How to Trade Stocks for Beginners

How to Trade Stocks for Beginners - Investing in stocks is not as difficult as most people think. There are many stock trading methods that beginners can try, such as online trading from a personal smartphone. In addition, the vast amount of information available can also prepare you to study market patterns and conditions. It's never too late to start trading stocks.

So what do you need to do when and before you start? Check out the following information to avoid mistakes when trading stocks!

Choose the correct arrow pointer

There are 22 types of stock indices listed on the Indonesia Stock Exchange (IDX). Learn about the types that are commonly used by stock operators. For example, you can choose LQ45 or IDX30, both of which are highly liquid and backed by reliable quality companies. LQ45 itself is an index of the stock market of the Indonesian Stock Exchange, which includes 45 companies. Meanwhile, the IDX30 is the 30 most liquid stocks.

Choose the right security

When you buy stocks, you will be using a stock broker or stock broker that charges a commission on every transaction. Choose a security with a lower commission percentage, for example 0.20% of the total purchase of shares. This is to increase your profits and provide a better way to trade your stocks.

plan a stock trading period

There are two ways to trade stocks depending on the period: long-term and short-term. In the short term, the risk of loss is greater, but there is an opportunity to make a profit faster.

On the other hand, with long-term stock trading, there is a better chance of making a profit. If the stock has a good reputation, fundamentals and good performance

do it patiently

Not all stock trading methods will be effective if they are not combined with patience. The beginner is advised to use a little capital and increase the amount as you understand more.

Likewise, when faced with losses, consider them with a clear mind and make an average recession by buying stocks that are falling in value. You can make a profit even when market conditions stabilize again.