How to Buy Stocks for Beginners – If you want to buy Indonesian companies that have IPOs or Go-Public, how do you do it?.
Can I buy shares in a bank like Mandiri or BRI? or make purchases to the company directly. That’s not the way to do it. If you want to buy shares in Telkom, astra, independent banks or companies in Indonesia, you have to do this on the Indonesia Stock Exchange (IDX). But you can’t buy and sell shares on your own even if you come directly to the IDX. All transactions on the Stock Exchange can only be carried out through stockbrokers or known stock brokers. Now, buying and selling shares can be done online.
So, the first way to buy shares is to open an account at a stock brokerage or brokerage company. These companies are also known as securities.
Don’t forget to read Know and Understand Stocks
To see the existing securities companies in your city, you can visit the website www.IDX.co.id on the menu tab: Exchange Member: Exchange Member in your city.
For the terms and conditions for opening a stock account (what documents are needed, a minimum deposit of funds, transaction fees, etc.) you can directly ask each of your securities companies.
What you should know is that there are two types of stock transaction accounts provided by securities: buying shares online and buying shares offline.
Buying Stocks Online
The rapid progress of the internet brings fresh air to the progress of the trading system on the stock market. In the end, stock trading can also be done online. Indonesia was not left behind. Previously, transactions on the Jakarta Stock Exchange were done manually, now it can be done using an automated trading system with the inauguration of the Jakarta Automated Trading System or JATS for short. JATS was formed with the aim of making transaction settlements easier and cheaper as well as enabling scripless trading of shares which makes transactions and distribution of shares more efficient.
In practice, securities trading on the stock exchange using the JATS facility may only be carried out by stock exchange members (AB) who are also KPEI clearing members. All members of the stock exchange are responsible for all transactions they carry out on the exchange, both transactions carried out for their own interests and those of customers.
1. Online Trading
Online Trading or OLT is getting more and more popular lately. Of course, because trading online will save you time. You don’t have to go out of the house to make stock transactions. So it’s not surprising that more and more housewives are participating in this field. Because they can still make transactions even if they only wear a negligee at home. In fact, there are a number of working women who finally decide to quit their jobs in the office and make stock trading their new livelihood from home.
Online trading is not difficult. everyone who has a computer network and the internet will be able to participate in online trading. There are even a number of free sites on the internet that can help you practice trading simulations. Because, the more you practice, the more skilled an investor will be in trading in the capital market. Here there are two options, namely online trading which you can do without any capital or free and paid online trading.
For online trading without capital, you just need to provide a computer or laptop with sufficient access. Then, all you have to do is enter the required requirements, then you will be given a virtual account so you can trade. Instead, you have to practice a lot before actually getting into this business. You can do trading simulations whenever and wherever you want. The more proficient you are, the greater your chances of making a profit in online trading. Some people have already proven it and enjoy the results.
Investing through online stock buying or online trading (OLT) has only emerged in Indonesia since 2010, although in fact, stock trading services like this have been around for a long time. especially in the country of South Korea which is reportedly quite successful in running this online trading service. The online stock trading service has actually been developed in Indonesia since 2003. However, it only started to register many users in the 2010s. This can happen due to a lack of information about this online stock transaction or it could be because many securities companies are starting to introduce this online trading service. Moreover, since seeing the success of this online stock transaction in South Korea.
Attention: buying shares online or conducting online stock transactions, of course, makes it easier for investors today. With the help of the internet, distance, time, and other obstacles can be overcome. it’s just that, when making stock transactions through online trading, don’t forget to continue to coordinate with your investment manager. The goal is to minimize the occurrence of errors when trading.
The concept of playing stocks online is actually not much different from playing stocks in the usual way, which is to both buy and sell stocks with the aim of profiting from fluctuations in stock prices on the market. However, the plus value of online trading is that investors or shareowners can make their own transactions via the internet without the help of a broker. However, investors can still need securities companies, even through online trading, and don’t have to bother going through brokers before executing selected stocks.
To ensure a sense of security in transactions, don’t forget to choose a security company that is guaranteed to be bona fide, has good credibility, and has good facilities and infrastructure. One of them is the quality of a large internet server as one of the supporters of online trading activities. Do not let you choose a securities company as your broker just because it provides lower fees than other securities companies. Because low fees do not guarantee anything.
2. Get to know the right online stock broker
Even though trading stocks online, you still need the services of a broker or broker from a securities company. When you have to choose a broker, choose a broker that is already listed on the Indonesia Stock Exchange. Information about the names of registered brokers and securities companies can be found on the website of the Indonesia Stock Exchange or IDX.
To date, there are 84 brokers listed on IDX or the Indonesia Stock Exchange. They generally have securities trading licenses, securities underwriters, and a small number also have licenses as investment managers. Meanwhile, the participants listed on IDX are currently 116 participants and most of them consist of banking financial institutions and securities institutions such as Sinarmas Sekuritas, Trimegah Sekuritas Tbk., etc.
Don’t forget to choose a broker who is clear on how and how to pay the fees. As a novice investor, you should not forget to pay attention to the amount of your prospective broker fee. You have to know exactly whether the fee is logical enough or maybe you can negotiate, so the fee is more competitive than fees from other brokers. Competitive here does not only mean the cheapest broker fee among a series of other brokers available. Because low fees can also affect the reliability of the broker in helping you.
Pay attention to how long the broker has been operating on the IDX or Indonesia. From there, we can see its track record as a consideration in making decisions. Make sure that he also has the facility to do online trading. After that, look for info about the broker. It can be through his colleagues or your friends who have already entered the stock market. Choose an initial deposit that you can fulfill according to the funds that have been provided for the transaction.
As a client, you are entitled to continuous transaction reports. The broker of your choice must also be registered with the Indonesian Central Securities Depository or KSEI which provides a membership card as proof of membership. Because, all the shares that you trade will be recorded in the KSEI list, so don’t miss out on ensuring your online broker membership at KSEI. If he is not registered with KSEI, then the legality of the online broker‘s profession should be doubted. Finally, you will receive transaction results after Plus 3, both for buying and selling transactions.
3. How to Choose the Right Broker
The time has come for you to feel steady to make stock transactions, both online and offline trading, you certainly need an intermediary, aka a broker or stockbroker. For that, if you need a broker, you should first check the following things:
- The broker’s daily activities. Check whether the broker is active in Indonesia Stock Exchange.
- Check the license of the securities company where the broker belongs. Have you obtained permission from the authorized institution, in this case, OJK and IDX?
- Look for info about the best existing brokers, even though you have to queue to be able to work with the mainstay broker.
4. Know the Right Stock Products
Each person is unique and this also applies in the world of stock trading. Mrs. Nani’s portfolio that was suitable for her and was successful in getting returns, turned out not to be suitable for Mr. Grace. So, Mr. Grace even failed to get a return. This is an indication as well as a message to every personnel investor that they must understand how to develop the right portfolio for their personal needs in transactions on the stock market.
Online trading facilities are very helpful when you start investing in stocks with limited funds. When you want to start investing in shares, you should start with 20% of the total funds you have. This aims to reduce the risk of loss for you.
You can also freely start trading stocks while learning to use this online trading facility. Of course, you have to take into account the problem of a small fee because of the small amount of capital, so this online trading will really help you when you feel uncomfortable dealing directly with a broker regarding this little fee issue.
don’t forget to make a trading plan first, including the daily minimum transaction fee, transaction fee, and profit target that must be achieved so that the profits you get are not only used up to pay fees.
After starting to understand online stock transactions, additional funds can be poured. But still, don’t use it all. Preferably, you can leave at least 40%-50% of the total funds you have. So, when there is an opportunity to get profitable new shares, you can use the reserve funds to buy them. Meanwhile, if you don’t have spare funds, then you will only be able to be spectators when you see stocks being offered at low prices.
Although it may seem difficult at first, doing stock transactions through OLT is not as difficult as one might think. A lot of practice will make it easier for you to do OLT. The key lies in how much you want to learn. Read a lot of books on stock investing and keep consulting with your investment manager. Because, a good investment manager will prioritize client comfort over high profits, but only for one time only.
Don’t forget to attend financial seminars every chance you get. You can also use the trial facilities provided on several OLT sites. They provide a number of transaction simulations for you to practice without having to pay a penny.
Ellen May, who is a stock expert, believes that the most important thing in using online trading facilities is the features. Even though the feature is very easy and simple, caution is still needed because it is possible to enter orders incorrectly. So, mastery of online trading features is a must for online trading stock investors.
Because of the convenience of OLT, more and more women are now involved in stock transactions. Because they can transact from home in the midst of their busy activities as housewives. Here are some tips for buying stocks online.
Don’t use borrowed money for online stock transactions
- Don’t forget to diversify your shares when making transactions
- Don’t use money that should be used to meet daily needs
- Prepare the guts to be able to lose your money at any time
- All online investments certainly contain risks
- Don’t invest with money you can’t afford to lose.
5. Avoiding the Trap of Stupid Broker Investments
When you feel confident to start doing stock transactions online aka OLT, you have to make sure to yourself that all these transactions are not without risk. The biggest risk that may occur is the fact that your funds have been misused and you are made a victim of fraud.
This kind of fraudulent investment is known as fraudulent investment, where investors who are not careful will fall into the trap of this fraudulent investment broker. For that, you must remain careful and careful in investing. In order to avoid the investment trap of bogus brokers, it might be a good idea for you to know the following things.
The stupid investment will usually be seen from a track record that is not so satisfactory. Ask for records of business achievements to further convince you. You can find data regarding the accuracy of this information by asking directly to the Indonesia Stock Exchange.
Yes, usually you will find it difficult to get in touch with the broker or securities company. Because, of course, they try to minimize information so that the prospective customers they want to hook up do not suspect first.
These fraudulent securities companies or brokers generally have a bad name. You can check and re-check the old players in the stock market, so the possibility that you will be deceived and become easy prey can be avoided.
6. Searching for Info via Search Engines
The more sophisticated the technology, the more modern the civilization, the lighter the human work. With internet technology, capital market players who normally interact directly can now interact even though they are separated by distance and time. Investors, including novice investors, were helped a lot. They can use search engines to get all kinds of information about the stock market and stock transactions, including in preparing information for consideration in making portfolios for diversifying stock investments.
The facilities needed are in the form of internet access and computer or laptop devices and other gadgets that are connected to the internet. You just have to open the internet access and enter the search engine sites that are widely available today.
Buy Stocks Offline
In addition to doing stock transactions online, buying shares offline has already been done by many people. For those of you who are just starting to invest in stocks and want to make transactions offline or directly, you can take the following steps.
- Visit the securities company of your choice, then, open a securities account there. Currently, there are around 120 securities companies listed on the Indonesia Stock Exchange. There are many options for you of course.
- Submit a photocopy of your valid ID card
- Fill out the registration form that has been prepared by the securities company.
- Determine the initial deposit
For the record, each securities company provides a minimum limit for the initial deposit amount that varies. But in general, currently the minimum deposit value in a securities company is more than IDR 5 million.
After all the requirements are met, the securities company will approve your application. You are now able to do stock transactions.
1. The Key to Buying Stocks
For some people who are just starting to buy shares offline, there may be questions about how to buy shares offline? Is it the same as the procedure for buying shares online trading or does it have other special requirements? The procedure for buying shares offline is as follows.
- Visiting securities companies of your own choice or references of others that you believe to be true. However, you should choose a securities company that is already listed on the Indonesia Stock Exchange. To find out the list of names of securities companies that have been registered and obtained legality from the Indonesia Stock Exchange, you can also ask directly to the Indonesian stock exchange office in Jakarta or online by opening the Indonesia Stock Exchange website.
- Don’t forget to bring your ID along with a photocopy. Of course, the ID card that you provide a copy of is a valid identity card.
- At a securities company, you will be asked to fill out a registration form that has been provided. Please fill it out correctly and carefully so that there are no mistakes that might harm your position as a shareholder or investor in the future.
- After all the registration process is complete, you will be asked to transfer some money as an initial deposit. This transfer will be directed to a pre-determined brokerage account. We recommend that you already know the figure of the broker first for your own sake. Because, if you feel comfortable working with someone, then the results achieved will certainly be even better. Meanwhile, the deposit funds that you transfer, amount depends on each broker which usually determines different amounts.
- After all the above processes have been passed and you have received approval or approval, then you are ready to make a transaction.
Here are some keys or tips for you on how to buy stocks offline or directly that are safe for you.
- Make sure that you have chosen the right securities company for you. Do a small survey or research to find the right securities or securities company for you.
- Choose a broker/broker that suits you, you can start by looking for information about good brokers and conducting a light interview with them before making a choice.
- Design your stock portfolio as carefully and in detail as possible with your investment manager.
- Invest at the right time. Don’t get carried away when you decide to buy or sell stocks.
- Always add knowledge about the world of stock investment. It can be by attending seminars, reading books about stocks, discussing with friends who have the same interests, discussing with your brokers, browsing the internet, and so on.
- Determine the initial capital you invest and make sure that it is not your primary fund.
- Be sure to invest in the long term. Ready to gain and ready to lose.
If you are a shareholder and have a number of activities outside the world of stock trading, you will most likely prefer online trading. In addition, because of the practicality factor, it is more mobile, and can still be trusted. Technological advances spoil the human lifestyle. So, they don’t have to bother having to get out of bed, take a shower, and dress appropriately just to attend a transaction in the early session of stock trading. Also, know the advantages and risks of buying and selling shares.
However, the decision is yours. Whether to choose online trading or offline trading or conventional transactions. Everything just goes back to your only goal in the stock business, which is high returns. Happy investing