6 Trading Tips for Beginners, Anti-FOMO
A stock transaction is a transaction in which a company or LLC buys and sells a certificate of title for a short period of time. Generally, the short term involved can be seen from the daily market price.
Stock trading is actually just as popular and profitable as investing in stocks. However, stock trading activity takes more time to run.
For the whole of 2021, the number of investors in Indonesia has increased by 89.58%, for a total of 7.3 million investors, according to Kompas.com. This is closely related to the impact of Covid-19 which has stimulated public investment interest to secure and increase assets.
Apart from being investors, many people also become traders. Although fortunately the timeframe is short, becoming a trader is not as easy as one might think. Several challenges come before our eyes on a regular basis, including:
1. Limited funds
Of course there are people who choose to become traders rather than investors because of limited funds. As a result, the opportunity to buy shares becomes smaller. When stock prices fall without capital, traders are indirectly squandering opportunities to make profits.
Limited funds make the return on investment below the maximum. Trading activities are expected to increase capital slowly, with small profits managed in such a way as to achieve the expected amount of capital.
2. Lack of confidence
Traders have low self-confidence, so the decision to buy or sell a stock is often based on the analysis of others. As a result, the capital cycle has developed and even unfortunately lost money. This belief needs to be deepened so that it is not easily snatched away. Understand the issuer's fundamental, technical and financial analysis before making a decision.
3. Tend to be greedy
Not only traders, greed to invest in stocks also appears in some investors. Called greedy because they do not want to sell their shares even though they have made a decent profit. The reason is that the profit percentage is not as good as expected, or it is assumed that prices will rise.
Stocks fell sharply until reality said otherwise. Instead of trying to make money, they actually lose because of having fun. Still interested in becoming a stock trader? Here are some tips for those new to the world of trading:
1. Learn about stocks
The first tip is to understand in advance how stocks work. When trading hours open, close and close. After that, learn about stock analysis, the factors that influence price movements, and when to buy. Don't get excited, you'll be a boncos. It's a shame, especially if the funds come from personal savings, not funds for investment. In addition, we must change the concept of money. Although making money in stocks is easy, try not to be greedy so that money is not easily lost.
2. Develop a trading plan
When to enter and exit, this can be seen from the trading plan made before trading begins. A trader must have a mature plan and stick to it so that the results are as expected. Set the correct trading time, determine the maximum loss and profit percentage. When the time comes, traders know what to do.
3. Choose the right publisher
Don't forget to always consider the issuer whose shares you want to buy. It is recommended to choose stocks or blue chip issuers in the LQ45 index to minimize potential losses.
This is because the issuers that are included in both have large enough capital and are often in demand by the market. It also tends to perform well, so stock prices that fall are bound to rise again after a while. When choosing issuers, traders also need to pay attention to their financial statements. From this, traders know whether the company's financial cycle is healthy or disrupted.
4. Control your emotions
Stock prices fluctuate, especially fried stocks. Within minutes, prices can be "flown in" by the city. And vice versa, can be taken down without any sign. It is important that traders have good emotional control skills so as not to make bad decisions. Don't panic-sell without a second thought when the stock drops a little. In fact, the city's decline was just a bluff. Better to wait and see. There is no need to sell as long as the loss percentage does not reach the specified limit. Especially if trading with cold money.
5. Be realistic
The essence of trading is to make a profit, regardless of the amount. Never expect a capital of IDR 1,000,000 to become IDR 10,000,000 in the blink of an eye. Getting to this point is a long process. If expectations are too high, the rest is heart.