15 Stock Trading Tips for Beginners to Make a Profit!!

 

 

 

 

 

 www.fxxprofit.com

                Nowadays, daily stock trading is increasingly popular among investors because it provides faster profits. The daily stock trading method doesn't seem too complicated, namely using a stock buying and selling model based on determining daily stock prices. However, daily stock trading is known to be high risk so investors must be extra careful so that they don't lose their money. To minimize the possibility of such losses. 

Do you know? Shares are currently one of the most popular products on the capital market. Many people invest and trade shares because they bring high profits. However, you need to know how to trade shares and how to invest in shares to make big profits.

• Stock Trading Tips

So, how can you make your Grameds share trading profitable? Here are some tips and tricks :

1. Create a Trading Plan
   

The next way to trade daily shares is a trading plan or stock trading plan which is used as a guide for traders in buying and selling shares on the Stock Exchange. The trading plan itself consists of four elements, including:

• List of shares for trading.

• Entry point or moment to buy shares.

• Exit point or moment of selling shares.

• Cut loss point or the moment of selling shares when the price falls.

 

     2. Discipline in Executing the Trading Plan
         Tips and methods for daily stock trading are to be disciplined in carrying out the trading plan according to plan. This is not easy to do, especially as human nature sometimes makes decisions based on the influence of emotions, not brain or reason. However, you must remember that discipline will give you maximum return on investment.

 

    3. Pay Attention to the Risks and Rewards of Each Trade
         Risk Reward Ratio (R/R Ratio) is an indicator used to measure the comparison between potential profits and risks from a trading transaction. To get value, you can divide the risk of loss by the potential profit based on the trading plan that was created previously. Mathematically, the Risk Reward Ratio formula is as follows.

 

     4. Start with Small Capital
         For those who are new to trading, start with small capital first. This is done to measure the profit opportunities that will be obtained and minimize the losses incurred. When profits are low, you don't need to be disappointed. Most importantly, trade the right way to see the results. This small capital will also not make you regret too much when you lose. For beginners who want to dive into the world of stock investment, you should look for some guidance first. This really needs to be done so that Grameds does not suffer major losses. For those of you who are looking for guidance in stock investment.

 

    5. Do it gradually
        If you already have cash ready to trade, start gradually. Do not enter the entire amount all at once or all at once. The goal is to help you better understand the stock market every day. Additionally, you can also protect your equity from storms when prices are down.

 

     6. Using Cold Money
         Day-to-day stock trading tends to be high risk. A trader's success also depends on his ability to handle money or manage money. Where one of the main principles of money management is to trade only with cold money (idle money).

 

 

 

 

     7. Choosing a Securities Company
         Before trading shares, you need to choose a securities company or what is usually called a stock broker to buy and sell shares. You need to choose a stock company that offers stock trading and also has a low percentage price.

 

     8. Researching Stocks
         Studying the types, risks and returns of shares is the first thing you must do before jumping into stock trading. You also need to know the abbreviation for shares first. But don't worry, there are many articles on fxxprofit that discuss stocks or you can view various stock content on social networks such as YouTube.

 

    9. Securities Account Opening
        After you choose a securities company, you can open a securities account by filling out an online application form with the securities company or by visiting the company agent in person.

 

    10. Using a Trusted Trading Application
          Because many young people are interested in stock trading, currently there are also various stock trading applications available. Make sure you use a trading application that is approved by the Financial Services Authority which is available in your country and has a good track record.

 

    11. Set aside funds
Evaluate how much of your available capital you will risk on each trade. Many successful day traders risk 1-2% less on their account on each trade.

If you have IDR 4,000,000 and are willing to risk 0.5% of your capital on each trade, then the maximum loss per trade is IDR. 20,000 (0.5% x IDR 4,000,000). Set aside excess money that you can trade and be prepared to lose. Remember, it might happen. Stock trading can actually be done in several ways.

 

     12. No need to rush
           Trading does take time, it's not as easy as you imagine. This is why this activity is called day trading. In fact, you should spend most of your day. Don't consider it if you're short on time. This process forces traders to monitor the market and look for opportunities that can arise at any time during trading hours. Moving quickly is key. In other words, you have to be ready every time stock comes in so you don't miss an opportunity.

 

     13. Knowledge Is a Source of Power
           In addition to knowing the basic trading process, it is also important to follow the latest stock market news and events that affect stocks, such as the Fed's interest rate plans, economic outlook, etc. So do your homework.

Create a wish list of stocks you want to trade and learn about the selected companies and the market in general. Watch business news and visit trusted financial websites.

 

     14. Avoid Penny Stocks
           You can make low offers and prices but avoid penny stocks. These stocks are often illiquid, and the odds often result in eye-popping jackpots.

 

     15.  Intraday Trader
            Traders at this level gain profits from price changes that rise and fall within a day, two days, or up to three days.

 

 

 How Daily Stock Trading Works
               Simply put, daily stock trading is the act of buying and selling shares by taking advantage of daily market price fluctuations. Compared to stock investment in general, daily stock trading has the following principles or ways of working.

• Short numbers

          When someone invests and saves money today, returns are usually obtained in the medium and long term. Precisely from 3, 5, to 10 years. It's different if someone does daily trading where the results can be achieved in a short time, namely daily.

For example, if you buy a share in the morning, then in the afternoon or evening you see the share is at its peak, you can immediately sell it and you will automatically make a profit.

• Analysis Required

          In fact, every type of investment requires analysis. However, at the trading level, you should not buy shares carelessly, but first analyze them in detail and accurately.

You need to analyze the market, starting from looking at a list of potentially profitable shares, to the best times to buy and sell shares. Once you analyze a stock incorrectly, it is very easy to lose money.

• Using the Principles of Buying and Selling

          As mentioned previously, when you invest in shares, you cannot sell them on the same day. The reason is, new stock returns can be seen over a long period of time, monthly or annually.

Different from trading. Trading must use the buying and selling principle, meaning buying shares when the price is low and selling them when the price is high on the same day.

 

 
Difference between Trading and Investing
            In detail, the difference between investment and trading is not only limited to understanding, where investment refers to long-term activities. In fact, trading refers to short-term activities. In general, the differences between investment and trading are divided into four, namely objectives, risks, player profiles and profits obtained.

•  Different Goals

            investment and trade are the first goals. The goal is investment and business first. As previously mentioned, investment is an activity that aims to create wealth over a long period of time.

Meanwhile, trading aims to create wealth in a short time. For example, in stock market instruments, an investor wants to get rich by buying good shares and holding them.
Meanwhile, trading only holds shares for a short period of time. In investing, decisions are not influenced by market fluctuations, considering that the goals to be achieved are long term.

On the other hand, in trading, market fluctuations greatly influence decision making. Investments can be long term, up to three years or even decades. In fact, trading is done in the short term, for example days or weeks. However, usually a trader will do his business within a few days.

 

• Risk of Difference

          Both investments and negotiations involve measuring risk. This is important, because every transaction in the capital market definitely has advantages and disadvantages with different risks. Investments can be said to be low risk, with low potential profits in the short term.

However, in the long term, this investment also has the potential to generate significant profits. On the other hand, trading has a fairly high risk of loss. Indeed, this activity is greatly influenced by market volatility, both the stock market and other instruments, such as currencies or commodities. However, the potential short-term gains outweigh the investment.

 

•  Profile of Difference Actors

           The next difference between investing and trading is a matter of the profile of the perpetrator. This is closely related to the risks between these two types of activities. When it comes to investing, someone who does this usually has a low risk profile.

That means the person learns the basics of the company, as well as its industry potential. So, choose and buy shares for the long term. The strategy implemented is to create wealth with compound interest and dividends.

Meanwhile, trading is carried out by people who have a high risk profile, namely those who are willing to experience large losses in a short time. Therefore, as a trader you must be observant in observing price movements in the market.

Traders must be observant in determining the right time to buy and sell investment instruments, both shares and other instruments. If one decides to trade, it requires active participation in the market to find the right time to enter and exit and make a profit.

 

•  Benefits Obtained and Companion Elements

           The final difference between investing and trading concerns the profits earned, as well as the protective factors that come with them. In investing, an investor can enjoy a number of benefits such as bonuses, dividends, stock splits and others. Meanwhile, in trading, some of these profits are not achieved.

However, in the short term, a trader can reap large profits. This is of course provided that the trader is very observant in observing price movements in the market. Regarding protective factors, the benefits obtained are varied.

In investing, if share prices fall it is not a problem for investors. The reason is, if investors choose company shares that have a strong foundation, the share price can recover over time. In addition, because the target is long-term, investors are not too concerned with daily or weekly price movements.

It's best to pay attention to the company's performance, both quarterly and annually. This is closely related to the dividend profits obtained. For trading, the protective factor used is stop loss. This is a limit to limit the losses experienced by traders. This loss limit is determined by the trader himself.

This means that if one day the price does not move according to the trader's expectations until it touches this limit, then the order that is automatically placed is to stop and sell the position held at that time.

When a position is profitable, traders also have factors to protect their profits, namely take profit. This is a limit to limit the profits a trader can receive.

By investing in shares, someone can earn income if they no longer work or are laid off. However, in stock transactions, you must not be careless. Therefore, it is necessary to carry out analysis when investing in shares.

 

 

 Benefits of Stock Trading
             After knowing about stock trading tips, in this discussion we will discuss the advantages of stock trading. Trading is generally considered profitable for many reasons, including:

 

•  Flexibility

Trading is prioritized because it can be done anywhere and anytime as long as there is an internet connection. Apart from that, trading is not a time-consuming activity, so it can be done while doing business without disturbing main priorities.

• Practical

With today's technology, you can access trading brokers online. Not only that, there is also an auto-trading feature to make the trading process easier. Tracking price movements and determining buy and sell prices is no longer difficult with this feature.

• Affordable Costs and Secure Data

Even though the promised profits are large, this does not mean that large capital is needed to start trading. Some online brokers do not charge account creation fees and charge low commissions and spreads.

In addition, by choosing a trusted online broker, you don't need to worry about the security of the personal data that must be included to start trading.

 

• Demo Account for Beginners

If you are still unsure and confused about trading, you can start by trying a demo account which also provides information and trading strategy guidance.

 

 

Closing
This is a review of information regarding stock trading tips. For those of you who want to know more about trading information and other Stock Trading Tips, you can visit fxxprofit.com,

Thank You.....................

 

 

 

 

 

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