Safe Investment ? 5 Safe Stocks Tips For Beginners

Safe Investment ? 5 Safe Stocks Tips For Beginners One of The best instruments today is stocks.

Actually, stock Safe Investment has been popular for a long time, but because of the Covid-19 pandemic, especially the Indonesian people, they spend more time at home. They certainly keep themselves busy, one of which is about how to earn income only from home.

Then, stock trading becomes an alternative, in addition to investing in stocks for the long term. The latest case, there are some beginners who trade stocks with “hot money”, such as money for basic needs and money from debt (online loans/loans). As a result, because they don’t have a good understanding of stocks, they lose all their money.

This is the impact if you do something without sufficient knowledge, aka FOMO. In fact, the richest people in the world most of their assets in the form of shares. They become rich by holding shares, becoming owners of companies through share ownership. That is, it’s not the stock that makes you lose/bankrupt, but your ignorance about the stock that brings you down. Therefore, we provide stock investment guidelines and tips for beginners.

1. Understand Safe Investment the Purpose of Buying Shares

A life without a purpose will plunge you into the abyss of hell. Just like when investing in stocks, what is your purpose in buying stocks? When it comes to investing, the purpose of buying stocks is for long-term profit, not short-term. There are two types of profits from stocks, namely capital gains and dividends. Capital gains are generated when you sell shares at a price higher than the purchase price. Not much different from selling in traditional markets.

While dividends are part of the company’s profits which are then given to shareholders. For stock traders, who trade stocks (short term), they only expect capital gains. As for stock investors, they focus on the long term, and not only pursue capital gains, but also dividends. By understanding the purpose of buying shares, beginners are calmer in making every decision, not confused or even afraid of stock price fluctuations.

2. Don’t Be Afraid of Stock Price Fluctuations

You must understand that stock prices move volatile or fluctuate, up and down relatively quickly in the short term. This is common because there is demand and supply. When demand is high, prices go up. When supply is high, prices fall. What is the best way to deal with stock price fluctuations? Choose a company with good fundamentals. Invest in blue chip companies – mature and consistently profitable companies. That way, you don’t worry about short-term price volatility because in the long run, good companies have stock prices that continue to rise.

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3. Focus on Blue Chip Companies

A safe and profitable stock investment tip is to buy blue chip stocks, such as Telkomsel, Indofood, Unilever, BCA, BRI, and companies that are mature and consistently make profits. Blue chip companies in addition to stable stock prices, they also consistently distribute dividends so you can maximize profits from the stock. To be sure, for beginners, buying blue chip stocks can calm your heart. Bankruptcies are relatively small for blue chip stocks.

4. Avoid Fried Safe Investment Stocks

Fried stocks are the opposite of blue chip stocks. This is a type of stock that has a small market capitalization so the stock price is very volatile. Fried stock prices can rise very high but not accompanied by a good financial performance of the company. In other words, the increase in stock prices does not have a solid basis so it is only temporary. Many novice investors are trapped in fried stocks because they are tempted by high and fast profits. After that, when the stock price dropped drastically, they “stuck”. Some fried stocks are mostly delisted or out of stock due to certain problems. If this happens, you cannot sell the shares.

5. Learn Safe Investment Analysis: Fundamental Analysis and Technical Analysis

Even though you are not a finance, economics, or investment scholar, that doesn’t mean you can’t master stock analysis, such as fundamental analysis and technical analysis. It’s very simple, if you are willing to learn and take the time. You can use some free stock learning websites like edusaham.

Safe Investment Fundamental analysis aims to measure and see the company’s financial performance, such as important financial ratios. For example, ROA, ROE, DER, PER, PBV, and so on. Technical analysis focuses on looking at price movements over time. Later, by understanding technical analysis, you will master what stock trends are, such as uptrends, downtrends, and sideways. In essence, technical analysis helps you to determine when is the best time to buy and sell stocks.

Well, those are good, safe, and profitable stock Safe Investment tips for beginners. Hopefully this information can help you and avoid you from stock investment mistakes made by beginners in general.