What is stock trading and how is it different from investing?

Stocks have recently become popular in Indonesia, many people invest in stocks in order to get financial prosperity in the future. However, the use of shares in Indonesia is currently carried out through investment and trading.

Before entering into understanding trading sAham, you need to know what a stock is.

Stock is a financial market instrument in the form of a sign of the capital participation of a person or business entity in a company or limited liability company.

Then what is the difference between stock investment and trading share? is trading stocks are also safe for beginners? Come on, see the explanation trading stock following!

Definition trading saham

In general trading stock is a transaction of buying and selling shares as a product of the top capital market in the short term. You can see the short term here from the daily stock market price.

Trading Stocks are also usually chosen by people to get quite large profits in a relatively short period of time. 

People who do trading stock is also known as trader and different from investors, because trader will be more active to analyze stock price fluctuations every day and from here trader will choose the best stock price. This is so that you can getcapital gainmaximum when later resell.

What is the difference between stock investment and trading share?

Stock investment is a way to set aside most of your capital in the financial market to get a person's or business entity's capital participation in a company or limited liability company for a certain period or long enough.

The purpose of this stock is usually used to find income or profit with long-term investments.

Different from trading shares, namely the purchase of shares to obtain short-term investment.

Usually stock investments are also managed passively by those who buy them, for example you buy shares in a PT and leave them. Whereas, trading Stocks will conduct a long analysis at certain hours to get a cumulative stock price with the aim of getting the maximum profit.

Trader stocks also usually sell their shares immediately, in contrast to stock investors who choose to invest in an annual period.

The latter, trader those who trade stocks will not get the advantages of stock investments such as dividends, bonuses, and stock splits. 

Risks trading saham

Of course investment and trading stocks also have risks in their implementation. If the stock investment risk is capital loss and liquidity risk.

Risks trading stocks will be heavier than stock investments, because if investors usually choose stocks that have good fundamentals, trader will choose those that have the potential to experience high fluctuations.

profit trading saham

There is a risk there is also an advantage. What are the advantages trading share?

1. Can avoid risk

Trader usually will conduct analysis of the capital market or stock exchange on a regular basis. So, during the monitoring, he can see the stock price and immediately buy it if it is appropriate and has a high profit.

2. Daily profit

Trading stocks can also earn daily profits. How could that be? Trader will monitor the stock every time so of course trader already have the right strategy to be able to get high profits.

3. Short-term investment, make quick return on investment

In contrast to long-term stock investments, trading shares will try to sell their shares quickly. If you buy shares at a low price and at any time there is an increase, trader will sell it right away. So, he can get capital quickly.

Recommended stocks that are suitable for trading saham

To choose which stocks are suitable for trading stock, you can check it at Indonesia Stock Exchange (IDX). You can choose stocks from large companies that have stable finances or have high volatility. What is the stock list?

Banking stocks

Many banking stocks are chosen to be used as investments or trading share. Banking stocks suitable for trading is:

• PT Bank Central Asia Tbk (BBCA)
• PT Bank Negara Indonesia Tbk (BBNI)
• PT Bank Mandiri Tbk (BMRI)
• PT Bank Rakyat Indonesia (BBRI)

Mining stock

• PT Timah Tbk (TINS)
• PT Aneka Tambang Tbk (ANTM)
• PT Indo Tambangraya Megah Tbk (ITMG)
• PT Bukit Asam Tbk (PTBA)

Telecom stock

The last stock you can make as trading shares are telecommunication shares such as PT Telkom Indonesia Tbk (TLKM).

Application trading saham

To do trading Your stock needs to use a securities application because it will be much safer and has been supervised by the OJK. Quoted from several sources, the following application trading shares that you can use.

1. MNC Securities

PT MNC Kapital Indonesia Tbk issued a securities company under the name MNC Sekuritas, which you can choose to do trading share. This application also has features trailing orders which is useful for selling stocks when the price goes down and buying stocks when the price goes up.

2. Seeds

This application is already quite popular among investors and investors trader stocks, the Seed application is suitable for you beginners because the registration fee is also quite cheap and can use e-wallet for the payment.

3. Stockbit

The Stockbit application is a collaboration application with Sinarmas securities that can be used by stock investors to online trading share. For those of you who are still confused about stocks, Stockbit also has a stock trading simulation feature that you can take advantage of.

4. Bareksa

Bareksa is a stock application that is very suitable for beginners who want to get to know stocks, you also don't need to worry that this application has been registered with the OJK and sells sharia market products as well.

5. Indo Premier Securities

Indo Premier Securities is the first securities company in Indonesia since 1996.

There are various types of stock transactions that you can choose from, such as mutual funds, sharia, and market-based securities trading applications artificial intelligence (AI) called Indo Premier Online Trading (IPOT). The sale of shares here is subject to a fee of 0,29% and a purchase transaction fee of 0,19%.

6. BNI Securities

PT Bank Negara Indonesia issues a securities company with the nameBNI Securities. Platform BNI Sekuritas is available in 3 systems, namely: web based, mobile, etc desktop with. Then, there are three stock accounts, namely regular, sharia, and margin.

The minimum purchase of shares in BNI Sekuritas is IDR 1 million with a purchase transaction fee of 0.17% and a selling transaction fee of 0.27%.

Tips trading saham

1. Using the app trading Trusted

The first step to do trading share is using the app trading which is trusted and has been supervised by the Financial Services Authority (OJK). You can use app recommendations trading above as an example.

2. Use low capital first

Of course trading This stock is tempting because you can get the maximum profit, but you also have to be careful in managing it, especially if you are still a beginner in the capital market. So, using low capital can avoid you from large losses.

3. Do the right analysis

Trading This stock will drain your time in analyzing stock prices. So, you need to do a quick and precise analysis to get a fairly profitable stock purchase price.

After knowing what it was about trading stock, you can directly do trading. However, it should be remembered that when trading This stock carries a fairly high risk. You better study the stock as a whole first.

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