When Covid-19 was declared as a pandemic in Indonesia, there was tension in our society. President Joko Widodo’s “Activities From Home” declaration seems to have caused concern everywhere, especially in urban areas. People immediately shut themselves up, bought a great amount of groceries, even bought dozens of boxes of masks. The gates in the neighboring complex were closed in order to prevent civil disorders that could “endangered” them.

 This policy and collective panic certainly made all productive activities stop at a halt. Shops, schools, companies, all have been forced to close in order to avoid the spread of the plague. As a result, IHSG (also known as combined company shares) dropped from the 16th-20th of March. Investors that invested before this period have suffered huge losses during this period of time. 

Amidst the Crisis, There’s an Opportunity

However, this economic and political crisis gave rise to a new batch of investors. These investors are often called as “Corona Investors”. These “Corona Investors” consist of those of old players and also new ones who have just joined in the game. Companies that had low prices during those times were bought up by experienced investors. These old players/investors raised awareness to promote investment through earned media, such as YouTube. 

The activity has created a market and opportunity for newcomers to try investing. Even though their investment capital isn’t big, the new players succeeded in increasing the number of investors circulating in Indonesia. Also, the PSBB policy seems to have begun to loosen up, and the public is accustomed to the “new normal”. The impact that many companies and stakeholders felt all the way back in March of 2020 had started to diminish. Companies are back on their feet, operations and productions are in a much better state, which triggers the country’s economic recovery.

 

But Are They Ready?

Investment is certainly very effective if you use a very large capital. This is due to the fact that larger capital invested leads to higher stability. However, the new players who invested with small capital cannot immediately enjoy their investment results. Plus, they are still beginners and do not have a solid foundation in investing. Perhaps, a lot of investing content invites the audience to be consistent and holds back greed. But if the initial mindset portrays investment as a “mone-making magic”, it will be difficult to survive in the world of the stock market. The new players who are desperate usually bet their savings on stocks. Some made an enormous fortune, but many were lost and fell into debt. However, it’s not all rain and thunder as there are also benefits new investors can gain even though it seems very risky on paper. Obviously, if you are interested in the money market, you have to start somewhere. Through investing small chips, you can learn lots of lessons regarding investing behaviors, be decisive, take action based on understanding the risks and rewards, and many more. Although it may seem like the old players are much more advantageous, new players can learn a lot by experimenting, and eventually it would better prepare them when a new booming opportunity arises. 

In conclusion, even in the “hype” condition for investing in this era, knowledge and patience must be required. Indeed, investment is more effective with large capita. But, retail investors with small capital can survive as long as they have learned the basics and are armed with the awareness that investing is not a fast way to learn money. New players can use this time to learn and study the old players’ behavior and moves to better prepare themselves for what’s to come in the world of the money market. 

Written by Jason A. Herwindra

Photos:
[1] Dreamstime
https://www.dreamstime.com/illustration/readiness/html

[2] Qoala
https://www.qoala.app/id/blog/keuangan/investasi/daftar-investasi-yang-menguntungkan

 [3] Flickr
https://www.flickr.com/photos/eneas/3471986083

Further Readings:
[1] “IHSG Tersungkur 14 Persen Sepanjang 16-20 Maret 2020” https://market.bisnis.com/read/20200323/7/1216701/ihsg-tersungkur-14-persen-lebih-sepanjang-16-20-maret-2020
[2] “Wihh, Jumlah Investor Saham Tembus 15 Juta Orang”
https://market.bisnis.com/read/20201206/7/1326933/wihh-jumlah-investor-saham-tembus-15-juta-orang