How To Invest In Stocks For Beginners You Should Know

It is important to know how to invest in stocks for beginners. This is especially important for those who want to start investing in valuable stock assets. Why? This is because stocks are one of the high risk investment assets.

Knowing how to invest in stocks for beginners can help you develop the right strategy to capitalize on your investment. It is very important to know how to invest correctly with all the risks involved, especially with the technological advances that are taking place.

How to invest in stocks for beginners

Stocks are one of the capital market investments that can be used as an alternative to long-term investments. So if you are really interested in this investment product, you need to know how to properly calculate profit and risk.

So what do newbies who want to invest in stocks need to know? Here’s how to invest in stocks for beginners.

First, what is investing in stocks and what are the risks?

Before investing in stocks, you should be aware of the features and benefits of investing in stocks, including the risks. Learn about investing, including what stocks are and how to profit from them.

You can attend seminars, workshops, read books or learn how to invest in stocks for beginners on YouTube. Detailed knowledge of your inventory allows you to estimate the capacity, especially the risk of loss that you can afford. To learn, it is better to start investing in stocks with small nominal rupees.

Have some cold cash ready to invest in stocks.

Do not start investing in stocks with speculative funds such as loans or money for everyday life. The risk is quite high, so I recommend using cold money to invest in stocks. Cold money is money that does not affect your life, even if it is lost or devalued.

You can use your savings or bonus money so that if something happens to the price of the shares you bought, you can always smile and look at it like a learning expense. You will also need to create some funds, usually with the initial funds required to open a client funds account with a brokerage firm.

Choose the best limited liability company

Brokerage houses act as intermediaries in buying and selling shares. They will guide you through the process of opening an account with the Indonesian Stock Exchange (IDX).

You must select a broker that is registered with the IDX and authorized by the Office of the Treasury (OJK). You should also be able to track the performance of these companies so that you can comfortably and safely invest in stocks.

Choose a brokerage firm that offers the convenience of buying and selling shares. With the development of modern technology, brokerage houses already have special applications for buying and selling shares directly. So make sure the standard app you have is available and easy to use. Choose the corporation that attracts the lowest fees for buying and selling its shares.

Some of the securities companies you can choose from include Mandiri Sekuritas, BNI Sekuritas, Ajaib Sekuritas, Indo Premier, Mirae Asset, and more. A list of Indonesian securities companies can be found at the OJK link below.

Opening a Client Funds Account (RDN)

Once you have decided to choose a brokerage firm, you will need to open a client fund account with that firm. Accounts are used to carry out purchase and sale transactions in the capital markets. To open it, you need to prepare the necessary documents and other files.

The first documents you need to prepare are your ID or Restricted Residence Permit Card (KITAS) for Indonesian citizens and Alien Passport. Also, you must first have an NPWP. If you are still a student, you can join your parent’s PNTP. It is also necessary to prepare two copies of the prospectus and a seal.

By filling out a form based on factual information, you can make an initial deposit of the RDN you already have. The value of this initial deposit usually ranges from IDR 100,000 to IDR 3,000,000.

Select the shares you want to own

It usually doesn’t take long to create a client fund account. When you own an RDN and make an initial deposit, you are formally registered as a stock investor. You can buy shares directly through the application provided by the joint stock company.

But before that, you must first research the stocks you want to buy. Make sure the company’s financial performance is good. For this, financial reports and other issues related to the work and image of the company are analyzed. Stocks are long-term investments, so think carefully.

It’s a good idea to initially choose stocks owned by blue chips or well-performing companies. This type of stock tends to rise year after year, making it a good long-term investment option.

study stock analysis

Investors currently have two popular methods of analyzing stocks. The first is technical analysis, the second is fundamental analysis. For a better understanding, you can also read the following two stock analysis methods that may be more beneficial for you when investing in stocks.

Regularly track the movement of stock prices

To make a profit from investing in stocks, you need to regularly monitor the stock market. This is done in order to find the best time to buy and sell shares. The best time to buy stocks is when they rise or fall. On the other hand, the best time to sell a stock is when the price is high or when the price of the stock you want to buy is falling.

Follow the news through digital media or social media where stocks are checked daily. You may decide to buy another share when its value drops as a result of a change in the share price.

Familiarize yourself with the apps used to properly buy and sell stocks.

In today’s digital world, it is easy to engage in various activities, including buying stocks. You can rely on your smartphone to invest in stocks online using the app. Example apps that can be used to buy and sell include Magic, MOST by Mandiri Sekuritas, BIONS BNI Sekuritas, and Indopremier IPOT.

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