Advantages of Stock Investment, and Investment Tips for Profit

Advantages of Stock Investment, and Investment Tips for Profit


Mabarsport - Advantages of Stock Investment, and Investment Tips for Profit. Are you currently still hesitant to invest in stocks? The benefits of investing in stocks are so many. Stocks are an investment instrument that can be used as an option, in the millennial generation.

Not a few people have just realized that saving alone is not enough to be able to maintain wealth assets in the future. Therefore, people began to switch to try investing in stocks.

Understanding Stock Investment

Before getting to know the advantages of stock investment, there is nothing wrong with getting to know this type of investment well first.

Stock investment is an investment in the form of fund participation by a person or business entity. By using these instruments, they have a claim on the assets and income of the company.

He can attend the GMS. Profits are obtained from shareholders of stock investments such as profits from the capital issued and the economic improvement of the business. So that the company's performance will affect the profit and loss of investors.

Unfortunately, not a few people equate stock investing with trading. The two are different. The most visible difference is the timeframe. Trading has a much shorter timeframe.

In addition, stock investment has the aim of obtaining long-term benefits from the management of the company. Meanwhile, trading has the goal of making a profit from buying and selling shares. You should be able to monitor your investment or business finances with an online finance application.

How Stock Investment Works

Although the benefits of investing in stocks can be tempting, the weakness of this investment is that the risk is relatively high. This is proportional to the potential profit if later the business can run successfully.

Therefore, it is important to learn how this instrument works to minimize losses. Don't just focus on the benefits of investing in stocks, but forget how it works.

When you invest, you are a partial owner of the company. For example, there are 10 thousand shares that are open to the public, if you have 1000 shares, you are 10% of the shareholders.

After the funds you invest are used by the company to manage the business, this is the source of profit for investors. The advantages that you can get from investing in stocks are dividends and capital gains.

Capital gain is the profit that comes from the difference between the selling price and the purchase price caused by market fluctuations. The dividend is the distribution of profits by the quantity of share ownership.

Stock Investment Benefits

As mentioned earlier, stock investment is a profitable instrument. Here are the various advantages, including:

1. Can Diversify Investment

According to Good Financial Cents, one of the advantages of investing in stocks is that this investment can be used to diversify an investment portfolio. Diversification of the investment portfolio is important to be able to face the large risks of stock investment.

When buying a stock in a different company, it can optimize assets. In addition, buying shares from different companies can also make the investment risk less risky.

2. Future Stock Value

Stocks can be said to be winning the battle with inflation. This causes the stock value to increase. Indeed, the value of the stock can experience a decline, but generally, the decline is not significant.

3. Dividend and Capital Gain

As mentioned above, the benefits of stock investment that you will get can be from dividends and capital gains. Please note, that you will not get dividends and capital gains when investing in gold.

These are two things you can only get when investing in stocks. This advantage has a passive nature. Dividends are company profits for a certain period and are distributed to each shareholder according to the ownership sheet.

This dividend is usually divided in the form of cash value. Meanwhile, capital gains are capital gains. This profit is obtained when you sell assets at a higher selling price than the purchase price.

Compared to dividends, capital gains are indeed much more favored by investors. Even this capital gain is one of the reasons investors choose stock investments. Therefore, the benefits of investing in stocks on this one are very tempting.

4. Have Easy Access

The development of the times, especially in the field of technology, has made everything easier, including when you want to invest in stocks. When you want to invest in stocks, you can now analyze the market quickly.

You don't need to be a trader or investor to analyze it. The IDX or the Indonesia Stock Exchange is one of the most accurate sources when it comes to making this investment.

It's not just a matter of analysis, another advantage of investing in stocks is that they are easy to buy. You can buy stocks from anywhere from financial planners to brokers to online purchases. This very easy access makes the investment very suitable for those of you who want to get started.

5. High Liquidity

The next advantage of investing in stocks is the high level of liquidity. With high liquidity, you can easily buy and sell any product on the stock exchange.

Today companies have an important role when trading shares on one of the stock exchanges. When this happens, the level of liquidity will be high so that it can make it easier for investors to buy and sell shares.

6. Much Higher Returns

When compared to other types of investments, such as deposits and bonds, stock investments provide comfort for investors. This convenience is a much greater return on investment. Of course, the benefits of investing in stocks occur when you can reduce the risk of investing and maximize it.

Stock Investment Purpose

When someone decides to invest in a company, of course, the goals can vary according to the targets to be achieved. The purpose of stock investment can be as capital for business development.

Another goal is to earn long-term income, setting up funds for future goals. With the benefits of investing in stocks so much, of course, this is not impossible. Finally, the goal can be to develop assets, because the paid-in capital will later be managed by the company so that it can continue to grow.

Stock Investment Risk

In addition to lucrative profits, stocks also have several risks, for example, such as potential losses caused by fairly volatile movements, and finally, the selling price of the stock declines.

Another risk that must be borne by investors when making this investment is the bankruptcy of the company so it must be liquidated. Finally, the stock is removed from the IDX or the listing, so you have to sell the stock no matter what the value is.

However, these various risks can certainly be minimized by carrying out various strategies. That way, stock investment can still provide benefits.

Tips for Starting Stock Investing

To get the benefits of investing in the stocks above, of course, you have to make this investment properly. Here are some tips that can be done when investing in stocks, including:

1. Choose to Use an Investment Manager or Build Your Own Stock Investment?

Before entering this investment field, you must know what kind of abilities you have. If you can build your stock investment portfolio, you can do it independently.

However, if you are not confident in your abilities. You can hire an investment manager. This investment manager will later guide you to make investments.

You don't have to worry, because the investment manager remains under control. So that the investment manager has a poor and detrimental performance, you can replace another manager who is much more competent.

2. Choose a Trusted Broker

When done conventionally. Stock investment is done through a broker or broker. Brokers are companies that have the authority to carry out stock trading activities.

When you make this investment conventionally, of course, you have to be observant in choosing a broker. If you choose the wrong broker, the benefits of stock investment certainly cannot be realized.

Various things must be considered to get a trustworthy broker. One of them is the status of the broker. If the broker is listed on the IDX, you can choose the broker to invest in.

In addition, other things that must be considered are the information services and stock recommendations offered by the broker. Trusted brokers will generally provide daily information about stock investment developments.

Not only that, but trusted brokers can also provide stock recommendations that can be used as options. The broker doesn't even hesitate to tell you the risks of investing in shares or buying shares that you make.

3. Start with Small Values

Maybe you think that investing in stocks requires a large amount of capital, even though you can start investing in stocks with small capital.

Indeed, starting with a small capital makes the return on stock investment not so great. However, with this step, you can get an idea of ​​what this investment will look like.

So, if later you have capital with a larger amount. You can understand better and just put it into more profitable stocks.

4. Learn How This Investment Works

Even though you already use an investment manager, it doesn't mean that as an investor you stop learning. You have to keep learning how stocks work because stock prices will continue to rise and fall all the time.

Learning how to invest in stocks can also prevent you from being scammed by irresponsible people. Learning about this type of investment can also lead you to discover new strategies.

This new strategy is certainly needed so that later the profit on stock investment can be even greater. You can learn from the internet, books to seminars that discuss stock investing in depth.

5. Set Target

Everything we do must have a target or purpose. This also applies when making investments. Make sure you determine the target amount of stock investment profits you want to achieve.

Actually, for the target problem, there is no need to set the target too high. You can set realistic targets. It doesn't matter if the target can't generate big profits in the short term. What is more important is that you know how to achieve these targets when investing in stocks.

Reasons Why You Should Invest in Stocks

In addition to the lucrative benefits of investing in stocks, there are various reasons why you should make this investment, including:

1. Simpler Stock Investment Tax

Taxes from investing in stocks are much simpler and not even convoluted. Either administratively or otherwise. There are 2 types of taxes from stock investments, namely taxes with a figure of 10% of their value.

There is also an income tax on sales with a size of 0.1% of the value of sales. What's more interesting, this tax administration system is final, so the tax has been deducted by the securities. So, when you sell shares, you immediately receive a net calculation.

2. Safe Guaranteed Stock Investment

One of the advantages of investing in stocks is the lucrative returns. However, stocks are also a safe investment. Investments in the capital market sector are supervised by the financial authority.

This means, that shares have a legal nature and are legally valid. But, even so, you must be wary of similar investment offers with tempting lures and high returns. Not a few irresponsible parties offer short-term stock investment benefits, even though the investment is fraudulent.

3. Become a Very Profitable Long-Term Investment

Stock values ​​are also basically affected by inflation movements, so you can estimate funds from the start, and invest in a stock.

By choosing stocks that are affected by quite a lot of inflation, you can predict the possible development of the value of the shares that you will own. Imagine for yourself the benefits obtained when placing funds there.

4. Stock Investment is Transparent

Another reason why you should invest in stocks is that these investments are transparent and liquid. You as an investor can not only see the benefits of investing in stocks, every time.

You can also clearly see what the asking price is as well as the bid price. Even the number of slots requested and offered by each company is also clearly visible.

This is due to the provisions provided by the  financial authority and requires companies that have offered their shares to the public to be transparent or open. Therefore, every company's financial statement that has been listed on the stock exchange can be accessed by the public.

With this openness, you can analyze the conditions and prospects of the company. Not only that, stock investments have a liquid nature. Stock instruments are easy to liquidate and sell, so when you need funds, you can rely on this investment.

5. Can be done anywhere and anytime

Stock investment can be said to be very flexible. You can invest in stocks anywhere and anytime. For example, to get a large stock investment profit, you have to invest when the price is experiencing a decline.

When you see the price has decreased, you can immediately invest at any time. It can be said, investing in stocks will not even interfere with the main activities you do.

That's because buying shares does not require you to directly come or go to the stock exchange. You can buy shares from home, both online and offline transactions.

Strategies for Investing in Stocks

Investing in stocks must be accompanied by designing the right strategy. Here are some strategies you can do, such as:

1. Doing Diversification

Diversification can be done when you make this investment. Diversifying will automatically mitigate the losses that may be received when one of the stock prices declines.

So, what percentage of shares should be diversified? For percentage issues, you can adjust it to your needs. Not only needs, but you also have to pay attention to external factors that can affect the value of shares.

For example, such as economic problems, disease outbreaks to natural disasters. If you are an aggressive investor, you can diversify 60 percent, 25 percent, and 15 percent.

2. Adjust to Your Financial Goals

Another strategy is to match stock investments with financial goals. Investing must be tailored to the objectives, both short, medium, and long term.

If you want to maximize your profit, you can focus more on your long-term financial goals, so you have more time to manage your portfolio. Resisting the temptation of articles with the best investment titles is indeed very difficult.

But, you also have to see, whether this is to the financial goals you have or not. If the goal you have is for a retirement fund, you should focus on instruments that can provide regular benefits.

3. Doing Rebalancing

Rebalancing is the process of balancing your portfolio. The purpose of this activity is to maintain the value of assets and adjust the allocation of funds in each stock that you want to make as an investment instrument.

If you invest in 2 companies, and one of them is performing well, you can transfer your capital and rotate your capital until you make a profit.

4. Perform Analysis

Stock investment activities cannot be separated from analysis to ascertain whether or not the allocation of funds to be invested is appropriate. You can see or project how it will perform in the future. So that the allocated assets can grow to the maximum.

Of course, the analysis must be done in detail, clearly, and has a complete calculation. If your analytical skills are still lacking, you can take the time to learn things related to stocks starting from books, articles, and others. Indeed, there is something to be sacrificed, but it is worth the gain.

Although the benefits of investing in stocks are tempting, you must do so with caution. In addition to investing in stocks, you can invest by doing business with the help of online accounting.

To facilitate financial recording, financial applications can be assisted. Don't forget to keep getting various interesting and up-to-date information only at Mabarsport.

In Indonesia, accounting, finance and investment assistance can use services or applications from Merkari journals that have been proven to be trusted, professional and the best.
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