STOCKS MAKE MONEY
All investors, both individuals and institutions, buy shares to make money (profit), big or small parties, in the primary or regular market, are the same as making money. it is reasonable to say that the capital market will continue to grow in the future and is one of the most profitable types of investment, based on demand and supply In terms of supply can be seen from the number of companies operating in Indonesia most of which are eligible for go public, while from the demand side it can be seen from the large potential of the capital market, for example from individual investors, institutions, corporations and international agents.
Before you start investing in stocks, do not forget to learn:
1. Potential of Domestic Investors
Indonesia's population is around 220 million and per capita income has now reached around US $ 1,300, meaning it can be imagined how much funds are rolling in the capital market, if 1% only of the total number of people playing a role in the national capital market, but to invite the 1% is not easy, so it is highly expected that all market participants really give confidence that the capital market is feasible as an alternative investment to make money.
2. Institutional Investors Institutional
Investors are an organization that invests its own assets or assets of other parties entrusted to it.typical institutional investors are investment companies (including mutual funds) pension funds, insurance companies, universities and banks.Because they have so much money to invest and participate in stocks to create profits, institutional investors are regularly trading and in tremendous volume.
Purchase and sale orders are usually large quantities of stocks or to be categorized as institutional trades ie small amounts for a large mutual fund preferring to make investors' money.
3. Mutual Funds
The presence of investment funds or mutual funds as new entrants in Indonesia also brings a significant influence to the stock.The presence directly affects the demand side of the stock.Many mutual fund business activities go public raising funds from various individuals and institutional investors, then collected funds will be invested to make money, mostly to the capital market, the rest to the money market.This mutual fund coordinates the investors who want to plant funds into various investment media and manage it professionally with good management.
4. International Agents
Foreign investors' desire to participate in playing stocks on the domestic market is getting bigger, it can be seen from international agencies that are increasingly on the capital market, such as Daiwa Securities, Jardin Flemming, Nomura Indonesia, Bunker Trust, WI Carr Dharmala, Nikko Securities, etc. They see developing countries like Indonesia with high economic growth and good political stability , have good prospects for investment to make money.
5. Stock Price Projection
Some large investors speed up the process of buying and selling shares by using program trading techniques that involve determining a large order by the computer.The program usually reacts automatically, when stock prices reach levels that have been projected previous.
Such sudden purchases and sales can lead to drastic stock price changes or even dramatic shifts / changes across markets The fall or stock market turmoil of 1987 occurs, at least in part, by trade programs that react with falling stock prices.To avoid a potential war because of the trading program that is a tremendous disaster in an increasingly growing electronic market, massive sale trading is now halted / closed to ease the atmosphere. Styles
Buying Stocks
The stock market is often used by individual investors to make a profit and make money quickly.They are called day traders who play stocks and buy stocks in the hope that prices rise dramatically in a short time.When stock prices rise, they sell stocks and buy another.Other investors take longer periods of time, preferring to buy and hold shares in some cases for years until they reach a substantial price.
Institutional investors, including those who use computer programs with sophisticated analysis, also have ways to play stocks or buying styles that help determine how profit their shares are after a certain amount of time and during a special phase of the economic cycle and make money or greater profit.
