How to Trading and Invest in Stock for Beginners

Investing in stocks isn’t as difficult as most people think. There are a lot of ways to trade stocks that beginners can try, for example, online trading via a personal smartphone. Plus, the abundance of information available can also prepare you as you study patterns and market conditions. There’s no word too late to start trading stocks.

So, what do you have to do when and before you start? Check the following information so you don’t go wrong when trading stocks!

4 Ways to Invest in Stock

1. Determine the correct Stock Index

There are 22 types of stock indices listed on the Indonesian Stock Exchange (BEI). Identify the types commonly used by shareholders. For example, you can choose LQ45 or IDX30, both of which have high liquidity and are supported by the quality of a trusted company.

2. Choose the appropriate Securities

When buying stocks, you will use a securities company intermediary or a stock broker who charges for each transaction. Choose securities that offer a lower percentage of the cost, e.g. 0.20% of the total purchase of stocks. This is to make the profit more optimal and to ensure the way your stock trading is more perfect.

3. Schedule the Stock Trading Period

There are two ways to trade stocks based on their periods, long term and short term. In the short term, the risk of losses is greater, but there is a chance of earning profits faster.

On the contrary, there is a greater chance of profit when trading stocks in the long term, when the stocks have a good reputation and fundamentals as well as good performance.

4. Do it with patience

As a beginner, you are advised to use small capital and increase the amount as your understanding grows.

Similarly, when faced with losses, be clear-minded and make an average down by buying shares that are falling. It could be that you even had a profit when market conditions had stabilized back. Before trading stocks, you also need to know the risks and the right steps when investing stocks so as not to harm.

Investment Types for Beginners

People are becoming more aware of the importance of financial security. In addition to the growth of digitalization, it is also supported by the Industry 4.0 revolution that advances aspects of digital technology. It is what ultimately drives the creation of various kinds of investment.

The many kinds of investments that are now available will make people more careful in determining investments, especially for beginners.

1. Mutual Funds

The Fund itself is suitable for beginner investors who focus on getting fixed returns with minimal risk and can start with not too large capital.

There are several types of funds that you can choose from: money market funds, stock fund, sharia fund, mixed funds and fixed-income funds. You can invest through the Investment Managers, Securities, and Bank companies that are distributors of funds registered with the Financial Services Authority.

2. Gold

Gold has become a kind of investment for beginners who are just beginning to learn how to invest. In addition to its easy-to-understand way of investing, gold investments also have a trend of value that keeps rising every year. Unlike paper currencies, the value of gold will not be affected by inflation. The advantage of other gold investments is its high liquidity, so it can be liquidated quickly if it is in need of funds.

Before making gold as an investment, you need to check the price of gold on the official site of Mercury Gold, Pegadaian, marketplace, or a trusted gold store. After that, you can decide whether to buy directly or through online.

3. Stock

Investing in stocks is high-risk, but it doesn’t mean beginners can’t try it. You can still start with small capital in advance or invest with fundamental analysis that allows investors to invest over long periods of time.

For beginners it is recommended to do research first about stocks. Choose stocks that have proven to have good fundamentals, so it is suitable for beginners. These investments can be a very effective medium for beginners to learn how to invest.

4. Deposit

Deposits are investments whose profits can be taken within a certain period of time. This type of investment also has a low risk because it is a type of savings guaranteed by the Deposit Guarantee Agency (LPS), so it is suitable for beginner investors.

If the bank where you hold your deposits goes bankrupt, then you will still get a full deposit fund of up to Rs. 2 billion of LPS. Of course this will make you investors become more confident and feel safe when you want to invest money.

5. National Letter of Excellence (SBN)

Current State securities or bonds are easily accessible and purchased online. SBN is a type of investment in debt that can be bought from the government. This investment is said to be quite safe for beginners because of large profits and guaranteed by government.

SBN contains an agreement between the issuing parties to pay a voucher and pay the debt to the buyer in accordance with the specified period. There are three types of SBNs: Saving Bond Ritel (SBR), which is a state bond and then a savings bond, a Sharia State Securities (SBSN), and a State Retail Bond (ORI), a state debt that is sold to retail investors.

6. Collections

This one can start with a hobby you’re actually having. For example, when your hobby is collecting luxury watches, then you can make it a very promising asset in the future. However, you also have to be careful in thinking far ahead and reading the trends of the collection item itself.

Another example that you can make an investment is an antique motorcycle. Not to mention the latest output, old output like an antique motorcycle can be very valuable if invested.

That’s the explanation of the types of investments for beginners. Don’t forget to do research first before determining the type of investment that best suits your risk profile.