Tips for Starting the Right Stock Investment

  Many people want to start investing in stocks, but don't know how. The first thing I always think about is the issue of capital.

But because of worrying about large stock investment capital, so afraid to do so. So that stock investment only becomes an unsanncial discourse.

Tips for Starting the Right Stock Investment

Nowadays, stock investment can start from Rp 100,000. Here's how to start investing in stocks for beginners:

 1. Know first what a stock investment is

Stock investment is an investment activity in the form of the purchase of shares (securities) of the company. By buying company shares, you become the owner of the company.

Stock investments include high risk, high return investments. In the step of starting a stock investment, you must know the advantages and risks of stock investment.

So, not only tempted by the profits, such as dividends and capital gains. Because, behind the sweetness of stock investments, there are large risks that can make your money go away instantly, including the risk of liquidation, capital loss, and others.

The stock market is unforgiving for people who don't want to learn. Digging for information and deepening insight into the ins and outs of stock investing is absolute for potential investors.  

2. Select trusted securities

Today, many online stock investment platforms can be easily found from securities companies. Make sure you choose a trusted securities that are members of the Indonesia Stock Exchange (IDX) and have permission from the Financial Services Authority (OJK). 

Next, explore its track record so that you are safe and comfortable investing. That way, you are not entangled in investing in a bodong company. Don't want your capital to disappear because it entrusts money in securities

3. Buy shares you know

Buy shares that you know and know. Who owns it, what is its credibility and track record, its balance sheet such as profit and cash flow, valuation, outlook and projections going forward.

This way, stock investing will give results as expected because you don't buy stocks like cats in sacks. It is recommended for novice investors to buy blue chip stocks so that stock investments are safe.

Blue chip stocks are stocks of companies with a high reputation, market leaders in their industry, record stable earnings, as well as diligent dividend sharing. 

4. Learn how to read stock charts

In addition to learning fundamental analysis, such as reading financial statements, you also have to study technical analysis, such as reading stock charts. Uses stock movements over a specific time span, including prices and fluctuations, as well as information on the highs and lows of the stock. 

Reading stock charts can help investors or traders to make stock trading decisions. Whether to buy, sell, or hold. 

5. Diligently monitor stock price movements

Stock investments include high-risk investments. That's because the stock price is too volatile. The ups and downs are very fast.

If you lack understanding of stock investment, buying and selling shares, until you do not master the risk management properly, you can experience a big loss.

So, always monitor the movement of stock prices at all times. Because, several factors cause stock price volatility, namely internal and external factors.

Internal factors include, corporate action of the company, company fundamentals, company performance. While external factors, namely the macroeconomics of a country, rupiah exchange rate, panic attack, government policy, until the emergence of stock cities.

The main source of information of stock investors is the official website of the IDX. Starting from the issuer or listed company along with its financial statements, the movement of JCI (Composite Stock Price Index), and other information.