The year 2021 has come, investors and traders will start with new hopes this year, one question is What stock should you invest in?
Not only forex but stocks are also a fairly popular investment instrument and have been the choice of investors and traders till now. Stocks are very profitable long-term investment instruments.
However, there are also risks of stock investments. And you must understand them well so that you can maximize profits and minimize losses.
As a potential investor, before you decide to invest capital and buy stock. The basic thing you must have is the willingness to learn about stocks and identify your investment risk profile type.
To minimize risk, you should not buy shares that you do not know how the performance of these shares will only hurt you.
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Tips on choosing stocks
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What stock should you invest in 2020? Stock investment is also a type of risk investment, maybe in all businesses, there are risks.
But the level of risk varies, from low to high.
For low-risk investments, mutual funds are the choice, for moderate risk, stocks are the choice, and high risk, forex is the choice.
Before you decide on what stock you should invest in? the following tips might help you when investing in stocks.
Planning a stock investment target
Before deciding to choose stocks as an investment instrument, you need to make sure in advance, the goal invests these shares.
This does not only apply to stock investments, but also to other investment instruments. By knowing the investment objectives.
Hence you become motivated to be more enthusiastic about investing and know what steps need to be taken to achieve these goals, as well as the targets.
By having a target, your investment will be more focused.
Adjust to your capital
Something that is common from the investment field is the higher profit obtained, the higher the risk that must bear. Therefore, you must need to be smart in measuring your financial ability.
For beginners, it will feel safer if you start investing in a small capital first. Don’t make reckless decisions and do it with careful planning and be prepared to deal with various risks that may occur.
Prepare your capital
After having a plan by considering various possible risks, the next step is to prepare capital.
Because to buy shares requires capital money, then you must also know the rules of the selected broker will be the minimum deposit rules, for example, 100 $ as a minimum deposit and so on.
Because different brokers may also have differences in the minimum deposit rules, you must cross-check with the broker you choose.
Monitoring Stock news
Monitor news related to shares that you buy or before you buy shares, this will give an idea of how the shares are performing.
If the news released gives a negative sentiment then it is likely that it could affect the value of shares that might perform poorly.
Conversely, if the news released is news that gives positive sentiment then the possibility of share value will also rise.
The purpose of monitoring is to look at the condition of the company that issues shares, whether it is growing and developing in a healthy manner and getting profit or vice versa.
Use technical analysis
As an investor or trader, you need to learn how to do technical analysis. The goal, so that the stock you buy has the best buy and sale prices.
Also, observe the movement of stock prices by looking at stock price charts. This will affect the decision of buying or selling transactions.
If the stock price of the company is cheap, and you believe the stock has good prospects later, then this is the right time to buy.
Watch for External Risk of Stocks
In addition to the company’s internal factors, stock investment is also influenced by external conditions.
The value of stock investments can go up or down due to external factors.
Like economic conditions (economic slowdown or economic acceleration) in the country, global economic conditions, the stability of domestic political conditions, and so on.
Checking Company Liquidity
How to safely invest stocks is to understand investment strategies to minimize risk.
Before deciding to buy shares, you should check the liquidity of the company’s shares that you will buy. Are the stock liquid and good to buy or vice versa?
Read and learn the details of the company’s financial data. Perform fundamental analysis by looking at the value of stock prices.
Earning per share in the financial statements, to doing technical analysis by looking at trends in market price changes, both in terms of volume and stock prices.
Selectively Choosing a Securities Company or Broker
Not all securities companies or brokers are safe, choosing a broker is very important for investors or traders.
Can you imagine if you already get a profit from your investment, but when you withdraw the profit you get a problem because the broker fails to pay.
The first criterion in choosing a broker is the legality of the company, he must have permission from the regulator.
The second is to look at investor or trader reviews, if the broker has a good reputation, the trader will give a good statement and vice versa, if it’s bad, the trader will give a negative statement.
Best stock to buy now
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What stock should you invest in 2020?
The year 2020 begins with a phase 1 trade agreement between the US and China.
Surely this is good news because polemic may be over. But after all investors and traders may still have reason to be careful.
Because conflict can still happen again. But there are still some shares that are considered attractive in 2020.
FXtrending has summarized several attractive stocks for investment in 2020, obtained from several sources, one of them is Yahoo Finance, dan USnews
Here is summary hot stock 2020
ExxonMobil (XOM)
ExxonMobil is an American company based in Texas that is involved in all aspects of oil and gas production.
Founded in 1999 through the merger of Exxon (Standard Oil New Jersey) and Mobil (Standard Oil New York).
The Standard Oil Industry is broken up into 33 small companies, and the biggest is Standard Oil New York and New Jersey.
The ExxonMobil merger once again reunited these companies in the largest corporate merger in US history.
ExxonMobil has 37 oil refineries in 21 countries, making it the largest global oil refinery company.
Fundamental ExxonMobil
Being an attractive hot stock is quite surprising for Exxon Mobile because Exxon shares are bad at higher oil prices.
Exxon gives a 5% dividend which can be said to be just a game of value.
What’s interesting is that management estimates that the company’s revenue can double by 2025.
This may be they are too optimistic because it must also compete with other competitors such as Chevron (NYSE: CVX) and even BP (NYSE: BP) has eroded market confidence.
Companies that also have the potential to lead the electric car revolution Tesla Inc. (NASDAQ: TSLA) can influence demand and prices going forward.
Nathan’s Famous (NATH)
Nathan’s Famous, Inc. is an American company engaged in fast food restaurants, especially hot dog cuisine.
The restaurant was originally founded in 1916 by Nathan Handwerker, with a loan capital of $ 300.
This restaurant continues to grow and often holds annual contests for eating hot dogs.
The contest takes place in the original place where this restaurant stands on the corner of Surf and Stillwell.
Fundamental NATH
Although NATH has experienced a steady decline this month.
Revenues grow by around 8% in fiscal 2018.
There is a company agreement with John Morrell, who produces Nathan products for retail sales.
Meanwhile, sales continued to increase where foodservice sales also increased.
Many say the company’s license is quite interesting, so this is included in the list of attractive shares in 2020.
Bank of America (BAC)
Bank of America (BofA) is the third-largest bank in the United States.
The company is owned by Bank of America Corp., based in Charlotte, North Carolina.
Bank of America Corporation is the result of a merger between Bank America America and NationsBank in 1998.
Fundamental BAC
BofA’s own performance has been going well for the past few years.
The company’s credit services are solid and its shares have outperformed other large banks.
This reason makes analysts consider Bank of America’s large shares not over.
Roku (ROKU)
What is Roku? Roku Inc is a multimedia company engaged in broadcast TV broadcasting and advertising, established in 2002 by Anthony Wood.
Roku in Japanese means the six that describe this sixth company Wood started.
Fundamental ROKU
Roku inc. (Nasdaq = ROKU) is a risky stock, because so far this year the company has not been profitable.
But with more than 30 million users, this is an interesting stock, where it defeated Charter Communications (NASDAQ: CHTR) and AT & T only trails (NYSE: T) and Comcast Corporation (NASDAQ: CMCSA).
Best stock 2020 by USnews
The preferred shares of USNews are leading stocks with large market capitalization, there are a number of recommendations on what stock I should invest in.
- Alibaba Group Holding (BABA)
- Nexstar Media Group (NXST)
- Facebook (FB)
- AbbVie (ABBV)
- Medifast (MED)
- NMI Holdings (NMIH)
- Newmont Goldcorp Corp. (NEM)
- Healthpeak Properties (PEAK)
- British American Tobacco p.l.c. (BTI)
- Universal Insurance Holdings (UVE)
The company is a large company with a market capitalization in the number of millions of dollars and even billions of dollars, so the potential to become profitable shares is quite high.
Best performing stocks 2020 Malaysia
2019 became the year with the worst stock performance for Bursa Malaysia. Investors tend to wait and see so that stock performance records change where on December 31st, KLCI’s FBM fell 4.73% on a year-to-date basis.
However, low stock prices can trigger investors’ interest to take action that can push prices back up. Citing from the star, analysts have compiled the best stocks included in StarBizWeek 20 which they think will outperform the market.
Malayan Banking Bhd
Maybank’s performance is considered to have sufficient capital to increase cash dividend yield to 4.5% and become one of the stocks with large capitalization. Malayan Banking Bhd (Maybank) is Malaysia’s largest capitalized bank.
Over the past year, Maybank shares have dropped 2.48% to close at RM8.65. Most bank stock prices are on a downward trend in 2019 due to a decrease in the overnight policy rate (OPR) in May 2019. Maybank has a market capitalization of RM97.24 billion.
Perdana Petroleum Bhd
Perdana Petroleum shares may be a high-risk option because for nine months in 2019, he lost money and his turnaround was uncertain. This is a company engaged in the business of providing offshore support vessels for oil and gas companies.
According to Petronas’s report, the business of providing supporting vessels has a good future. This relates to the need for global exploration and production activities to withstand the decline in oil and gas production growth.
Carimin Petroleum Bhd
Carimin Petroleum BHD is a company engaged in the field of oil and gas services specializing in construction, hookups, commissioning, and the main maintenance of the top side and marine services.
The company distributes marine vessels such as work barges, accommodation ships, ship crews, and tugboats that handle anchors. The company has experienced steady growth over the past few decades.. They also serve underwater inspections, repairs, maintenance work, and services for the oil and gas industry.
They have partnered with well-known companies such as Petronas Carigali, Shell, Exxon Mobil, Murphy Oil, Repsol, New Field, Petrofac, HESS, and Nippon Oil.
Gamuda Bhd
Gamuda is a company that has a track record in building large construction, this is the best proxy company for large construction works in Malaysia. The company has rebuilt for Bandar Malaysia and East Coast Rail Link which were previously delayed.
There are reports that Gamuda has submitted alternative proposals for the construction of the MRT3 to reduce the government’s financial burden. MRT3 is part of the Kuala Lumpur Raya Integrated Railway System with a target of sharing public capital by 40% in urban areas by 2030.
MMC Corp Bhd
The company is engaged in investments that serve in the supply of construction and distribution of civil and liquefied natural gas. Produces specialized civil gas engineering construction and privatization operations. Highway port operations, property fabrication and mine management, installation of power plants, power transmission lines, public design, and construction light rail system.
MMC Corp is a company with a large market capitalization from its registered partner Malakoff with an expected net profit of 50%. Whereas in terms of sales of FY20 Gas Malaysia’s gas volume, analysts said it would increase in line with customers who had just been acquired.
Another consideration is that the acquisition of the Port of Penang is supported by the container terminal business and cruise terminal operations in collaboration with Royal Caribbean Cruises Ltd.
OCK Group Bhd
OCK is a company engaged in the telecommunications infrastructure space by providing services related to telecommunications towers. Its service space includes the ownership and leasing of telecommunication towers, network design, operation and maintenance, deployment, as well as mechanical and electrical engineering services.
The company has built around 4,200 towers spread mostly in Myanmar and Vietnam and manages more than 20,000 towers for telecommunications operators such as Celcom., Maxis and Digi.
JHM Consolidation Bhd
The company is engaged in technology investment / electronic manufacturing services. One good achievement is that the company has received an order to purchase engine parts with an estimated value of US $ 1 million per year.
Analysts are still optimistic about the company’s potential to get more orders, with a potential value of US $ 3 million per year. Another reason is the possibility of orders for the automotive segment in 2020, with major customers in the United States.
The next reason is that JHM has the potential to win more orders from new customers due to the US-China trade war.
Final Thought
Read also What is Bursa Malaysia? Malaysia stocks exchange
What stock should you invest in
Stock investment is one way to get attractive profit, as an investor will have broader knowledge related to the company which is the priority of the chosen stock.
There are still many interesting stock options, but if all of them are summarized, it might create confusion as to which stocks are ultimately selected.
And buying shares will somehow adjust to your financial capabilities if you are only an individual investor.
Behind all options above, you can find other references that will make you more confident with the choice of shares to be purchased.
And the last choosing a trusted broker is an important part of investing if you use a certain platform.
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