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Tips and Investing Advice for Beginners

Here are some tips given to novice investors. Follow these tips you deserve, because when start your first investing, you certainly want to know how to start an investment, or what a good investment is, or whether there are ways that you can use for profitable investment and instead of hurting you.

The first step – Understand the need for investment

Putting money in banks like to lend without a significant advantage. Indeed, savings are safe, your money will not be lost but if you only wants your money back, it’s not investing, especially with the inflation that makes the value of your money is shrinking, you need to make your money continues to grow. It is pure investment.

Step two – Where is the money put?

There are four asset classes i.e. cash, property, fixed interest rates, and stocks, which have positive things and negative respectively. Cash can be used anytime for emergency purposes, not as hard to sell property but can reduce the tax to be paid? Fixed interest rate means the business will still give you your money back assurance in financial markets, while shares in the company only you pay the dividend / annual profits to you on a regular basis in accordance with company profits.

Step three – The power of time

Investing is a process to get rich slowly. So, the earlier you start the better because the more you gain doubled. However, be careful in choosing an investment, because there is a price up and down, chances are you could lose money. An investor can also set short-term goals like saving for a house deposit and long-term goals such as money for retirement with investment plans.

Step four – Awaken feeling sensitive to the existing risk

You can not avoid risk, even if you leave your money in the bank, it is possible to lose value over time, plus the cost of living is getting higher. The higher the value you get, the higher the risk you must bear. The risk is you have to lose your money. So it’s important for an investor to be able to identify these risks? Each person can identify the different risks. Shares and property are more risky than fixed interest rates in the short term, but more profitable in the long-term. Selected time is also very important to note. Surprisingly, investors are usually not in a hurry to buy when prices fall, but they are more likely to buy when prices have gone up, for fear they will miss.

Step Five – Take your first step

People who had no experience in investing, to use the minimum number in an investment. Choose the most profitable market segment for you. If you do not understand, you can request the services of a consultant for the beginning. It’s okay, because this will be the capital for you so you have more insight into the future of the investment, or you can ask for help your friends who know about investing. These investments are designed with varying degrees of risk, from conservative to growth is quite normal to aggressive.

Invest your money in stocks can also be done. Investing whatever you do, seek as much information as possible and then move on.

How to Become Securities Company Customer (Customer Account Opening)

Before you make a buy or sale of shares, like open a bank account then you should first open an account in one or several securities companies. With the opening of such account then you have officially registered as a customer and your identity data recorded in the books of Securities Companies such as Name, Address, Bank Account Number and other data. Along with the opening of this account, you signed an agreement with a securities company concerning the rights and obligations of both parties.

How Cost Share Purchase?

For buying and selling shares, investors must pay commissions to brokers, offline or online brokers who execute your orders. The amount of commission is determined by the Exchange. In normally Stock Exchange, the highest commission fee is around 1% of transaction value (sale or purchase). This means that the amount of commission fees can be negotiated with the broker / brokerage where investors make buying and selling shares. Generally for the transaction fee charged by investors buying real estate at 0.3% of transaction value, while for the sale and subject to 0.4% (for the sale and investors are still due to income tax on the sale of shares amounting to 0.1% of transaction value).

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