Many foreign funds seeking quick profit, investors usually enter through the product mutual funds, pension funds and insurance. This causes the more volatile the stock, because of the large number of transactions compared to the buy-hold for the long term.
If you are a trader, or conduct transactions buying and selling stocks on a regular basis there are a few things to remember. Just as financial planners who have to make plans, then the alias berdagangpun trading should make plans. We plan shares will fundamentally what we buy. Then we calculate whether the price was cheap enough or not (under valued) as a sign to get started investing or buying shares.
Every person has a style different transactions. There are just going in and out (buying and selling a stock) same day. They do not want to hold the position when the market is closed. Some people love to hold them until the sale of one week or until the price they are targeting is achieved. Whatever our style, one thing to always remember is do not get greedy.
Make a target return on investment or return desired. As soon as we reach these targets and go out. Greed is always trying to hold us to stay afloat disuatu issuer’s stock because we think the price will go up even higher. Make a tolerance limit losses eg 1% or 5% of our investments before we get out (cut loss).
Mistakes are often made by many novice players are not dare to come out or cut loss. They do not want to admit that they have the wrong decision or wrong position, so a loss. But they still refused to come out or cut loss. As a result they have to survive the loss who suffered in the hope that one day will return and share their money back.
When studied properly, trading stocks is actually a fun and exciting activity. Especially when the market is down like now. Return the key word is discipline in the transaction. When we discipline our investments on a regular basis will undoubtedly provide a satisfactory total return on investment.