Tips and Guides Learn Stock trading Complete For Beginners
Shares are formally defined as securities that are used as a sign of ownership of a person or entity to an enterprise. If we discuss stocks in the context of trading, then this stock is just an object that will be traded to generate big profits.
Short-term stock traders usually do not have that he is buying a company. The thing they think tends to profit from the difference between the selling price and the buying price of the stock. Unlike investors who usually have long-term visions, stock traders usually consider themselves as the owners of certain companies when they buy stocks.
Some of these prospective traders may have heard of the term IHSD. JCI itself is an abbreviation of the Composite Stock Price Index which is the average price of all shares listed in the Indonesia Stock Exchange. Like the report card owned by the students, the average grade of students is IHSD, while all subjects in the report card is a type of stock available.
History of the Emergence of Shares
When issuing shares, it will enable companies that require long-term funding to sell interests in a business such as stock (equity securities) by providing cash rewards. The basic idea of stock is the division of capital needed to run a business that has been around since 3 BC and continues to develop until now.The development of these shares occurred in several periods, including:
- Year ± 3 BCE – The first share-sharing app in the World
The Roman government has a vast territory covering Europe, Africa and the Middle East. Previously in fact difficult to reach these areas, the Government of Rome asked a group of private entrepreneurs who called himself called the Publican to take care of tax collection and so forth. The system that applies to the Publican Project is a tender system in which they offer price quotes to the government and share the results between the two parties.
- Year 1288 – The world’s first stock document
Since the 850s in Flaun, Sweden there has been exploitation of locally managed copper with a profit-sharing system. Since June 16, 1288 the King of Sweden, Magnus Biggerson and Archbishop of Uppsala and three other bishops took over the mine treatment by issuing a document called the Deed of Exchange which is a shareholder and mine management agreement. Some of the documents issued in the form of profit-sharing agreements to the beneficial parties. At that time the management and administration of the mine was not done partially by the inhabitants, but rather by a well-organized organization.
- Year 1602 – The first capital market in the world
In the European-Asian trade there was a trade competition in Europe so that the war between countries in Europe was inevitable. As a result the price of spices fell. The fall of the price of this spice makes Dutch businessmen work together to be one of which is the VOC that the key to capital raising is the decision to open ownership of shares to the public by the owner. The sale of VOC stock certificates was administered in Amsterdam as the VOC office which became known as the first Capital Markets in the World.
- Year 1862 – First stock without Government / Kingdom intervention
Sweden became a powerful state powered by three copper, iron and tar commodities in the 17th century. But in the 18th century the copper fame dimmed because the government began to switch to exploit iron ore. In 1862, small copper companies formed a private company named Aktiebolag (Public Limited Company) which all of its 1200 shares were converted into 8 pieces worth 1000 Swedish crowns. This makes the company’s value to be 9.6 million Swedish crowns.
- Year 1792 – Establishment of the American capital market
The stock trading system in America was introduced by the British in the colonial area. Alexander hamilton as Secretary of Treasury The first treasurer of America saw the urgency of capital market establishment and began planning to build the American capital market. Starting from 1792 to 1863 the capital markets and their devices are shaped. After a massive crisis of 1929, the NASD introduced the NASDAQ fully implementing electronic capital market principles for the first time in 1971.
Make a profit from the stock
Shares are chosen as one of the investments of course as they can generate profits for their owners. Traders can earn a share gain from the difference between the final sale price and the initial purchase price. For example ABC’s stock price is priced at 500. 1 year later ABC’s stock is at 600, so trader gets 100 per share from stock owned. This method is called Long or low-selling high and most popular in Indonesia.
In addition to Long, there is also Short or low sell-buy low. This method is rarely used in Indonesia because the government has strict regulations such as traders who must have large capital and many other requirements that must be met. In essence, Short is the opposite of Long. Short work mode is to predict stock prices will fall in the future. As a trader you sell first by owing it to your stock broker when the price is still high, then buy it in the future when the price is low. This method is prohibited in Indonesia. Outline, the widely used method in Indonesia is the Long method.
Stock Learning Tips for Beginners
Learning stock trading is an investment that generates huge profits. This is one reason why many people choose stock trading. How to generate profits from stock trading on the Long method is at first glance looks simple. But for beginner stock trader you certainly need to pay attention to various things before starting to transact. If you are still confused about how to best invest in stocks, here are some tips for investing stock for beginner investors.
Start with capital is not too big
When you start investing in stocks, it’s better if you use minimal funds to see you who are not familiar with the stock market. The goal, if you misstep, the losses are not too large. Another goal is that first trading can be used as a learning process. You need time to familiarize yourself with stock buying software, study stock analysis and so on. If you are confident with your ability, then you can increase your trading capital.
Buying stocks is fundamentally high
Highly-funded stocks are usually called blue chip stocks. The characteristics of this company are known by the public, have a clear business, the product sells in the market, does not have much debt, has a transparent management and so on.Do not be tempted by fried stock whose price movement is not clear. One of the boosters why you should buy blue chip stocks is when the stock market corrects, the blue chip stock will also be corrected. But when the stock market recovers, blue chip stocks also move up first and faster than other types of stocks.
Buy some types of stock to share trading risk. Having lots of stock means less risk of loss than just buying similar shares. If one share of performance goes down then possibly another stock may rise.
Learn to do analysis
Traders need to know how to analyze stocks in order to determine buying or buying stock decisions. There are two types of stock analysis you can use, namely technical analysis and fundamental analysis. Both of these analyzes will help you know where to bring your capital to avoid losses.
Focus on the long term
The stock market will be very risky if done in the short term because of its fluctuating nature. To be more secure sebaikanya you choose long-term trading.The longer the investment the greater the profit. Based on stock history and calculation of JCI’s long-term returns, if we invest long-term, then the opportunity to reach the return is 12.9%.
Perform periodic analytics and review of the portfolio
Periodic analysis and review of the portfolio can be done once every 3 months, 6 months or once a year. If in the review found a note that a stock has a poor performance, the product failed in the market or suffered a loss, then you can replace it with other stocks better.
If you understand how the stock works and using the recommended analysis you will surely achieve your own profit, no matter you are a beginner though.