Typical Criteria for Stocks Suitable for Trading

Rancakmedia.com – Joseph Gabetua Senior Analyst at Creative Trading System, claims that there are at least three typical stock criteria that are suitable for short-term stock trading. Traders or money seekers on the Indonesia Stock Exchange (IDX) with a short term must not only have the ability to manage money (money management), but also must be precise in determining which stocks can generate money.

To start with, fluctuating stocks, such as those on the Indonesian stock exchange. Second, pay attention to the stock trading volume.

Stock Typical Criteria

“For short-term trading, volatility may be a factor to watch. They are wary of price spikes, market leads, and other anomalies," said Gabetua at the CNBC Indonesia Investment event, Friday (11/5/2021).

For this reason, short-term trading is more attractive to traders when stocks are sought and dissected from their volatility, which stocks have had interesting and high movements recently, he said.

Second, according to him, traders are encouraged to look for stocks that are superior in certain stock indexes.

"Find a lot of fund managers or mutual funds that do benchmarking to the index," he said.

Thus, the IDX has many different stock indices, such as the JCI (reference index), sector indices (such as property, finance and consumer spending), as well as indices for the LQ45 to IDX30 categories.

"So there are three, namely volatility, look at the volume, and to be safer and not trapped, see what the index is like," he said.

On Monday's trading (8/11), JCI closed in the green zone driven by rising sentiment for energy commodity prices, especially Chinese coal.

The national benchmark stock market index closed up 0.77 percent to 6,632.297. Throughout today's trading, JCI traded in the green zone without ever approaching the red zone.

However, the JCI is still unable to approach its all-time high in 2018, namely at the level of 6,693.4.

Conclusion

Traders or money seekers on the Indonesia Stock Exchange (IDX) with a short term must not only have the ability to manage money (money management), but also must be precise in determining which stocks can generate money.

Joseph Gabetua, Senior Analyst at Creative Trading System, claims that there are at least three typical criteria for stocks that are suitable for short-term trading.