Want to Get Rich from Stock Trading? Master These 3 Smart Moves My Money – 2 hours ago

Jakarta, CNBC Indonesia – Stock trading can be said to be a short-term activity of buying and selling shares. In this context, we will view shares on the Indonesian Stock Exchange (BEI) like goods sold on the market.

We buy shares at low prices and sell them when the price rises.

Stock trading can be divided into three types based on the time period, and each has a different strategy.

The first is scalping (buying and selling shares within one day or even within hours or minutes) and swing trading which is carried out over a slightly longer period of time.

So, what do beginners need to prepare to become a reliable stock trader? Here’s the review.

Get to know the purpose of stock trading

If stock investment aims to increase assets and realize our long-term goals, then the aim of stock trading is to increase income every month.

For example, you work as an employee with an income of IDR 5 million per month. By trading shares, you can earn additional income of up to IDR 1 million every month. You can use the money from stock trading to increase your investment portion in the future or as more trading capital.

Master Technical Analysis

Traders will take advantage of short-term stock fluctuations to reap profits. Therefore, it is important to understand how big the supply and demand for a stock is.

Through technical analysis, traders can identify stocks with greater demand than supply. The potential for price increases for these shares is quite high, so traders can take a buy position for these shares.

Technical analysis can also be used to view historical charts and transaction volumes. Charts that have been formed in the past can be used to predict and anticipate possible next price movements.

Understand Trading Risk Management

Apart from technical analysis, risk management in trading is also very important. Without good risk management, your money can run out due to losses in this trading.

Here are some things you need to pay attention to regarding risk management:

  • Stop Loss: Stop loss is done to save your capital from bigger losses. Ideally, stop loss is planned from the start before you start trading. You can set rules such as placing a stop loss when the stock price breaks the support limit or when the stock falls 5-10%. These rules are flexible and can be adjusted to suit your financial conditions.

  • Use Cold Money: Never use money that has been allocated for short-term needs such as paying children’s school fees, paying debts, and other needs. Funds for short-term needs may decrease if you are forced to cut losses.

  • Diversification: Just like in investing, diversification is also important in trading. Don’t invest all your capital in one stock or many stocks in the same industry. Spread your capital across several stocks in different sectors. If you want to buy more than one issuer in the same sector, try to only have a maximum of two.

Interested in understanding technical analysis in depth? You can learn easily through the Money Class with the theme Stock Investment: Roadmap to Wealth.

Register yourself now here. This event is online, and after the activity takes place you will receive a certificate directly from CNBC Indonesia.

[Gambas:Video CNBC]

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