Want to Invest in Stocks? Here’s the Complete Guide

Want to Invest in Stocks? Here's the Complete Guide
Want to Invest in Stocks? Here's the Complete Guide

Queenews.com – Stock is an investment instrument that offers high profit potential, but also carries high risk. Shares are proof of ownership of a company’s value or proof of equity participation.

By buying shares, you are entitled to receive dividends according to the number of shares you own, and also have the opportunity to get capital gains from rising stock prices.

However, investing in stocks is not as easy as turning your palm. You have to understand the basics of stock investing, how to buy and sell stocks, stock investment strategies and tips, and the factors that influence stock price movements.

For this reason, this article will provide a complete guide for those of you who want to invest in stocks.

The following are the steps you must take to start investing in stocks:

Choose a securities company

Securities companies are intermediaries that help you to transact shares in the capital market. You must open a securities account and customer fund account (RDN) at a securities company that has been registered and supervised by the Financial Services Authority (OJK). The securities account is used to store the shares that you own, while the RDN is used to store money transacted for buying and selling shares.

There are many securities companies to choose from, but there are a few things you should pay attention to, such as performance, reputation, facilities, transaction fees, and customer service. You can compare several securities companies before deciding which one best suits your needs and preferences.

Include the required documents

After choosing a securities company, you must fill out the registration form and include the required documents, such as:

  • ID CARD
  • NPWP
  • Copy of savings book
  • 6 thousand stamp duty

You can send these documents to the securities company’s office or online if available. Once your documents are verified, your RDN application and securities account will be processed.

Deposit funds to RDN

After your securities and RDN accounts are created, you must deposit funds into RDN according to the minimum amount determined by the securities company. The funds will be used to buy shares. Usually, the securities company will provide information on the destination account number and how to transfer funds to RDN.

Download the app to buy stocks

To make it easier for you to transact stocks online, you can download and install a stock buying and selling application provided by a securities company on your smartphone or computer. The application will usually ask you to log in with the username and password provided by the security company.

Share transactions

After logging in to the stock buying and selling application, you can start trading stocks according to your choice and strategy. There are several terms that you should know about stock transactions, such as:

  • Bid: the purchase price of the shares offered by the buyer
  • Offer: the selling price of the shares offered by the seller
  • Last: the last price of the stock transaction
  • Volume: the number of shares traded
  • Lot: share transaction unit, 1 lot is equivalent to 100 shares

You can buy or sell shares by specifying the stock code, the number of lots, and the bid or offer price. The transaction will occur if there is a suitable offer from the other party. After the transaction is complete, you can see your stock portfolio in the application.

Settlements

Settlement is the process of completing a share transaction, both payment and delivery of shares. In Indonesia, settlement is carried out using the T+2 system, which means that transactions are completed two working days after the transaction occurs. For example, if you buy stock on Monday, then you must pay for the shares on Wednesday, and the shares will go to your securities account on Wednesday as well.

Thus the complete guide for those of you who want to invest in stocks. Stock investment does require sufficient knowledge, skill, and patience. However, if you are willing to learn and practice consistently, you can get optimal benefits from investing in stocks. Good luck!

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