11 Beginner Stock Learning Guide To Success

11 Beginner Stock Learning Guide To Success

If you are new to acting and want to learn how to act, you should read this beginner’s guide. Learning stocks from scratch minimizes the risk of investing in stocks and gives you the best return.

Remember that investing in stocks is a high-risk investment, so it is very important to learn about stocks, especially if you are a beginner. Before we move on to an introductory introduction to the stock market, we need to review what stocks are and the benefits of investing in them.

What is an Stock?

According to the Indonesian Big Dictionary (KBBI), shares are proof of ownership of the capital of a limited liability company, which can receive dividends, etc., depending on the size of the authorized capital. By holding shares of the company in accordance with this understanding, you are entitled to the interests of the company and the right to attend the General Meeting of Shareholders (GMS).

Benefits of investing in stocks

By investing in stocks, you can get two types of profits: the first is the distribution of dividends, and the second is the difference between the purchase and sale price of shares, i.e. share or capital gain.

A dividend is the distribution of a company’s profits among all shareholders, depending on the number of shares owned. The distribution of shares is usually held once a year.

Capital gain is the profit earned from the difference between the purchase price and the sale price. Capital gains come from fluctuations in share prices as a result of trading activities in the secondary market.

Beginner’s Guide to Stock

1. Understanding the risks of investing in stocks

As mentioned above, the risk of investing in stocks is very high. Learning first, if you’re not careful, can be surprising rather than helpful.

That is why it is very important to learn the steps for beginners. It is better to learn from someone else’s experience than to lose yourself. Understanding the essence of investing in stocks, investing in stocks is essentially investing in a company or business.

2. Know the company you want to buy

Therefore, before buying shares in a company, it is better to know exactly how it works, what is going on in general, how the company is doing and how the company’s outlook is changing. Because buying shares means buying a stake in a company.

3. Start small

To learn acting, start small, especially for those who are just starting out. This does not mean that stocks have dropped, it just means that you can start buying from 2, 3 or 5 lots. If you feel smart enough, you can increase the frequency and amount of stock purchases.

4. Study your mutual fund portfolio

Don’t know which shares to buy? A portfolio of high yield mutual funds allows you to learn about stocks from experienced stock analysts. By looking at stocks held by an investment manager (IM) who manages a mutual fund, you can see which stocks you think will be profitable in the future.

5. Safety First

Want to make big profits from side broths or roasted broths? First of all, learning stocks for beginners should start with long-term, low-risk stocks. Even if they don’t make a profit every day, big stocks usually make more money in the medium to long term (1 to 5 years).

You can choose blue chip stocks. Blue chip stocks are stocks with a market capitalization of more than 10 trillion South Korean won that have good business and management performance. This type of stock is considered the safest and promises stable earnings.

6. Don’t forget to diversify your investments.

Even if you are passionate about gambling, do not forget to diversify your investments to free up time. Because stocks are a high-risk investment vehicle, diversification is essential.

One of the guidelines for newbie stocks is that you shouldn’t put all your money in stocks. Diversify your investments into a safer investment portfolio, such as investing in gold or mutual funds. You can also save money with safer deposits.

With decentralization, even if the stock market crashes, any of your money will not lose value. Thus, you will not panic in a crisis and will not face a stock market crash. Diversification will reduce the potential profit, but with diversification, reserve funds will appear that can be used to reduce risk.

7. Don’t Think Short Term

If you need short term, daily or weekly profits, you can become a stock trader and earn capital gains. However, if you are a beginner, first become a long-term stock investor.

While the need for quick wins is indeed tempting, the learning values ​​for beginners are long-term, from the first six months to a year. Alternatively, you can combine stock trading and stock investing to hedge the short-term risks of stock trading slightly with long-term stock investments.

Remember that stock trading takes time, effort, and ingenuity, as well as stock technical analysis skills. You should also keep an eye on stock trading at all times. Buy low, sell high/high.

8. Don’t Panic Too Early

The science that must be applied to investing in stocks is the ability to control oneself so as not to panic when stock prices fall. In fact, when the price of a stock falls, this can be a great opportunity to buy shares and make big profits.

Especially if you think you’re buying stock in a well-performing company. This is because no matter how much the price of a stock falls, it bounces back and usually rises above its previous level.

9. Don’t get tired of reading capital market news and stock information

When investing in stocks, news and information are very important as they influence the decision to buy or buy shares. So stay tuned for capital market news. In addition, you also need to see more of the financial performance of the company with the stock you are looking for and you won’t get bored.

You can read a lot of basic stock analysis and technical analysis techniques to help you decide when to buy and sell stocks. Check out these two analyses. Look for reliable information, not rumors.

Valid information links available free of charge include the PT Bursa Efek Indonesia website https://www.idx.co.id/. The information provided is official information provided by the company and not rumors or analysis.

Some of the information you may get is the company’s financial statements. An annual report containing a comprehensive overview of the company’s outlook, business, finance and management, and corporate performance. Don’t forget to look at the political economy situation as well.

10. Don’t study boring

Take the time to learn the basics of stock investing before investing in stocks. Understand frequently used terms to avoid confusion. Sharpen your skills using the trading accounts offered by securities.

Joining the stock community can also hone your stock investing skills, but don’t get swayed too quickly. This is because these forums usually have people who are knowledgeable enough to ask questions about investing in stocks.

11. Choose stocks with low trading fees and an easy to use trading app.

Another way for beginners to learn about stocks is to choose stocks if you want to open a trading account with low trading fees and easy to use trading apps.

There are many securities in Indonesia with stock trading fees ranging from 0.19% buying fees to 0.29% selling fees. There is also an entry fee of 0.15% and a commission fee of 0.20%. Of course, it would be better if you start looking for the best stocks with low stock trading fees.

Good luck investing in stocks! I expect more money.

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