Today, stock investments are increasingly popular. Because the stock is one way to invest that is not difficult and can be very profitable. If you want to try stock investing, as a novice investor, you need to know the various safe tricks of the “game” stock. Of course, this is so that you do not lose money in the future and get the greatest possible profit from your stock investment.
Knowing about JCI is the first step that can be done before trying stock investment. There are a number of jargon or terms related to JCI that need to be known by novice investors. Check out the following review.
What is IHSG?
Please note that CSPI is an abbreviation of the Composite Stock Price Index. CSPI is also known globally as the Indonesia Composite Index (ICI). Some call it IDX Composite. Furthermore, IHSG is a stock market index that is effectively used on the Indonesia Stock Exchange (IDX). This index is a list of all shares currently traded on the IDX.
In general, the CSPI is used as a reference for increasing and decreasing the stock investment market nationally and internationally. In addition to CSPI, Indonesia also has other stock indices, including the Kompas 100 Index, LQ45 Index, Sectoral Stock Index, and so on.
A series of benefits from understanding JCI
Although the CSPI is just average points and percentages, monitoring the movement of the CSPI can also help in knowing the economic conditions in this country.
Another benefit of the CSPI is to inform investors when they can add funds to certain company shares or even withdraw funds or sell their shares.
For novice investors, the benefits of the JCI are as a matter of consideration that is quite accurate in conducting transactions, especially for buying liquid shares (shares that are easily traded) on the LQ45 Index.
Some Important Jargon related to JCI
There are several main jargon / terms that are closely related to CSPI, namely:
- Bubble
In the dictionary of economic jargon, bubble describes the soaring stock price drastically. In fact, this price increase is sometimes very unnatural and exceeds the normal stock price conditions of a company. Bubbles can occur because of various unexpected events, for example when President Jokowi was elected in the 2014 election. At that time, stock prices suddenly rose sharply.
- Fluctuations
As with KBBI (Big Indonesian Dictionary), even in the world of shares, fluctuations mean increases and decreases in stock prices. Fluctuations in stock prices can occur because of the existence of stock trading mechanisms. Fluctuations in the JCI are normal.
- Portfolios
This portfolio means a collection of investment assets in the form of shares owned by both companies and individuals.
Also read: Understand These 4 Things in the Investment Portfolio!
- Liquidity
Liquidity in the JCI term list is a measure of the number of stock transactions in the capital market in a certain period. High liquidity means high frequency of stock trading activities.
- Buyback
Buyback in the world of shares is the act of buying company shares back from the public.
- Capital Gain / Loss
Capital gains in JCI dictionary jargon is a profit achieved by a stock investor. The profit is the result of the difference in the total selling price of the shares less the total purchase price of the shares.
Conversely, the definition of capital loss is a result of the difference in the selling price of shares that are lower than the purchase price. Capital loss is a loss for a stock investor.
- Cut Loss
When an investor decides to sell his shares back, that is called cut loss . This aims to avoid more severe losses. Meanwhile, the term hold is the opposite of cut loss , which is to hold existing shares.
How is the Explanation about JCI Fluctuation?
Based on the list of jargon above, you can find out that the JCI movement is a crucial benchmark for stock investors to know – both individuals and companies. Therefore, the IDX always publishes accurate information related to stock movements via print and electronic media.
A simple explanation of the JCI points is the average number of the total shares listed on the stock exchange. That is why IHSG points usually go up and down along with the movement of stock prices in the stock market.
The last thing you need to know about CSPI is stock prices which can be greatly affected by internal and external conditions of a company. For example, in large-scale factory worker demonstrations, stock investors will usually feel worried, then sell their shares slowly. As a result, some shares will experience a price decline. This can also reduce the JCI points.
So, are you ready to become a stock investor? Good luck!
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