Want to succeed? Know the 7 Most Powerful Stock Trading Tips
Want to succeed? Know the 7 Most
Powerful Stock Trading Tips
Being successful is of course the thing
that almost everyone in the world dreams of. There are various ways that can be
done to achieve that dream. Did everything work out? Of course not, there are
also many failures that occur. Being hardworking and never giving up is
sometimes not enough, other strategies are needed that can increase income as
much as possible.
The way that is now becoming a hot topic
of discussion among the public, especially the millennial generation, is stock
investment and stock trading. Handling the impact of the pandemic towards a
positive direction also brought fresh air to the increase in stock prices in
various sectors. This of course makes the stock market a very promising sector.
However, not everyone has knowledge in trading stocks. Here are some of the
most powerful stock trading tips for beginners who are interested in the stock
market:
1. Have the Right Knowledge
Stock trading is actually not as
difficult as many people imagine, but it also cannot be done carelessly, because
of course there must be a risk of loss that must be faced if it is not wise to
choose steps and instruments when buying and selling stocks. Have basic
knowledge of stocks and learn as much knowledge about stock trading as possible
from stock websites, social media related to stocks, or from stock trader books
before starting trading.
This is an important key to help you get
a strong foundation in making decisions later. Don't be shy to talk to people
who you think have more experience and knowledge in the field of stock trading,
and are always open to the latest information about stock developments.
Also Read: 8 Tips for Learning Beginner
Stocks, What Are They?
2. Set aside funds in a planned manner
Income management is very important to
have before deciding to trade stocks. With good financial management, you can
maximize your investment funds as best as possible. Make sure that you have set
aside funds for your basic needs, emergency funds, and insurance, so that the
funds used for investment can be allocated as well as possible without
disturbing personal needs.
Decide in advance how much money you
want to spend on each trade and how much risk you are prepared to face. Some
successful traders tend to choose stocks whose risk is less than 1%-2% per trade.
So, this way you will more easily weigh the advantages and disadvantages that
you will face. Remember that stock trading does not always bring profit, but if
you can manage the risk, the profit you will get will far exceed the loss
faced.
3. Prepare Time
Stock trading does not only require
funds and knowledge. Time is the most basic thing that a trader must provide
before starting stock trading. Make sure you set aside your time as best you
can during trading hours, so that you can monitor good opportunities to trade
and maximize your profits. In Indonesia, stock trading hours are divided into
two sessions from Monday-Friday, session I is held at 9.00-11.30 WIB, and
session II at 13.30-14.50 WIB
4. Choose the Right Securities
Choosing the right securities is key in
stock trading. Good and trusted securities are those that have been registered
and supervised by the Financial Services Authority (OJK). Now there are a lot
of securities in Indonesia, both offline and online. How to register is also
easier, because there is already an online stock trading application whose
entire registration process can be accessed online. Make sure you choose
securities that are trusted and that are most suitable for you, both in terms
of quality to ease of access.
5. Start Small
As a beginner, it's better to start
small. Starting from buying cheap shares but from trusted companies. Start
learning to be consistent with the nominal you set. By starting small, usually
you will slowly start learning good stock trading techniques and your trading
skills will slowly improve. If you are more confident in your abilities, then
start increasing your trading capital.
6. Avoid Fried Stocks
Fried stocks are stocks that offer great
returns at low prices. Stocks like this are usually able to make traders
tempted because of their sloping prices. However, if you want to last a long
time to become a trader with greater profits, you should stay away from stocks
like this.
Don't think of trading like gambling,
don't expect to be rich overnight. Stock trading is basically a job as well, so
stay realistic and wise in choosing the stocks you will buy. Do not be tempted
by the offer of instant profits which can usually cause greater losses.
7. Confident But Still Realistic
Have strong self-confidence, this can
grow with your flying hours in the world of trading. Having capital is
important, but having enough knowledge and experience is what can help you
maximize your profits and help you succeed in the trading world.
Self-confidence must still be accompanied by a realistic attitude. Stocks can
indeed offer lucrative profits, but successful traders also do not always make
a profit in every trade. There are also many traders who experience losses of
at least 40%-50% of all trades. But with good risk management, they can
maximize their profits so that losses from unsuccessful trades can be covered
by the profits obtained. So, if you fail occasionally in stock trading, it is
normal. The most important thing is to keep learning and continue to hone your
skills in seeing other good opportunities next.
So that's 7 Most Powerful Stock Trading
Tips version of RHB. Hopefully it helps you in investing in stocks, yes! Let's
learn how to invest in stocks online, investment strategies, and stock choices
that have good fundamentals. Take advantage of the RHBTRADESMARTID stock
trading application which is equipped with various features to make it easier
for investors to invest anywhere & anytime. Download the RHB Tradesmart
application on Playstore and Appstore now.