learn to play stock

Stock is one of the financial products. We recognize the financial markets that are divided into capital markets and money markets. Shares include capital market products that are a proof of our ownership of the company that issued the stock certificates. Shares have intrinsic value as well as actual value. To trade the stock there is also a separate rule of the game.

Some tips on how to play stock:

• Treat shares as "human", not understood solely "by the book" only. See also the people who manage it, the players behind it (market maker, player, follower) and their respective characteristic, then go into the analysis and tools used.

• Do not fully believe in financial data, let alone unaudited and / or not yet authorized by Bapepam. Indonesia is one example of emerging market, and the main characteristic of such a market is data that is often unreliable. So keep it conservative and careful.

• It's good you start by collecting blue chip stocks that fall in price because of the right issue sentiment. It's okay, in the not-too-distant future, the price is usually corrected and crawled up. The return of blue chip stocks is usually average, but quite feasible to hold for a long time.

• You can also follow the action of the bandar. Play a little online business with fried stock. Usually, this stock is not too much circulation so easily dicrol and dipermainkan price. Its characteristics, the volume of stock transactions is quite large and its value goes down but then slowly rises. Again, be careful because the trend can quickly turn around quickly and use only if there is excess money.

• Discipline. Set an upper and lower border. For example, 33% above and 5% below. Obey the rules and never follow your passions and emotions. If you dare to take risks, it's okay without a cut loss, unless 1) you use margin, 2) the stock price is already high, and 3) when you enter, the price or trend reverses.

• Diligently and seriously. Periodically analyze and review portfolios. I recommend holding no more than 9 stock types only. Focus on a maximum of 3 stocks and hold 1-2 stocks to stay held for a year. Human ability is limited, so it's good not to be too greedy.

• Learning the fundamentals of a global economy and a particular issuer is a must. Better still if you also follow always national news and observe the correlation with movement in exchange.

• Check out the unique characteristics of the bursa. For example, there is usually a tendency to rise around April-May in anticipation of the publication of financial statements and dividends distribution (sell). On the contrary, in September-October as now, usually the tendency to go down because of quiet, no news and activity (buy). While at the end of the year there is a tendency to rise, in anticipation of window dressing and welcomes the january effect (sell). In February-March, there is usually a correction post window dressing and january effect (buy). And so on.

• Brokers are also human. Invite them to lunch and make friendship. Just do it sincerely. Do not ever expect you to get insider information from here. Besides being unethical, it is also illegal (illegal).

• Please guidance on the above. Believe that many variables are influential but are beyond our control. That's where the role of God's hand comes into power. And when you get a gain, do not forget to donate some of what you receive and stay modest. Big investors I know are average people who are low profile, simple, and do not like to talk much.