In the past, stock investing seemed suitable only for those with a background in economics and the stock market.
Now, that perception is beginning to change. This type of investment is increasingly popular among the public, including office workers looking to set aside part of their income for future financial goals.
However, just because a stock is popular doesn’t mean you can buy it right away without doing your homework.
Stocks carry high price volatility, so it’s important to understand how they work and their key characteristics first.
So, how can beginners invest in stocks in a more structured way?
Why is Stock Investing Becoming So Popular?
Avoid purchasing stocks on impulse, it is essential to understand why equity investments appeal to so many investors.
That way, investment decisions aren't just based on trends, but on clear goals.
Long Term Growth Potential
A stock represents proof of ownership in a company.
Investors may earn returns through stock price appreciation and dividends, although neither is guaranteed.
Also Read: Investing with Just Your Allowance, How Does It Work?
Due to price volatility, stocks are best suited for long-term investors with higher risk tolerance.
You Can Start with a Well Planned Strategy
Employees who want to invest in stocks can regularly set aside a portion of their income, provided their basic needs and emergency fund are covered.
The most important factor is not merely the size of the initial capital, but the consistency and discipline in executing the plan.
Stock Investment Tips for Beginners
Want to start investing in stocks? Here are some simple steps you can try to develop healthier investing habits:
Define Your Goals and Risk Profile
First, decide what the money will be invested in and when the funds are likely to be used.
Next, determine how much of a decline in the value of your investment you can tolerate. Do not use your emergency fund or daily expense money to invest in stocks.
Additionally, avoid making a decision solely because a particular stock is currently trending in the market.
Research the Company Before Buying
Don’t just look at whether stock prices are going up or down.
Research the stock's parent company, analyzing its business, financial health, industry outlook, and operational factors.
For beginners, knowing why to buy a stock is much more important than just following recommendations.
Also Read: Thinking About Investing in Mutual Funds? Learn the Basic First!
Don't Put All Your Eggs in One Basket.
Diversification helps reduce a portfolio's reliance on a single asset. Even so, diversification should align with your risk profile.
How to Invest in BCA Stocks Through myBCA
There are many stock investment platforms to choose from, one that comes highly recommended is Bank BCA through BCA Sekuritas.
You can now open a BCA Sekuritas securities and customer fund account (RDN) via myBCA.
Steps to Open a Securities Account and an RDN Account
If you don't have a BCA Sekuritas account yet, you can follow these steps on myBCA:
- Log in to the myBCA app.
- Find the My Account menu, then go to the Investments tab.
- Select Open a Securities Account – RDN from the BCA Sekuritas submenu.
- Read and agree to the Product Information Summary, then select Continue.
- Select a BCA account as the destination for withdrawing funds from your RDN.
- Click the checkbox to select all the consent statements displayed.
- Enter your myBCA PIN and follow the BCA Sekuritas account registration process.
- Register for a BCA Sekuritas account by following the instructions to fill in the required information for opening a Securities Account and RDN. Later, your BCA Sekuritas username and password will be used to access the BCA Sekuritas app.
- After that, fill in the required information
- Check the box and confirm the terms of the BCA Sekuritas Securities Account Opening Agreement, then click Next.
- Please wait for the verification process for your account opening.
Upon the opening of your RDN with BCA Sekuritas, all stock transactions shall be executed via BCA Sekuritas services.
Meanwhile, BCA Sekuritas stock and bond portfolios can also be linked and monitored through myBCA.
Also Read: Is It Better to Invest on One Type or Various Types of Investment?
Start Investing in Stocks with a More Prudent Approach
Investing in stocks is one way to grow your long term assets, even for employees who are just starting to manage their finances.
However, trends should not be the primary reason for purchasing stocks.
Define your goals, assess the risks, research the company, and build a strategy that suits your budget.
If you’re ready to transition from simply wanting to invest to actually doing so, BCA is a great platform to help you get started.
Open up investment opportunities through myBCA via BCA Sekuritas, and make sure your financial decisions start with a well-thought-out approach, not just by following the crowd.
What are you waiting for? Download myBCA from the Play Store or App Store right now!
