How to Buy Stocks for Beginners

There are many ways to buy stocks. Opening a securities account, buying through securities, investment managers can also be contacted. But before you buy stocks, learn first about matters relating to the shares. If you want to try playing the stock, it might be better to buy mutual funds in advance.

When you are mature and confident that your investment is in line buying and selling shares, then buy shares directly and if it's bold, buying in considerable amounts along with the calculation of capital gains or profits are also many.

High Risk, High Return
The nature of equity investment is high risk, high return. The more the buy, the more likely benefits to be gained, and the higher the chances of losing the funds invested. Adventurous spirit and mental strength while defeat is an absolute must-have requirement other than the knowledge and intelligence to read the market. Should not rely solely on feelings. All movements must be made based on an analysis that can be accounted for.

Calculation
There are other costs to consider before buying shares. First, brokerage commissions are typically 0.3% and 10% VAT. Large enough, right? So if you only have 5 million, it seems better just deposited. But if it believes can, then no matter the money it bought 5 million shares. Calculated as a learning investment funds. Anyone know of money 5 million will be 5 billion.

If you want to sell there is also the cut again. Brokerage commissions are typically 0.4%, 10% VAT plus a 0.1% income tax. So before selling, into account before the cut. If about loss, not sold yet. Just wait until stock prices slightly higher.

Secret Behind Composite Stock Price Index

Every day, either online news, television, radio and other mass media, I declare or inform the Composite Stock Price Index (CSPI) is the latter case. This means the development of stock exchanges can continue to be followed only through the composite stock price index, as if an information has been explained in brightly lit situations all the stock exchanges that are so complex. It could be argued that JCI Index function very effectively. Then there's the secret behind what is JCI?

Composite Stock Price Index is like a thermometer is not available in boxes of medicines in our homes. Its function is to provide a measure that helps us see the "temperatures" economy that has occurred. Temperature "economic" our bodies are hot, cold, or normal. If the "economy" is a high fever above 38 degrees Celsius, it should be immediately taken to the hospital to deal with doctors. Thus, we avoid the risk of death.

Composite Stock Price Index is an indicator of health of equity markets that describe the current condition of the stock exchange. If the stock index continues to rise, it can be said that the state of capital markets is good, economic conditions, social, and political, are in a safe and healthy situation. Stock price index is a summary of the effects of simultaneous and complex range of factors that influence, particularly economic phenomena.

JCI role for Investors
Investors often use as a benchmark stock index investing. By CSPI, investors can determine whether this is a good time to invest in a country or the right moment to attract capital. The increase in stock price index, which takes place continuously indicates the market is bullish (up) or the index of stock prices always go down is an indicator that the market is bearish (down).

Definition Stock Price Index
Stock price index numbers are numbers that a measure of capital market situations that can be used to compare events and as a magnifying glass or analysis tools. By analyzing the changes in price indexes, we analyze the overall stock.

How to View Composite Stock Price Index
Here is how to view the composite stock price index. Positive numbers that accompany changes in stock price index is the increase in stock price indices previously. Negative numbers indicate the stock price index down compared to the previous stock price index. If the stock price index does not change, it indicates that the condition is stable.

JCI formula = Accumulation H1x100% / Accumulation Ho

H1 = The entire amount of stock prices last

Ho = Total stock price at bottom

Understanding Simple About Shares

Talking about the stock does not mean just talking about stocks at the stock exchange. If some people set up a joint venture company, whether small, medium, or large, that means each person has invested its share in the company. In other words, they were the owners of the company. The advantage of the business carried on by the company will be divided according to the number of shares owned.

Simple outlook Against Shares

Rights and Obligations
Before you dare to invest in a company's shares, used to study the rules that exist in the company related to the planting stock. As an investor you should know what your rights and obligations. The issue of shares is a complicated issue that can lead to conflict if the ordinance is run based on no fixed rule of order.

Life will not be eternal. If it can be when it lives lost, the shares are invested in a company can be passed on to posterity. But, if the rules are not strict, then it could have dividend rights that should be obtained and submitted to the not deserve it.

Share ownership can also mean having the right to organize the company because it has a majority stake in the company. When there is this rule, then muster all the potential to develop the company.

The development itself rather than merely to please the shareholders, but much of it is to help build the welfare of employees and their families. If you need help give you a few percent of the company to employees who have worked for 5 years and over.

Thus, employees who already have a stake in the company will work even harder because they realize that the company also belongs to them. The division of this wealth will be very pleasant and happy as it can continue to share.

The money distributed to others will bring more blessings of life that leads to happiness than if the money used to buy luxury goods that can not necessarily give a true happiness, but only a momentary pleasure.

Issuance of Shares
When a company throwing their stock to the stock, it means that the company will become a public company. The purpose of sales among the company's stock because the company needs funds to develop or require funds to save companies from bankruptcy.

Not uncommon that the existence of a new owner who has a majority stake will bring fresh wind update that will bring a new mechanism of action as well. Circumstances and new situations that make the company and all the more passionate in supporting efforts to work.

Not uncommon that after the shareholders who are just starting to fix the company, the old owners after re-stock company. So the exchange owner company is a common thing that should not interfere with the performance of the company. However, sometimes change of ownership may also interfere with the performance of the company, especially if the new owners began to fix the management which has been running well in advance.

Should Caution
When state-owned company began selling its shares and the shares were purchased by foreigners, as happens in Indosat, Krakatau Steel, and large national companies other. Ownership of shares to some extent will affect the company's management.

Do not let the Indonesian people could only be workers and coolies in their own country. Thus, knowledge of this stock is one thing to be possessed by each nation's children to be able to play in improving the welfare of Indonesian society.

Share Article: Stock Trading Process

Have you read the article shares? If not, read the article this stock. Talking about the stock trading process, will be more obvious if not separated from the question 5W +1 H, ie, Where-Who-What-When-Why and How.

1. Where: Where Shares Traded?
Shares traded on stock exchanges only. Securities can not be purchased at the mall. These can be purchased securities in a securities firm with capital money and enough knowledge about the stock market plus ID card. Come to a brokerage firm or securities. Gladly, they will serve you.

2. Who: Who's Doing Trade?
Who trade the stock is any person who meets the conditions specified securities firms, which submit their identification card, fill out the account opening, the signature on the stamp, as well as the ability to obey rules that have been determined and accept all risks of loss that may occur.

3. What: Are Traded?
This is an important question before starting to trade stocks. To answer what is traded in the stock market, here's the explanation. Stock is traded securities brokerage firm. Shape similar to a stock certificate.

Within stocks, there is a Collective Letter No. Shares, the value of the company's basic capital, the nominal value of shares, the stock owner's name, and so on. This is information that makes the stock so-called securities and making it tradable.

4. When: When Process of Trade last?
Shares traded on the stock exchange on weekdays, ie Monday through Friday. Starting at 09.30 s.d. 16:00. At 9:30, there is the opening price. Opening price is the price requested by the buyer or seller when a transaction has just begun trading.

Opening price may be the market price. Trading hours ended at 16.00 and at that time there is the closing price of which is the price demanded by buyers and sellers at closing.

5. Why: Why Stock Trading?
Shares traded, such as stocks go public. The shares traded so that people can take ownership stake (equity) in large firms are (going public).

6. How: What Happened Trade Process?
When Sir Bobby can contact the broker / dealer / broker who worked on the trading floor. Broker / dealer / broker will give orders buy slips and Mr Bobby will fill out the form with the name of the stock, the number of shares (in lots) and the asking price (bid price).

Sir Bobby compulsory purchase order was signed slip. Broker promptly forward purchase orders Sir Bobby on the internet, telephone, and so on. This is a bit of stock trading process.