Jakarta, duniafintech.com – method investment Share It’s not as complicated as many people think.
There are many ways to invest in stocks that beginners can try, for example trading online via a personal smartphone. You can learn and increase knowledge about them.
In addition, the vast amount of information available can also prepare you while studying the patterns and conditions of the stock market. It’s never too late to start trading these stocks.
So, what do you need to do when and before you start? Let’s take a look at the following information so you don’t make a mistake when investing or trading stocks. But before that, we first discuss what is investing in stocks.
Know what is investing in stocks
When discussed in general terms, shares can be interpreted as a sign of the participation of capital from a person or a party that includes a business entity, in a corporation or LLC.
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By participating in the registered capital, the party has the right to claim the company’s income and company assets, and is entitled to attend the general meeting of shareholders (GMS).
Therefore, if you operate some form of equity investment, you can indirectly benefit from the initial capital used to purchase shares of one or more of these companies.
However, you need to understand that the capital distributed for equity investment has a role in supporting the needs of the growing economy of a company or company. The profits from the economic improvement will be shared with the investors or equity investors.
Types of investing in stocks
You need to know that these stocks come from different economic sectors, yes. Therefore, choosing the right investment will increase your chances of benefiting from the investment activities you undertake.
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The Indonesia Stock Exchange (IDX) registered that there are approximately 711 companies with registered shares further divided into 9 sectors, the details are as follows:
- Basic Industries and Chemicals:
- Miscellaneous industries (heavy or light machinery manufacturing work, along with supporting components)
- Consumer Goods Industry
- Real estate, real estate and building construction
- Infrastructure, utilities and transportation
- Trade, services and investment
Then, equity investments are further divided into two types, including common stock and preferred stock. With regard to common stock, this type of investment is usually in the form of securities that state a person’s ownership of the company.
Meanwhile, preferred stock refers to shareholders who have a higher priority in terms of dividend than common stock investors. The advantage of investing in preferred stocks is that you get the opportunity to have the privilege to determine the company’s policies.
How to invest in stocks, pay attention to these important points
These are the important points to pay attention to in this investment, including:
1. How to invest in stocks by selecting the appropriate stock index
There are 22 types of stock indices listed on the Indonesia Stock Exchange (IDX). Learn about the types commonly used by stock operators.
For example, you can choose the LQ45 or IDX30, both of which are highly liquid and are backed by high quality and definitely reliable companies.
LQ45 is the stock market index of IDX which consists of 45 companies. Meanwhile, IDX30 is the 30 stocks with the highest liquidity.
2. Choose the appropriate stock
When you buy shares, you will be using a stock broker or stock broker that requires a fee per transaction.
Choose securities that offer a lower percentage of fees, for example 0.20 percent of the total stock purchase. This is so that profits are better and to ensure a more optimal way to invest in your stocks.
3. Stock trading period planning
There are two ways to invest in stocks based on the period, long term and short term. In the short term, the risk of loss is greater, but there is an opportunity to make a profit more quickly.
On the other hand, there is a higher chance of profit when trading stocks for the long term. If the stock has a good reputation, fundamentals and good performance.
4. Do it patiently
Not all stock trading methods will be effective if not combined with patience. As a beginner, it is recommended to use a small capital and increase the amount as you understand more.
Likewise when facing losses, face them with a clear mind and do so average down By buying shares that are decreasing in value. You may make profits even when market conditions stabilize again.
This is a review of understanding and how to invest in these stocks. I hope this information is useful to you.
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Author: Contributor / Shuhada Banji A