Illustration of Buying Shares with IDR 500,000 (50 usd) Capital (Diversification Strategy)

Buying shares does not require a large minimum capital. If you want to understand more, please read my post: Minimum Capital for Stock Business. But, of course you have to aim for stocks whose price is below Rp. 1,000, if you want to buy Gudang Garam (GGRM) shares whose price per share reaches Rp. 55,000, then of course Rp. 500,000 will not be enough, even to buy 1 lot. .

"Then, what stocks are priced below Rp1,000, but can potentially generate money for me?" Ask you.

I've grouped the price of liquid stocks, from my observations, into several categories "cheap", "medium" and "expensive". Please read the post: "Cheap, "Medium" and "Expensive" Stock Price Categories.

Well, if you have a capital of Rp. 500,000, it is better to study first. And, it would be nice if you use a diversification strategy. If you don't understand diversification, read the post: Stock Diversification or Concentration?. How to use the right diversification strategy, read the post: Using the Right Stock Diversification.

Why diversification, not concentration? Because if you have a capital of IDR 500,000 and want to learn first, then if you only buy one stock (concentration), then suddenly your stock price drops, you have no other stock reserves.

Okay, now I give an illustration of buying shares with a capital of Rp. 500,000, using a diversification strategy. See the illustration below (the stock price is in accordance with the conditions in the real time stock market).

You have trading capital = IDR 500,000 (five hundred thousand rupiah)

You plan to buy 4 shares, namely PWON, GIAA, SSIA, JPFA saham

* Try not to spend your funds to buy. Leave a few thousand Rupiah.

Now, see the calculation of buying shares in the table below (click to enlarge):

From the illustration above, you can see that with a capital of IDR 500,000, you can buy several shares, with a minimum purchase of 1 lot of shares. In fact, with a capital of IDR 500,000, you can buy 4 shares, with a certain price range.

Based on the illustration above, if you resell your shares, you can see that the profit you get is Rp. 22,000 (twenty two thousand Rupiah). So, buying shares with a capital of Rp. 500,000 is not impossible.

Perhaps you ask: "What is Rp22,000 for, how come it's so small?" Once again I emphasize, that the purpose of small capital is to learn. What I care about here is how you can do technical analysis well. Read the post: Mistakes: Main Motive of Trading/Investing for Money. Read the post: Minimum Capital For Stock Business.

Gotou Sakurajima A female trader from Japan who now lives in Jakarta, Sakura loves Forex and Stock Trading since moving to Jakarta and Sakura loves to write articles about Trading.