Tips for Buying Stocks for Beginner Investors

Earning passive income from investment is indeed the dream of many people, but for various reasons, many still have not really realized that dream. If you currently want to try investing in stocks, it’s never too late to become an investor.
The decision to join the capital market was also felt by many Indonesians. During the pandemic the number of retail investors (individuals) increased significantly and made the Indonesian capital market even more crowded. The boom in investors in the last two years has also boosted yields on the Composite Stock Price Index (JCI).

If you intend to create an account to invest in stocks, you will need to create a securities account with a securities company. Here are some tips for you in choosing securities and opening a stock account.

Ensure Legality and Quality.

To select a security, make sure the company is registered with the Financial Services Authority (OJK) and the Indonesia Stock Exchange and find out about the company’s background, shareholders, and management from the two authority websites.

In addition, try to find other stories about the actions of companies in the capital market, related to whether or not they have been exposed to major cases, or even frauds that have occurred, so that later you will not be surprised. Customize it with your profile.

Pay attention to Transaction Fees (Buy-Sell).

The main income of a security from a customer who trades shares is a transaction fee. Currently, securities buying and selling fees range from 0.15%-0.25% to 0.25%-0.35%.

For the low one, it means that the customer will be charged a purchase fee of 0.15% of the value of the shares purchased, and a selling fee of 0.25% of the value of the shares sold will be charged. As a simulation, if your transaction is Rp. 10 million, then the purchase fee charged is Rp. 15,000, and to sell with the same share value, the selling fee is Rp. 25,000.

Also pay attention to whether the security has a minimum daily transaction fee when transacting, as well as monthly fees. There are several securities that impose a minimum daily transaction fee of Rp 5,000-Rp 25,000 if a customer makes a transaction, beyond the usual transaction fee limit.

For example, if a customer buys a lot of Rp 50 shares, it means that the transaction value is Rp 50 multiplied by 100 shares/lot = Rp 5,000. What customers have to pay that day is Rp 5,000 plus a transaction fee of Rp 5,000-Rp 25,000.

In addition, there are also securities that apply a monthly market information fee of Rp 30,000-Rp 50,000 per month. If the fee is not paid, then even though the customer can still make transactions, the market data displayed is delayed by 10-15 minutes than the original time.

Adjust this option according to your needs. However, if you are new to the market, then it’s a good idea to look for the one that charges the least amount first.

Initial deposit.

The various types of securities, of course, each have various rules regarding the initial deposit that must be paid by the customer after the securities account is finished. Some require Rp. 20 million, while others require a minimum transaction of Rp. 5,000 in shares. Adjust to your pocket.

Facilities According to Needs.

Currently, securities transaction facilities can be in the form of online, web, and mobile applications. Each has its own advantages and disadvantages. The online application is usually the most complete version, then supported by a simpler mobile application, followed by the most standard web application of each version.

Choose a security that has all the transaction facilities, or choose the platform that you use the most.

Training and Education Services.

Look for the training schedule of your securities to direct how to transact and streamline your transactions (and your profits of course) so that they become more reliable from time to time.

Usually securities also provide free training and consulting services for their customer communities through Whatsapp or Telegram groups. In fact, currently there are already providing online consulting and training services.

Analysts and Recommendations.

To choose a security, also pay attention to the head of research, analysts and their team. Later, you can compare analyst predictions and recommendations that are more market-followed or more effective.

Don’t be a fanatic.

Choosing securities is not like choosing a religion or presidential candidate. Of course, you can open accounts in several securities at the same time so you can compare services, but keep an eye out for expenses and fees that must be paid regularly.

Include your Single Investor ID (SID) or KSEI identity for opening a second account so that the data is synchronized with the stock exchange authorities and financial authorities.

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