Getting to Know Stocks and How to Start a Profitable Stock Investment

Are you one of those people who have many dreams and want to realize life goals? Like owning a house, apartment, and other property. It seems that it is difficult to realize if you only rely on funds from savings.

One way you can do is start investing in stocks. Because by investing in stocks, you can get much bigger profits.

Then as a novice investor what should you do in order to get as much profit as possible.

For that you need to know more about stocks, this article will discuss in detail about stocks and how to successfully invest in profitable stocks.

What are Stocks?

Shares are securities that state proof of ownership of a company or business entity. Shares can also be a sign of a person’s equity participation in a particular company. This party gets revenue from the company, claims company assets and is entitled to attend the General Meeting of Shareholders (GMS).

So from the above understanding, you must have an idea about stocks. Do you know the benefits of stocks and the advantages if we invest in stocks from now on.

Share Benefits

In

simple terms, someone who owns and holds shares, then he is the owner of the company. Of course, every time the company experiences a profit or loss, it will have an impact on the owner. But you don’t have to worry about the many benefits that you can get from investing in stocks, here are examples:

1. Investments with various amounts to choose from

You can choose various types of stocks that you want to invest. Likewise, you can choose the stock price range yourself, and you can find out the results you will receive from the purchase of the stock.

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Flexible investment

Investing in stocks is quite flexible, because you can monitor it from anywhere and anytime. So you don’t have to do a lot of things to get money, just invest in stocks.

3. Increase in profit margin

Choosing stock investments also has a tendency to rise from time to time. The higher the price per share, the more your profits will automatically increase. Moreover, if you have reached the point of capital again, of course the owner of the company will give a bonus.

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Stock tax has a small tax percentage

Every business sector will definitely be taxed, as well as shares. However, the percentage of share-type tax is quite small. It only amounts to 1% of the profits that investors get.

5. Transparency when investing

The stock exchange that is used as a place for trading and buying and selling shares has guaranteed security and transparency to the public. Even in it there is also a guarantee for investors so as not to be deceived and sabotaged the capital that has been invested.

If you are interested in investing in stocks, first consider what type of stock you will use as a source of your profits.

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Type of Stock

Here are the types of stocks that you can choose from:

a. Common stock

If you choose this type of stock, you have voting rights to choose the board of commissioners. You also get special treatment when the company issues new shares. Here you do not have a big responsibility but only on the amount given.

b. Preferred stock

It has various levels and is published with different features. This type of share has additional rights over ordinary shareholders. The advantage of this type of stock can provide you with a steady income, such as from bond interest. Preferred stock itself is divided into 2 types, namely:

Participation preference shares

This type of stock distributes dividends to its holders. Owners who have received dividends must share the profits with common stockholders.

Non-cumulative preferred stock

If you are the owner of this share you do not have the right to get dividends that have not been paid in the previous year cumulatively.

In addition to the 2 types of stocks, there are also types of stocks based on trading performance, namely:

a.

style="white-space: pre;"> Bluechip stocks, common stock of companies that have a high reputation and have a stable income. Consistently pays shareholder dividends.

b. Income stocks, shares of the issuer that offer greater returns. Because it has the ability to pay dividends above the previous average dividend payment.

c. Growth stock, a stock consisting of well known and lesser known issuers.

d. Speculative stocks, stocks that do not have regular income, but have high potential for future earnings.

e. Counter cyclical stocks, stocks that are not affected by macroeconomic conditions. These stocks are usually of high value, because the issuer earns a large amount of money. Of course it will give big dividends too

Risk Playing Stock

If you choose to invest in stocks, of course you have to pay attention to the risks that occur, because playing stocks is the same as starting a business:

1. Capital loss

When the share price on the stock exchange is lower than the price you bought before, it means you experience a capital loss. Of course this can cause losses that can have a bigger impact, especially if the situation does not quickly return to stability as before. It’s the same as now, during the COVID-19 pandemic.

2. Suspend

If the stock price continues to decline from before, the stock exchange will automatically drop the suspension for a certain time until the price can return to normal. This is done so that investors do not experience more losses. And the impact is that investors can’t do anything when they get suspended.

3. Stock trading place

In Indonesia you can buy shares at an official place, namely IDX (Indonesia Stock Exchange). But for those of you who want to play globally you can also try the Nasdaq Stock Market (United States), SEAQ (London, UK), TSE (Japan) and other official trading sites that are open.

Profitable stock investment tips

For anyone who wants to enter the world of stocks, you also have to have a special strategy in order to be successful. Check out some tips for successful stock investment for beginners that will certainly be profitable:

1. Start with small capital before you spend big capital. This can make you avoid the risk of loss. You can try Yuk Nabung Saham, the Capital Market and Seedling School to start learning to be an investor.

2. Choose the right security. Where you have to know which account is suitable for use as a tool for depositing money into a stock exchange account. So that you can calculate your income, choose securities that have small transaction fees, so that you as a customer always benefit.

3. In investing you must understand the stock index, this index is a statistical measure of changes in stock prices. For beginners try to choose the index LQ45 and IDX30. The stock is suitable because it has a high liquidity value. Because the risk is small.

4. You should buy stocks that have good fundamentals. For example, blue chip stocks from the banking sector. Avoid playing stocks as a trader, because you don’t really understand the flow of price movements. As a beginner you can invest in blue chip stocks. And buy stocks when the price drops, so you can get big profits in the future.

5. Try to buy different types of stocks. Because remember the stock risk is very high. Of course, if you only buy one type of stock, you will suffer big losses.

6. If suddenly the stock price drops, you don’t need to panic. Try to use the average down strategy. Where you can buy shares gradually in a market that is experiencing a decline. This will not experience the value of your investment will go down, but on the contrary if market conditions have recovered, the results you have will increase.

7. Focus on investment goals for the long term (at least 5 years) That way the benefits you will get will certainly be greater than investing in the short term.

8. Perform portfolio analysis and review regularly and regularly. You can do it every 3 months, 6 months or once a year. You can also replace your shares with other stocks that are considered better.

I think these are tips for investing in stocks that can be profitable and suitable for beginners. Do you think you are interested not to start investing in stocks with a higher risk?

And of course the higher the risk you face, the more likely the profit you can get is also higher.