Investing in stocks is not as difficult as most people think. There are many stock trading methods that beginners can try, such as online trading using their personal smartphones. In addition, the vast amount of information available prepares us for studying market patterns and conditions. It’s never too late to start trading stocks.
So what do you need to do when you start and before you start? Check out the information below to make sure you trade your stock!
Determine the appropriate stock index
There are 22 types of stock indexes listed on the Indonesia Stock Exchange (IDX). Understand the types commonly used by stock players. For example, you can select LQ45 or IDX30. Both are liquid and supported by reliable quality companies. LQ45 itself is the stock index of the Indonesia Stock Exchange, which consists of 45 companies. On the other hand, IDX30 is the 30 most liquid stock.
Choose the right security
When buying stock, use a brokerage firm or stockbroker that charges a fee for each transaction. Select securities with a low commission rate, such as 0.20% of total purchases. This is to ensure a more optimal way to trade your stock and a more perfect way to trade your stock.
Stock trading period planning
There are two ways to trade stocks based on time period: long-term and short-term. The risk of loss increases in the short term, but there is an opportunity to make a profit faster.
On the other hand, if you trade stocks in the long run, you are more likely to make a profit. If your stock has a good reputation, fundamentals, and performance
Do it patiently
Without patience, not all stock trading methods are effective. Beginners are advised to spend a small amount of capital and increase the amount as they become more familiar with it.
Similarly, when faced with a loss, face it with a clear mind and lower the average by buying stocks that are declining in value. When market conditions stabilize again, you can make a profit.