Stock Investment Steps for Beginners

Shares are proof of ownership of a company and become a claim for the company’s income and wealth. Many people make stocks as an investment instrument because it is proven to provide an attractive level of profit. You can visit to start investment.

Profits from stocks are divided into 2 types. First, dividends or distribution of company profits to shareholders. To get dividends, investors must hold shares for a long period of time for a certain period. Secondly, stock profits can also be obtained from capital gains or the difference in value in share trading transactions.

As with other types of investment, the stock business also has a risk of loss. There are two types of risks in stock investments. First is a capital loss or the opposite of capital gain. So, investors can lose money if they sell shares when their value decreases to lower than the purchase price. The second risk is liquidation that arises when a company is declared bankrupt by the court, or dissolves.

Here are the steps for investing stocks for beginners:

1. Prepare a Cold Fund
Beginner investors are advised to prepare to play capital for shares from unused private funds, aka idle money or cold funds. So, capital is not from funds for basic needs.

2. Open a Securities Account
Securities accounts are accounts of sale transactions and securities transactions that are paid/received in cash at maturity. You need to visit securities companies to make a securities account. By having a securities account, investors can immediately start trading transactions, including those conducted online.

3. Stock Transactions
To purchase shares, investors must prepare funds in accordance with the stock price and pay transaction costs to securities companies. In the sale of shares, the value of funds obtained by investors is in accordance with the selling price of the shares fewer transaction costs and income tax. Transaction costs are different in each securities company. Generally 0.2-0.3 percent of the value of the purchase of shares (including VAT).

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