Tips for Playing Small Capital Stocks | If you want to dive into the world of stock investing, you should learn some tips for playing stocks. The reason is because stocks and other investments are risky investments.
When it comes to investing in stocks, there are various perils to consider, ranging from minor to major. It is very important to understand stock trading strategies to reduce this risk.
You can now trade stocks with a small investment of only $100,000. For those of you who are new to investing, this nominal is highly recommended. Investing in stocks, whether with a small amount of money or a lot, still requires patience and thoroughness.
For those of you who are interested in investing in stocks, Money+ has compiled four ideas for playing stocks with minimal capital and big profits. Pay attention to the suggestions below!
4 Tips for Playing Small Capital Stocks and Making Big Profits
1. Choose the cheapest security option
The first step in investing in stocks is to create a securities account with a brokerage firm. However, choose a security company that charges low deposits and fees.
At the very least, look for a securities company that allows the first deposit below IDR 5 million. This is important because it allows you to play stocks for less money.
Also takes into account the company’s transaction costs (selling and buying shares). Instead, look for the securities company that charges the least for stock transactions.
2. Choose only one or two stock issuers
The next piece of advice for investing a modest amount of money is to choose stocks from well-known big corporate issuers. You can find stocks with a price of hundreds of rupiah per share.
One or two issuers of the company’s shares will suffice for now. This approach to investing in stocks with little money reduces the danger of failure.
You can visit the Indonesia Stock Exchange website and start browsing the listed companies. You can choose a provider that has an excellent track record and fits your budget. If you have enough experience, you can switch to other stock issuers.
3. Use Stock Trading Apps to Help You
Investing can now be done quickly and easily with just a smartphone. On the Play Store and AppStore, there are already many stock trading apps available for free download. This stock trading app allows you to trade online anytime and from any location.
Usually, the securities business where you open a securities account will offer you this application. Make sure you choose a security company that already offers an internet trading platform.
4. Determine which stock index is the most accurate
Stock indices are important for individuals who want to play stocks for less money. A stock index is a fictitious portfolio that tracks price fluctuations in a particular market or market segment. When a stock index rises, it signals that most equities have gone up in value.
Meanwhile, when the stock index fell, most of the equities of the index members fell as well. As a beginner, you should focus on stocks in the LQ45 or IDX30 index.
This is because both indexes consist of companies with significant liquidity and market size, as well as strong fundamentals.
These are some guides for beginners who want to play stocks for little money. If you’re still unsure, explore investing in simpler instruments like peer-to-peer (P2P) lending.
As an investment option, P2P lending can be the solution.
P2P lending is a type of investment that uses a platform to connect investors and borrowers. P2P lending is divided into two types, namely: consumptive and productive.
Having a company permit from the Financial Services Authority is a sign of the safety of the P2P lending (OJK) platform. P2P lending provides profitable benefits in accordance with OJK regulations in terms of income.
Several investment companies that connect investors with rural female micro-entrepreneurs. Borrowers will receive business funding without the need for collateral or administrative fees, as well as business advice and financial training to help their company grow.
That’s a summary of four ways and tips for playing stocks with small capital that you can follow and try. As a novice investor, it’s a good idea for you to keep learning things about stocks. Thus, you can make the right decision before investing in stocks with small capital.
If it’s still too hard for you to buy stocks, you can try investing in stock mutual funds. This investment instrument is still easier for beginners because the funds will be managed by an investment manager.