Start Investing From A Small Amount

If you have large funds, if mismanaged in the world of shares, it can be a big loss. The greater the funds at stake, the higher the risk. Losing 5 percent from bigger money would be very different. Therefore, as a beginner, you should start with a small fund. Many have started investing shares like in become an angel investor with a nominal value of hundreds or thousands. You can top up every month by setting aside a salary. If you want to start with a small number, you can choose a securities company that provides an account with a minimum initial deposit of a low number. However, the fee per transaction is usually slightly higher than the account with a large deposit. Don’t worry too much about fees if you are not a trader whose sales are very routine. Fees are only charged when you buy and sell transactions.

Observe the economic and political situation is important. Holding shares means you own a company. That is, your company lives in the real world that is very vulnerable to change, especially in the economic field. This will affect the stock price. Stock prices are also a matter of investor perception. That is, although it does not have a direct effect, political conditions often affect stock price movements. Rumors that circulate can also be lighter. Being sensitive to the economic and political situation is important for making decisions, so be diligent in listening to business, economic and political news. Political news can be related to government policy and often directly affects the future of the company whose shares you hold.

As a novice investor, you can also start from companies whose performance is understood. Understand also the industry, whether it is rising or receding. Although the funds invested are small change, novice investors still have to have a similar ‘handle’ in understanding the company to be bought. Choose big caps stock. Big caps is a term for stocks with large market capitalization so that they are not easily ‘fried’ or manipulated by investors with large capital. Another term is first-tier stocks or blue chips.

About the author

Viola J Wolfson