Here’s an Easy Way to Invest in Stocks for Beginners

Here’s an easy way to invest in stocks for beginners – Stock investment can be done anytime and anywhere. Here’s how to invest in stocks online, offline, as well as some tips for choosing stocks.

The movement of the Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange. During the current corona pandemic, stocks are one of the investment instruments that are quite attractive to the public. Evidently, as of July 12, 2021, the frequency of stock trading reached 1.2 million transactions with a stock transaction value of Rp 12.2 trillion. The rise of online platforms that facilitate transactions is also a reason for people to start investing in stocks. Some beginners do not hesitate to try their luck in the capital market. However, although they can generate large profits, stocks also carry a high risk of loss. Not a few beginners experience capital loss or loss at the beginning of their investment.

This can happen because investors are not equipped with good knowledge about stocks. For this reason, it is important for beginners to understand the intricacies of the world of the capital market before starting to transact.

Stock investment can be done anytime and anywhere. Can also with small capital.

Here’s how. Opening an account with a securities company

Apart from visiting a securities company, some of these companies have started to venture into the digital world and provide a platform for opening investment accounts online. Before registering, prepare documents, such as ID card, NPWP, and savings book. Don’t worry, there are now many securities companies or securities companies that have received business licenses and are supervised by the Financial Services Authority (OJK) to become securities trading intermediaries between companies and investors.

Based on data from the Indonesian Central Securities Depository (KSEI), 108 securities companies have obtained OJK permits to operate. They include Indo Premier Sekuritas, Mirae Asset Sekuritas Indonesia, Danareksa Indonesia, Mandiri Sekuritas, and BCA Sekuritas. Complete the registration form for each securities company is different. Generally, potential investors are asked to fill in several questions related to their respective personal data, such as, name, address, place of birth, and email address.

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Making an initial RDI deposit After potential investors are registered and have an account with a securities company, they will be asked to deposit an initial amount of funds to the investor’s fund account number or RDI. The amount of this initial fund varies, depending on each securities company.

Dashboard access

After depositing initial funds in a securities company, then, potential investors will be given access to log in to the dashboard account to make stock trading transactions.

To invest, investors are required to provide funds according to the price of the shares they are interested in and pay transaction fees to the securities company. The total funds obtained by investors are the value according to the selling price of the shares minus transaction costs and income tax.

How to Invest Online Stocks

How to invest in stocks online by opening an online stock account first. Prepare a number of documents, such as ID cards, NPWP, and savings accounts.

Next, determine the securities company you want to be an intermediary in stock transactions. In choosing an online securities company, pay attention to whether the company has received permission and is supervised by the OJK, trace its track record, the amount of transaction fees charged to investors. Next, you can open an account with a securities company.

Here’s how to open an account at an online securities company:

1. IndoPremier Securities

Securities company IndoPremier offers online stock transactions through the IPOTGO application. To open an online stock account, first download the IPOTGO application. Open the application and click register. Enter your email and mobile number. Enter the OTP code that you received via sms. Enter your NIK. Complete the information related to your identity. Take a selfie while holding your ID. Create a username and password. Create a PIN number. Double-check the data you have completed.

Next read the account opening agreement. Then, click agree or yes. Registration is complete. You will be asked to wait for the verification email. If you have received the email, click the link sent by email and login to confirm the account opening. Next, you will receive a confirmation email that your IPOTGO account opening is in process.

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After receiving your SID (Single Investor Identification) and RDN (Customer Fund Account) stock account, you can login to the IPOTGO application and start investing in stocks.

2. BNI Sekuritas

  • The steps to start investing in shares online using BNI Sekuritas are:
  • Open the bnisekuritas.co.id page
  • Click the account column
  • Click online registration
  • Complete the personal data questions.
  • In this case there are 3 types of questions, namely basic information, additional information, and questionnaires.
  • Next, click Wait for an email from BNI. Sign the document sent by email and send it back.
  • If the application is approved, you will receive a user and password to transact.
  • Here are some tips that you can consider when you are going to start investing in stocks.

Investment in Shares with Small Capital

The capital needed to buy shares depends on several factors, including the price of the company’s shares being targeted, the number of shares to be purchased, and security transaction costs.

To minimize big losses, it would be better for novice investors to start investing in stocks with small capital first. In addition to reducing the risk of loss, investing with small capital is also intended as a learning process. With a small capital, novice investors can learn to adapt to the capital market and analyze stock movements without fear of big losses. If you feel that you already have sufficient understanding, you can start adding stock investment capital little by little.

Choose Securities with Low Fees

Before starting an investment, every potential investor is required to open securities account with the securities company they choose.Next, they will be asked to fill in the balance of the securities account which will later be used to buy shares. Through these securities accounts, securities companies will take profits from every stock transaction made by their investors.

Typically, securities allocate about 0.15% – 0.19% for purchases, and 0.20% – 0.29% for sales. For that, choose a security company according to your ability.

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Calculate Profit and Loss on Stock Transactions

In the world of capital markets, there are several companies that sell shares per share for only Rp. 50. This means, if you buy 1 lot (100 shares) you only need to spend Rp. 5,000. However, there are also stocks with a value per share of IDR 3,000,000 for 1 lot. For novice investors, it is recommended to buy cheap stocks or according to ability. Don’t force yourself to buy expensive stocks in pursuit of big profits. Apply the principle of profit 1% of the funds you spend to buy shares. For example, the funds you spend to buy shares are Rp. 3,000,000, for 1% profit it is Rp. 30,000. If you can achieve a profit of up to 10% every time the share price rises, then you can get a profit of IDR 300,000.

Pay attention to Stock Fluctuations

It should be noted that the stock price of each company fluctuates or moves up and down every time, even in a matter of seconds. The more demand, the stock price will increase, and vice versa. To reduce the risk of stock prices dropping suddenly, you should avoid stocks that are included in the Unusual Market Activity (UMA) list or stocks with unnatural price fluctuations. You can check the stocks listed in the UMA on IDX’s official website.

Choose Credible Company Shares

Confused about choosing company shares, don’t worry, you can choose shares listed on the Indonesia Stock Exchange (IDX) stock index which are members of the LQ45 or IDX30 index. The listed companies are guaranteed and have good backgrounds. To reduce the risk of capital loss, choose a company that is known to the public, products that sell well in the market, transparent management, and minimal debt.

In addition to choosing shares of companies listed on the IDX, before starting a transaction, it’s a good idea to read the portfolio of the company to be selected taking into account the reputation of the company and its owners, stock fluctuations, as well as good financial statements and fundamentals.