Things to Keep in Mind Before Making a Stock Investment

1. Know and Understand More About StocksBefore you start investing in stocks, the first thing to do is to learn in advance what stock investment is. Especially for you who are beginners, read lots of references.

Whether it's from books, magazines, or sourced from the Indonesia Stock Exchange. That way, later on you can better understand to choose the investment, the importance of investing, and know the investment products in more detail.

2. Find Out Profits from Stock InvestmentsNext, identify what are the benefits you can get from stock investing. You need to know, there are several benefits that can be obtained, namely capital gains and dividend payout.

The meaning of capital gains is the profit gained from the difference between the purchase price and the selling price of the stock. Capital gain can be obtained from long-term investments or trading.While dividend payout is obtained from the company in which you invest. Dividends are the profits that are distributed to the stock investors of the company. The division in accordance with the portion of the value of each share. Usually the distributed profit is already in the form of net income.

3. What to Reach from Stock InvestmentsBefore deciding to invest in stock, you need to make sure in advance what the purpose of investing. This is not only when you want to invest in stocks, but also must be done when going to make other investments.

By knowing the purpose of investing, you can know what the next step should be done to be able to meet those goals. Do not forget also to set targets to be achieved.

4. Set the Achieved GoalsAs mentioned before, it is important to set targets that you want to achieve, especially when going to buy stocks in the stock market. What is meant by the achievement of the target here is you must know how much profit to be achieved at return. By structuring the achievement of the target, the investment you run is more directed.

5. How Long Should Invest StockThere are two types of investments that can be done, namely short-term investment and long-term investment. For short-term investments, you need to pay close attention to the right time to buy and resell the stock. As for long-term investments, more focus on stocks to be purchased and sold and at what price range the shares will be bought and resold.

6. Consider Ability to Provide CapitalInvestment law is the higher the profit earned then it will make the risk is higher too. Therefore, you must be good at measuring the ability they have.

As a beginner, it would be safer if you choose an investment with a small capital. Do not invest hastily, do with a mature plan and mentally strong.

7. Start Preparing Investment Capital
Before going through the stock investment business, prepare a mature capital to invest in stocks. Starting from knowledge-related stocks to capital required funds. That way, stock investments that run will be able to provide maximum benefits.

So in conclusion, before investing should see the investment can be profitable or not in the future.