How To Choose Shares For Daily Trading, Mandatory Tofu!

Trading illustration (Photo: Pixabay/Sergeitokmakov)

YOGYAKARTA For those of you who want to dive into stock investment, you need to determine the position first, whether as an investor or a trader. Investors usually buy shares for long-term purposes. Meanwhile, a trader only has related assets in units of months, weeks, days, or even minutes.

Well, for those of you who choose to be traders in stock trading, here's how to choose stocks for daily trading in order to get maximum profit from the invested capital.

The most important thing that traders must pay attention to when determining the target shares is stock liquidity. Liquidity is a term used to describe whether or not a sale and purchase transaction is a asset in the capital market.

Liquid shares are marked by always order queues at price fractions at demand prices (bid prices) and offers (offer prices).

Generally, stocks with high liquidity are offered in high quantities, so whatever transactions are made by a trader, it will not affect the overall price level..

Currently, the Indonesia Stock Exchange (IDX) accommodates shares that are included in the liquid category in the form of a stock index such as IDX80. The presence of this stock index enhances the existing stock index, namely IDX30 and LQ45. In addition, the presence of IDX80 also makes it easier for traders to choose the best assets for them.

A trader needs to pay attention to stock price changes (volatility). This is because traders take advantage of asset price changes in the short term.

A trader is advised to choose stocks that have a price volatility rate of around 3% in one day so that profits can be maximized but the risk can still be controlled.

Traders are also advised to use indicators such as doji candlesticks in order to observe price changes as well as the volume and frequency of an asset transaction. The goal is to prevent traders from buying fried shares.

Although technical analysis can be used for all assets, part of the stock price movement is quite difficult with technical analysis methods in one particular period.

To avoid losses, daily traders should avoid stocks that have characteristics like this.

Sentiment to companies has an important role in stock trading. This is because good sentiment can encourage traders and investors to buy related shares so that they have the potential to raise their prices.

The sentiment that needs to be considered is sentiment or issues that can affect daily stock prices. Even so, there is usually a time lag before positive or negative sentiment can affect related stock prices.

Information about this sentiment or issue can be obtained on various economic news pages, trading communities or other sources.

How to choose stocks for trading the last day is to compare stocks that have been selected with the Composite Stock Price Index (IHSG) or the index representing the stock industry.

This is because stocks that have strong correlations with the index tend to rise 2 percent when the related index rises 1 percent. On the other hand, if the index price is depreciated, traders are advised to make short selling transactions.

That's the information on how to choose stocks for daily trading. Hopefully this article can add insight to VOI.ID readers, especially for those of you who want to enter the world of stock investment.