According to a poll conducted by New Harris through an app called Stash, nearly 80% of millennials do not engage in investment activities in the stock market loh, Pal Sikapi! Why is that? Why is that? This is because 34% of young people say it is difficult to understand how stock investment works.
In fact, the creation of stock accounts and funds that must be issued in order to be able to invest tends to be easy and inexpensive. In Indonesia alone, 84.75 million people out of the total population are productive age groups or generation Y, which are now better known by the term generathe millennial, Sikapi's pal.
Preliminary knowledge regarding the world of stock investment, could start from basic knowledge, which is when to buy and when to sell stocks. In the article this time, we will peel off regarding the strategy of buying and selling stocks, of course including the important strategy of mitigating risk of loss in stock investment. Get to the point, let's check it out yuk! J
First, when would be a good time to buy stocks? Well, related to this exact timing could actually be seen from two things which are based on fundamental and engineering analysis, Pal Sikapi. That fundamental analysis refers to analysis by means of an approach to economic, political, or ba conditionshkan looking at existing trends in venture development. This analysis can be seen from the financial statements, Pal Sikapi.
While an engineering analysis, it is an analysis of stocks through the approach of stock movement itself at a time range, including price and fluctuation, as well as information on the highest and lowest points of a stock. Keep in mind yes buddy Sikapi, price disIt's not solely a cheap price yes, but a stock price of a company that deserves to be bought.
Next, there are things we need to pay attention to before purchasing stocks including the profile and liquidity level of a company, fluctuations in the Combined Stock Price Index (IHSG), market trends, Return of Equity (ROE) or returns from shareholder investments in the company, sales or sales, and Earning per Share (EPS) Growth.
Buddy Sikapi, certainly in addition to paying attention to the important points above, strategy is also one of the important things. There are 3 strategies in buying shares that are:
- Buy On Weakness which is buy when stock prices are already down to a certain level that is safe to buy.
- Buy If/On Breakout which is to buy when the stock price succeeds in breaking a certain level or rises through resistance (the highest level).
- Buy on Retraction i.e. buy shares after a breakout or bottom price occurs. Stocks that managed the breakout in general would immediately see a steep rise,
Now, we should also know dong, when is the right time to sell the stock we have. The right time in determining the moment to sell the stock is certainly when prices are rising or called profit taking, Pal Sikapi. But, how about the price goes down? Well, timeu which is right to sell the stock i.e. one is to set the cut loss.
Cut Loss is a term used when we sell a stock at a price lower than its purchase price, so we suffer a loss (loss). The existence of this cut loss is not to realize the loss, buddy Sikapi! But precisely to prevent bigger losses lagi when the stock price you hold keeps falling.
For example, when you have set the cut loss limit at 5% or 7%, then when the loss has reached the range of that number, you can immediately sell the shares you have, Pal Sikapi.
Cut loss itself is encouraged by investors and traders to keep the capital held, Pal Sikapi. The timing of implementing the cut loss varies, depending on your position; whether as a trader or an investor.
Make you-you who are the active trader, if the shares you hold are going to go down steadily, then it's better to immediately do the cut loss right away, buddy Sikapi. The key here is to try to figure out the direction of the stock's movement, whether it's going up, down, or sideways in me.Run time is less than a year or less than a few months depending on your trading period.
For those of you who are positioned as Investors, then a cut loss can be made when there is a fundamental change that can be seen from the company's fundamental performance. Some things can be used as a reason why you have to do a cut loss, including when there is bad news related companies concerned and or in the event of an IHSG decline.
There are two ways that can be benchmarked in determining the cut loss point of a stock, Pal Sikapi, which is based on the purchase price and based on the support point. The support point itself represents the level or price area believed to be the lowest point, Sikapi's Pal.
If based on the purchase price you have set the cut loss limit from the beginning at 5% or 7% as exemplified earlier, this way is considered to be less flexible because it does not take into account the prospects for the future movement of stock prices.
While another is the case with benchmarks based on support points, cut loss constraints could be established by looking at daily stock recommendations normally submitted by securities. It is usually written under the title “Cut Loss If”. This way dinilai is more flexible because it follows the upward and downward movement of stock prices without setting it beforehand.
Keep in mind, all kinds of investments, definitely have risks. However, as Warren Buffet said, “Risk comes from not knowing what you are doing.” or risk comes when you don't know what you're doing. Understand genis investment and how it works, pal Sikapi. From this you will understand what you have to do and can reduce or even avoid loss.