How to Play the Stocks for Novice Investors
Playing in the stock market to novice investors can provide benefits far doubled compared to saving money on deposit or invested in bonds. But playing in the stock market can also lead to substantial losses. Therefore before deciding to play the stock is very important to know how to play the stock and evaluate whether you are someone who is willing to take risks commensurate to the profit that is commensurate. Risk the greater will be the produce profits are getting bigger.
If the risk the greater the yield advantage that only small course, means we are wrong to apply the strategy of finance the most basic, higher risk higher profit or lower risk lower profit. This is the reason why the deposit rate is quite low, because the risk of deposits is also quite low.
Thus, the choose to play the stock, not the bank deposits, the means to obtain greater profits from the deposits. If it turns out that the advantage obtained is lower than deposit interest, then there is something wrong in the way you play stock.
How to play the stock
Here are the steps you need as a beginner to play the stock. This article assumes that you have read the book enough to understand the mechanics of playing the stock, as well as the procedure of opening an account in securities company.
You must have a desire big enough to play or know how to play or have a strong desire to earn profits by investing in the stock market. This should be embedded in you since the beginning, or never play stock, you should buy mutual funds only. The First formula is: you must have a motivation or a strong desire to play a stock and profit.
Play in a fairly small amount of advance, for example, Rp 10 million or Usd 20 million remember there is always the possibility of yield loss can be small can also great. Therefore, hit in a small amount of money, as a pilot project. If you start to feel comfortable and know how to play for profit, then slowly you can increase the amount of money invested. When you add the amount invested, always remember that the money you add can runs out, don't just remember the profit you will ever earn, but it is mandatory to remember that your investment can be reduced even exhausted. You never know when an important event that gives a negative impact on the market occurs; suddenly can happen prices plummeted, and you can't make it out of the market. The second formula is: always remember that the money you invest can be reduced or even depleted.
The Formulation Of The Technical:
See the direction of the economy, estimate the rate of growth of national it is Important to know where the direction of economic growth, meaning whether it is boom or depressi or such. If the economy is in the growth are increasing, then that's the most appropriate moment to invest. On the contrary, if the growth of the economy is in a negative state, then you should get out of the market, unless you're a regular shorting and have experience as a trader.
Options industry and the track record. Select the industry that you are familiar and more like/prefer. Learn the history of the industry in depth and read the opinions of the experts about the industry. Select the industry that have a good track record in delivering profits.
Stock options and track record Choose 1 or 2 stocks, not more, in the industry point 2 above. Select has a good track record.
See the PE of the Stock You choose should be who has the lowest PE in the industry. PE is the ratio between the stock market price per share divided by net income per share. PE is essentially the relative numbers. PE 10 can be called cheap if PE the other is high. But in general, now is the PE 10 can be said to limit cheap and expensive, although there is no basic theory.
The capitalization of Select stocks that have large market capitalization. That is the value of the rupiah market of shares outstanding is quite large. So the fryer stock do not have enough money to fry stock. This means that if the market capitalization of a stock is small, then the individual can easily move the stock price up and down with the amount of capital it has.
Market sentiment Watch market sentiment. Although the PE of the stock we low, and kapitalisasinya large, market sentiment often becomes a determinant of the ups and downs our share price. This sentiment is most common is a stock price index regional. The sentiment that the second, interesting events are influential in the industry where the we are. For example, the rise in prices of certain commodities and its influence on the profits of the company whose shares we have. Sentiment third is the figures the economy in general, for example numbers news numbers the pace of economic growth, the rise and fall of interest rates by central banks, inflation numbers, unemployment numbers, numbers order, retail, consumer sentiment, in general, the figures of the purchasing power of consumers.
Learn from the book stock of the legendary, among others, The Intelligent Investor, The Essays of Warren Buffet: Lessons from Corporate America, Common Stocks and Uncommon Profits, One Up On Wall Street and Beating the Street. If you want to invest long term, please read a lot of books about Warren Buffet. For local books, you could try reading a book Bandarmology – Buy a Stock Style Port of Exchange, a bouquet of Ryan Filbert.
Similarly, some of the guides to play the stock for beginners. If you are disciplined in the steps of the above most likely you will not experience a loss. There are still many list or tricks which can be learned in playing the stock when you have deep plunge in it. But as a beginner, don't until You become part of the 90% players beginner stock which is generally lose money before starting profit. You do not need to lose first, you can directly profit. Do to the 6 point mentioned above with the discipline of full.