8 Tips on How to Play Stocks for Profit
Tips on How to Play Stocks for Profit | Stocks are a type of long-term investment made to get big profits. But for beginners, there are many things that need to be considered before playing stocks. Of the many types of investment, stock investment is the one that can provide the highest returns compared to other types of investment. Even so, there are also many risks that need to be faced when playing stocks.
Especially for those of you who are trying to play stocks for the first time, of course you must have knowledge about trusted places to play stocks, how to buy stocks and how to play stocks for beginners so you don't lose. Stocks are said to be a type of investment that has a very high risk (high risk) because investors can experience losses due to capital loss, what's more, how to play it is done rashly without analysis.
How to Play Stocks for Beginners
1. Understand All Aspects About Stocks
The first way to play stocks for beginners is to understand all aspects of the stock itself. By knowing all the aspects, later you can invest in stocks properly and correctly.
There are many beginners out there who only know that stocks can only make big profits. But do not know the technique in playing it. This is what will result in losses when you start investing.
You all need to know, playing stocks requires a strategy, patience when playing, and in-depth knowledge of the stocks themselves so that later you can get huge profits.
2. Use Cold Money Capital
The next way to play stocks for beginners is to use cold money capital. The meaning of cold money here is that the money will not be needed in the near future when investing in stocks.
Using cold money capital when investing in stocks is very necessary to do. So that when investing you are not dizzy or confused about what the money is if the stock portfolio is in a bad state.
Not only that, by using cold money capital your investment style will be more calm and patient even though the portfolio is in the red. That way your investment can be made in the long term.
3. Choose Securities With Small Transactions
Securities are the financial part that represents the ownership position of stock investors in a particular company. Having securities means that you have been proven to have ownership of shares in a company.
There are many choices of securities that you can choose when playing stocks. For beginners, you should choose securities with small transaction fees. That way, even if the stock is bad, you won't lose too much.
The cost of securities is usually set at 0.19% for purchases and 0.29% for sales. Therefore, to get bigger profits, choose securities with small transaction fees.
4. Buy Banking Stocks Or Consumer Goods
The next way to play stocks for beginners is to buy some banking stocks or consumer goods. Some of these stocks are very suitable to be chosen for your first experience in playing stocks.
Why is that? This is because banking stocks as well as consumer goods are types of business that will often be used by the wider community. That way the stock price will often rise or even stabilize.
Even if the stock prices of banks and consumer goods suddenly drop, this usually won't happen for a long time. You could say how to play stocks for beginners is very suitable for this sector.
5. Choose LQ45 or IDX30 Index Stocks
The next way to play stocks for beginners is to choose the LQ45 and IDX30 stock indexes. This is because these stock indexes usually have very high liquidity, making them suitable for beginners.
In addition, companies listed on the LQ45 and IDX30 stock indexes are usually companies with stable financial backgrounds and good fundamentals over time.
So for those of you who are just getting to know about stocks, instead of being confused about which stocks to buy, I suggest buying stocks that are included in the LQ45 and IDX30 indexes because they are not too risky.
6. Buy Stocks When Prices Drop
Many beginners think that when the stock price is going down, it is at that time that you should avoid buying a stock. This understanding is actually not wrong, but not entirely correct either.
For beginners, the most appropriate way to play stocks for beginners is to buy several stocks when the price is dropping. However, you still have to pay attention to several aspects.
7. Buy Stocks That Are Financially Stable Fundamentals
The next way to play stocks for beginners is to buy stocks that have stable financial fundamentals. This is done to reduce the risks that might occur when you invest in stocks.
Before buying shares in a company, it's a good idea to first analyze the portfolio of each company whose shares you will buy. Do screening and filtering then choose good financial fundamentals.
8. Play Long Term Investment
Please note, long-term stock investments are safer and more profitable than short-term investments. What's more, investing in stocks like saving will definitely be profitable.
In addition, long-term stock investment also has a lower risk. What's more, the shares you buy are shares from the right company, the profit you can get can reach 100%.