One of the most important things in stock investment other than following the investructor.com/ is to make sure the company is bluechip and fundamentally good. Bluechip shares are the best-performing companies in the stock market. Bluechip stocks usually provide a more controlled level of risk with good returns. The characteristics are as follows. The bank company has the largest market capitalization on the exchange, the company controls the market and the company management has an experienced and qualified team.
Prepare special funds for stock investments. Investing in shares requires accuracy and accuracy, especially concerning special funds. Make sure you provide special investment stock funds after you prioritize funds for the near term. For example, funds to pay maturing debts, loans, insurance premiums, school or college fees, or emergency funds. Priority funds must be “secured” first, then a special investment stock fund. It is important to note, if you do not have stock investment funds, it’s better not to force yourself. It is best to plan financials as well as possible by setting aside “safe” funds for stock investments. Because emotions and psychology affect your decision to invest in shares.
Diversify shares. Diversification is a technique used to reduce the risk of stock investment by allocating funds to several financial instruments, industries, and other categories in the long run. The risks in question are non-systematic risk and systematic risk. Non-systematic risk is company risk and specific risk. For example the risk of company failure, financial risk, management risk. It can be said, the non-systematic risk associated with risks that can be reduced by the formation of investment portfolios. Systematic risk is the risk that is holistic and cannot be eliminated by diversification. For example inflation, interest rates, social and political conditions, and so on. Set the number of shares in your portfolio. At least 1 share, maximum 5 shares. The more the number of shares, the more difficult supervision, and investment supervision efforts are higher.