Jakarta, CNBC Indonesia – As is well known, on September 4, 2023, the Indonesia Stock Exchange (IDX) has implemented it upper and lower auto rejection percentage limits symmetrically stage II. With this policy, investors certainly have the opportunity to buy shares at a much lower price than during the last pandemic in two trading sessions.
In early 2017, the IDX implemented symmetrical auto rejection, namely the percentage of the lower auto reject limit (ARB) adjusts the percentage of the upper auto reject limit (ARA) according to the price fraction.
At the start of the 2020 pandemic, the Indonesia Stock Exchange (IDX) changed the ARB limit to 7% for all price fractions from March 13 2020 until some time ago with the aim of allaying panic among market players as the Jakarta Composite Index (IHSG) plunged.
This policy also makes stock investors who have just started investing in 2020 or Corona class investors finally feel symmetrical ARA and ARB.
In fact, this will bring up two possibilities for the investor. When the stock drops deeply, investors can buy at a very low price either for the first buy or averaging down. But on the other hand, the losses you get can get bigger because the shares you buy can collapse up to -35%.
So how do we respond to this phenomenon? Here’s the review.
Do not carelessly choose stocks
There will always be a good reason why the price of a stock can fall. Therefore, it is very important for you to buy stocks with good fundamentals.
This of course applies to both investment and trading matters.
Symmetrical ARA and ARB certainly provide opportunities for you to get stocks with good fundamentals at discounted prices. But make sure that the shares you buy are not cheap stocks.
Don’t be greedy for no apparent reason
The temptation to buy stocks with large capital when the price drops is quite high, especially for those who are eyeing large profit potential. But don’t ever do that without a clear reason let alone because many people join in.
It could be that the sharp price decline was due to the fact that the market still considered the stock to be too expensive, or the issuer’s prospects were not bright in the long run.
Study financial report analyzes so you can understand the financial health of the company you want to buy, and get to know the business so you can get a clear picture of its future prospects.
Practice good financial management
Don’t let the stocks you are eyeing suddenly have ARBs, so all the money is immediately used to buy these shares.
Always remember that money management is the thing to do. Make sure you use cold money in investing or trading stocks, and also control the money you use to buy stocks.
Don’t blow your cold cash on just one purchase. The share price may fall again in the future.