows a client to borrow funds using marginable stocks and cash balance as collateral. Once an application is approved, the flexible credit line can be used immediately. Moreover, clients are charged interest only on the daily amount they utilize and the loan is payable anytime.

We live in exciting times. The Internet is such a fantastic tool for all of us and with companies like CitisecOnline, the stock market that we all feared is now becoming a friendly investment option.

"We’re hoping that because of online trading, more companies will be encouraged to go on IPO," say Edward. "With online trading, funds can be raised easier by companies. There are a lot of exciting and aggressive local companies primed for IPO — like The French Baker, Ever Bilena, and Seair. Companies like these can benefit from the rise of online trading should they eventually go public."

So, are you still stuck with your traditional way of trading stocks? Don’t content yourself with the stuck market. Go online and know what stock trading is all about.

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Thanks for your letters, folks! You may e-mail me at rodhnepo@yahoo.com.