Getting to konw investment in stocks

For a friend.

1. Begin by reading the definition by wiki. Outline 5 terms you can't seem to understand. Google them. Do 5 more from each of the first 5 you finished. Make a mind map.
2. Start reading some materials: here and here. You have your questions, some hows whys and wtf-s. Easy, calm down.
3. Pick 3 stocks. Any 3 stocks. Allocate Rp. 1000 for each stock. Check out prices of those stocks the next days and again for the 5 working days. Adjust your allocated Rp. 1000 by dividing the most current price with the one before (Example: today's price is Rp. 246, while yesterday's Rp. 240, then your Rp. 1000 has turned to {246/240}*1000= 1025). Count your rupiahs at the end of the fifth day. That is your return on investment. Enhance your mind map from this experience and any wikis you've read.
4. Search this: intrinsic value.

Those are simple preparations for your knowledge. This is 50% of what you need. The rest is simply trying to get closer to the real experience as possible. Get closer with safe and small steps as you see fit. Eventually, you have to trade real stocks and feel the sensation of watching your stocks fly or plummet. I find it similar to bungee jumping.Try not to overwhelm yourself, the key in trading is self-control and perseverance. There is no "The Way" to trade. You have to adapt it with your tolerance to risk.



Have fun.