If we have the forecasts of financial analysts, 2018 is not going to be an easy year for the interests of small and medium investors. Of course the success of your operations It is not insured, far from it. All forecasts indicate that it will be full of obstacles and it will be more difficult to generate benefits in operations carried out in financial markets. From this general scenario, prudence should be one of the common denominators of your actions. Because in any case there is one thing clear and that is that this year the business opportunities will also return. And nothing better than being prepared to take advantage of this situation.
One of the risks of the operations carried out this year is that they materialize under strong corrections. In this sense, you cannot forget that international equities have been rising for many years, perhaps too many. And at any moment they should adjust positions between buyers and sellers. The bad thing for your interests in the stock market is not that these corrections occur. If not, on the contrary, a change in trend is generated in the main equity indices. Going from bullish to bearish. To the point that you can see yourself hooked in your positions. That is, very far from your purchase prices.
Another aspect to be aware of is what is going to happen with the Interest rate. Both on one side and the other of the Atlantic. Because, depending on this important parameter, bags from almost all over the world will move. But in all cases, and to help you plan your investments from now on, nothing better than a series of tips on what you have to do. With the aim that you can optimize operations more effectively during the twelve months that lie ahead. It will not cost you much and instead you can have a certain advantage in the movements you make from now on.
Tips: select values
There is no doubt that one of the keys to reaching the destination in better conditions will be based on choosing better values. In this sense, you must select those values that have a better behavior in the financial markets. There are sectors that will surely do better than others. With differences in their quotes that can represent a lot of money in your checking account balance. This is where you have to direct your financial contributions from now on. As for example, in the electricity companies that are more defensive and very apt to effectively protect your positions in the stock market.
Another of the bets is represented by the securities that have a very high dividend payment. If possible above 5% and as a formula to have a fixed income within the variable. In this way, you will have a fixed and guaranteed income every year. Regardless of how the shares are traded on the financial markets. Not only from the electricity companies, but in other strategic sectors such as oil, communications and even the odd bank. If you opt for this strategy, of course, you will be more protected against the most adverse scenarios of the international economy. This is a very conservative technique but it almost always pays off in the form of results. Whatever profile you present as a small and medium investor: defensive, aggressive or intermediate. Do not miss this opportunity that is presented to you in 2018.
Leave some liquidity in the account
If you want to preserve your heritage, nothing better than to allocate only a part of your capital this year. Precisely the one that you will not need in the coming months. It will be a very effective strategy to face the possible losses that your operations in the equity markets may generate. And if possible supported by a stop loss order so that the handicaps do not go to more during this exercise that has just begun. Any security measure will be little to attend to the unfavorable scenarios that the stock market may present from now on.
On the other hand, enjoying liquidity in your checking account will allow you to have greater business opportunities this year. Something that will undoubtedly happen, regardless of how the financial markets evolve. This is one of the most important reasons for don't invest all your money at once. You can start with small operations little by little and if the conditions are favorable you will have time to increase your positions. In this sense, it will be the markets themselves that will provide you with the guidelines for action in 2018.
Diversify investments
Another key to optimizing operations is based on not concentrating on a single financial asset. If not, on the contrary, distributed among several. Even coming from different financial products. Not only of variable income, but also of fixed income and even from alternative approaches. In this way, you will be in a position to increase profits in the least favorable scenarios for the financial markets. But it will also be the most correct strategy to limit losses when the situation is not as desired.
This method of investment can be executed under the percentages most conducive to the profile you present as a small and medium investor. Not surprisingly, it allows you to be very flexible in all the operations you carry out during this new trading year. And that you can even take it to financial products as popular as investment funds.
Opt for active management
This strategy is highly valued for difficult periods in financial markets. Not surprisingly, it protects you from unwanted effects that can take you a lot of money in operations. In addition, it allows you to adapt to all scenarios, even the most negative ones. With a constant renewal of your investment portfolio. Where the flexibility It should be the common denominator of a good part of your performances. With an improvement in their results. On the other hand, there are investment funds that are made under these characteristics. Where you yourself will not have to do anything, but it will be imposed on you by this special product.
Search for new opportunities
They are place to doubt, you should not give up excellent operations that lead you to generate large capital gains. For this, you will have no choice but to be very attentive to the evolution of the different financial markets. Not only through the purchase and sale of shares on the stock market. But in other alternative media, such as the precious metals, raw materials and even some more exotic ones. They can give you more than one joy at some stage in the next twelve years. In order for you to achieve these goals, you must be very open to any kind of investment. Even with those that you have never operated in your life.
Rebound in banking products
During this year interest rates will increase on either side of the Atlantic. A factor that you can take advantage of due to the better profitability that banking products will offer you. Among them, term deposits, promissory notes or high-yield accounts, among some of the most relevant. With margins that can already approach the levels close to 2%. A percentage that you have not achieved during this year that is gone. Where you could rarely exceed 0,5% interest
Moreover, the peripheral bonds they are another profitable option for small and medium investors with a more defensive profile. They will not offer really spectacular returns, but at least you will have more security to preserve the capital plus a small profit. To the point that it can be one of the investments that surprise more than one user. These bonds can be formalized individually or in an investment fund format. In any case, don't forget this bet if you want to spend a few quiet days during 2018.
Apply the inverse products
This tip is intended for the most aggressive investors. Due to the negative outlook from certain financial analysts. In this way, inverse products can greatly improve bearish scenarios in equity markets. But due to the great risk that their operations entail, it is advisable that the movements that you make from this moment are small amounts. Because you can also lose a lot of euros along the way. Not in vain, it is the riskiest bet that we propose to you now.
Defensive securities on the stock market
Within this market, the most conservative values will be the most favorable to defend your interests. Among other reasons because they are more stable in their quotes. But it is also that they provide you with very attractive dividends. With an average interest of around 5% And that you will have in a fixed and guaranteed way every year. Regardless of the evolution of your actions in the financial markets. In all cases, they will offer you a higher return than that provided by financial assets from fixed income.
The brick returns
After many years of stagnation it is time to head to the construction sector. In this sense, Spanish equities are stocked with ample proposals to satisfy your demand. From different approaches and covering different lines of business. They are values that can pick up the good scenario that is presented to the brick sector. This may be the time to open positions in any of its stock market proposals. One of the most profitable bets with the new economic scenario in Spain.
Thank you very much for the advice. The truth is that they are of great help because I started trading a while ago and although my broker has helped me educate myself, it is good to train independently. That is why I always read articles like this. I hope they continue to publish similar information.