The safest way to invest in stocks for beginners

    Hello Luna, see you soon. Welcome to the "Talking About Money" article. When it comes to stocks, some people may immediately think of high-risk investments. In fact, it can bankrupt people. It's not uncommon for people to use social media to share their stock investment losses. You can either invest directly through advisory services or buy equity funds managed by investment managers and lose money. Not only that, but you may have heard locals advise you to be cautious or avoid investing in stocks.

The safest way to invest in stocks for beginners

    On the other hand, there are many stories of people who have succeeded in stock investment. Let's start with Park Lo Ken Hong, who can become a millionaire by investing in stocks. There is also Andhika Storo Putra who can become a millionaire at a young age by investing in stocks. His two sides to the story keep us going back and forth when investing in stocks. You want to buy stocks now, but you are afraid of losing money. I wanted to learn, but I didn't have time. I ended up not buying the stock. Or they continue to hesitate even to open a brokerage account to trade stocks. Come to think of it, why would someone invest in stocks and lose so much? Are you afraid of stock market fluctuations? Or is it because many newbies choose the wrong stocks in companies that lack quality?

    Did the stock price drop and you lost a lot of money? Or do you think why? I really understand that many beginners are afraid to invest in stocks. Because I don't have enough knowledge to understand many companies listed on the Indonesian Stock Exchange. From all companies, of course. Some companies have solid business foundations. You have a small company that grows into a large company. In addition, there are small and medium-sized enterprises whose earnings are not stable.

    There is a company whose business is on the brink of bankruptcy. In fact, there are small companies whose business is not clear, but stock traders play with the price of their shares. From there, you may worry that you are choosing the wrong company to buy shares from. Don't worry. There is a possibility that you will buy stocks whose performance will deteriorate in the future or stocks that have already gone bankrupt. So in this video, I want to show you the simplest and easiest ways for beginners to minimize the risk of investing in stocks. Before we get into the details, remember to subscribe to this article.

    Because we will continue to share educational videos about the world of finance, economics, business and investing that we hope will be helpful. Well, first, let's take a look at how all Indonesian stocks perform in terms of long-term trends.

    To confirm that, we can look at the price appreciation history of the JCI, or the Indonesia Composite Index. IHSG "What's this? Simply put, the JCI reflects the average rise and fall of all Indonesian stocks. On this chart, from 2000 to 2019, the Indonesian Composite Stock Index rose 900%. You can see that it has increased more than that. Yes, it is.

    From a long-term trend perspective, the rally in Indonesian stocks is truly extraordinary. In fact, the rise of the JCI can be said to be one of the highest rising stock indices of any other country in the world. See for yourself the rise of Indonesia's stock indices compared to world-famous stock indices such as Dow Jones, Nasdaq, S&P 500, Hang Seng, FTSE and KOSPI. From this we can see that essentially all global equity indices continue to grow in line with the growth of global trade productivity and commerce. Still, there are times when the stock index falls.

    For example, during the 1998 currency crisis, the 2008 financial crisis, the 2014 oil price crisis, and the 2020 COVID-19 pandemic. It's always going up and prices keep going up. In fact, Indonesia's capital market is one of the fastest growing capital markets. This is why Park Ro Ken Hong never said this at his seminar.

    When you can lose your investment in a stock, it is called too much. Come to think of it, there may be some truth in what Park Ro Ken Hong said. What is the reason why some people lose a lot in stock investment? There are many reasons for this. But broadly speaking, it usually follows him for two simple reasons. First, the price keeps dropping because you selected the wrong stock that lacked quality. Second, there is nothing wrong with choosing stocks, but they are impatient to invest.

    Therefore, when the stock price falls, they sell in a hurry and lose money. Even if I endure it, I found that the stock price will rise again after a while. You may be wondering why you can't just put up with the stocks you bought when they lose when you can't go wrong with stocks that are performing poorly. Because we know that prices will go up in the long run. Before that, we learned together that the Indonesian stock index has a long-term trend and is growing. What happens if you simply follow the movements of a composite index? Can you really invest in an index? The answer is yes.

    In Indonesia, you can invest in stock indices that include a "collection of stocks of large companies". A solid business foundation. One of the stock indices available for purchase in Indonesia is the IDX30. This includes stakes in the 30 largest publicly traded companies with strong operating bases and high volumes of stock trading.

    The IDX30 index consists of stocks of well-known large companies in Indonesia. For example, BCA, BNI, Indofood, Unilever, Gudang Garam, Astra, BRI, Telkom and other big players that are very strong in the industry. Personally, looking at the stock list for the IDX30 index, I think the IDX30 stock index is a relatively safe bet for those just starting out and not sure which stocks to buy.

    Is the IDX30 index safe and could the price go down? Buying stocks always has its ups and downs. When you look at the stock index, there is always fluctuation. At least we already know that the Composite Stock Index has historically continued to rise. Indonesian trade industry and business community By purchasing this IDX30, you can minimize the risk of your stock investment. Yes, at least IDX30 is a combination of 30 largest public stock markets in Indonesia, so don't pick shares of companies that aren't unique fried stocks, or companies that are on the verge of bankruptcy Speaking of stock indices, it has an interesting history Warren Buffett, the world's most successful investor.

    In 2008, Warren Buffett asked all of his fund managers to make a bet that the returns of the funds they managed could not outpace the rise of his S&P 500 stock index. The bet lasts about 10 years. After all, Warren Buffett, who won by betting on the investment performance of investment managers, was sensitive to losing to Warren Buffett's rising performance of his S&P 500 stock index.

    Warren Buffett himself as soon as stated this through making an investment withinside the inventory index periodically, even normal human beings can Imagine beating expert investors, simply through paying in installments and frequently shopping for inventory indexes you could beat the overall performance of expert investors. In Indonesia, there are pretty some of inventory indices known as LQ45, IDX80, Kompas100 Bisnis-27 Jakarta Islamic Index, etc.

    Each index has its standards respectively, for example, the Jakarta Islamic Index, which includes 30 Islamic shares which have desirable economic overall performance and excessive transaction liquidity, there may be additionally the SRI KEHATI index, which includes 25 shares that carry out properly and are environmentally friendly, however in my opinion, for the ones of you who're beginners, the maximum secure is IDX30 which includes 30 stocks with n excessive liquidity, massive marketplace capitalization and desirable business enterprise fundamentals.

    If you need to strive making an investment in some other index, it's fine, you could test it, the inventory indexes to be had at the exchange, what are the standards for the index and what are the contents of the stocks, oh yes, spend money on this index it additionally mechanically divides hazard into numerous shares at as soon as, for example, while mining shares including Adaro Energy and Bukit Asam fall in charge, losses may be helped due to the fact patron items shares including Unilever and Indofood are growing in charge so through shopping for the index we're in a roundabout way doing it diversification in our inventory funding now the query is, how do you purchase a inventory index? primarily based totally on my experience, you could purchase indexes in ways.

    The first is to buy an index mutual fund and the second is to buy an index ETF. Let's discuss them one by one. First, buy an index fund. You can buy index funds from mutual fund distributors such as Seeds, Bareksa and Magic. You can choose where to buy according to your preferences. For example, there is his IDX30 fund purchased on the second Seeds application. Buy an index ETF.

    Here you can buy his ETFs from the account you use for regular stock trading. See the list of ETFs traded on the Indonesia Stock Exchange. For example, ETF-LQ45, ETF-IDX30, etc. I hope it will be helpful for those who are new to stock investment. Before you start investing in stocks, make sure you are investing with unused or cold money. Oh yeah, stock indices also have their own price movements and you also need to know that they are not guaranteed to be profitable in the short term, but history tells us that the trend will continue to rise in the long term. OK, that's all I have to say. I hope you found this article useful. See you in the next article Article Money talks never end, so talk about money!

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