Stock Trading For Beginners, Let's Start Investing

Investing in stock is not as difficult as most people think. There are so many ways to stock trading that beginners can try, for example online trading through a personal smartphone. To become a stock trader, you must always analyze the market regularly in order to get the maximum profit possible when selling it.

Because one of the characteristics that must be possessed in order to become a successful trader is to be able to determine the best time and price for buying and selling stocks. Getting involved in the world of stocks is not as difficult as you might think. However, is trading the same as investing? So, let's review it further.

Open Also : Stock Brokerage : Their Roles And How They Work

Stock trading is the transaction of selling and buying certificates of ownership for a company or limited liability company in the short term. The short term in question can generally be seen from the daily market price. Additionally, this is a buying and selling activity that depends on market price fluctuations.

Benefit of Day Stock Trading

Day trading is usually done by traders who want to make a quick profit. In short, this way of day trading stocks are stocks that you buy and resell on the same day. Here are some of the benefits.

- Avoiding the Risk of Loss

By trading every day, you can monitor at any time. So, when there is a sign of a price drop, you can move quickly to overcome it.

- Daily Profit Collection

Although, the profit is not as big as long term stocks, but this type of trading can provide daily profit. With the condition, there is a right strategy for its implementation.

- Get Capital Fast

If you can consistently get daily profits, then you will have more capital to add to the purchased stock products, so that you get even more profits.

Difference Between Stock Trading and Investing

Investing and stock trading are some of the terms you will often come across when you start saving stocks. In fact, the two terms are different things. So what are the differences, including the following:

1. Principle: Buy and Hold vs Buy and Sell

An investor tends to hold the principle of buy and hold when investing in stocks. Usually, investors invest in stocks for a long period of time, so they don't really worry about daily stock price fluctuations.

On the other hand, the principle of stock trading is buying and selling. Traders will buy a stock at a certain price range and will sell it back in the near term, if the value of the stock has reached the number desired by the trader.

2. Risk

Investing in stock has lower risk than trading. Usually, investors will choose blue chip stocks with good company fundamentals, while traders tend to be third-class stocks or stock trading terms, which are stocks with the potential for high fluctuations.

3. Fundamental Analysis vs Technical Analysis

Because it is used for the long term, investors generally perform a fundamental analysis of the company, such as financial statements to the company's performance as a reference. Meanwhile, traders tend to do technical analysis. This technique can help traders monitor stock prices in a short period of time.

How to Stock Trading For Beginners

There are so many ways to trade stocks for beginners that are very easy to try. One of them, online trading through a personal mobile phone.

Open Also : Best Trading Apps For Investors And Stock Treder

Moreover, there are several other ways of trading that you need to know. Including the following.

1. Decide on the Right Stock Index

There are 22 types of stock indices listed on the Stock Exchange. Get to know the types commonly used by stock players. For example, you can choose LQ45 or IDX30, both of which have high liquidity and are backed by reliable quality companies.

- LQ45 itself is a stock market index on the stock exchange which includes 45 companies.
- While IDX30 is 30 stocks with the highest liquidity.

2. Do it with Patience

All stock trading methods will not work if not done with patience. As a beginner, it is recommended that you use a small capital and then increase the amount as your trading skills grow.

3. Plan the Trading Period

Trading can be divided into two based on the period, namely long term and short term. Short term has high risk, but faster profit opportunity. Meanwhile, in the long term the risk is less, but the profit opportunities take a long time.

4. Choose the Right Guarantees

When buying shares, you use an intermediary of a securities company or stockbroker who charges a fee for each transaction. Choose a security that offers a lower percentage fee, for example 0.20% of the total share purchase. This is for profit to be more optimal and to ensure a more perfect way of your stock trading.

5. Avoid Penny Stocks

You may be looking for bargains and low prices but stay away from penny stocks. These stocks are often illiquid, and are often likely to result in jackpots that can lead to larger losses.

6. Don't be Careless

Wanting to be a successful stock trader means you have to be patient and train yourself not to make arbitrary decisions. In addition, in playing stocks, it means that there is no stop to always learn and increase knowledge so that strategies in playing stocks are even better than before.

7. Prepare the Capital

In fact, though the returns can be greater than investing in stocks. The capital required for stock trading is quite large. This is because you have to bid and ask for activities every day in order to be able to get a profit every day.

Because when buying and selling shares, you don't always win, so the capital for stock trading is not enough to just buy it, but also an emergency fund if you experience risk or loss. Assess how much capital is available to risk on each trade.

Many successful day traders risk less than 1% - 2% of their account every time they trade. If you have $269 in funds and are willing to risk 0.5% of your capital on each trade, the maximum loss per trade is $1.3 (0.5% x $269).

Best Stock Trading App

At the moment, you can only do it with one application. Later the application will help potential investors to trade safely. The following are recommendations for beginner stock trading applications.

1. IPOT

Indo Premier Online Technology (IPOT) is one of the largest and well-known securities companies in Indonesia. This security offers a stock trading strategy in the capital market with Fund Appraiser and Robo Trading features, so investors can trade shares at a predetermined price.

2. Bareksa

Bareksa offers nearly 150 mutual fund products, both sharia and conventional. In addition, more than 40 investment managers are available to assist potential investors in reaching their investment targets.

3. Stockbit

Stockbit is a stock investment application that potential investors can use to discuss, analyze, or learn how to trade with the available features.

Well, that's Narabasa's review of understanding as well as how to trade stocks for beginners, and what's the difference with investing. Seeing the benefits that you can get from this trading activity, there is nothing wrong if you start trying stock trading from now on. Let's get excited about money! haha

Lebih baru Lebih lama