How to Start Investing in Stocks?

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Today isn’t the era when millennials are busy laying down. It is time for all of us to plan the path to financial freedom by getting to know and be literate about investing. One of the most popular investment instruments is stock investment. This is in line with the growing capital market in Indonesia. Moreover, stock investment is also predicted as an easy investment instrument with optimal profits. Are you interested in investing in stocks? Let’s look at 5 ways to start investing in the following stocks.

Choose the Right Securities

To start investing in stocks, you must first have a securities account or customer fund account. This account can be opened at securities companies. We should not just choose a broker or securities. There are many securities companies and each has different transaction rates.

Transaction costs are the costs of buying and selling shares that are a source of income for the securities company. A small transaction fee will certainly be very profitable, but it does not rule out the possibility that securities companies that charge higher transaction fees have more satisfying services and better applications. So, after choosing the right securities company, immediately prepare documents to open a securities account.

Manage Purchases Wisely

Instead, use 10% of the total cash in the securities account that has been deducted by emergency funds. Every month, top up your securities account as much as 10% of your monthly income to buy shares.

Study Stock Indices

In the world of stock investing, there is also such a thing as the stock index. Index is a statistical measure of changes in price motion of several stocks which are then selected based on certain factors. Well, you can start trying to invest in stocks in the index because the stocks on the index have a high liquidity value so they are relatively safe.

Read Also: Definition of Islamic Stocks

Not Panic When Losing

Like any business, playing stocks comes with both gains and losses. When you experience losses, stay calm. Because the shares that you have bought still have the possibility to go up again.

If possible, you just buy immediately when there are stocks at a low price. This method is also known as average down.

By using this method, your investment value will not decline sharply, it will instead follow market conditions. When the market recovers, chances are that you will also get multiple profits. Well, then see how to start investing in the following last stocks.

Invest in the Long Term

Always allocate funds according to your budget each month to buy shares. Because you will not be able to enjoy the best results if you only play stocks at will and only occasionally. That’s not the way to invest. You don’t need to pay attention to the price, the ups and downs, but make sure the capital is big. The main thing in investing in the long term is to be patient.

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