In the past, many people thought that playing stocks was complicated, difficult, and required a large amount of capital.
Starting to invest in stocks is also considered to seem like a scary thing, even though buying stocks is very easy to do. You just have to follow how-to-play stocks for beginners below. Check this out!
How to Play Stocks for Beginners
Before you enter how to play stocks for beginners, you should first need to know about stocks. Shares are a sign or proof of capital participation from one person or entity to a company or limited liability company to obtain profits in the form of capital gains or dividends.
Capital gain is the difference between the fair price and the selling price of the shares that you will get if you sell the shares you own and make a profit.
While dividends are the returns obtained by company owners (investors) from the distribution of company profits according to the percentage of shares they own.
Dividends are distributed once a year in accordance with the agreed results of the general meeting of shareholders.
Now that you know what stocks are, you will now head over to how to play stocks for beginners.
Understanding the Basic Knowledge of Stocks
Understanding what a stock is, the terms of purchase, the benefits to be gained and the risks that come with it is the most important first step for you to take when playing stocks.
If you do not understand, later you can make the wrong step when investing. Because in stocks, there is the concept of high-risk high return.
The point is, the greater the profit you will get, the greater the risk you will face. You can learn how to play stocks for beginners on trading simulation applications that are provided by many securities companies.
Choosing a Broker
The next way to play stocks for beginners is that you have to choose the right brokerage or stock security company.
You must first make sure whether the brokerage company you choose is listed on the Indonesia Stock Exchange.
Choose a broker that has a trading application to make it easier for you to play stocks.
This securities company or broker will help you to open a stock account, open a customer fund account to make stock transactions to the end.
Choosing Stocks to Buy
Before buying shares, you must first choose what shares you want to buy. You can choose the type of stock you want first and then choose the company you want to buy.
In addition to considering the benefits of stocks, you should choose stocks with the lowest risk.
Don’t forget to consider a stock diversification strategy so that your risk is divided and you don’t experience big losses when an undesirable situation occurs.
Share Purchase Transaction
After choosing the stock you want to buy, it’s time to make a stock purchase transaction.
You can do this on the online stock trading application owned by the securities company where you registered.
Usually, in the application, there are steps that you must take, to important information that will help you such as stock movement information, company information, and many others. Or if the securities company does not have the application, you can go to the securities company’s office.
Diligently Monitor Market Conditions
After everything is in order, you just need to sit back and monitor the state of the market. Market conditions are usually influenced by economic, political, social conditions, and many other factors.
You must be careful to see the ups and downs of stock prices in the market so that you can determine the right time to resell your shares, buy again to add a percentage of ownership, or keep your shares without taking any action.
This is a complete tutorial on how to play stocks for beginners. Hopefully, the article above can explain in detail about how to play stocks. Hopefully useful and happy investing!