Don’t get bored right away, here are some tips on investing in stocks when the price falls

KOMPAS.com – Plunging into a stock investor is prohibited from baper. Especially if the stock market is crashing and stock prices are falling rapidly.

Stock is a high-risk investment. Stock prices fluctuate very quickly, moving up and down like a roller coaster very quickly.

However, that doesn’t mean you shouldn’t stock investment when the price drops. In fact, it is an opportunity to “scoop”.

You can buy flagship stocks at low prices. If you say Lo Kheng Hong, mercy innova prices. Then sell when the price goes up.

You can still invest in stocks when the price drops with the following tips, as quoted from Cermati.com.

1. Buy shares gradually

The drop in share prices can bring blessings to investors. Although maybe some other investors think it is a disaster.

You can buy targeted stocks with quite a lot of lots at cheap prices. If normally with Rp. 1 million, you can only buy 3 lots of A shares (Rp. 3,000 per share), when the price drops to Rp. 2,000 per share, you can buy 5 lots.

If investors are only thinking about opportunities without thinking, they will buy a lot at once. But you have to have a strategy.

We recommend that you avoid buying directly in large quantities. Buy stocks gradually. Because it is possible, the share price will decline again the next day, so you can be more profitable.

Incremental buying can also give you the opportunity to observe stock price movements in other sectors. So you don’t put all your money in one sector. This method is called diversification which can help minimize investment losses.

2. Observe the price movement

Remember, stock prices do not always continue to fall even though economic conditions are difficult. Over time, the stock will reverse direction, strengthen at a higher price.

What caused it? An increase in demand from investors or the public for one stock when the price drops, so that the price returns to climb slowly.

Before buying company shares, be diligent about observing the price movement. What is the percentage increase and decrease in prices during the last three days.

3. Buy stocks that are believed to rise again

Do not buy stocks just cheap. You also have to be observant and careful in choosing the stocks to be purchased.

Choose stocks that are believed to be easy to rebound or strengthen again after the price drops. What kind of stock?

Usually shares of companies that have a stable financial condition. So, in addition to looking for stocks that are cheap, also do fundamental analysis, such as financial reports.

Also Read: Sharia Stock Investment, Alhamdulillah Profitable and Halalan Toyyiban

4. Don’t panic

When you dive into investing in stocks, you must be prepared for all the risks, including price reductions. Even with novice investors.

Don’t panic immediately if the stock price drops. Especially if it drops sharply, immediately thinks the investment is losing, confused, and finally decides to end life.

Just so you know, the decline in share prices must have an end. Will go back up or rebound, from red to green. So avoid panicking, because panic will lead you to mistakes in making decisions, such as taking a big sell-off.

5. Evaluate the investment budget

Investment is the same as monthly spending, you must have a budget plan to keep it under control. Do not because the stock price is dropping again, you will end up buying up stocks without thinking. Especially when it comes to debt for investment capital.

You need to do an evaluation. Is the investment budget still enough to buy a few lots of targeted stocks or not.

If that’s not enough, put off the purchase. Just focus on the stocks that you already collect. It’s not good to be forced.

Who knows when you have another investment budget, you can buy stocks at a discount and the market conditions will stabilize.

6. Check your investment goals again

Another important thing is to check your investment goals again. Is it for the short term or the long term.

For the long term, you should keep your stocks, especially leading stocks that have a chance to rebound faster.

Don’t just panic, go along with it, you immediately sell it. Maybe a few years later, the stock price will skyrocket, so you can get bigger profits.

Commitment to Set aside Money for the Investment Budget

In investing, if you want the maximum amount, of course, add to your stock portfolio. It’s not just holding a lot or two of shares, it’s enough.

Of course to add more shares, you need funds. This is where a commitment is needed to regularly allocate money every month for stock investment.

This article is the result of a collaboration between Kompas.com and Cermati.com. The contents of the article are the sole responsibility of Cermati.com

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