Admit it. Not everyone knows how to read stock quotes. You may not even know the difference between Bid and Ask, or Value and Volume.
Just this week, we’ve released visuals to help investors and traders, most especially the newbies and prospects, on how to read stock quotes. The project was an instant hit — opening a new portal to those who just started investing in stocks.
Furthermore, it has proven that many people are interested in stock investment but may not be adequately equipped. We can never tell if they were just too shy, were just bullied, or were just plain proud to seek help.
On this article, we will discuss how to read stock quotes using COL Financial and how this could help you repurpose your game plan.
How to Read Stock Quotes
A stock quote is a listing of ask and bid prices of a particular stock based on a specific exchange. It is updated every trading day. Investors can make their buying or selling decisions according to the numbers on the listing.
The Stock Language
The following are the terms you would encounter when reading stock quotes in COL Financial. The definitions were taken from PSE Academy. Remember that it is vital to know which ones you would need to check when trading.
This is the company’s name as listed in PSE. For this example, we used Ayala Land, Inc.
Symbol is a unique alphabetic name (sometimes alphanumeric) to identify the stocks of a company, This is also known as a stock code.
Also known as the buyer’s price, this pertains to the highest rate of a share a buyer is willing to buy at a specific time.
Ask is the lowest price of a share a seller is willing to offer. This is also called the seller’s price.
Value is the amount of transactions in Peso during a particular trading period. It is the amount turned over from stock trading.
Volume is the number of transactions or shares during a particular trading period.
High and Low
High is the highest stock price traded for a particular trading period.
On the other hand, Low is the lowest stock price traded for a particular trading period.
Open and Close
Open is the price of the stock when the market opens, while Close is the price of the stock when the market closes.
Change of Direction
Change of Direction indicates the activity of the stock, whether it’s trading higher or lower than the closing price of the previous trading day.
Indeed, it’s good to invest, better to earn, and best to learn. How to read stock quotes is just the beginning of your stock investing journey.
I am Jaycee De Guzman, founder and Chief Executive Officer of Equilyst Analytics, Inc. My mission is to simplify stock trading and investing in the Philippine Stock Exchange using my proprietary evergreen strategy in stock trading and investing. My vision is to level up at least 1,000,000 Filipino stock traders and investors by 2030. I will make it happen.