Read the previous part: Become a Stock Trader or Investor? - Part IV. You need to know, to become an investor, you not only need fundamental skills, but you must have a strong mentality. This means that as an investor you shouldn't be selling a stock when its price has only gone up 15% in a few months.
His name is also an investor, the shares you hold should be kept for the long term above 1 year. On the one hand, as an investor, you have to endure if you see your stock price suddenly drop, and you still have confidence that the stock price will turn up, because your fundamental analysis has stated before.
For example: You buy AABB shares at a price of Rp. 5,000. Five months later your share price rises to Rp6,100. Suddenly, because Indonesia is hit by bad news, and coincidentally these news have a big impact on the line of business sector you invest in. Your share price also goes down. From 6,100 down to 5,500.
Then it dropped again to 4,500. An investor when he sees a decline in his share price, will not immediately make a cut loss. However, they have a strong mentality and principles by holding on to their shares (hold), because your fundamental analysis has said that the company has prospects and the price will return, unless something unexpected happens (for example: the company suddenly changes business lines).
Take a look at investors who have been successful as investors in the capital market, for example Warren Buffet. He held shares for a very long period of time, did not sell his shares even though the share price had decreased. Even though the American stock market is being hit by bad news though.
Also pay attention to Indonesian investor Lo Kheng Hong, who is dubbed the Warren Buffet of Indonesia. One of the shares held until now is PTRO. I can say Lo Kheng Hong's PTRO shares have decreased, but he did not sell his shares. Why? Because he has principles and mentality as an investor, not as a trader.
An investor even dares to buy sleeping stocks, if their analysis considers that the company has extraordinary prospects. In fact, until the next few months when the shares are still sleeping, the investor will not release their shares. In contrast to traders, if you see a sleeping stock, it is definitely 100% avoided.
Well, if you are a typical patient person, you can't even stand it if you are constantly looking at the monitor screen. You are also supported by good fundamental analysis. Then you are the type of investor. Indeed, there are still many traders who claim to be investors, even though they are not strong enough to see the stocks that are kept go down, eventually they are immediately sold.
If you are more suitable to be a trader because your character is never able to keep stocks for a long period of time, but you insist on being an investor, you may end up losing instead of making a profit. On the other hand, if you really like growing companies and your long-term analysis is strong, you can keep good stocks, but you insist on being a trader, then you will get losses.
So, being a trader or investor there is nothing better, and nothing worse. So through this post, at least I want to give you an idea: you have to determine whether you are a trader or an investor, in terms of direct practice in the field (stock market).
