Traders must be familiar with the word "stock" right? Currently, many people are interested in investing in stocks for investment purposes and even looking for profits from buying and selling shares.
We are certainly familiar with brands like Facebook, Apple, Google, Alibaba, Amazon, Pfizer, Coca-Cola, Mcdonald's, Microsoft, etc. Where we may be users of one or more of these brands.
So instead of just being a user of these brands, why don't we try to make a profit from these brands? How to? Of course, by trading shares and buying and selling shares of the company holding the brand.
What Are Stocks?
Shares are units of value or bookkeeping in various financial instruments that refer to the ownership of shares of a company. By issuing stock, a company that needs long-term funding offers the buyer a certain percentage of ownership in exchange for cash.
On the other hand, CFD (Contract for Difference) is an opportunity for traders to profit from changes in the price of a stock, without actually owning the stock. Stock CFDs are one of the most influential financial products provided by CFD brokers, not stock brokers. Because it is supported by a fairly large leverage facility, traders only need to provide small amounts of funds for trading CFD shares, rather than trading ordinary shares. And on Finex you can trade them!
Then how do we trade stocks? We can now trade stocks online. We can trade stocks online, without having to come to a stock exchange or brokerage firm like we used to. We can buy and sell stocks whenever and wherever we are.
How to Trade Stocks?
The process of how to trade stocks is the same process you follow when you want to trade any other financial asset. Here are the steps for trading stocks:
1. Opening a Stock Trading Account
Good news for you, at Finex there is now a Pro+ trading account that can be used for online stock trading.
2. Filter and research the stocks you want to buy
There is a wide selection of stocks available for you to buy. For you novice stock investors, you can start by choosing stocks that you already know and own. Don't buy stock from a company you've never heard of before. Remember, by buying shares, you automatically become the owner of the company.
3. Decide How Much To Invest In Playing Stocks
By determining the stock trading budget you use, it will be easier for you to calculate the profit you will get. Manage the funds you have as well as possible. Putting more than 10% of your portfolio into individual stocks can make your savings unhealthy. So, make sure you only invest the amount of money that you have calculated and is still within a reasonable limit if you lose it.
4. Select the type of order to be used
Before you decide to order trading stocks online, ask yourself which one, and why did you choose the stock? Once you know it, it's time you start observing and mastering stock price movements. For you novice stock investors, you can learn to trade.
5. Manage your stock portfolio
One of the keys to profiting from playing stocks is to manage your stock portfolio. With good stock portfolio management, we can choose when is the right time to buy stocks and know how to sell stocks well.
For those of you who want to play stocks but are still beginners, the most important thing is to build a good trading mindset. Again, what must be considered when trading stocks, don't just buy stocks that are not very well known, and don't choose stocks that have small Capital Gains to collect in managing your stock portfolio. Choose stocks that you really know and know their market value clearly to collect in managing your stock portfolio. You can start by studying mindset and management.
Stock Trading Tips
To get an advantage in playing stocks, there are several tips that can be done by stock investors, including:
1. Read References And Economic News
In stock trading, economic news is an important factor in stock trading. News such as the company's financial statements, the company's current condition, and the latest sentiment in the market are important factors that can affect stock movements. The more information that is extracted and collected, the easier it will be for you to predict the future movement of your chosen stock
2. Choose Stocks With Large Capitalization
The next easy way to invest in stocks is to pay attention to market capitalization, because it is closely related to liquidity. We really need a large market capitalization, so that the movement of the shares we invest in is truly liquid. In addition, choose stocks that have high volatility.
3. Learn Stocks to Trade
If you decide to invest in individual stocks, be sure to use some financial analysis ratios to compare the company's performance with its competitors. It takes precision and caution in selecting individual stocks. Using extensive comparative analysis can help ensure you add the best stocks to your portfolio.
4. Trade at the Best Time
To get the maximum profit in playing stocks, of course you have to know the right time to do it. And the best time for stock trading is in the first hour after opening or around 20.35 WIB to 21.30 WIB, and before the closing time of trading at 02.00 WIB until 03.00 WIB. Why is that?
At the time of opening many large orders entered the market so that it could shift the stock price. And it can give you a hint of movement in one direction. Because you can follow order flow from institutional side and trade with smart money flow.
5. Determine the right type of trade for you
Determining the type of trade is the same as determining the direction of the road to achieving your goals. There are two main types of stock trading, namely active trading and day trading. Active trades are trades that investors make 10 or more trades per month. Typically, they employ strategies that rely heavily on market timing, trying to take advantage of short-term events to turn a profit in the coming weeks or months.
Day trading is a strategy used by investors who play stocks by buying, selling and closing their positions of the same stock in one trading day, The goal of day trading is to make a few dollars in the next few minutes, hours, or days based on price fluctuations every day. day.