Investors can often ask themselves many questions that may not be answered for many reasons. In this article we will reflect some of the concerns that we can host in more than one moment and of course we are going to respond to them. It can be a reason for you to choose to monetize your savings through the equity markets. In a safer way and protecting your positions.
With such common questions as what should I do with my investments on this next vacation? Now that we are so close to these expected dates. But like other approaches that can be very interesting for any small and medium investor who wants to take positions in the equity markets, but with greater security. Of course, it can be achieved through some of these questions that we are going to ask you. They can help you channel your investments in a more correct way.
At the end of the day, what it is about is that you have less doubts when you are going to execute a purchase order in the financial markets. It is a mission that is not too complex to carry out but that can bring you many benefits in the investment strategy that you are going to use from these precise moments. Although combining it with other systems to choose the securities and stock market sectors that will perform the best in the coming days or weeks. Of course it will be worth doing for its simplicity and beyond other technical considerations. So that in the end you can have a more buoyant balance in your savings account.
Vacation strategies
What should I do with my investments in this next vacation? Faced with such an imminent scenario, there is no doubt that in cases of pleasure trips to disconnect from the daily routine, the most advisable thing is to forget for a few days how our investments evolve and, this can be achieved through a double strategy that is available to all users stock exchanges. In the first place, leaving our accounts in total liquidity, that is, to get rid of the buying positions and once they arrive from the trip, start the purchasing process. And, secondly, by means of conditional orders that will cause the buying positions to be undone at a certain price.
In both cases, they are very easy to use measures that will allow the user to spend a few days with complete peace of mind at their destination, knowing that their order will be obligatorily applied if it reaches the price we have given to sell the shares, which can probably coincide, For example, with the resistance level. The latter is an alternative especially advisable for holiday periods like the one that represents the summer months. Without any type of commission or surcharge from the bank or savings bank.
Bet on a drop in stocks
Can I profit from the bearish positions of the financial markets? Of course, yes, and in this sense, it must be remembered that investors have the possibility of turning to various products to invest when equities fall in the short term. In most cases these are derivatives whose purpose is to achieve high profitability in any market situation, whether it is bullish or bearish. In any of the forms, they are products that are distinguished both by the sophistication of their operations and by the high risk that it entails for the investor's interests, which although it can earn significant capital gains, it can also lose a lot of money.
One of the most characteristic products are the so-called Credit sales that has a well-defined operation: financial entities are in charge of lending the securities that the client wants, and then selling them at the price of the day. Then the bank gives the user up to 3 months to return the values at the price they have then and which, according to their forecasts, will be lower than the current one. Thus, the investor will get the difference. In any case, this type of operation carries a huge risk, where you can leave a lot of money along the way.
Exceeding the supports in the bag
What happens when a value exceeds the levels of the supports? When a support is pierced, then the price tends to fall sharply: the stock has broken a barrier that has been found in its decline, and once it is overcome, it falls freely, hence the sale price must be adjusted with the support level. When resistance is overcome, on the other hand, the price also tends to rise strongly.
They are the effects that it has directly on the price of a security or index and that must be regularly monitored by the investor to profit from your operations. A support (resistance) level strengthens as the price moves away from it after it has been tested. If the price rallies 8% after having tested a support, it is considered stronger than if it had only rallied, for example, 5%. It is a very beneficial strategy for small and medium investors in uptrends in the equity markets.
The importance of indicators
Why is the MACD so relevant? One of the indicators that can be useful for trading on the stock market is the MACD (Moving Average Convergence Divergence) or, in its translation into Spanish, convergence or divergence of the moving average, and which has three components: the MACD, the signal and the histogram. The first one, MACD, is the difference between two exponential moving averages of different lengths: the first average is more sensitive to price movements in the short term and the second is a medium-term average. The usual thing is to use the difference between the 12-period moving average and the 26-period moving average, although other values can be taken.
Well, the MACD moves around a center line or zero line, with no upper or lower limits, depending on each trend. In this zero line it is understood that the forces of demand are identical to those of supply, with which the MACD is in the zone considered as neutral. Above this zero line, this indicator begins to be overbought and below this level starts to be oversold. But the concept of overbought or oversold should not be taken into account until the MACD moves sufficiently away from the zero line, and these limits are usually set by the lows or highs that this indicator has reached throughout the chart.
Real-time quotes
Can you follow the price of a security in real time? Of course yes, as for example, through the S & P 500 Being a more difficult index to follow, it needs a series of tools to be able to control it more optimally, which is one of the most common complaints from investors who are positioned in this market. One of them is through track your quotes in real time that can be done in various ways, always through banking on line: free of charge, accumulating the necessary operations in the last year in this market.
Or by subscribing the real-time service for one year, in which you can also obtain a voucher-bag, offered by some entities, with the incorporation of free commissions for the same subscription amount, valid for any product contracted through the broker. The price of this subscription is approximately valued at around 100 euros, although in any case it entitles you to a series of free operations during the year that alleviates the financial outlay that will have to be made.
The moment to develop a rebound
What are the real reasons for a price rebound to emerge? When a market breaks lows, instability and fear increase, while the feeling of not investing on the part of small and medium investors grows. There is no trust and “strong hands” are not in the market either. It is an ideal setting for a rebound to take place. In such a situation, finding reasons for optimism is difficult and it is difficult for money to go to the parquet floors stock exchanges. Investors give up, sales persist and the feeling of free fall dominates.
On the other hand, oversold has very high percentages, in some cases out of the ordinary. It is then, when by surprise, this temporary upward movement begins that catches with the changed pace countless savers who do not have confidence in equities because they believe that the prices of the securities will fall more in the coming sessions. Experience in the evolution of stock markets shows that nor the uploads are unlimited nor indefinite falls. This you have to take into account from now on to make the fewest possible mistakes in the equity markets.