Trading Basics

Common Stock Trading Terms in the Philippines

If you’re a new trader in the Philippine Stock Market and have been to different groups/forums about stock trading, you might have encountered words/terms like FOMO, IPIT, Bodega, Tsupit, etc.  said by different people. Like what? What are those? Are those terms important in trading?

Here, I’ll share with you the meaning of the most common terms you’ll usually come across in your trading journey and some witty words that you’ll only hear uttered by traders in the Philippines.

(All Time High)
the highest price an assets or index has ever reached.
(All Time Low)
the lowest price an assets or index has ever reached.
Averaging Downbuying more stock as the price goes down and expecting the stock price to rebound later.
Average Upbuying more stock as the price goes down, expecting na mag continue umakyat ang stock nay un.
Basurapenny stocks or mga stocks na below 1 pesos. Most of them are even below 0.5 pesos.
Buhusansell down. Stocks na umangat the previous day na biglang bagsak the next day.
Bearan investor who looks to profit from a downturn in the market.
Bearishpessimistic that the market will fall.
Bear Marketmarket being in a downward trend, or a general decline/ falling stock prices.
BOBObuy on Breakout
BOSObuy on Support
Bullishyung confident ka na aakyat market, or yung stock na hawak mo e.g. “bullish yung stock na to kase nagbreakout na from resistance.”
Bull Market market being in a upward trend, or a general upward/increasing stock prices.
Blue Chipthe stocks behind large, industry-leading companies.
Balance sheeta summary of a company’s assets and liabilities taken at a particular point.
Bid Priceamount of money a trader is willing to pay per share for a given stock.
Bitcoinoriginal cryptocurrency.
Blockchaindigital ledger that records all cryptocurrency transactions.
Board lotminimum number of share na pwede mo mabili sa isang stock.
Bodegabuy that stock assuming na aakyat in the future. Usually ginagawa ng position traders habang wala pang nakakapansin sa stock.
Bondfixed-term loan to a company or institution.
Bottom Fishingbuying shares when the price is thought to have bottomed out after falling sharply.
(Buying Power)
eto yung total funds mo na available para ipambili ng stock.
Breakoutbreakout from resistance.
Breakdownbutas support.
Brokera person or a platform that buys and sells investments for clients. Need mo nito para makapagtrade.
Bubblewhen the price of an asset rises far higher than can be justified and to be followed by a collapse in price.
Candlesticks a chart type most commonly used in trading that shows trading range and opening and closing prices. Nirerepresent ng candle ang price movement ng isang stock in a day.
Commissions amount paid to brokers for their services.
Consolidationincreasing the nominal value of shares and decreasing the number in issue.
Cutsell at loss. Important na matutunan at makasanayan tong gawin ng traders kasi you are cutting your losses habang maliit pa in order to protect your portfolio from incurring even greater losses.
Cryptocurrencyan encrypted digital currency. Bitcoin is the most famous example.
Dividendsa portion of a company’s earnings that is paid to shareholders.
Day tradingbuying and selling stocks during a trading day.
(Dead Cat’s Bounce)
ang pag-akyat temporarily ng presyo ng stocks after ng matagal na panahon ng downtrend. Akala mo tuloy-tuloy na reversal pero masusundan ulit ito ng continuation ng downtrend.
Derivativesa contract that derives its value from the performance of its underlying asset.
(End of the Day)
in the PSE, this is 15 minutes before matapos market hours.
Exchange official market place for trading assets. Sa Pilipinas, ito ang Philippine Stock Exchange.
Executionwhen an order to buy or sell has been completed.
Floor Pricelowest price na pwedeng abutin ng isang stock sa isang araw, which is 30% below ng previous close.
(Fear of Missing Out)
usually lumilitaw pag biglang angat yung presyo ng stock at nag-eend up sa pagbili ng wala sa plano. Kadalasan lugi ang trader dahil emosyon ang pinairal.
FUDFear, Uncertainty, and Doubt
Forex/FXForeign Exchange
Forex Marketwhere one currency is exchanged for another.
(Fundamental Analysis)
analysis of the value of a company using its accounts, its competition and the economy in general.
Gap-uppag nag open ang price ng mas mataas kesa sa previous day’s price. Meaning may gap ang opening price ngayon at ang closing price kahapon. Eg. Close is 3.10 then nag open ng 3.20 (GAP).
Go Longinvest expecting the price to go up, or buying a stock expecting the stock will go up.
Go Short sell first expecting the price to go down, aiming to buy later, at lower price.
(Good ‘til Cancelled)
pag nag place ka ng order tapos GTC lagay mo, the order is good/open until you cancel it.
Hedge Fundan investment fund that uses leverage and long and short positions across different asset categories to make an absolute return .Known for aggressive strategies.
(Hold On Dear Life)
hold lang sa stock wag muna e benta.
Illiquidnot easily converted into cash, dahil walang masyadong willing buyers kumpara sa ibang stocks.
Illiquid marketone without sufficient buyers and sellers. Often results in bumpy price changes.
Indexabenchmark that is used as a reference marker for traders. Example nito PSEI na naglalaman ng 30 stocks na representative ng Industrial, Property, Holdings, Services, Financial, at Mining and Oil sectors sa Pilipinas.
Ipityung naiwanan ka sa taas ng stock na binili mo, example bumili ka ng APVI sa 50 at ngayon ay 17 pesos nalang, naipit ka at hindi ka na makalabas.
(Initial Public Offering)
refers to the process of offering shares of a private corporation to the public in a new stock issuance
Inflationthe increase in prices of goods and services over time.
Insider Tradingthe illegal use of inside information to make a profit or avoid a loss on market transactions.
Instiito tawag sa group na me hawak ng malalaking pera kapag nagtrade. Usually, brokers.
Leverageusing borrowed money to increase the potential profits (or losses) on an investment.
Limit Orderan order to buy or sell when a particular price is reached. Guarantees a trade at that price.
Lipadstock na biglang angat ng value/price.
Liquid Assetan asset that can easily be converted into cash. Madaling ibenta kung kinakailangan dahil maraming willing buyers at any time.
Liquid Market a market with enough buyers and sellers for the price to move smoothly.
Market Orderan order to buy or sell at the current price.
Moving Average a stock’s average price-per-share during a specific period of time.
Odd Lotshares na less than the board lot, or less than minimum. Example: board lot is 1000 for a certain stock, and you only have 900 shares. You can only sold your 900 stocks as odd lot.
(One Day Reversal)
downtrend na stock, bumabagsak, tapos biglang umakyat yung price for just a day, kaya tawag one day reversal, kase nag reverse for just a day.
Open positiona trade that has not yet been closed with an opposing trade and can still incur a profit or a loss- eto yung laman ng port mo na di mo pa nabebenta, open pa.
Portfolioa collection of investments owned by an investor. Or stocks na hawak mo. Namomonitor mo sa platform ng broker mo kung anong status nito, kung kumikita or hindi.
Pump and Dumpwhen the market is bullish and praises an asset, leading to a fast price increase, followed by a crash. (Pump- pinaakyat ang stock usually gap up or rally, para lang e dump- pabagsakin kinabukasan, kadalasan biktima neto, mga newbies).
Rallya rapid increase in the general price level of the market or of the price of a stock (mabilisang pag akyat ng isang stock).
Resistancein technical analysis is a price level that a rising stock can't seem to overcome.
ROIReturn on Investments
Sell at Openbenta mo stock mo pag open ng market at 9:30AM
Sell at closebenta mo stock mo at EOD(refer to EOD definition).
Sell on newsusually nangyayare kapag me bad news or good news ang isang stock at nagdecide kang magbenta.
Spreadthe difference between the bid and the ask prices of a stock, or the amount for which someone is willing to buy it and the amount for which someone is willing to sell it.(In other words, ano distance between price ng bid and ask).
Stop-Loss Orderan order to sell at a price below the current market price if the price falls, designed to minimise losses. (Ito yung price, kung saan se-set mo benta or cut yung position mo. E.g. “once nag below 2.0 e bebenta ko na to” in order to minimize more losses.
Supportrefers to the price level that an asset does not fall below for period of time.
Take profitssell at gain.
(Technical Analysis)
focus on the statistical analysis of price movements.
(Trade At Your Own Risk)
in other words, ingat.
yung time period ng galaw ng stock na minomonitor mo e.g. daily, 4 hours, 1 hour, 30 minutes para tignan kung saan ang entry at exit mo.
(To the moon)
karaniwang sinasabi ng mga taong nang-hyhype ng stocks sa mga groups. Eg. "Todamoon na tong *Insert stock here*. Bumili na kayo."
(Target Price)
yung price na gusto mo marating ng stock para maibenta mo na.
Trade Strategy/Systemeto yung system na gamit mo para malaman kung kelan ka bibili ng isang stock at kelan ka magbebenta.
Tsupitmabilisang bili at benta ng stock. Usually lower timeframe gamit.
Volatilitythe amount and frequency with which an investment fluctuates in value.
Volumethe number of shares of stock traded during a particular time period.
Whalesomeone who owns large amounts of capital. Sila yung may kakayahan magpagalaw ng market.
Whipsawnabenta mo na share mo, sa pag aakalang babagsak tapos, umakyat pa yung stock.
Yieldincome generated by an asset on an annual basis.

There you have it!

 I hope this list helps you understand a little more about trading in the Philippines. If you have more terms or “lingos” that we missed. Let us know in the comments below. Happy Trading!

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