5 Stock Investment For Students
Stock Investment For Students | Investment is one of the businesses engaged in financial markets that can provide large profits. In this day and age, everyone can invest, including a student or university student. Even middle and high school students can easily invest. However, there are certain limitations for student investors, such as time, economic, mental, preparation, and so on. Therefore, you need to understand the steps or ways to invest in stocks for students.
#1. Understanding the Concept and Risk of Investment
The first step is don't start investing without knowing what investment is and the risks that can be experienced. Simply put, the concept of investing is to sell product instruments at high prices and buy if the prices are cheap and stable. Sounds simple, but this activity carries a high risk. The term, "High Return High Risk". Then the types of risk in investment that must be understood are market risk, liquidity risk, country risk, interest rate risk, inflation risk, foreign exchange risk, and reinvestment risk.
#2. Start Early and Gradually
Investment is a buying and selling business that has a compounding effect or revolving interest, meaning that the longer you invest, the more profit you can get. So investment is highly recommended to start early but start with a small fund. The goal is to minimize losses due to unpreparedness and shape the mentality of future investors.
#3. Setting Goals to Become an Investor
When starting a business, you must have goals or goals that must be achieved. If this goal is not there, your business can hang suddenly and have no restore points if it fails. When it comes to investing, the goals include long-term goals, so you have to be patient. As a student and beginner, try to set goals for the 5th year of investment and also determine the profit that must be achieved in the 5th year.
#4. Choosing a Broker or Stock Investment Application
When the concept has been understood and set goals, then enter the world of stock investment, which begins with determining where to invest. Choose an investment application that provides a low nominal deposit, such as OVO, which is only IDR 10,000. Then choose a broker or application that is easy to use and has an investment education program so you can learn directly from the experts. When you have finished choosing a place, you can already determine the type of instrument, open an investment account, and get income in a disciplined and regular manner.
#5. Choose the Type of Investment
Stock investment has several types. Each of these types has its own advantages. For students, try mutual fund investments, P2P lending, and F&B franchises. these three types provide high profits but with capital or management that is not too difficult so that they are suitable for students and beginners.