If you are a beginner in online stock market, the following 5 tips might be useful to support your investment moves:
1. Decide your investment goals
Deciding your goals is very important in starting every thing including online stock investment. By deciding your goals, you will be more focused in achieving them. Stock investment is a serious matter and it requires a long time spand to get maximum returns. Other than deciding your goals, you also need to consider your risk profile, whether you are an agressive, moderate or conservative risk taker? Stocks are fluctuative when compared to other investment instruments. Other than risk profile, you also need to consider your regular income and expenses as well as time period to achieve it.
2. Start to invest, learn the trading techniques
For beginners it is advised to do more investment than trading. Why? Because investment has relatively lower risk than trading.
Investment aims at long term benefits, while trading aims at short term ones. Stock trading in general is a buying and selling method to gain return in a short period of time. Trading is tempting, however, it also carries higher risks. Investors need sufficient technical knowledge on stock trading to minimize risks.
Meanwhile, investment has lower risk potentials since it requires longer time spand. Even when stock bearished, investors don’t need to worry as long as they have done their fundamental analysis right and prepared to take precautionary actions if needed.
As a beginner, you can learn the trading techniques to understand the mechanism/method, so you can gain the momentum of taking profits accordingly to your plan.
3. Understanding Composite Index
The Stock Composite Index (Indeks Harga Saham Gabungan/IHSG) is used to monitor stock performances. Composite Index is the main instrument to decide the right time to add more investment or not. When stock prices at Composite Index are increasing higher than your price of stock portfolios, you can conclude that your portfolio is not very optimal. Try to evaluate it and rebalance it.
4. Discipline
Discipline is key to get optimum investment returns. Don’t forget to have your weekly evaluation on your portfolio and transactions. In addition, as an investor, you need to regularly get updated on the stock and related companies performances, price movement targets and the companies’ quarterly financial report. Other than that, in evaluating portfolio you need to know other information or news relating to the companies and macro economy, such as oil price, rupiah exchange rates, pure gold price, etc. This information is important as it can influence related companies and their industry performances.
Based on your evaluation, do your portfolio re-balancing to adjust it with the recent condition where necessary. Re-balancing is to ensure that your portfolio performance is maintained.
5. Understanding the difference between technical and stock fundamental analysis
You need to be prudent in managing your online stock investment as miscalculating can cause a relatively big loss. Understand the difference between technical and stock fundamental analysis is important. Fundamental analysis focused on knowledge regarding stock trends and economy as well as charts and financial data regarding the companies. While technical analysis aims at stock evaluation that focused on price and volume. By understanding the two analysis, you will have a strong basis in managing your online stock investment accordingly to your objectives.
Online stock investment is now offered by many companies such as Mandiri Sekuritas through Mandiri Sekuritas Online Securities Trading (MOST) platforms. MOST can be assessed through website: www.most.co.id or application which can be downloaded through PlayStore and AppStore. MOST offers a complete features which can support individual online stock transactions. It even has online trial application to try before investors do their actual investment. Let’s try to invest through MOST now. Being an investor nowadays is simple, safe and convenient.
