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7 Ways to Invest the Right Stock for Beginners

Stocks have recently become the hottest topic among millennials. Not a few are now vying to become stock investors, because many are starting to look at the potential profits that can be obtained in the capital market.

Stocks are a very good short-term and long-term investment, therefore if you are also interested in playing stocks you need to understand correctly how to invest in stocks. Below, Qoala has compiled various ways that can be done to start investing in stocks for beginners.

Even though it is on the rise, some people are afraid to start investing in stocks. In fact, how to start investing in stocks for beginners is not too difficult, as long as you have a strong will and determination and sufficient knowledge. Try the following methods:

1. Allocate Time to Study

Of course, if we want to be involved in something, it is better for us to increase our knowledge about it, and stock investment is no exception. The first step before you start trading stocks, take the time to learn the ins and outs of stocks first. Learn the basics of stock investing, understand the terms that are often used, and also hone your skills by using several trading accounts provided for trading simulations on the stock market, for example Stockbit. You can also join a community that specifically discusses stocks, watch YouTube, or read books written by Indonesian stock experts like Raymond Budiman.

2. Choose the Right and Guaranteed Securities

Well, after you deepen your knowledge about stocks, the next step is to study securities or stock brokers. It is very important to know what securities are there because there are many of them. You should not just choose a broker or securities, because each of them has different transaction costs for buying and selling shares. The lower the cost, the more you can benefit. But it's not necessarily a security company that applies high rates is always bad, because the service may be better and the application more satisfying. Choose the right securities according to what you need and are guaranteed to be good by looking at the available track records.

3. Understand Stock Indices

PT. The Indonesia Stock Exchange (IDX) has 35 stock indices. This is very important for beginner stock investors to know. Stock index is a statistical measure that reflects the overall price movement of a group of stocks selected based on certain criteria and methodologies and evaluated regularly. The purpose of a stock index is to measure market sentiment, be a benchmark for an active portfolio, as a proxy for asset classes on asset allocation, and so on. For beginners, you can try investing in stocks that are collected in the LQ45 and IDX30 indices, because these indexes have a fairly high liquidity value. In other words, you can play beautifully and safely with minimal risk.