To be a better man

Investor Shares for Beginners www.aloneismyidea.blogspot.com
Playing the stock market can provide benefits far doubled compared to saving money on deposit or invested in bonds. But playing in the stock market can also cause substantial losses. Therefore, before deciding to play the stock is very important to evaluate if you are someone who is willing to take risks commensurate to commensurate gains. The greater the risk that will result in greater profits.

If the risk is greater the yield advantage that only a small amount, then we apply one of the most basic financial strategy, higher risk or lower risk higher profit lower profit. This is why the underlying deposit rate is quite low, because of the risk of deposits is also quite low.

Thus, choosing to play the stock, not a deposit bank, means must obtain greater profits from deposits. If it is lower than the profit earned on deposits, then there is something wrong in the way you play the stock.

The following are the steps that you need as a beginner to play the stock. This article assumes that you have read enough books to understand the mechanisms that play the stock, as well as the procedure to open an account at a securities firm.

General formulation:
1 You must have a big enough desire to play or know how to play or have a strong desire to make a profit by investing in the stock market. It should be ingrained in you from the start, or do not ever play the stock, you should buy mutual funds only. The first formula is: you have to have a strong urge or desire to play the stock and profit.

2 Play in small enough quantities in advance, for example, USD 10 million or USD 20 million since there is always a small possibility of a loss could be too big. Therefore play in a small amount of money, such as a pilot project. If you start to feel comfortable and know how to play to make a profit, then you can slowly increase the amount of money that is invested. When adding the amount invested, always remember that money that you can add up, do not just remember that once you earn, but you must remember that investments can be reduced even exhausted. You never know when an important event that negatively impact the market place; suddenly could happen prices plummeted, and you did not get out of the market. The second formula is: always remember that the money you invest can be diminished or even exhausted.

Technical formulation:
1 See the direction of the economy, the growth rate of national appraiser
It is important to know where the direction of economic growth, meaning whether it is boom or depression or in between. If the economy is in a growth increasing, then that's the best time to invest. Conversely, when the economy was in a negative state, then you should get out of the market, unless you are a regular shorting and have experience as a trader.

Option 2 industry and track record. Select the industry that you are familiar and more enjoy / dislike. Learn the history of the industry in depth and read the opinions of experts on the industry. Select the industry that have a good track record in delivering profits.

3. Stock options and track record
Choose 1 or 2 stocks, not more, in the industry point 2 above. Select which have a good track record.

4 See PE
Shares that you select must have the lowest PE in the industry. PE is the ratio between the stock market price per share divided by net net income per share. PE is essentially a relative figure. PE 10 PE can be called cheap when others higher. But in general, the current PE 10 can be said to limit cheap and expensive, although there is no theoretical foundation.

5. Capitalization
Select stocks which have a large market capitalization. This means the market value of shares outstanding rupiah large enough. So that the pan does not have enough money stock to fry the stock. This means that if the market capitalization of a small stock, then the individual player can easily work the stock price fluctuates with the amount of capital it has.

6 Market Sentiment
Consider the market sentiment. Although our low PE stocks and large capitalization, market sentiment often becomes the deciding rise and fall of the price of our stock. This sentiment is the most common regional stock price index. The second sentiment, interesting events affecting the industry in which stock we are. For example, certain commodity price increases and the effect on profit company whose stock we have. The third sentiment figures the economy in general, such as coverage rates of economic growth rate, rise and fall of interest rates by the central bank, inflation rate, unemployment rate, number of retail orders, consumer sentiment, the general rate of consumer purchasing power.

Similarly, some guidelines for playing stocks for beginners. If you are disciplined in the steps above is likely that you will not experience a loss. There is still a lot of mailing or tricks that can be learned in playing the stock when you have much jump in it. But as a novice, lest you become part of the 90% stake novice players who generally lose money before starting a profit. You do not need to lose first, you can directly profit. Perform to 6 points above with full discipline.
Good luck.