In the world of capital markets, stocks are an investment instrument with the greatest degree of risk compared to other investment instruments, but stocks provide great returns or returns as well. Investing in the stock market does have the characteristics of risk and return (return) above the average investment of other banking products, such as time deposits or savings. However, there are also capital market investment risks that must be well understood so that you can maximize profits and minimize losses.
As a potential investor, before you decide to invest in the stock market and play stock, the basic thing you must have is a willingness to learn about stocks and recognize your investment risk profile type. Learning about stocks is easy especially with the ease of getting information right now. Be diligent in reading information from the internet, books, financial magazines, research results of financial institutions or consulting with investment advisors. Never buy investment products that you do not understand that will only hurt you.
Selecting Securities Company Selective or Broker
Of all the tips, the most important thing is make sure the securities firm you choose is registered with the Financial Services Authority. You can also check the liquidity of a brokerage company as a Underwriter or Broker Dealer on the Indonesia Stock Exchange website, check the company’s financial statements and check its credibility in providing regular information on investments to its clients.
The form of sale and purchase of shares can be done through 2 ways, namely:
- Using the services of a sales broker or stockbroker
You can make transactions by phone to connect with sales brokers. The advantage is that you can directly consult and be directed to trading transaction schemes.
- Forex trading through a brokerage company
You can make transactions through software applications provided by brokers for trading. This app can be installed on your PC, personal laptop or smartphone. The advantage is that you are more flexible in terms of space and time trading, thus helping to determine the best time to sell or buy and take into account hold. You can browse the website address of the brokerage company, then there will be guided by complete tutorial how to buy stock and do other transaction.
In order for your investment to produce satisfactory results, do not be lazy to find information and learn it. Here are the things to watch out for before you invest in a stock.
Other processes, you will be required to fill out an investor account opening application form by attaching identity data of residential address, business or job data, heirs’ data and copy of your savings account. The sale and purchase transactions are conducted through an intermediary named securities company. Once you have a stock account, you can start buying the stock you want. Conduct a consultation when you select a stock before making a purchase. Be active ask questions and learn about stocks of companies with good prospects for investment.