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.