Learn to Invest

Basic of Investment

Based on its object, the investment consists of:

  • Real Sector
Usually required substantial capital and takes a relatively long time for the development and return of capital initially.
Example: If a house purchased as an investment, where the value of the house was never down and always increases with time. But when the investment house will be disbursed in the form of value, then it should find someone who has sufficient funds to buy a house whose value may have gone up tens to hundreds of percent, and it is not easy, this is where there is a liquidity problem.

  • Non-Real Sector (areas of financial / finance)
Usually tend to grow faster, more liquid and return relatively larger, in proportion to the risks and the many types of products offered
Each person needs to invest to improve the standard of living, and this is not just for the extra money, but also for having excess income, after expenses are covered daily.


Considerations before Making Investment

  • There is no debt
  • The existence of insurance as a protection in case of unexpected events which could destroy financial plans, such as medical expenses, or death of the breadwinner.
  • Provision for regular monthly expenses (cost of daily living, education, etc.)
  • If the funds set aside for the larger investment then it will get better, with a target of about 10% of income. Large or small percentage of profits is not a problem as long as investments are made routinely. And make investments as a fun activity to do not stop your other hobbies.

Various Kinds of Investment


  • Short-Term Investments
The most important factor in investing is the length of the rate of return (rate of return) investments. But in tough times, still needed a means of short-term savings to save funds.

Here are some of the facilities are:

  • Current accounts:
Current giro accounts is one of the banking products that provide the lowest rates, ranging from around 3-4% pa Typically used by companies to facilitate payment transactions.

  • Savings.
Savings is also a banking service that gives interest rates above current accounts, and be disbursed at any time.

  • Deposits.
Interest rates of deposits is higher than the savings, but disbursements shall be in accordance with the time period, or shall be liable to penalties if not yet due.

  • Money Market Mutual Fund.
Money Market Mutual Funds are mutual funds that invest in such money market deposits, SBI and short-term bonds, where the rate of return, usually higher than current accounts but lower than the deposit, and can be availed at any time.

  • Long Term Investments
  1.         Bonds.
  2.         The stock.
  3.         Mutual funds.

This will be discussed further in the capital markets / stock exchanges.


Errors that must be avoided in investing

  • Not doing anything.
Indeed there is no guarantee that the value of an investment will go up after starting to invest, but certainly by without doing anything, of course, also will not get anything anyway.

  • Starting late.
Delay to start investing is error number two because earlier is better for our future

  • Pay off the bills Before investing
Means that if income is not an investment would be undermined by interest on the debt, either credit card or other delinquent bills, which is fairly large. Pay the bills first, then invest!

  • Investments for the Short Term.
Set aside short-term funds for short-term instruments. For investments in the stock market, make sure these funds will not be needed at least 3-5 years into the future

  • Secure investment
For potential investors who are still very young, the majority of investments in capital markets should, because they still have a very long time, have the opportunity to take advantage of any sharp correction in the market and take advantage for the long term. But in line with the age required bonds that provide a fixed income. Usually gets the majority share of stock.

  • High Speculation
Not every investment instrument suitable for everyone, then it must be sought the type of investment that matches the psychological profile of each investment. Although you are a brave man to take risks, but it is advisable not to put all the money on a product that is very speculative.

  • Too often transactions
Investors who are too often stuck with frequent psychological trading market so sell when prices are low and buy when prices are high. Addition will add to the cost of investment, also tend to lose the potential benefits of long-term investment


World Investment Myths

  • There are other types of investments that would benefit.
NO ONE investment that can provide assurance that the sure winner, even savings (which is actually no longer classified as an investment because prices are usually higher than savings interest) or bank deposits.
All investments have risks, including banking products that smaller flowering. What if the bank where the funds are later went bankrupt while the funds are not guaranteed the central government? Of course it can happen. So please know that there is no certainty of 100% profit when you decide to invest.
Investment will follow risks to ratio of profit opportunities, which is the greater the profits, the greater the risk that might occur, and vice versa.

  • Investing just for the rich.
This is due to lack of public knowledge about investing. But now this is very much retail and investment are almost the same as the savings that only requires capital only a few hundred thousand rupiah.

  • Investment only for educated people because it is difficult and complicated.
This is not true at all. Investing is not like applying for a job and requires a variety of academic and experience requirements to be accepted. Anyone can start investing and do not complicate. Investment is also not just for smart people. Today that invest in futures trading investment (which is even recognized as the most complicated investment) is the mother-housewife and student.
On some models you can submit investment funds on an Investment Manager to manage funds in a professional Customer and the Customer is receiving enough just results.
If you want maximum results again, of course you had to intervene to manage it themselves (active investors). Not as difficult as most people imagine. Simply understand analysis of existing instruments, financial arrangements and the psychological effect, you can become an investment manager for ourselves.

  • It's hard to invest in the financial sector if living in the village.
Currently the territory and national borders no longer a bond in an investment, because it is connected by a network of telecommunications and the Internet and banking.


PLEASE NOTICE THIS

  • Time Value of Money
The The value of money changes depending on the time you have control over their money and invest it.
For example the purchasing power of money USD, 1,000,000, - in 2007 with 2008 different, because of inflation. If invested on deposit at 8%, then a year later IDR, 1,000,000, - will be USD, 1.08 million, -

  • Real Return
If the growth of an investment is 10% in one year, does not mean the value of money is also growing 10%. Because the tax would be reduced first. After inflation is taken into account also the effect that result in reduced purchasing power.

  • The different between Investment and Speculation
Investment and speculation alike - the same risk, but there are fundamental differences.
By investing some deposits placed in the instrument containing the risks to expect in the long term value appreciation.
While speculation promising short-term profits in an otherwise very rarely come true and never provide benefits in the long term.

Case in point:
If you accidentally got the news that stock A will 'fly' in the short term, then the next day to buy the stock directly, through brokers, this means you have been speculating (gambling).
What do you know about A? What are they selling? How many sales figures? How about the profit? whether you are familiar with a competitor? Many things must be known about A, before giving up the money you earn with hard-earned on a stock. Simply speculation (gambling) is if you give up the money on something you do not understand. And remember, for any money you speculated and lose, there will never be the benefits to be received in the future

  • Plans, Goals & Style to Investing
Successful investing is required in order to plan and clear goals. There are several things that must be determined before such as: Defining investment objectives, duration and amount of money collected (investment target). Only then can plan investment instruments to be used in achieving the planned rate of return. Also to be considered also the style you invest, the risk tolerance and time allowed to make investments.

  • Risk
In investing should consider how comfortable, if you saw investment fall 50, 60, 70 to 80% in the short term while waiting for long-term appreciation. There are different levels of risk, ranging from government bonds are often considered a risk-free investment (risk-free investment) as guaranteed by the government until the commodity, currency, stock index and options where you could lose all the money they had.
Government bonds and deposits are guaranteed by the government. However, stock investing, there's no guarantee your investment will be running smoothly, or there was no guarantee the money. But if you choose the right business, at the right price and holding for the long term, luck will be on your side.

  • Time
The main factor of time is when you need the money back. The need for money will largely determine the choice of investment. Capital market and money market may be promising for the long term, but in the short term price fluctuations can be very dangerous.

  • Mechanism & legality
Before investing, trading mechanisms are known to be good on the stock exchanges and futures exchanges. Ignorance of the mechanism of trade and investment do not know if this is allowed by the government or not referred to gamble with the fraudsters.
Another factor is the issue of legality. Try to imagine in an investment, and has resulted in hundreds of percent profit business, but when withdrawing cash at, where you invest the escape and belonging to an illegal enterprise. Surely the end was a dream to enjoy the hundreds of percent profit.
Investors are newbies usually work directly in the investment process, tend to prefer to see a platform that served or trading regulations in favor of the consumer, but a good platform and pro-consumer regulation Broker does not guarantee you a place to invest legal!
Trading in any market, including stock exchange requires two sides of the buyers and sellers, but in exchange the buyer and seller never physically met in person and it never happened handover physically as well, because everything is done in the form of an agreement brokered by the arbitration institution and the usual referred to as Broker / Broker.
The task is to become a collector brokerage transactions conducted by retail investors under it and then forwarded to the market or exchange which is the meeting place between the seller and buyer in the transaction.
There are many exchanges here. In Indonesia, trading futures on regulated by PT BBJ (Jakarta Futures Exchange). America has the NYSE, London has the FTSE (Footsie read) and Japan has the Tokyo Stock Exchange.

  • Legality
In a matter of legality investment acted as one of the important part. Because an investment company activities that raise public funds, and will be very crucial in the event of fraud or failure to pay issue by the company to its customers.
Therefore we need a government regulatory body that oversees the activities of investment companies such as this. Banks have the BI (Bank Indonesia) as regulators. While insurance companies diregulasikan by the Directorate of Insurance under the Ministry of Finance, the securities company has Bappepam as a regulator.
While the futures exchange, an investment in derivatives (derivatives) of the shares of investment products and the like, therefore it also has its own regulatory agency.
In Indonesia, the regulators who oversee the activities of the brokers are under the authority Bappebti (Supervisory Board and the Commodity Futures Trading), BBJ (Jakarta Futures Exchange) and KBI (Indonesian Derivatives Clearing House). In the United States who is a pioneer trading margin trading, regulatory authority is under the CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association).
CFTC and NFA can be said as a role model for other regulators in each country. Diregulasikan broker under the various rules they must follow strict and rigorous selection with anyway. That's why an international brokerage firm who are members of the CFTC and the NFA are so proud of their membership status.
During its development, because this business is an international business and cross-country, do not have a brokerage firm that was founded in the United States that could be a member of the CFTC and NFA. Brokerage established outside the United States can become members of this regulator that can be cross-border trade and cross country.
Therefore you should never open an account at a broker that does not diregulasikan under government agencies everywhere. Licensed PT alone is not sufficient to establish a brokerage firm! So do not easily tempted by good platform and regulations as if profitable customers but when asked they only permit the company argued that the permit is being taken care of or even say they have permission of the company. Remember, being taken care of is not yet to have a license! Now there are many brokerage firms that do not have permission regulators aka illegal brokers, both domestic and foreign brokers. So be careful in choosing where to invest.


The things to watch out for before investing in a brokerage firm

  • Be suspicious of any investment scheme that is too good to be true.
Margin trading is same with other businesses, it takes perseverance and hard work to advance the investor.

  • Avoid companies that promise huge profits for the funds invested.
  • Avoid companies that promise no risk at all in trading through them.
If you want to succeed there is no way other than it took perseverance and hard work, to determine the investment policy, determines the timing, conduct an analysis of capital and risk management.

  • Do not engage in margin trading unless you know what that means.
  • Question those who claim that they are trading through the "Interbank Market"
Some brokerage firms claim that they pass through the interbank market transactions its customers so that they can obtain better prices for themselves, so no need to burden its customers with transaction costs and other costs.
Interbank Market generally used by banks for the provision of world class submission of interlibrary loan and banking institutions. Interbank Market does not involve small banks especially brokerage firms with asset "only" hundreds of millions of dollars. Well, something exaggerated if a broker who is not named said they had access there.

  • Be careful for any payment processing via the internet and do not involve transfers between banks.
Some brokerage firms opened ease of payment via e-gold, pay Pall and a myriad of other payment methods. It is not believed, however, customers often forget to see the information beneficiary (recipient) of funds due to payment method is very easy, just click and then finished. Once they click they usually just remembered where funds are transferred, or through what and where the address of the recipient. Surely it was too late. Many brokerage firms such as this is not a member of the NFA and CFTC.
Usually the illegal brokers disguise promotion to developing countries or a particular ethnic.
Psychologically it is easy to understand. The lack of their knowledge with money in countries like Indonesia make scams easier. Therefore this website soegeefutures.com made. Yes one of his mission became a means of education for all investment enthusiasts. Do not be deceived by anybody, including those calling from overseas.

  • Make sure you know the track record of investing company.
Track record is a testament to the dedication and the work of the brokerage firm. So do not be fooled. If they do not even want to tell their track record or background of the company, just leave and find another place for investment.
Find a third opinion from those who've invested there
This is tricky. Sometimes too many accomplices of illegal brokers try to convey on independent forums for lift up their position. Be smart looking. Once again start with the positive opinion campaign too good to be true is not true. Be suspicious of those who commented very positively in order to filter out all the information.

  • Contact your investment advisor before investing
If you are still in doubt, call them a better understanding of the trading margin trading and ask your financial security in investing in companies that you want to select.

You can also contact us via info@universalbroker.co.id o find out the advice from us or recommendations are deemed competent broker to invest. Universal Broker Indonesia ready to become an investment advisor does not leave anyone with the principles of customer oriented and balanced information.

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