How to invest in stocks that have minimal losses for beginners

Stock investing has become more popular lately, because stock investing provides a fairly high return if you know how to invest in stocks correctly.

Before going into the discussion of the right way to invest in stocks, you need to know what the purpose of doing stocks is for.

Usually invest in that stock aim for long term investment or to seek income in the future.

The advantage of using stock investment is that it is flexible, you can do it anywhere and anytime, because the process runs smoothly online.

The right way to invest in stocks is also not arbitrary, you have to understand sundries about stocks first.

How to Choose Stock Investment

Reporting from ForbesThere are three ways to invest in stocks that you can choose, namely investing in individual stocks, investing in the stock market, and investing in stock mutual funds.

Invest in individual stocks

In stock investing, you can choose to invest in shares in companies or in individual stocks. The advantage of choosing how to invest in individual stocks is that when the price of some shares in the company is high, you can buy fractional shares.

Individual stocks are also suitable for those of you who have limited capital and are just starting to invest in stocks.

Invest in the stock market

When you invest in the stock exchange, you can buy shares from a wider variety of companies in the same sector. The difference between investing in the stock market is that it provides higher diversification than owning individual shares.

Invest in stock mutual funds

Investing in stock mutual funds actually has little in common with investing in the stock market. It's just that when you buy shares from a stock mutual fund, the profits you get come from dividends, interest income, and capital gains.

6 Ways to Invest in Stocks for beginners

After choosing an investment, you can immediately enter the stock investment method. This stock investment method is also divided into five stages.

1. Choose Securities with Low Transaction Fees

The first way to invest in shares is for you to create a securities account and then to buy shares, you need to do the following: top up first. To buy shares you have to go through a securities application, of course, securities applications have different transaction fees.

So, you need to look for securities applications with low fees, so that the profits you get will also be greater.

2. Buying Banking Shares

For those of you who are using stock investment for the first time, you should follow this second method of stock investment, namely buying banking shares or shares issued by bank companies, because usually bank companies will make profits every year. So the stock price will often increase.

3. Listed by the Indonesia Stock Exchange

The Indonesia Stock Exchange or IDX is the party that will operate the system and means of buying and selling investments, including shares. So, before you buy shares, you have to make sure the shares you want are listed by the IDX.

To view stocks listed by the IDX, you can visit BEI official website to see the details of the shares that you will invest.

4. Buying Stocks That Have Dropped in Price

Not all stocks with prices down or low are bad, and vice versa. Because the stock investment will usually go up and down. It could be that when you buy a stock with a price that goes down, not long after that the price turns up. However, of course you have to look at the company and the detailed aspects of the stock whose price has dropped, yes!

5. Long Term Investment

Indeed, stock investments tend to be long-term investments, but many people are often tempted by short-term investments in stocks. However, for those of you who want to be safer and get a large enough profit, choose a long-term investment, because there is minimal risk if the company is a stable company.

6. Always See Company Development

The next way to invest in stocks is that you always have to up to date or often see the development of the company from the shares you own. So, you can find out whether investing in shares in the company is safe and this also affects those of you who want to make long-term investments.

Well, that was the way to invest in stocks that you should do, especially if it's your first time in the stock market. You can invest in stocks from now on with gradual capital.