Investing in stocks also requires a strategy. For novice investors, read the following article!

 

 Nearly 80% of millennials don't invest in the stock market, according to a study conducted by New Harris via an app called Stash. Why is that? The reason is, 34% of young people admit that it is difficult to understand how stock investment works. In fact, setting up a stock account and the funds you need to invest is usually easy and inexpensive. In Indonesia alone, 84.75 million people belong to the working age group or Generation Y, which is now better known as Millennials, Friends Attitude. Your initial knowledge of the world of stock investing can start with a basic understanding of when to buy stocks and when to sell stocks.

This article reviews strategies for buying and selling stocks, including key strategies for reducing downside risk when investing in stocks. Come see! ️ When is the best time to buy shares? When it comes to time, there are actually two things to say: fundamental analysis, technical analysis and attitude of friends. Fundamental analysis is an analysis that looks at the current economic, political, and even business development trends. One such analysis can be seen from Friend Attitude in the financial statements. While technical analysis is stock analysis that approximates information such as the movement of the stock price itself over a certain period of time, such as stock prices and fluctuations, as well as the highs and lows of stock prices. Remember, my friend, the price here is not just a cheap price. That's right, that's the stock price of a company worth buying.

In addition, what you need to know before buying a stock, such as the company's liquidity profile and level, the volatility of the Jakarta Composite Index (JCI), market trends, Return on Equity (ROE) or Shareholders' Equity Earnings. Invest in the company, earnings or earnings, earnings per share (EPS) growth. Along with paying attention to the important points above, strategy is an important factor, as is the attitude of friendship. There are three strategies for buying stocks.

1.             Bear buy is when the stock price falls to a certain level where it is safe to buy.

2.             Buy at the breakout. That is, buy when the stock price breaks a certain level or rises through resistance (highest level).

3.             Buy at the retracement. Buy the stock after the breakout or bottom. Breakout stocks usually spike quickly, but you also need to know when is the right time to sell the stock. Of course, a good time to decide when to sell a stock is when the price is rising. But what if the price drops? Well, the right time to sell shares is one of them is to set a cut loss.

 Cut loss is a term that means selling a stock at a price lower than the purchase price and taking a loss. The existence of this cut loss cannot be realized, friend Attitude! But it is precisely to prevent greater losses if the price of the shares you own is falling. For example, you can set a loss limit of 5% or 7%, and when your losses reach that number, you can immediately sell your shares (Friend Attitude). Cut loss itself is recommended to maintain Friend Attitude, capital held by investors and traders.

The time to make a cut loss also depends on the position. traders or investors. For active traders, if your holdings fall further, you'd better cut your losses immediately, Friend Attitude. The key here is to know whether the stock will go up, down, or stay flat in a year or a few months, depending on the duration of the transaction. As an investor, loss limits may apply if there is a visible fundamental change in the underlying company's performance. There are several possible reasons for the cut loss. That is, if there is bad news for the company in question and/or if the JCI falls. There are two methods that can be used as a benchmark to determine Friend Attitude, namely the stock cut-loss point. One is based on purchase price and the other is based on support points. The support point itself is a price level or area that is considered the lowest point. As mentioned above, if you set a cut loss of 5% or 7% to the purchase price from the start, it is considered inflexible because it does not take into account the prospect of future stock price fluctuations. Unlike benchmarks based on support points, you can set a cut-loss limit by looking at the daily stock recommendations that a security usually sends.

Usually written with the title "Cut Loss If". This method is considered more flexible because it tracks the up and down movement of stock prices without any prior determination. Remember that all types of investments carry risks. But as Warren Buffett says, "Risk comes from not knowing what you're doing" or risk comes from not knowing.