PORTALJABAR, BANDUNG CITY - Investing in shares is an attractive fund-raising activity for investors. However, to invest in shares in the capital market, investors must carry out an analysis first before choosing shares that will be included in the investor's investment portfolio. The goal is to ensure that investment results (returns) are as expected and minimize the risk of loss.

Head of the Indonesia Stock Exchange (BEI) West Java Representative Office, Achmad Dirgantara, said that there are two types of stock investors, namely investors who focus on fundamental analysis and investors who focus on technical analysis.

"Investors with fundamental analysis will focus on long-term investments in stocks that have good fundamentals. Meanwhile technical investors will focus on short-term investments or are called traders," said Achmad, Friday (21/6/2024).

According to Achmad, novice investors can easily get carried away by stock "pump and dump" actions, or the actions of a group of speculators who make a stock appear to be in demand by many buyers and the share price rises.

"Actually, the performance of the shares that are used as material for speculation is not very good. But they are made to appear as if they are very attractive. Investors who are fooled will think that these shares are good and worth buying," said Achmad.

"When many ordinary investors have bought, and the share price continues to rise, the bigger investors immediately sell their shares so that the share price falls again, and ordinary investors who bought at inappropriate prices have to bite the bullet," he added.

Achmad emphasized that to avoid being fooled by unreasonable price increases, investors must learn how to measure share price valuations. The aim is to assess whether the share prices on the stock trading board are reasonable, cheap or too expensive.

"By understanding this share price valuation, investors can avoid the actions of speculators who intend to manipulate the market," he said. (Parno)