Choosing the Right Stock

  Want to get rich? Investing is one way. You can choose stock investments that are able to provide great profits.

Currently there are many pompom phenomena of shares of public figures. Beware, if tempted by this action, you could miss a step. Not fortunately, it's a big profit.

In stock investing, you should do an analysis. For beginners, you can do fundamental analysis, such as reading the company's financial statements, and more.

So don't buy shares of companies you don't recognize. Because as Lo Kheng Hong said, the stock exchange is merciless.

If you want to invest in stocks, here's how to choose the right and right stock to avoid large losses.

Tips for Choosing the Right Stock So That It Doesn't Stick

1. Pay attention to the movement of the stock price

A company's stock price always fluctuates. Move at any time, even in a matter of seconds.

The more demand, the stock price can soar. However, you need to be vigilant if the price increase is quite drastic and fantastic.

For example, the opening of shares today, the share price of A Rp 200 per share. But fitting the closing of session I, jumped to Rp 500 per sheet. Then the close of session II, rose again to Rp 1,000 per share.

Stock movements like this are already unnatural. You better avoid it. Usually the shares affected by Auto Reject Atas (ARA) or Auto Reject Atas (ARB) by the Indonesia Stock Exchange (IDX) are very fast changing.

For beginners, you should avoid auto reject stocks. Moreover, it has been included in the list of UMA (Unusual Market Activity) or stocks that move beyond reasonableness.

Even if the stock is illiquid. The characteristics of the bid and offer queues are few. You can check on the official idx website to find out which stocks are on the UMA list.

2. Observe changes in trading volume

Stocks whose prices increase dramatically will be accompanied by significant changes in trading volume as well.

What to look out for is when the stock suddenly became popular in recent days. Many hunted for shares, for example due to pompom shares or other sentiments.

If the indications are like this, there is a possibility that the stock is being played by large financier investors. The city can too. From the previously high price, then suddenly plummeted.

For that, be careful when buying shares. Do not be easily tempted because the price is cheap, but pay attention to the credibility of the stock as well.

3. Company-printed profits

The ups and downs of a stock's trading volume will usually affect a company's profit or profit. Unfortunately, this didn't happen.

This condition indicates that the company does not have good fundamentals. Especially judging by their financial statements.

Tips for Choosing the Right and Right Stock

Get to know the company and its performance

Buy shares not because of incitement, inducement, seduction, or because of the follow-up of others. It's like buying a cat in a sack.

But buy shares because you have recognized the company and the reputation of its owner. All this is done by way of analysis.

In the check, who has whom, the financial statements make sense no. In financial statements, dissected again, for example, the debt is reasonable, the valuation is cheap or expensive, return on equity (ROE) or the rate of return on investment is at least 15% or less, and others.

That way, buy stocks using the brain, not lust. So that the results are clear and maximal. Not just 5% or 10%, but hundreds to thousands.

Buy stocks that enter a particular index

IDX releases several stock list indices according to its characteristics. The goal is to make it easier for investors to choose stocks.

Take the LQ45 Index, for example. Contains a list of 45 preferred or featured stocks. In addition, there are other indices such as IDXQ30, Kompas100, Pefindo 25, and others.

Stocks that are included in the stock list index are usually more reliable, and prove promising profits.

Understand First, New Investment

Before investing in stocks, you must first understand the risks. Stock investment is indeed able to provide great profits, but it is worth the risk.

Starting from the risk of loss due to price decline to the risk of liquidation if the company goes bankrupt. If you understand and are ready to bear the risk whatever happens, then establish the investment.

No need to directly capital. Start first from a small capital, buy one or two lots of shares. Once you know the strategy, just beat a lot to become a billionaire.