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INVESTMENT MANAGEMENT SOLUTIONS FOR BEGINNER INVESTORS

Investment management in the increasingly complex financial revolution has become a non-negotiable necessity for investors.

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INVESTMENT MANAGEMENT
 
Investment management in the increasingly complex financial revolution has become a non-negotiable necessity for investors.
 
This is because the rapid flow of news circulating through various social media platforms often leaves novice investors confused. 
 
Therefore, investment management is the best solution for investors who want to build their business portfolios safely. 

What is investment management? 

Literally, it relates to professional financial services in the field of investment portfolio management. This portfolio includes market analysis, asset selection, risk management, and trading monitoring. 
 
To manage this portfolio diversity, it is usually handled directly by:
  1. Investment managers 
  2. Professional financial advisors 
  3. Professional fund managers 
Their goal is to help investors grow their assets. Therefore, it is not surprising that many novice and experienced investors always use investment management services for the following purposes: 

1. Helping them reduce market risk 

Modern financial research shows that portfolio diversification can reduce the potential for significant losses. This concept is heavily influenced by the investment theory put forward by Harry Markowitz in his book, Modern Portfolio Theory. 
 
So, essentially, investment management services always ensure the longevity of your portfolio. 

2. Avoid emotional decisions 

Legendary investor Warren Buffett said, "The biggest problem for investors is managing their emotions, not choosing their stocks." 
 
Therefore, if we observe closely, an investment manager always bases their work on data and strategy, not just emotion. 

3. Proven, Research-Based Strategy 

Many studies have shown that regular rebalancing can maintain portfolio stability. Fundamental analysis can also predict long-term returns. Quantitative models can also identify opportunities that are invisible to the average investor. 
 
Therefore, investment management will combine the following: 
  1. Using modern technology 
  2. Fundamental analysis of the global economy 
  3. Proven financial theory 
  4. Experience of practitioners 
  5. Investment Management Offers 

Invesment management offers

Currently, many investment management services offer free mentoring to investors. For example, WhatsApp-based investment groups are widely available on Facebook. I personally took a mentoring class from Mr. Budi Sutrisno in the elite stock group. 
 
From the class I attended, it was clear that the advice Mr. Budi provides extensive data-based recommendations, including recommendations for top stocks to buy. 
 
These recommendations are quite effective and can generate profits for investors who attend his classes. 
 
However, on the other hand, investors sometimes panic when analyzing worrying market situations. At these moments, he calms investor emotions by providing sound technical or fundamental analysis. 
 
It's important to understand that using investment management services with the authority to manage 100% of their assets also requires economic knowledge. 
 
Because they often use a lot of technical terms to explain capital market situations, it can sometimes be confusing
 
So, it's a good idea to gradually learn, even if only for basic knowledge, while investing. 

Various stock trading terms: 

  1. Portfolio = list of all stock prices
  2. Bullish = belief that the stock price will rise 
  3. Bearish = belief that the stock price will fall 
  4. IPO = initial public offering of shares of a company 
  5. ARA - maximum limit for stock price increase in one trading session 
  6. Dividend = distribution of company profits to shareholders 
  7. IHSG = composite stock price index 
  8. Point  = unit of change in value a stock 
  9. Sell = a transaction position to sell shares 
  10. Buy = a transaction position to purchase shares 
  11. Lot = the number of shares traded 
  12. Sideways = a stock price that moves sideways 
  13. Support = the lowest level of a stock's price but is in a strong position that will move back up 
  14. Resistance = the highest level of a strong stock price that will reverse down 
  15. Technical analysis = a stock analysis that looks at price charts, transaction volume, and movement patterns 
  16. Fundamental analysis = an analysis that looks at financial reports, company performance, and business prospects 
  17. Fomo = Fear of missing out on an opportunity, leading to buying shares without thorough analysis 

Conclusion 

Investment management is a solution that can be an option for various types of investors, whether they are beginners or professionals. 
 
However, even if using these services, a novice investor must have basic knowledge related to the world of stock trading. 
 
sofyanto
sofyanto
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