HOW TO INVEST FOR YOUTH Having a personal investment in the financial market has now become a productive lifestyle among young people or first jobbers. The old view that investment can only be done by people of mature age is no longer relevant. This can be seen from the demographic data of investors in Indonesia, which is increasingly dominated by the millennial young age group. Based on data from the Indonesian Central Securities Depository (KSEI), it was noted that the number of investors or Single Investor Identification (SID) in the domestic capital market until the end of 2020 reached 3.87 million investors. This figure increased 56% compared to the position at the end of 2019. Of the number of investors, almost half of them were under 30 years old, while the age range of 31-40 years reached 25% of the total number of domestic investors in 2020. In other words, 70% of market investors Indonesia’s capital is young people. If we are unanimous about wanting to start investing in the capital market, try to follow the guidelines for how to invest in the following financial markets:

Guide to Investing

Understand Investment Concepts and Risks

Insurance is basically the easiest financial risk management mechanism. Anything that poses a risk to a person’s financial condition should be insured. Although not everything can be insured, there are at least two types of insurance that are very important to have; namely life insurance and health insurance. For young people, these two types of protection are often ignored because they feel that the risk of getting sick and dying is not too big. Mental protection and health are sometimes considered as the needs of mature age groups who are already married. Of course, this assumption is not correct, because no one can predict the risk of getting sick or dying. So, when it comes to which insurance is more important, then the answer is, both buying life protection and buying health protection are equally important. However, if you are still in a situation where you have to prioritize spending premiums, you can consider options based on the following guidelines.

Franchise Business That Can Be Profitable For Business People

Franchise Business That Can Be Profitable For Business People

Franchise Business That Can Be Profitable For Business People – Very profitable for business people to do franchise business, it is very necessary to know this very profitable business to be carried out by business people or from non-business circles

Franchise or franchise is one type of business that is currently popularly run by everyone because it is considered to be able to generate substantial profits and requires a large enough capital as well. Franchise business is an alternative business for business entrepreneurs to develop their business so that their reach is wider in the community and can determine their own procedures.

Actually, what is a franchise? why can this business concept be known to generate huge profits?

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Before explaining in detail, it is necessary to understand in advance that there are two terms in the franchise business, namely franchisor and franchisee. Franchisor is a term intended for parties who act as entrepreneurs, while franchisees are parties who will become business partners of the franchisor. To be able to run a franchise business, the two parties above need to make an agreement that will create an engagement and be poured into a franchise agreement. A franchise agreement needs to be held because the franchisee will utilize and use intellectual property rights (IPR) including names, trademarks, copyrights for logos, industrial designs, and trade secrets of that party. In order to create a franchise, the franchisor must specifically meet the following conditions:

Does not require a legal entity, but will be subject to a fairly high tax collection when receiving royalties from franchisees
Required to have experience in business at least 5 years
Prepare a Standard Operating Procedure (SOP) which contains the quality and service of goods or services traded
Must be able to provide support to franchisees
Meanwhile, to create a franchise must meet several conditions:

Required to have unique business characteristics so that it can be distinguished from other businesses
Must be able to make a profit


Definition of Long-Term Investment

Definition of Long-Term Investment – Need To Know About The Definition Of Investment That Is Saving Money In The Long Term For Several Types Of Interests And The Profits That Exceed The Initial Investment Can Even Be Multiplied

Investing, broadly, is putting money to work for a period of time in some sort of project or undertaking in order to generate positive returns (i.e., profits that exceed the amount of the initial investment). It is the act of allocating resources, usually capital (i.e., money), with the expectation of generating an income, profit, or gains.

One can invest in many types of endeavors (either directly or indirectly) such as using money to start a business, or in assets such as purchasing real estate in hopes of generating rental income and/or reselling it later at a higher price.

Investing differs from saving in that the money used is put to work, meaning that there is some implicit risk that the related project(s) may fail, resulting in a loss of money. Investing also differs from speculation in that with the latter, the money is not put to work per-se, but is betting on the short-term price fluctuations.

Understanding Investing

Investing is to grow one’s money over time. The expectation of a positive return in the form of income or price appreciation with statistical significance is the core premise of investing. The spectrum of assets in which one can invest and earn a return is a very wide one.

Risk and return go hand-in-hand in investing; low risk generally means low expected returns, while higher returns are usually accompanied by higher risk. At the low-risk end of the spectrum are basic investments such as Certificates of Deposit (CDs); bonds or fixed-income instruments are higher up on the risk scale, while stocks or equities are regarded as riskier. Commodities and derivatives are generally considered to be among the riskiest investments. One can also invest in something practical, such as land or real estate, or delicate items, such as fine art and antiques.

Risk and return expectations can vary widely within the same asset class. For example, a blue chip that trades on the New York Stock Exchange will have a very different risk-return profile from a micro-cap that trades on a small exchange.

The returns generated by an asset depend on the type of asset. For instance, many stocks pay quarterly dividends, whereas bonds generally pay interest every quarter. In many jurisdictions, different types of income are taxed at different rates.

In addition to regular income, such as a dividend or interest, price appreciation is an important component of return. Total return from an investment can thus be regarded as the sum of income and capital appreciation. Standard & Poor’s estimates that since 1926, dividends have contributed nearly a third of total equity return for the S&P 500 while capital gains have contributed two-thirds.
Capital gains are therefore an important piece of investing.

Economists view investing and saving to be two sides of the same coin. This is because when you save money by depositing in a bank, the bank then lends that money to individuals or companies that want to borrow that money to put it to good use. Therefore your savings is often someone else’s investment.

Types of Investments

Today, investment is mostly associated with financial instruments that allow individuals or businesses to raise and deploy capital to firms. These firms then rake that capital and use it for growth or profit-generating activities.

While the universe of investments is a vast one, here are the most common types of investments:


A buyer of a company’s stock becomes a fractional owner of that company. Owners of a company’s stock are known as its shareholders and can participate in its growth and success through appreciation in the stock price and regular dividends paid out of the company’s profits.


Bonds are debt obligations of entities, such as governments, municipalities, and corporations. Buying a bond implies that you hold a share of an entity’s debt and are entitled to receive periodic interest payments and the return of the bond’s face value when it matures.


Funds are pooled instruments managed by investment managers that enable investors to invest in stocks, bonds, preferred shares, commodities, etc. Two of the most common types of funds are mutual funds and exchange-traded funds or ETFs. Mutual funds do not trade on an exchange and are valued at the end of the trading day; ETFs trade on stock exchanges and, like stocks, are valued constantly throughout the trading day. Mutual funds and ETFs can either passively track indices, such as the S&P 500 or the Dow Jones Industrial Average, or can be actively managed by fund managers.

Investment Trusts

Trusts are another type of pooled investment. Real Estate Investment Trusts (REITs) are one of the most popular in this category. REITs invest in commercial or residential properties and pay regular distributions to their investors from the rental income received from these properties. REITs trade on stock exchanges and thus offer their investors the advantage of instant liquidity.

Alternative Investments

Alternative investments is a catch-all category that includes hedge funds and private equity. Hedge funds are so-called because they can hedge their investment bets by going long and short on stocks and other investments. Private equity enables companies to raise capital without going public. Hedge funds and private equity were typically only available to affluent investors deemed “accredited investors” who met certain income and net worth requirements. However, in recent years, alternative investments have been introduced in fund formats that are accessible to retail investors.

Options and Other Derivatives

Derivatives are financial instruments that derive their value from another instrument, such as a stock or index. Options contracts are a popular derivative that gives the buyer the right but not the obligation to buy or sell a security at a fixed price within a specific time period. Derivatives usually employ leverage, making them a high-risk, high-reward proposition.


Commodities include metals, oil, grain, and animal products, as well as financial instruments and currencies. They can either be traded through commodity futures—which are agreements to buy or sell a specific quantity of a commodity at a specified price on a particular future date—or ETFs. Commodities can be used for hedging risk or for speculative purposes.

Comparing Investing Styles

Let’s compare a couple of the most common investing styles:

Active versus passive investing: The goal of active investing is to “beat the index” by actively managing the investment portfolio. Passive investing, on the other hand, advocates a passive approach, such as buying an index fund, in tacit recognition of the fact that it is difficult to beat the market consistently. While there are pros and cons to both approaches, in reality, few fund managers beat their benchmarks consistently enough to justify the higher costs of active management.
Growth versus value: Growth investors prefer to invest in high-growth companies, which typically have higher valuation ratios such as Price-Earnings (P/E) than value companies. Value investors look for companies that have significantly lower PE’s and higher dividend yields than growth companies because they may be out of favor with investors, either temporarily or for a prolonged period of time.
How to Invest
Do-It-Yourself Investing
The question of “how to invest” boils down to whether you are a Do-It-Yourself (DIY) kind of investor or would prefer to have your money managed by a professional. Many investors who prefer to manage their money themselves have accounts at discount or online brokerages because of their low commissions and the ease of executing trades on their platforms.

DIY investing is sometimes called self-directed investing, and requires a fair amount of education, skill, time commitment, and the ability to control one’s emotions. If these attributes do not describe you well, it may be smarter to let a professional help manage your investments.

Professionally-Managed Investing

Investors who prefer professional money management generally have wealth managers looking after their investments. Wealth managers usually charge their clients a percentage of assets under management (AUM) as their fees. While professional money management is more expensive than managing money by oneself, such investors don’t mind paying for the convenience of delegating the research, investment decision-making, and trading to an expert.

Roboadvisor Investing

Some investors opt to invest based on suggestions from automated financial advisors. Powered by algorithms and artificial intelligence, roboadvisors gather critical information about the investor and their risk profile to make suitable recommendations. With little to no human interference, roboadvisors offer a cost-effective way of investing with services similar to what a human investment advisor offers. With advancements in technology, roboadvisors are capable of more than selecting investments. They can also help people develop retirement plans and manage trusts and other retirement accounts, such as 401(k)s.

A Brief History of Investing

While the concept of investing has been around for millennia, investing in its present form can find its roots in the period between the 17th and 18th centuries, when the development of the first public markets connected investors with investment opportunities. The Amsterdam Stock Exchange was established in 1602, and the New York Stock Exchange (NYSE) in 1792.

Industrial Revolution Investing

The Industrial Revolutions of 1760-1840 and 1860-1914 resulted in greater prosperity as a result of which people amassed savings that could be invested, fostering the development of an advanced banking system. Most of the established banks that dominate the investing world began in the 1800s, including Goldman Sachs and J.P. Morgan.

20th Century Investing

The 20th century saw new ground being broken in investment theory, with the development of new concepts in asset pricing, portfolio theory, and risk management. In the second half of the 20th century, many new investment vehicles were introduced, including hedge funds, private equity, venture capital, REITs, and ETFs.

In the 1990s, the rapid spread of the Internet made online trading and research capabilities accessible to the general public, completing the democratization of investing that had commenced more than a century ago.

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21st Century Investing

The bursting of the bubble—a bubble that created a new generation of millionaires from investments in technology-driven and online business stocks—ushered in the 21st century and perhaps set the scene for what was to come. In 2001, the collapse of Enron took center stage, with its full display of fraud that bankrupted the company and its accounting firm, Arthur Andersen, as well as many of its investors.

One of the most notable events in the 21st century, or history for that matter, is the Great Recession (2007-2009) when an overwhelming number of failed investments in mortgage-backed securities crippled economies around the world. Well-known banks and investment firms went under, foreclosures surmounted, and the wealth gap widened.

The 21st century also opened up the world of investing to newcomers and unconventional investors by saturating the market with discount online investment companies and free-trading apps, such as Robinhood.

Investing vs. Speculation

Whether buying a security qualifies as investing or speculation depends on three factors:

The amount of risk taken on: Investing usually involves a lower amount of risk compared with speculation.
The holding period of the investment: Investing typically involves a longer holding period, measured quite frequently in years; speculation involves much shorter holding periods.
Source of returns: Price appreciation may be a relatively less important part of returns from investing, while dividends or distributions may be a major part. In speculation, price appreciation is generally the main source of returns.
As price volatility is a common measure of risk, it stands to reason that a staid blue-chip is much less risky than a cryptocurrency. Thus, buying a dividend-paying blue chip with the expectation of holding it for several years would qualify as investing. On the other hand, a trader who buys a cryptocurrency to flip it for a quick profit in a couple of days is clearly speculating.

Example of Return From Investing

dividends. The resulting capital gain would be (($460.20 – $310)/$310) x 100% = 48.5%.

Now, imagine that XYZ had issued dividends during your holding period, and you received $5 in dividends per share. Your approximate total return would then be 50.11% (Capital gains: 48.5% + Dividends: ($500/$31,000) x 100% = 1.61%).

How Can I Start Investing?

You can choose the do-it-yourself route, selecting investments based on your investing style, or enlist the help of an investment professional, such as an advisor or broker. Before investing, it’s important to determine what your preferences and risk tolerance are. If risk-averse, choosing stocks and options, may not be the best choice. Develop a strategy, outlining how much to invest, how often to invest, and what to invest in based on goals and preferences. Before allocating your resources, research the target investment to make sure it aligns with your strategy and has the potential to deliver desired results. Remember, you don’t need a lot of money to begin, and you can modify as your needs change.

What Are Some Types of Investments?

There are many types of investments to choose from. Perhaps the most common are stocks, bonds, real estate, and ETFs/mutual funds. Other types of investments to consider are real estate, CDs, annuities, cryptocurrencies, commodities, collectibles, and precious metals.

How Can Investing Grow My Money?

Investing is not reserved for the wealthy. You can invest nominal amounts. For example, you can purchase low-priced stocks, deposit small amounts into an interest-bearing savings account, or save until you accumulate a target amount to invest. If your employer offers a retirement plan, such as a 401(k), allocate small amounts from your pay until you can increase your investment. If your employer participates in matching, you may realize that your investment has doubled.

You can begin investing in stocks, bonds, and mutual funds or even open an IRA. Starting with $1,000 is nothing to sneeze at. A $1,000 investment in Amazon’s IPO in 1997 would yield millions today. This was largely due to several stock splits, but it does not change the result: monumental returns. Savings accounts are available at most financial institutions and don’t usually require a large amount to invest. Savings accounts don’t typically boast high-interest rates; so, shop around to find one with the best features and most competitive rates.

Believe it or not, you can invest in real estate with $1,000. You may not be able to buy an income-producing property, but you can invest in a company that does. A real estate investment trust (REIT) is a company that invests in and manages real estate to drive profits and produce income. With $1,000, you can invest in REIT stocks, mutual funds, or exchange-traded funds.

Is Investing the Same as Gambling?

No, gambling and investing differ greatly. With investing you put your money to work in projects or activities that are expected to produce a positive return over time – they have positive expected returns. Gambling is to place bets on the outcomes of events or games. Your money is not being put to work at all. Often, gambling has a negative expected return. While an investment may lose money, it will do so because the project involved fails to deliver. The outcome of gambling, on the other hand, is due purely to chance.

The Bottom Line

Investing is the act of distributing resources into something to generate income or gain profits. The type of investment you choose might likely depend on you what you seek to gain and how sensitive you are to risk. Assuming little risk generally yields lower returns and vice versa for assuming high risk. Investments can be made in stocks, bonds, real estate, precious metals, and more. Investing can be made with money, assets, cryptocurrency, or other mediums of exchange.

There are different types of investment vehicles, such as stocks, bonds, mutual funds, and real estate, each carrying different levels of risks and rewards.

Investors can independently invest without the help of an investment professional or enlist the services of a licensed and registered investment advisor. Technology has also afforded investors the option of receiving automated investment solutions by way of roboadvisors.

The amount of consideration, or money, needed to invest depends largely on the type of investment and the investor’s financial position, needs, and goals. However, many vehicles have lowered their minimum investment requirements, allowing more people to participate.

Despite how you choose to invest or what you choose to invest in, research your target, as well as your investment manager or platform. Possibly one of the best nuggets of wisdom is from veteran and accomplished investor Warren Buffet, “Never invest in a business you cannot understand.”

Recognize Mistakes in Crypto Investment

Recognize Mistakes in Crypto Investment – Currently, more and more people are investing in their future. One form of currency investment that is very widely used by people is cryptocurrency. Crypto or cryptocurrency investments are now increasingly popular and many people are investing. Even so, many people are also trapped by this crypto hype, so many make mistakes in investing in cryptocurrencies such as Bitcoin.

Here are 4 mistakes that often occur when investing in crypto

Recognize Mistakes in Crypto Investment

Impact of Hype

Social media has a huge impact on investing and trading cryptocurrencies or cryptocurrencies.

Be careful when you use social media. Often you come across articles that promise to make you a millionaire. The media hype is causing a vacuum in investment that makes the value of cryptocurrencies soar.

During this time, long-term investors will sell and make big profits from it, while others will be left with stocks that can’t make much profit.

Trusting Fake Exchanges

Many investors choose the exchange without reading the nominal or related exchange activity. Some of the most popular crypto exchanges also have high prices.

Profit margins are lower when prices are high. As an investor, you should look for low-cost exchanges that are safe and make your portfolio more profitable. The higher the cost, the more investment you make to make a profit while selling it.

Also Read :Recognize the Characteristics of Stupid Investments


Security is very important for sustainable cryptocurrency investment. To keep you away from hackers and thieves, you should consider buying a hardware wallet for the amount you invest. Make sure that you always use the best in terms of security.

The problem that doesn’t go away is that investors easily trust the Exchange Wallet or the Exchange wallet. They only keep their assets in the exchange. Although reputable exchanges have a long history of protecting investor funds, online systems can be risky. Hackers are always on the lookout to exploit your online investments

A secure hardware wallet protects your cryptocurrency funds but you only use plugins when making transactions.

Buying and Selling in the short term

Often, cryptocurrency investors buy and sell back in a short period of time just because the value soars. It’s not the right technique though

Re-diversify your trading options to allow you to see through a long-term growth plan to get the most out of your investment.

The cryptocurrency market is filled with amateur investors. These generate sales quickly when they are agitated by price fluctuations. As a good investor, you should explore indications of whether this is a good time to buy or sell, and then focus on your experience to trade effectively.

Recognize the Characteristics of Stupid Investments

Recognize the Characteristics of Stupid Investments – For those of you who want to start an investment, surely you will try to choose the best investment and of course it is safe and reliable. The following are some of the characteristics of fraudulent investments that you should avoid:

1. The benefits offered are very high
The first characteristic of fraudulent investments is to offer profits or returns that are too high. Sometimes the return or profit is not logical. Basically, the return on long-term investment is around 15 to 20 percent, even that is uncertain.

So, if the benefits offered from the investment are more than that, then it is suspect. To avoid this, you can compare the benefits offered at bank or deposit interest rates. If the benefits offered far exceed the interest and deposits, then the offer could be a fraudulent investment.

Recognize the Characteristics of Stupid Investments

2. Offer short-term benefits
The next feature of fraudulent investments is the offer of short-term profits.

Please note that the basic principle of investment is that the shorter the investment period and the smaller the risk, the lower the profits. On the other hand, the longer the investment period and the greater the risk, the greater the possibility for profit.

In fraudulent investments, you will usually be offered to get big profits in a short time with minimal risk. So, you have to be careful. You can explore the knowledge of the investment itself.

Also Read :Mistakes to Avoid in Gold Investment

3. Problems with legality and licensing
Before the company operates, of course, it must have a valid permit and its legality is known. Likewise for companies that offer investment products. In this case, permission from the Financial Services Authority (OJK) is very much needed and mandatory.

However, fake investments usually run independently and there is no official permit from the OJK. Therefore, before investing, you need to first check whether the investment has received permission from the OJK or not.

4. Investment products are not clear
In fraudulent investments, usually the products offered or even the company you can’t find valid and clear information on through the official website.

Even when you ask for detailed product and fund management explanations, they will give vague and circular answers. In essence, you will be urged to immediately hand over the funds and after that there will be no news. Therefore, you can check the legality on the official OJK website.

Mistakes to Avoid in Gold Investment

Mistakes to Avoid in Gold Investment – In starting an investment, there will definitely be mistakes that we shouldn’t face, but don’t worry, there are some things we can do to avoid mistakes in investing in gold.

1. Cash flow is still messy

The most common mistake that novice investors make is cash flow that is not well organized. Cash flow is an increase or decrease in the amount of money held by a business, institution, or individual. This is a very crucial aspect of investing, including gold investment.

Before starting to invest, you should manage your personal finances effectively and efficiently, so you can have a positive cash flow.

“If the cash flow is the other way around, you can’t invest in gold regularly or even invest using ‘hot money’,” said Indra.

Mistakes to Avoid in Gold Investment

2. Does not determine investment objectives

Getting as much profit as possible is one of the main goals of investors. It’s not wrong, but the meaning and benefits of investing are far greater than just chasing money. Without having an investment goal, the profits you want to achieve will be more difficult to achieve. This aspect is useful in determining how much investment risk you can take and will be your mecca while investing.

“In addition, with an investment goal, you can easily determine the investment period and the amount of funds needed regularly to achieve these goals,” said Indra.

Also Read : Types of Gold Investment

3. Choose a digital platform that is not a credible online gold investment provider

In investing in gold online, you must pay attention to the legal aspects of the digital platform provider. Choosing a digital platform that has been registered and supervised by the Financial Services Authority (OJK) can help you keep investing safely.

“One of the digital platforms for gold investment that has been registered and supervised by the OJK is IndoGold. Moreover, IndoGold also cooperates with a trusted digital payment service, ShopeePay,” said Indra.

4. Gold investment for the short term

Using gold as a short-term investment is not recommended. Although gold prices tend to rise in the long term, gold prices fluctuate in the short term because gold is a traded commodity.

According to Indra, gold prices tend to fluctuate because they are influenced by various factors, such as interest rates and economic conditions “Therefore, investing in this instrument will be more profitable if it is applied in the long term, which is at least 5 years,” he said.

Types of Gold Investment

Types of Gold Investment – To get a profit, many people start investing in their lives. Investment has many types. There are those who invest by using goods or directly with money

Explanation and Types of Gold Investment

1. Gold Certificate

Gold certificates are one of the precious metal investment instruments that are in great demand by many people. Unlike other types, gold certificates do not focus on physical metals, but rather a certificate. The letter proves ownership of gold in a bank and can be sold at a fairly high price.

Types of Gold Investment

2. Gold Bars

The next type of gold investment is bullion. Gold bullion is the right type of investment for those of you who plan to take long-term investments.

The products are timeless and easy to trade. You can find institutions that offer gold investment anywhere, from Pawnshops or other BUMN agencies.

Also Read :Easy Tips for Choosing Stocks

3. Gold Jewelry

Easy and practical, this type of gold investment is more loved by the lower middle class who do not have access to technology. It’s easy, you just need to buy gold jewelry and store it until the gold price is at its peak.

This method has proven to be profitable and has been used by various levels of society, be it office workers or farmers. Jewelry investment can not be done in the short term.

The reason is, when you buy gold at a jewelry store, you will pay the cost of making gold. If you sell it in the short term, you will not make a profit, because the buyer will only buy the price of gold. By storing gold jewelry in the long term, the price goes up and covers the cost of making the gold paid.

4. Gold Mining Stock

This precious metal investment follows the stock market price. If the gold market conditions are good, the value of the company’s shares will move faster.

The price of gold automatically soared. Even though it is quite profitable, you must remain vigilant in choosing a gold stock company. Make sure the company is registered and has legality from the Financial Services Authority (OJK).


Easy Tips for Choosing Stocks

Easy Tips for Choosing Stocks – Currently investing is your first step to determine your own future. There have been many people who invest to get rich quick even though the main purpose of investing is to invest in stocks for our future. Many people fail to invest, not because they don’t understand how to invest. But there are still some people who are wrong in choosing a stock. Here are easy tips in finding the best stocks

1. Use Securities with Small Transaction Fees

In stock investment, investors are required to open a securities account that is facilitated by a securities company. After the account has been created, the next investor must top-up a certain amount of funds to a securities account.

The money in the securities account will function like e-money. This money is what investors use to buy the desired online stocks. So, the transaction costs in question are the costs of buying and selling shares. This fee will be the profit of the brokerage company concerned.

Usually the cost of a security is set to 0.19% for purchases and 0.29% for sales. But there is also only 0.15% for purchases and 0.20% for sales.

2. Calculate the advantages and disadvantages first

There are some stocks that only sell for IDR 50 silver per share, you know! In stock investment, you can only buy in units of lots, where one lot consists of 100 shares. If you buy a lot of shares at a price of only Rp. 50 silver per share, it means that you only need to pay Rp. 5000. You have managed to own your own shares.

No need to buy an expensive one, just choose the one that fits your ability. The formula is to peg a profit of at least 1% of the funds you spend to buy shares.

Also Read :Things to Pay Attention to Before Investing

For example, IDR 5 million for 1% profit worth IDR 50 thousand. If the profit you get can be up to 10% every time the share price goes up you can get at least up to Rp. 500 thousand for free.

3. Choose Stocks Listed on the LQ45 or IDX30 Index

The list of shares issued by the IDX (Indonesian Stock Exchange) is a statistical measure of changes in price movements of a collection of shares, which are selected based on certain criteria.

Well, for beginners who are confused about the first stock purchase, they can choose stocks in the IDX stock index which are members of the LQ45 or IDX30 index. Don’t worry, most of the stocks in the index have very high liquidity.

In addition, the listed companies are also companies with good background and fundamentals.

4. Buying Stocks from Banking or Consumer Goods

After knowing what the LQ45 or IDX30 stock index is, the next step is to choose stocks from banks or companies engaged in consumer goods.

Buying shares from banks and large companies engaged in consumer goods as your first share is the wisest and safest way to experience your first stock playing.


Things to Pay Attention to Before Investing

Things to Pay Attention to Before Investing – When we grow up, you must have spent a lot of money. But as time goes by, more and more people are investing. Most people invest only to get rich quickly. Whereas the essence of investing is to invest in stocks for the future. Here are things you need to do before you invest

1. Determine the Investment Goal

Not knowing the purpose of investment actually makes the investment itself die before it develops because what we have is only enthusiasm at the beginning and stops before getting a return. Therefore, determining investment goals is very important, such as investing because you want to buy a house.

2. Determine the Time Duration to Achieve Investment Goals

How often do we not hear that goals have to be SMART? Well, many people don’t determine the time to achieve it, having a goal without a deadline is what we call dreaming. The right thing is to have seven people who want to buy a car in five years, want to have a business at the age of 30, that’s just a goal, not imagining it.

3. Studying Investment Products

The crucial part is here! Many people invest without knowing what product they are investing in? In what type of asset? Anyway, a high return is good.

Also Read : Investment Suitable For Beginners

Yes, it’s really good if we understand the product. If we are ready, if we know the current market and economic conditions, if we don’t follow suit. However, if we don’t know anything and only think that the return is high, then we are actually digging for our own losses, so study it first.

4. Allocating Investment Funds As Needed

After knowing the purpose, time, and having studied the investment instrument, then determine how much funds we have to set aside to invest. It’s not because we know, that we save money and allocate as much money as possible from income to invest without paying attention to cashflow, debt, insurance, and other important needs. This is actually dangerous for our own finances.

5. Invest

Investing is consistent and improvised. That is, done consistently and learning continuously. Not only on products but also our knowledge of anything related to investment products. The point is to minimize the losses that we can experience. That’s because there is no investment product that does not have losses. However, the good news is that we can minimize losses even though we cannot avoid them.