How to Start Investing In the Stock Market for Beginners [MUST READ]

How To Start Investing In The Stock Market Wall Hut

How to Start Investing In the Stock Market for Beginners

Stock is one of the investment instruments that are in great demand because it promises big profits, but, how to start investing in the stock market? Stock investment does provide a high profit potential, but coupled with risk (high risk, high return). Just by being an experienced investor, we can manage that risk.

You may make a lot of mistakes and lose as a novice investor. To be an experienced investor must go through a process of learning that is not short. At a minimum you must learn how to analyze 2 aspects, namely the fundamental analysis aspects of the company and technical analysis of the movement (up and down) stock prices.

Things to consider before start to invest in stock

Your financial goals

Whether for a specific financial goal or for the development of funds alone Everything must start from the end and what is the purpose of you invest in the stock of the company.

Set the target fund

For whatever purpose you are investing, it is important that you set a specific and measurable return / return on your investment in order to clear the required funds.

When to reach it

This should also be clear, so your investment is more targeted. You must set your target so you can set clear steps. When you have set a target, you must be consistent with what you do. Many people who when they lose, then they choose to sell the rest of their shares because they do not want to lose more.

How much your ability to accept investment risk

The higher the return on investment means the higher the risk and vice versa. The logic if to achieve a target fund from an investment can only be met by high risk investment products, then high investment risk will certainly accompany.

How To Start Investing In The Stock Market

Steps to invest in stock for beginners

  1. Learn first of all things related to stock Investing before starting.

You can buy financial basic books to know the tips of choosing investment, the need to invest, the stage of investing, choosing investment products including stocks, etc.

  1. Investing stocks for long term (more than 5 years), so as not to panic when stock price corrected, and can do review and revision by still thinking clearly. And just invest in stock companies that he recognized the fundamental aspects.
  2. Reduce risk by diversifying

Buy shares of different companies in the industry (for which you must be registered as a customer of a securities company by coming directly to the head office or branch office to open a securities account with a certain minimum value). Thus a loss on a single stock is likely to be offset by gains in other industrial stocks.

  1. Many exercises by doing the simulation

Follow the simulations provided by securities companies in online form. Make a note of the time, reason, price, and number of shares purchased and keep up with the price. If there is an increase or decrease in price, find out the cause. Through this simulation you familiarize yourself in how to start investing in the stock market.

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