The Importance Of 3P Principles For Beginner Investors Who Often Implement The Wrong Investment Strategy

Illustration. (Photo: Doc. Antara)

JAKARTA - For novice investors, mistakes in implementing investment strategies are sure to happen. As a result, many people who are just starting out in direct investment quit for fear of losing.

According to the Head of the North Sumatra Indonesia Stock Exchange (IDX) Representative Office, Muhammad Pintor Nasution, there are eight common mistakes made by novice investors and they will continue to bloom until 2022.

Among them, investing with debt funds, buying up at the beginning, Fear of Missing Out (FoMO), swallowing raw recommendations, panicking or going crazy over fluctuations, not having trading or investing plan, not wanting to upgrade, and not diversifying.

For this reason, Pinto emphasizes the importance of smart investment. "Especially for millennials and Gen-Z, with the 3P principles: Understand, Own and Understand," said Pintor while attending an investment education roadshow entitled "IPOT & Sucor Jalan-Jalan: Atur Portfolio Jangan FoMO" Saturday, March 26.

In detail, Pintor explained, the Paham principle demands that novice investors need to make sure starting from the money that is allocated for investment, understanding, and setting investment goals, understanding their own risk profile, understanding the risk profile, and return of each investment product.

"And remember the principle of don't put your eggs in one basket, understand business and finance related to investment products and the various tools provided to facilitate understanding," said Pintor.

While the principle of Possession can be carried out by novice investors by ensuring that the company where they buy investment products is trustworthy, recognizes the SID and AKSes function, opens an account and owns the desired investment product, ensures transfers to the right account, has full access to top-ups and withdrawals and keeps usernames and passwords confidential.

Not only that, Pintor added, in the understanding principle, novice investors are required to check their investment accounts regularly or to ACCESS, monitor news and developments, and company performance related to investment products.

This includes monitoring price movement indicators so that they can take advantage of the right momentum to buy or sell, recognize various tools in mitigating risk, understand that investment is not instant (long-term orientation and requires effort that needs to be done regularly and regularly and remember that the capital market is dynamic," Pintor added.