7 Ways to Play Stocks for Beginners to Stay Profit

After knowing what stocks are, their advantages and disadvantages, you can immediately invest in stocks. How to play stocks can actually be done by anyone even when you have an internet network, you can do stock investment.

The most important way to play stocks is that you already know the main purpose of what you will do in managing stocks. Do you want to make long-term or short-term investments?

After knowing these goals, now you can know how to play stocks to stay profitable. 

Come on, find out some ways to play stocks so you don't just lose.

7 Ways to play stocks for beginners to stay profitable

1. Understand about stock investment in detail

The first way to play stocks is that you must know about the science of stock investing, because the reality is that in the investment world, especially stocks, there will be many technical terms that are quite difficult.

The most important thing is that you need to know what is stock investment which is actually a financial market instrument in the form of a sign of a person's or business entity's capital participation in a company or limited liability company.

It is also important to know that the right way to play stocks is to know the various types of stocks and choose the right stock investment. There is three ways to choose stock investments namely investing in individual stocks, stock exchange stocks, and mutual fund stocks.

2. Choose a trader or investor position

For the next way to play stocks, you have to decide to become a trader or investor. If you want to make long-term investments and take profits for a long time, then choose to become an investor.

Meanwhile, if you want to profit from short-term investments or only have the difference between the selling price minus the purchase price, then you can become a trader.

Of course, determining this position must be done carefully and seen from all sides, so as not to get too heavy a risk.

3. Buying stocks when the price drops

As discussed in the article 'How to invest in stocks that have minimal losses for beginners' You can buy stocks when the price drops, because stocks that experience a decline in price can increase in the next period. So, you can get a pretty big profit.

However, when the company's stock price drops, you still have to look at the situation and have an assumption whether the stock will go up or will even harm you. How to play stocks for beginners also don't give all the capital you have for a falling stock price, because if you're not careful this can be risky.

4. Stock diversification

The next way to play stocks is stock diversification. What is stock diversification? That is a technique in investment to group and select stocks that have a small risk of loss, namely stocks in the banking sector, good consumers, or also properties.

5. Use cold money

For those of you who are still beginners to investing in stocks, this way of playing stocks is one of the important ways that you must follow. To invest in the early stages, you have to use cold money or money that has been separated from your daily needs. 

Usually this cold money is a bonus and is rarely used for everyday life. Cold money is also often referred to as idle funds. Meanwhile, the reason you should use cold money, especially for those of you who want to trade, is because stocks move up and down. So, if the stock you manage goes down, the funds for your daily life will not be disturbed.

6. Avoid Debt

Don't be complacent to invest when the capital you have is not too big and switch to debt so you can play stocks, because stocks are long-term investments and stocks are used to get maximum profit in the future so that your finances also increase.

If you are in debt to invest in stocks, then it becomes a pretty heavy risk, the stock profits will later be used to pay off debt and the stock investment will be in vain.

7. Choose Stocks with IDX30 and LQ45 Index

In the Indonesia Stock Exchange (IDX) there is a stock index that is useful as a static measure of changes in stock movements which are grouped with certain criteria. For those of you who are new to how to play stocks and want to play it safe, you should choose stocks in the IDX30 and LQ45 indexes.

Meanwhile, the indexes of the two stocks are stocks that have good company fundamentals and have fairly high liquidity. Usually stocks in the index also have a fairly high seed or so-called blue chips.

Those are 7 ways to play stocks for beginners to continue to profit. If, you still don't understand how to play stocks, there are currently many alternative courses online stock or with broker app online trusted.