Stocks are commonly known as investment instruments that are suitable for the long term. Long term means investing at least 3 years. The reason is that stock prices tend to fluctuate greatly in the short term. So it’s quite risky for beginners.
However, this does not mean that stocks cannot be used as a short-term investment tool with a lifespan of less than 1 year but more than 3 months, and therefore are not suitable for swing trading classification. So how do you invest in short-term stocks?
1. Choose a stock from a profitable group.
One of the factors you need to consider when choosing which stocks to invest in is: investment period Less than 1 year is the latest national and international economic conditions. Choose a market leader (market leader) among the stocks that benefit from these economic conditions.
You can get the best stock information per sector at Index Fund Fact Sheet individual sectors, although the FFS data is updated every time. But the information is helpful in picking the best stocks from the trending segments.
2. Trend Investment
In addition to predicting which sectors will benefit You can also buy stocks by groups that have risen in price over a period of time. Fortunately, you can easily access the price changes of each sector indices in Indonesia. Use the price dynamics chart to determine whether these stocks have the potential to continue growing over the long term.
instead of just using a blank chart Make sure you use various technical indicators. That is also needed to assess the strength of the trend. and use a relatively long analysis time frame. You’ll be stuck with short-term trend analysis.
3. Choose stocks that pay dividends.
The second type that you need to consider is the dividend schedule. Due to the large number of stocks in Indonesia and abroad, dividends are paid regularly on certain days and months. You can take advantage of this to earn additional income. Even if it’s just a short-term investment, it’s a good choice. high dividend stocks to increase profits
You can access information about regular dividend stocks on the HighDiv20 index, while a general schedule can be found by opening the YouTube channel. Kanala.idA detailed schedule can be found on the stock trading app or web page. Investing.com
4. Pay attention to the movement of the city.
A dealer is an individual or institutional trader who can move the stock market on a larger scale than the average investor. Because such individuals and institutions have enough capital to trade large volumes of stocks.
Not just in terms of capital. But also the movement of the city must be taken into account. Because these investors often have a team of specialized analysts. or have access to financial information larger than the average retail investor As a result, it is possible for city movements to be shown where stock prices will move in less than 1 year.
To see the movements of these bookmakers You can select 5 companies with the highest and lowest transaction value in the Broker Summary feature in your trading application. or use a separate application called city detection app.
5. Choose stocks based on analysis.
dealer whether institutional investors Small capital investors or traders Not disqualifying from buying or selling shares for any bad reason. whether the stock is fried basil or has a specific purpose Therefore, short-term stock investors need to choose stocks based on comprehensive fundamental and technical analysis.
Among the many challenges of short-term investments of less than a year is balancing fundamental and technical analysis as the primary medium of analysis. The reason is that investing in long-term stocks often relies on fundamental analysis. and vice versa for trading Technical analysis is preferred.
You need to determine which fundamental and technical indicators you think will affect your company’s financial condition in less than a year. What is this indicator like? liquidity finance-his, current ratioshe and others
These metrics are helpful in determining when you should sell and when to buy stocks. This indicator aims to prevent you from frying the stock of certain elements.
6. Watch out for reversals.
One disadvantage of investing based on both technical and business short-term trends is that you don’t know when the trend will stop and reverse. in anticipation of this You can do the following:
- Using technical indicators Both price action and statistical technical indicators to ensure trend strength. Price action indicators such as with or without candlestick patterns indicating reversals. While statistical technical indicators such as Bollinger bands, RSI and others
- Setting a Stop Loss In the event that the share price falls below the forecast.
- keep up to date about the latest economic and business conditions whether through the news or the results of expert research
7. Plan your investments well.
Another challenge faced by short-term stock investors is making sure they don’t buy or sell stocks because of them. afraid to miss (Fomo). In addition to the tendency to fall into fried stocks Investing in stocks due to FOMO also prevents you from earning huge profits by rushing to sell when the asset price goes down.
to prevent this You should plan your investments as best as possible. In addition to determining which stocks are the best When to buy and when to sell Make sure the plan includes an analysis schedule. The goal is when you analyze the stock market. Your emotional and physical state is conducive to logical thinking.
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