To do that, I dig one of my transactions with EDC, one of my favorite companies.
(Yeah, I like companies that pursue the use of renewable energy. Besides, I knew some friends who work in the firm, and being once a part-owner of EDC, I commend them for working hard for me HAHA.)
But since the TrulyRich Club advised its members to sell it, I followed the word and sold them with my heart broken. LOL.
Still I’m happy that I sold it for some profits. Maybe once its management team is able to have a more solid decision making process, we’ll pick its shares up once again together with other members of the club.
In below scenario, I placed a sell order of EDC with a total of 5200 shares, which, it turned out, was accomplished in two separate orders – one with 700 shares and the second with 4500 shares. That gives a total of 5200 shares.
# of Shares
It’s easy to see the three phases which happen chronologically.
Order Accepted – This is the phase where your broker checks if you have enough balance to fund your buying transactions. If you’re selling your stocks, obviously there’s no need to check your cash balance and therefore your order readily gets accepted.
Order Posted – this is the time when your order becomes visible in the Philippine stock exchange. Depending on the price of your order, your order can remain posted throughout the whole trading day without being matched. You can read this to help you adjust your order price it you want it to be matched right away.
Order Executed – Finally, if there’s a buyer/seller willing to match your order price given enough volume, your order gets done and matched. Note that as long as your order remains unmatched or not executed, you can change it or totally cancel it.
These three steps are very simple and obvious that many investors tend to overlook, but this is more apparent when you use an online broker like that of BPI Trade that has a more tedious process of classifying your stock market buy and sell orders especially in the case of using your selling proceeds to buy new stocks at the same trading day. We’ll go to that in the next blog.
Lastly, for any matched stocks transaction order, you must be able to see them in the transaction time and sales of that particular stock that same trading day. See below transactions that show the partial order matching that happened in my EDC stock sell order that split into two matched transactions.
That’s it for a quick investing lesson today.
Have fun investing!
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