Investing in stocks can be challenging. You need not only accuracy and precision, but also the will to learn new things about stocks you want to buy. By doing so, you are able to gain more profit.
You can gain more profit even as a beginner investor. How?
Choose a trusted broker
Money.kompas.com reported that currently there are a lot of investment platforms which give attractive passive income to their potential investors.
No matter how attractive the offer is, you must choose a platform from a trusted broker. Make sure that the broker you choose is registered in OJK (Financial Services Authority) and BEI (Indonesia Stock Exchange).
Before making any investment, analyze the stocks. There are two types of stock analysis:
1. Fundamental Analysis
Fundamental analysis is a method which is frequently used to speculate things that drive stock prices such as microeconomic & macroeconomic factors, market analysis, potential industries, business competition level, and financial performance.
There are several indicators in fundamental analysis, like Return on Equity (ROE), Price to Earning Ratio (PER), Earning Per Share (EPS), and others.
2. Technical Analysis
Technical analysis is an investment method used to predict a stock’s future price trend. Although it cannot predict stock movements accurately, this method is helpful in anticipating future risk.
This method is said to be more simple than fundamental analysis, as one is only required to read the charts. There are three different types of chart: candlestick, bar chart, and line chart.
3. Implement the 3B strategy
To gain more profit, it is best to implement the 3B strategy in investing. What are they?
- Buy on Weakness, buying stock when there is a decline in prices to a certain level, so it is safe to buy.
- Buy on Retracement, buying stock following the breakout or when the price moves below support. Breakout stock tends to bounce back quickly compared to stock in between support and resistance levels.
- Buy on or if Breakout, buying stock when the price reaches a certain level or when it breaks through resistance.
Always monitor stock movements
Stocks go up and down so fast, therefore it is strongly recommended that you always monitor them. By doing so, you are able to predict stock movements, understand stock market development, and many more.
Then you will analyze them accurately. You can monitor them during stock market trading hours, unconducive market conditions, and so on.
These are some investing tips for you as a beginner investor. So, are you interested in investing in stocks?
If so, let’s invest on Nanovest! Nanovest is one of the investment platforms that is safe to use as it is working in partnership with FINRA and SIPC. Through SIPC, your investments will be protected by an insurance that covers up to $500,000.