Indonesia Stock Exchange (IDX) is never been this swift. It was raised by 135% from January 2005 to January 2008. At that time foreign and domestic investments are growing at grat level. The economic growth of Indonesia was high, and inflation is stable. The rising price of crude oil is also an advantage aspect because many companies in Indonesia are conducting their business in energy mining, commodities, and natural resources sectors that are following the crude oil price movement.

Those are some of the reasons why peple investting their money in to in the financial market, especially stock. The results, in the year 2007 to 2008 Jakarta Composite/IHSG (Indeks Harga Saham Gabungan) keeps breaking record high, until it reach its high 2831.25 in 14 january 2008.

Present time, it is approximately only 500.000-600.000 persons or less tha 1% of Indonesian citizen who invested on the stock market. It is a very small number comparing with other countries, including its neighbours, Singapore and Malaysia. Lack of financial knowledge and low economic level problems may be the main reason why Indonesian people dislike stock as their alternative investment. On other side, the growing number of investors in Indonesia will trigger higher demand and higher price.

Stock market offers an alternative investment with greater return and risks than conventional bank deposit. Investors need to aware the risk of investing, understand the mechanism and the opportunity in the stock market in order to succeed. Understandings of the macroeconomic are crucial, while financial statement analysis, industry analysis, and personal experience plays as great role. Other parts, like rumors and corporate actions are indisputable as well. Like other job, investing takes skills and experience, however without the proper basic, the development will be limited or lengthy.

This essat objective is to provide common people with simple, applicable and brief guide to invest in the stockmarket. Many investors are not geared with the proper knowledge. At bullish trend, maybe most investors will earn profit, but at the downward trend, unprepared investors will suffer the most.



Research Location : PT. Bahana Securities



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