Shares are proof of investment in the form of paper issued by companies which are listed on the Indonesia Stock Exchange (IDX) to investors. The selling value of a stock can be counted high if the company’s financial condition is healthy. To play stocks, an investor usually needs a broker or securities company to make buying and selling transactions on the IDX.
Choosing a stockbroker can not be done haphazardly, you must first research through the internet or ask directly to the closest relative. Make sure the intended broker is registered and has permission from the Financial Services Authority (OJK).
After getting the right stock brokerage company, then you can open an account at one or several companies by including identification. Not only that, but you will also be asked to sign an agreement regarding the rights and obligations of both parties.
The Advantages Of Playing Stocks
Like other investments, shares also have their own advantages and disadvantages. By applying the principle of “selling shares when prices are high and buying shares when prices go down”, you should be able to know what are the advantages and disadvantages of investments that are currently loved.
THE BENEFITS OF STOCK INVESTMENTS FOR MILLENNIALS
There are two benefits that you can get from a stock investment, namely:
Capital gain alias stock price increase is the profit obtained from the difference between the selling price and the purchase price of the stock. This could have happened because of the many trading activities on the stock exchange. To make a profit, the price of shares when sold must be higher than when you bought them.
Dividends are the distribution of profits provided by the company to its shareholders. Usually, the company does not give the entire profit to investors, because some will be used again to fund the company’s business activities in the following year.
LOSSES / RISKS OF PLAYING SHARES
Not only the benefits that you can enjoy, in fact, there is also the risk of loss that you can experience if you make wrong investment decisions.
The opposite of capital gains, capital loss is a condition where investors experience losses due to the selling price of shares that dropped dramatically compared to when you first bought it.
Not only capital loss, another loss that often haunts when playing shares is liquidation. This condition could have happened if the company went bankrupt and had to close.
Therefore, it is better not to invest in one company. Because if the company goes bankrupt and does not have a penny of the remaining wealth, investors will not get back the money that has been planted in the form of shares in the company.
The Initial Capital Stock Investment For Millennial
Some stock brokerage companies now provide stock planting facilities at quite affordable prices. As a millennial, you can start investing with a benchmark price of Rp1 to Rp5 million.
If the capital has been collected, do not forget to make a sale and purchase transaction of shares on the IDX in accordance with the time policy set by the IDX.
The transaction schedule determined by the IDX, generally only applies on working days, namely Monday to Friday from 09.00 to 16.00 WIB.
Stock Investment Learning Application For Millennials
The digital era that is increasingly developing as it now certainly makes it easier for you to study stocks online. With a stable gadget and internet connection, you can download several applications such as RTI Business, Stockbit, and Save GO Stocks which provide info about the stock and its trading simulation.
Stock Investment Strategy For Millennials
Playing stock can be said to be both fun and challenging for investors. For those of you who are newbies in this investment portfolio, can pay attention to some basic strategies in playing stocks.
Always Monitor Economic Conditions
As an investor, you are required to keep abreast of news relating to the economy throughout the world. Because actually the most profitable stock investment when the economic situation is stable or has increased.
Start Investing In Small Amounts
It is undeniable, stock investment is a very lucrative investment in terms of profit. But for those of you who have just tried it, you should start from a small amount of Rp1 million or Rp5 million. The goal is to minimize losses that could have occurred.
Choose A Trusted Broker
Choosing a trusted brokerage company is a must for you to do, especially if you are just in the world of shares. Compare one brokerage company with another company by looking at its reputation. Don’t forget to look for information on whether the company has obtained permission from OJK.
Those were some guidelines about stocks that you need to know about. If you are interested in playing stocks but are constrained by initial capital, visit Profitoath.com which will provide capital solutions in the form of unsecured loans (KTA).