playing stocks for beginners
Beginner Investors Guide
Playing in the stock market can provide benefits far doubled compared to saving money on deposit or invested in bonds. But playing in the stock market could also lead to substantial losses. Therefore
before deciding to play the stock is very important to evaluate whether
you are someone who is willing to take risks commensurate to a
commensurate benefit. The greater the risk that would result in greater profits.The following are the steps you need as a beginner to play the stock.General formulation:1. You
must have a big enough desire to play or learn how to play or have a
strong desire to earn profits by investing in the stock market. It must be ingrained in you from the start, or never play the stock, you should buy mutual funds only.
2. Play
in a fairly small amount in advance, such as 1000 or USD 2000 since there is always a small possibility of a loss could be too
big. Therefore play in a small amount of money, such as pilot projects. If
you start to feel comfortable and know how to play to generate a
profit, then you can slowly increase the amount of money invested. When
adding the amount invested, always remember that the money that you can
add up, do not just remember that once you earn, but you must remember
that investments can be reduced even exhausted. You
never know when an important event that negatively impact the market
place; suddenly could happen prices plummeted, and you did not get out
of the market.
Technical formulation:
1. See the direction of the economy, national growth rate estimateIt is important to know where the direction of economic growth, meaning whether it is boom or depression or in between. If the economy is in growth is increasing, then that's the perfect time to invest. Conversely,
if economic growth is in negative circumstances, then you should exit
the market, unless you already have a regular shorting and experience as
a trader.
2. Choice of industry and track record. Select the industry you are familiar and more liked / likes. Learn the history of the industry in depth and read the opinions of experts about the industry. Choose the industry that have a good track record in delivering profits.
3. Stock options and track recordSelect 1 or 2 stocks, not more, in the industry point 2 above. Choose which have a good track record.
4. See PEStock that you choose must have a PE of the lowest in the industry. PE is the ratio between the market price per share divided by net net income per share. PE is basically a relative number. PE 10 can be called cheap if the other higher PE. But in general, the present PE 10 can be said to limit cheap and expensive, although there is no theoretical foundation.
5. CapitalizationSelect stocks that have large market capitalization. This means that the stock market value of the rupiah in circulation is quite large. So the stock fryer not have enough money to fry these shares. This
means that if the market capitalization of a small stock, then the
individual players can easily work the stock price fluctuates with the
amount of its equity.
6. Market SentimentConsider the market sentiment. Although
our low PE stocks, and large capitalization, market sentiment is often a
determinant of our rise and fall of stock prices. This sentiment is the most common regional stock price index. Sentiment is the second, interesting events that affect the industry in which stock we are. For example prices of certain commodities and its effect on profit company whose stock we have. The
third is the sentiment figures the economy in general, for example,
coverage rates of economic growth rate, rise and fall of interest rates
by central banks, inflation, unemployment, the rate of retail orders,
consumer sentiment, the general rate of consumer purchasing power.
