Mistakes made by novice investors who just learned about stocks

    Hello everyone and see you soon. Welcome to the "Talking About Money" article. Year by year, the number of investors in Indonesia keeps increasing as of July 2020, the number of investors registered in his CSD in Indonesia has exceeded 3 million and the number is increasing. . about 22%. Compared to the number of registered investors at the end of 2019, this means that there are around 600,000 new investors in Indonesia throughout 2020, including investors in stocks, mutual funds and bonds. The stock world may be surprised to see the volatility in stock prices in 2020. Some stocks are up 5% or more. Some stocks go up dozens of percent in a single day.

Mistakes made by novice investors who just learned about stocks

    On the other hand, there were dynamics when the stock market fell sharply, such as the Jakarta PSBB overall announcement on September 9 last year, when the JCI fell 5% in one day, with many stocks of large companies and two days. Over 10% Down This two-day sell-off could wipe out the hard-to-find gains in stocks over the past month or two.

    Some people may have made the wrong decisions in the end as stocks bounced and fell. There are still many mistakes made in this article, so I will try to speed up the learning process by explaining some common mistakes that are very common among novice stock traders and investors. Let's summarize. We seniors are the ones who have already turned the stock market world upside down.

    If the announcing is going, clever humans examine from their personal errors, however smart humans examine from different humans's errors, let's examine from the errors of our seniors collectively so we do not repeat the equal errors because the first is that it's far too speedy to make investments massive quantities of capital, have you ever skilled it or not, while a When buying and selling or making an investment in shares, you could get pretty a huge income with minimum capital knowledge. You can without delay get that huge income once you attempt to shop for shares numerous times, the rate continually is going up and also you get a reasonably massive income as compared to different humans usually, if we're on this circumstance we get imaginary , simply try and placed a number of our cash in sure shares, the income you get might be a lot larger at that stage, you sense too positive and ultimately you're tempted to make saving maximum of your property withinside the shape of shares is one of the maximum not unusualplace errors that newbie inventory traders and buyers make too positive due to the fact they get newbie's success and too speedy sense that they apprehend the way to exchange or make investments efficaciously even though, perhaps you get the income through risk You begin to input the arena of the inventory marketplace while the fashion is growing again, the marketplace is complete of optimism or the technical time period is a bullish period.

    After a while, when stock prices start to fluctuate, novice traders get upset and panic from saving too much money on stocks. Even if you are still a beginner, do not rush. Gradually increase your capital while finding sources or suitable mentors. The second is being overly sensitive to outside news and information. Perhaps one of your he or her two already has a trading plan or has made an investment yourself. Well, even doubt the results of the analysis. Longer than when we read news about the industry and the company, we suddenly became suspicious and sold our shares instead. It turns out that the stock price has risen.

    But we have got already bought it at a low rate or it may be the opposite manner around, we see an excellent information headline approximately a organization that turned into unfold at the WhatsApp institution or Telegram institution with out similarly consideration, we right away reactively sold the inventory it turns out, the inventory rate we sold turned into too high-priced and the inventory rate clearly went down once we sold the inventory. This is likewise one of the errors that novices regularly make, it is pleasant if we do not make a choice to shop for or promote shares too reactively primarily based totally totally at the information circulating.

    Why is it so? because, the information is a lagging indicator that generally simplest seems after the inventory rate has risen or fallen significantly so, it is vain if we react after seeing the information. Because the rate had already moved earlier than the information got here out, the 1/3 not unusualplace mistake is to decide a organization the use of simplest emotions with out searching on the data, there are masses of novices who decide a commercial enterprise simplest from what's bodily visible "wow! This organization has been set up for decades, the commercial enterprise basics should be sturdy" "the goods are everywhere, the organization is positive to be profitable" "the constructing is certainly luxurious, this organization should be rich" whereas, in case you need to decide a organization, examine its monetary statements.

    Don't just use feelings and estimates. If you read the financial statements, you might be surprised to find that many big, solid-looking, well-known companies have been struggling for years. If it's large, you know your debt ratio isn't healthy. The fourth mistake is relying too much on the analysis of others and wanting to copy their investment decisions.

    Have you thought about it? If he sells it, we'll sell it too. This is why so many newbies request cheat sheets from paid Telegram groups that contain signals for buying and selling stocks, relying solely on signals, whispering, or otherwise relying on signals when trading or investing in stocks. That's why it's just a matter of following people's decisions. Others' analysis is not valid in the long run.

    Why is it like this? All investors and traders have fundamentally different trading and investment plans, time horizons and capital, so when Mr. Lo Kheng Hong buys a particular stock, a great senior like Mr. Lo Kheng Hong There are many novice investors who try to imitate investor decisions. They buy too, but how does that work? Often they even get stuck a lot. why this? Was Pak Lo Kheng Hong's decision wrong? necessarily. Mr. Lo Kheng Hong has a different time frame and of course has a very large capital, so if the stock price falls, Mr. Lo Kheng Hong can continue to add positions. The fifth mistake is not planning your trades or investments. This is the most common mistake and the source of many others. Why do we react to news like this? Why buy stocks on emotion alone if you don't have a good plan or nothing? We don't have an investment plan, so why would we want to imitate other people's investments?

    How do you make a good trading or investing plan if you don't have one? Well, we'll discuss that another time. Arguing here would be too broad. Basically, when making a trade or investment plan, you need to decide on the analysis method, the investment or trade time frame, and the percentage of capital allocation. These are 5 common mistakes that novice traders and investors often make. If you already have experience in the capital markets, please contribute your information, write your story, and fill in the comments section for other friends. I'm sure there is. See you in the next article. The talk about money doesn't stop, so stay tuned for our Talk About Money article. 

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