Stocks As Investment Instruments

Stock is one investment instrument that has a large average investment return. Until now, stocks are still an investment instrument that offers the highest relative yields among other investment instruments. In the United States, not all people are accustomed to putting their money on the stock market, either as a stock trader or a stock investor. This unpopularity is caused by the majority of the population still not familiar with stocks as an investment. Due to a lack of knowledge, so it is considered high risk and definitely losers. Not infrequently someone has the mindset that investing in stocks is a shortcut to wealth, so even though they do not have enough knowledge, they dare to risk their money on the stock market. This act of speculation is what often results in huge losses. When you start putting your money in stocks, you need to subscribe to the stock advisor and know how the transaction is right for you.

There are 3 types of transactors on the stock exchange that invest their money in shares in the hope of earning a profit. The three types of stock transaction actors are:

– Investors, namely people who invest their money in the stock market to get profits in the long term. Usually, an investor buys shares of a company that has good value and performance to be stored for a long period. Investors use fundamental analysis in determining the decision to buy shares.

– Trader, a person who trades shares using fluctuations in stock prices. Traders can trade stocks in the short term, to the medium term. Depending on the trader itself, the period used can vary from daily, weekly, monthly transactions, or even some traders trade every minute and hour. Unlike investors, traders use technical analysis in determining the buying and selling of their shares.

– Speculators, those who cannot be said to be investors or traders. Speculators use the stock market as a gamble. A speculator generally does not master knowledge about stocks, both technical and fundamental analysis, and the transaction decisions are only based on rumors or mere guesswork.