Wednesday, June 10, 2015

How to invest in stocks, buy stocks, stock analysis

Shares in accordance with its classification is divided into two types, namely: special stock and common stock. Special stocks are stocks that have special rights in the company, for example, gets a profit sharing company in advance of the new owners of the shares of the other. While the common stock is stock that has no more rights in addition to the general right, i.e. getting profit sharing in accordance with the schedule of profit sharing in the general meeting of shareholders.

Common stock (read: stocks) can be freely transferable/transition to another party and traded in the stock exchange. Because it is freely traded on the stock exchange, the price of shares can increase and decrease in prices due to supply and demand on the market.


How to invest stocks.

There are two ways to invest in stocks, first, by buying and storing the stock so get profit sharing (Dividends), and the second by buying later sold back so that the benefit from the difference between the buy and sell value (Capital gains). There are 2 ways of buying stocks, first by buying the shares at the time of a shares will be issued and began its inaugural, the second offered by buying shares through a secondary market which we know as the stock exchange.

How to buy stocks.

An investor can make buying and selling shares through an intermediary with a stock broker. Based on the system used, there are 2 categories of brokers: stock broker with the system offline or conventional and stock broker online trading system.

In conventional offline or stock broker in the transaction of buying and selling stocks, investors should contact the broker in advance, whereas the online stock broker, investors can conduct transactions directly and network provider only as a broker between the investor and the stock exchange, so that investors do not need to contact brokernya to do the buying and selling of shares, investors can buy and sell stock transactions through internet connection. Online trading has many advantages compared to the conventional way, but you need a lot more knowledge than handing all the transaction process to broker stocks.

How to analyze stocks.

Stock buy and sell transactions require a good analysis so that spared from trade that can harm you, it is a decision that is difficult enough in order to get profits from stock transactions. In analyzing a stock, there are 3 important parts that you should be aware of, namely:
-Fundamental Analysis
-Technical Analysis
-News

Fundamental analysis is the analysis that focuses on the financial statements of the company in question, to note such as profitability (profit), solvability (liability vs asset), liquidity (the ability of paying off short-term debt), and activity (growth). In this case, required the ability to analyze/read the published financial reports of the company. After analysing the financial reports of the 4 points above, surely you already know the position of the company's stock. If the company's share price is currently expensive or inexpensive in the financial statements.

Technical analysis is the analysis of the movement of stocks from a historical opening, closure, lowest price, highest price, and the volume of stock trading at any time. This analysis aims to find out the value of buy and sell on a stock. In analyzing stock technical highlight is the average price, the price of the lowest and the highest price during the next price targets, specific, and liquidity.

News is sentiment analysis on circumstances that occur based on the news and trends of the market at the time. So before you buy or sell a stock, waiting for news that emerged from the stocks and keeping track of your favorite stocks a lively trade at that time.

Note: in analyzing stock technical, necessary tools in the form of a charting program it's been easy to get, either provided by online trading, there are also free programs that can be used freely, to paid programs to get the license.
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