Strategy and Risk of Investing in Capital Markets

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Investment capital market, investors are fully aware that in addition will benefit but also is likely to experience losses. Gain or keragian is very dipengarahi by the ability of investors menganalsis circumstances and possible stock price fluctuations in exchange rates. Therefore berniain in the stock market does not have a guarantee to get the capital gain is the excess of purchase price and selling price of shares of stock. Thus playing on the Stock investors would very likely also have capital loss.

Several strategies can be used in investing on the Stock Exchange in particular in the form of shares are as follows:

a. Collect some types of stocks in one portfolio.

This strategy may reduce the investment risk because the risk will be deployed to different types of stocks. On the one hand the opportunity to earn substantial profits. Investors, according to this strategy, first of inforaiasi gather and conduct an analysis of various types of stock and then pick a few stocks in accordance with the ability of funds, the stock is selected and dibeii portfolio. If any of these stocks that have price penuranan removable and replaced with another stock that is better. Then if the shares are released before the price has reached bottom, can be considered to be bought back if the companies concerned showed a good performance and prospects. With this strategy the losses can be more dispersed. Losses in one type of stock can be offset by gains padajenis other stocks.

b. Buy in the primary market and sold it listed on the stock.

c. Buy and Save.

This strategy can be used if the investor has confidence based on the analysis that the companies concerned have enough prospects to grow rapidly the next few years so that its shares are expected to experience a substantial increase at the time.

d. Buy Stocks Sleep.

Stocks are stocks yangjarang sleep or never existed in the transaction. Shares of sleep can be caused by a listed stock jumiah terlaiu little or dominated by institutional investors and owners of old shares (company founder). Or can be isebabkan as performance is concerned about whether the company or its business prospects are less bright so that investors receive less attention. Such stocks tend to price undervalued. Buying stock investor patience is required to sleep on the patience of investors to the stock price development of the company concerned.

e. Switching strategy of stocks with one another.

Investors who merailih this strategy tends to be more speculative. They will quickly pulled off the expected stock price will experience penuranan or rush to buy shares under the presumption that rates will rise. These types of investors are not concerned with the distribution of dividends due to the nature of short-term investments. Such investors should always follow the movement or change in stock prices in the Exchange.

f. Concentration on a particular industry.

This strategy is more suitable for investors who really mastered the conditions of a particular type of industry, so knowing its development prospects in the future. Therefore, investors can choose either a stock company that owns a business in the industrial sector concerned.

g. Mutual Funds

Make investments by purchasing units or shares diterbitka by mutual funds. This strategy is suitable for investors who do not have enough time to do a market analysis or no access to information. These types of investments to maximize profits at certain risk level. Cenderang novice investor usually choose this type of investment.

Investment Risk

Basic strategies of investors that will improve the performance or value of the investment portfolio for the better is to always follow this principle: "keep your alpha beta high and your low" Implicit in this principle means

that how to measure risk (beta) so as to compare the rates of return (alpha) is to be obtained. Predicting the risk of the investment is quite complex and is always the question for investors is how to measure an individual's risk of a share of the total portfolio investment in capital market risk in principle solely related to the possibility of fluctuations in prices (price volatility). Risks faced by investors may be able to include the following:

a. Purchasing power risk (purshasing power risk).

Nature of the investors in dealing with risk factors in the stock market is made up of two, investors who do not like risk (risk averter) and the investor would like to challenge the risk (risk averse). For the first category of investors will be looking for or choose the type of investment that will benefit a number at least equal to investments made before, In addition, the investor expects to earn income or capital gains in the not too distant. However, if the investment takes 10 years to reach 60% gains while the rate of inflation over this period has increased over 100%, then the investor will receive a clear advantage of its purchasing power is much smaller than the gains that can be obtained initially. Therefore. purchasing power risk is related to the possibility of inflation causes the real value of revenues will be smaller.

b. Business risk (business risk).

Business risk is the risk of declining ability to earn profits, which in turn would also reduce the ability of perasahaan (issuer) to pay interest or dividends.

c. Interest rate risk (interest risk)

Rising interest rates generally depress prices types of securities are fixed income, including stock prices. Typically, the interest rate increase goes in line with the prices of capital market instruments. With the rise in interest rates, certainly will lower the prices of capital market.

d. Market risk (market risk)

If the bull market (bullish) generally almost all stock prices at the Stock Exchange has increased. Conversely if the sluggish market (bearish \ shares will also decline as well. Changes in market psychology can cause securities prices tumbled despite the existence of fundamental perabahan perasahaan profit ability.

e. Liquidity risk (liquidity risk)

This risk relates to the ability suatii securities to be traded to without suffering significant losses.