Saturday, November 21, 2009

Rich want to play the stock?

Before becoming a successful stock investor and millionaire, students absolutely must understand that the stock transaction is more risky than transaction deposits, bonds or property. Generally, investors are still very young age can tolerate stock transaction that values highly volatile. Playing the stock is not recommended to investors who are unable to tolerate risk. So it was raised in the discussion and book from playing Shares Rich, written by Professor of Science Division of Capital Market, Investment, Finance, and Banking Perbanas ABFI Prof. Dr. Adler Haymans Manurung in Jakarta, Tuesday (17/11). Surgery books lecturers and researchers to present ABFI Perbanas, Dr Endri, and practitioners of shares, Michael Steven.

"Being that investors must begin with principles to uphold 4C, which is cool, calm, consistence, and confidence. Must be smart, play smart and keep your emotions, if not suffer a heart attack, "said an investment columnist at the Kompas Daily, laughter greeted visitors who generally are the students. Adler added that playing the stock could be very "short cut" to be a very rich. After all this, he continued, it is not as easy as turning the palm of his hand. "There is strategy, not just mental enough, because to be able to read and analyze when to buy and when to sell, for it must be a lot of practice and of course, faster would be better start," added Adler. Meanwhile, according to Endri, so far the student is still in the stage theory of the world's known stock.

However, because these financial disciplines demanding more practical approach, the middle road must be pursued with more holding discussions, sharing experiences from the stock market actors, as well as simulation. "Especially simulation, because of the basics of where to invest considerations, through the process of buying and selling, until a decision could well be understood directly by the student," he said. "Deal room" As a lecturer for students majoring in investment management, Endri was not enough just to ground the theory. Adler supports the statement, he also must recognize that students today have a lot of field practice rather than theory in order to swallow the science of investing in the stock exchange floor. "So, I require them (students) to the JSE to see first hand, ask directly at the analyst and learn to analyze their own observations," he said. Related to that, General Manager of Academic Laboratory Siswanti ABFI Perbanas Indra said, has so far been to combine the ABFI between theory and practice needs of its students through laboratory dealing room. Equipped with 20 computers and online data access, laboratories dealing room is divided into two rooms. One room is used for simulating financial markets, especially foreign exchange trading, one other room for the stock market (forex trading).
"So that classroom teaching methods can be directly put into practice here. Students can see the movement of stock prices or types of securities which are booming, everything is simulated intensive learning process," he said.
Articel Source: detiker.com

Blue Chip Stocks

The term blue chip stock has become plural in the capital market. However, in everyday activities are still often found in the false understanding that the shares of blue chip stocks is identical to the expensive. Even a small portion of investors still think that blue chip stocks quality assurance: where damages would not be bought. Is that true? really blue chip stocks are always giving profits (capital gains). What is characteristic of blue chip stocks?

Blue chip stocks are always a favorite merchandise at the stock exchange. He is like the merchandise with excellent quality, so many people liked. That's why blue chip stocks are always easy because the market was thrown into great demand.
Blue chips stocks are not high-priced stocks Rp4.000, Rp5.000 or above. This is important to understand because there has been an impression as if the shares are expensive is the main characteristic of blue chips stocks. Not always the expensive shares in blue chips stocks category. There are many examples for that.

As an illustration, for example, ABC stock trading at PT Rp4.000. On the other hand, the performance of PT ABC from year to year only able to produce earnings per share (earnings per share - EPS) approximately Rp40 per share. That means if calculated, price earnings ratio of PT 4000/40 which ABC is to reach 100 times. With a PER of 100 times, then the stock price could Rp4.000 considered too expensive and not reasonable. This stock certainly does not include shares of blue chips category.

Another picture like this. PT XYZ Company, a manufacturer of beverage packaging always scored big net profit every year. Net profit growth was also high enough so that every year is always distribute dividends in amounts large enough. A high EPS and P / E were small. But on the other hand the number of shares outstanding in a very small community so there is almost no daily transactions in the stock exchange. Investors or investors who hold shares of PT XYZ tend to hold and do not want to sell on the grounds each year receives a decent dividend. Well, despite the performance of PT XYZ brilliant and stock prices in the market is high but he could not be included in the category of blue chips stocks. The reason, there is no liquidity in the market. If anything, very little liquidity.

From the above illustration that seemed very high stock price, not necessarily enter into the category of blue chips stocks. But in general, stocks are blue chips often have a high price. This is understandable considering that interested parties have enough.
So how did the characteristics of a stock into blue chips category? Most blue chip stocks have the following characteristics: a healthy financial performance, which means that in normal economic conditions and stable always recorded net income growth from year to year, distributing dividends to shareholders, the number of shares outstanding in the community (floating share) that high liquidity in the market shares are also higher, trading at a reasonable price, or the movement of stock price fluctuations in the market place naturally, not jumping up and managed in a professional management (rather than family management). Such characteristics that make market participants always chasing stocks blue chips.

However, it must be understood that the market called the market nonetheless. Rates are always changing according to supply and demand. Although the blue chip stocks, but the price can rise and can also come down, depending on the market situation at that time. If you make daily transactions (daily trading) does not mean blue chip stocks are always providing capital gains. But if you have an investment horizon is long enough, blue chip stocks is usually always gives the gain to its owner. (Tim BEI)

Wednesday, November 18, 2009

Playing Guide for Investor Shares Starter

Playing in the stock market can provide benefits far doubled compared to saving money on deposit or invested in bonds. But playing in the stock market can also cause considerable losses. Therefore before deciding to play the stock is very important to evaluate whether you are someone who is willing to risk equivalent for equivalent benefits. The greater risk will result in greater profits.

If the risk is greater that only produce a small profit only, means we are one of the financial strategy of the most basic, higher risk higher risk lower profits or lower profits. This is the underlying why deposit rates low enough, because the risk of deposits is also quite low.

Thus, choosing to play the stock, rather than bank deposits, means to obtain greater profits from the deposit. When it gained profits lower than deposit interest, then there is something wrong in the way you play the stock.

Here are the steps you need as a beginner to play the stock. This article assumes that you have read enough books to understand the mechanisms playing stocks, and the procedures to open accounts at securities companies.

General formula:
1. You must have a big enough desire to play or learn how to play or have a strong desire to earn profits by investing in the stock market. This should be ingrained in you from the beginning, or do not ever play the stock, you should just buy mutual funds. The first formula is: you must have a drive or a strong desire to play the stock and profit.

2. Play in small enough quantities in advance, such as Rp 10 million or USD 20 million since there is always a possibility of producing a small loss can also be large. Therefore play in a small amount of money, such as pilot projects. If you begin to feel comfortable and know how to play to make a profit, then you can gradually increase the amount of money invested. When adding the amount invested, always remember that the money that you can add it up, do not just remember what ever profit you earn, but must remember that your investment could be reduced even out. You never know when an important event that gives a negative impact on the market place; suddenly could happen prices fell, and you did not get out of the market. The second formula is: always remember that the money you invest can be decreased or even exhausted.

Technical formula:
1. Look at the economy, national growth rate estimate
It is important to know where the economic growth, meaning whether it is the boom, or depression or in between. If the economy is in increasing growth, then that is the best time to invest. Conversely, if economic growth is in negative circumstances, then you should get out of the market, unless you have used shorting and have experience as a trader.

2. Options recordnya industry and tracks. Select your industry is more familiar and favorite / preferred. Learn the history of the industry in depth and read the opinions of experts on the industry. Select industry has a good track record in delivering profits.

3. Stock options and track records
Select 1 or 2 stocks, no more, in the industry point 2 above. Choose which have good track records.

4. See PE
Shares that you choose must have a PE of the lowest in the industry. PE is the ratio between stock market price per share divided by net net income per share. PE is essentially a relative number. PE 10 can be called cheap if the other PE higher. But in general, today's PE boundary 10 can be said cheap and expensive, although there is no theoretical foundation.

5. Capitalization
Select stocks that have large market capitalization. This means that the stock market value of the rupiah in circulation considerably. Pan so that the shares do not have enough to fry the stock. This means that if the market capitalization of a small stock, then the individual players can easily mengerakkan stock prices go up and down with the amount of capital they have.

6. Market sentiment
Consider the market sentiment. Although we are a low PE stocks, and large capitalization, market sentiment is often a determinant of stock prices rise turunya us. This sentiment was the most common are regional stock price index. The second sentiment, interesting events that affect the industries in which our shares are. For example certain commodity prices and its impact on corporate profits that we have stock. The third sentiment numbers in general economy, such as coverage rates of economic growth rate, rise and fall of interest rates by central banks, inflation rate, unemployment rate, the rate order retail, consumer sentiment, overall consumer purchasing power figures.

So some guidelines for playing the stock for the beginner. If you are disciplined in the steps above you probably will not experience losses. There are many lists or tricks that can be learned in playing the stock when you have much jump in it. But as a beginner, do not let you become part of the stock 90% beginner players who are losers before starting a profit. You do not need to lose first, you can directly benefit. Apply to the above 6 points with full discipline.
Good luck.

Tuesday, November 17, 2009

Stock Market Indices

Stock price index is an indicator that shows the movement of the stock prices. Index is used as an indicator of market trend; it means that index movement describes market condition at one moment, whether it is active or dull.

Through the index, we can know the stock price movement trend today, is it increasing, steady, or declining. For example, if at the beginning of the month, the index is 300 and at the end of the month becomes 360, we can say that the average stock price experiences an increase of 20%.

Index movement becomes an important indicator for investors to determine if they would sell, hold, or buy one or several stocks. Because stock prices move every second and minute, index value will move ups and downs very rapidly as well.

There are 6 (six) types of indexes in the Jakarta Stock Exchange:

  1. Individual index, the index that uses the price of each stock as its basic price, or index of each share listed in the JSX.
  2. Sector Stock Price Index, the index that uses all stocks that included in each sector, such as finance, mining, etc. In the JSX, sector index is divided into 9 sectors: agriculture, mining, basic industry, miscellaneous industry, consumption, property, infrastructure, finance, trades and services, and manufacture.
  3. Jakarta Composite Index, the index that uses all listed shares as the index’s component.
  4. LQ 45 Index, the index that consists of 45 chosen stocks by considering 2 variables: trading liquidity and market capitalization. There are new stocks listed in the LQ 45 index every 6 months.
  5. Jakarta Islamic Index (JII). JII is an index consists of 30 stocks that accommodate the Islamic Canon Law investment or an index that is based on Islamic Law. In other words, this index includes stocks theat fulfill the criteria of investment in Islamic Law. The stocks included in this index are stocks issued by issuers that run their business activities not in contrast with the Islamic Law, such as:
    • Gambling business and any games that include gambling or prohibited trading.
    • Conventional financial institution, including conventional banking and insurance.
    • Businesses that produce, distribute, and trade food or drink that are prohibited by Islamic Law.
    • Businesses that produce, distribute, and/or provide products and services that destroy morality and harmful.

Main Board and Development Board Indices. Stock price indices that specifically based on group of stocks listed in JSX, Main Board Group and Development Board Group.

Articel Source: http://www.idx.co.id