For those of you who already have goals in the next 10-15 years such as getting married, retiring early, buying a house, opening a business for retirement to traveling around the world?
If so, of course, from now on you must have the right way to save and process personal money so that this desire can be achieved at the right time.
Well, saving money either in the traditional way or just letting the money stored in a savings account is not enough. Saving by investing is also needed to get the desired results even more at the right time.
Of the many investment products, stock investment can be said to be the type of investment that can provide the highest return or profit compared to other types of investment.
But, behind the high yields, the shadow of risk that follows stock investment is also quite high.
So, it is highly recommended for you to understand very well what stock investing is, the strategy, and how to minimize the risk in order to maximize the profits.
Especially for those of you who are trying to invest in stocks for the first time, you must have knowledge about recommendations for trusted places to invest, how to buy stocks and how to play well so that the investment process becomes smoother.
Stock Investment Benefits
Before learning tips and tricks to maximize profits in investing in stocks, it’s good to know what benefits you can get from investing in stocks. Let your motivation increase to invest quickly.
Here are the benefits you can get from investing in stocks:
Dividend Earning
The dividend is the distribution of profits to shareholders based on the number of shares owned. This distribution will reduce retained earnings and cash available to the company, but the distribution of profits to owners/investors.
So the more you have the value of shares in the company or the more companies you choose to invest your money in, the more dividends you can earn every year.
Dividend income can help fund retirement or finance more investments you have as your investment portfolio grows.
Diversification
Diversification is a technique used to reduce risk by allocating funds to several financial instruments, industries, and other categories.
Stock market investments change value independently of other types of investments, such as bonds and property.
Stock diversification can help you overcome losses due to other investment products. In addition, another advantage of diversifying stock investment is that it adds risk to a portfolio which can increase the potential for greater and faster profits.
Ownership
Buying shares in the company where you buy shares means that you also have ownership/share in the company. This means you can also be called a business owner.
The larger the shares purchased, the more important your voice is in making decisions for a particular business.
Owning stock where you work can also provide the added advantage of being a way of expressing loyalty to the company and contributing to the overall success of the business.
Transparency
Being part of the global economy, the stock market has a transparent working system to meet the needs of everyone whether investors or not in terms of valuation and pricing.
Transparency is also to ensure investors that the funds they invest will not be at risk due to propaganda or internal company problems.
Opportunity to Invest in Stock Markets Around the World
With its transparent and global nature, by investing in stocks you can try to invest your investment funds in any company listed on the stock exchange.
You can invest with outside companies that are planning business expansion so that there is not too much competition and stock prices are still cheap.
Tips to Maximize Profits Investing in Stocks for Beginner Investors
If you already understand the benefits that can be obtained from stock investment, the next is how to get it and maximize it well.
Don’t worry, even though you’re a beginner, that doesn’t mean you don’t have the opportunity to maximize profits on your first stock investment.
Who says he is the only experienced one who can continue to profit in playing stocks. You can also with the following tips:
Choose Securities with Small Transaction Fees
What are securities and their transaction costs?
In stock investment, investors are required to open a securities account that is facilitated by a securities company. After the account has been created, the next investor must top-up a certain amount of funds to a securities account.
The money in the securities account will function like e-money. This money is what investors use to buy the desired online stocks.
So, the transaction costs in question are the costs of buying and selling shares. This fee will be the profit of the brokerage company concerned.
Usually, the cost of security is set to 0.19% for purchases and 0.29% for sales. But there are also only 0.15% for purchases and 0.20% for sales.
Well, so that the profit gets bigger, of course, the choice is to have a company with the cheapest securities costs. But that doesn’t mean the higher-cost securities aren’t worth choosing. Usually, the cost of securities is determined by the quality of service and application.
Royal is OK but doesn’t go too far
Who says that playing stocks requires a large amount of capital?
There are some stocks that only sell for IDR 50 silver per share, you know! In stock investment, you can only buy in units of lots, where one lot consists of 100 shares.
Well, if you buy one lot of shares at a price of only Rp. 50 silver, it means that you only need to pay Rp. 5000. You have managed to own your own shares.
But what are the benefits that you can get if you only invest with too small a value? If you want to get a decent profit, at least ‘decent’ means you have to buy shares at a higher price.
It doesn’t have to be expensive, just choose the one that fits your ability. The formula is to set a profit of at least 1% of the funds you spend on buying shares.
For example, IDR 5 million for 1% profit worth IDR 50 thousand. If the profit you get can be up to 10% every time the stock price goes up you can get at least up to IDR 500 thousand for free.
Very good right?
Choose Stocks Listed on the LQ45 or IDX30 Index
The list of shares issued by the IDX (Indonesian Stock Exchange) is a statistical measure of changes in price movements of a collection of shares, which are selected based on certain criteria.
Well, for beginners who are confused about the first share purchase, they can choose shares in the IDX stock index which are members of the LQ45 or IDX30 index.
Don’t worry, most of the stocks in the index have very high liquidity. In addition, the listed companies are also companies with good backgrounds and fundamentals.
So for those of you who are still very new to the world of stocks, instead of worrying about where to buy safe stocks you can have in both indexes.
Buying Stocks from Banking or Consumer Goods
After knowing what the LQ45 or IDX30 stock index is, the next step is to choose stocks from banks or companies engaged in consumer goods.
Buying shares from banks and large companies engaged in consumer goods as the first share is the wisest and safest way to experience your first stock trading.
Why?
Because these companies are companies with simple businesses, produce goods that are used by the community and are guaranteed to make significant profits every year. That means stock prices will often go up if they are not stable, safe, and profitable, right?
Even if the stock price suddenly drops, it usually doesn’t take long for this type of company to return to normal and profitable. It’s safe anyway!
Buy when the price drops
Many novice investors believe that when stock prices are falling, that’s when they should avoid buying stocks. Actually, such an understanding is not completely wrong, but it is not entirely true either.
Because there are many cases where you buy when the stock price drops and then the price returns to normal or high. With this method, of course, you can get the maximum profit.
However, do not immediately apply this method to every stock price that is falling. There are several other aspects you should consider. So be careful and always be wise.
Buying Stocks with Good and Stable Financial Fundamentals
Before buying, it’s a good idea to read the portfolio of each company whose stock you’re after. Do screening and filtering carefully and choose the one with the best financial fundamentals.
By choosing a company with good financial fundamentals, you can minimize losses that may occur as much as possible so that the profits will also increase.
Choose a Long Term Investment
Long-term stock investments are safer and more profitable. In addition, as previously mentioned, the stock investment will be more profitable if it is treated like saving with more profits.
With this concept, at least the dream of living comfortably with stable finances 10-15 years later can be realized or other things that you want to realize.
In addition, long-term investments also have a lower risk and by choosing the right company, the profits that can be obtained can reach not only 100% but also many times.
For example, you invest IDR 5 million in shares, 10 years later if the company you buy has bright and super successful business prospects, your investment value will not only turn into IDR 10 million (100% profit) but can become IDR 50 million or even IDR 100 million. So the key is to be patient and patient if you want to get this many-fold advantage.
Equity Mutual Funds Become Another Alternative to Stock Investment for Beginners
Choosing a stock mutual fund as your first stock investment can make your first stock investment step even easier. You don’t need to bother screening and checking the desired stock portfolio one by one. With stock mutual funds, your money will be managed by an investment manager that has been provided.
So, you just need to buy shares, watch for a while and be patient! Stock mutual fund products are also easy to get, now not only at fintech, but you can also buy stock mutual funds in e-commerce with an initial capital starting from IDR 100 thousand only.
Cheap, profitable, low risk, and safe. It’s perfect for your first stock investment experience.