In these last trading sessions of the year, small and medium investors may have one of the following two objectives. On the one hand, maintain the capital gains that have been obtained during this year and try to ensure that these do not evaporate. While on the other hand, make up their results in stock market operations after a few months that have certainly not been very beneficial. In any of the cases, they have several investment strategies that can be very useful to face this last part of the year that is about to end.
All these kinds of actions must be taken at one of the most troublesome times for equity markets. Because they are faced with a new recessive scenario in international economies and that will entail a change in the approach you were giving to stock market operations in recent months. To the point that if necessary, you will have no choice but to vary your investment portfolio. To bring it closer to the reality of the equity markets since any mistake can lead you to the end that your bank accounts suffer in their balance.
Another aspect that you should take into account from now on is that the last part of the year requires a significantly different treatment compared to the other months. Not surprisingly, it is one of the most bullish periods of the year and you must prepare your investment strategies towards this important variable in the financial markets. To the point that you must focus them to achieve maximum capital gains. Because in effect, there will be time for corrections to be the common denominator in places around the world, such as in the first or second quarter of each year. These are factors that you should keep in mind before taking positions in the stock market.
It's time for the Christmas rally
If this last section of the year is characterized by something, it is because the well-known and long-awaited rally of the Christmas holidays is taking place by investors. Where stocks usually be appreciated in greater or lesser intensity and what so many joys they provide to the minorities in most years. In this sense, it is a movement that usually emerges in the last days of the year and that usually extends until the first days of January. It is not certain that it occurs every year, although in recent years it has almost always been present in the operations of the Spanish equity markets.
While on the other hand, it should be noted that they can be an opportunity to get the last benefits of the year. With a few percentages that can go from 3% to more than 10% in the most aggressive movements in financial markets. Where the most aggressive values are the ones that perform the best on those days and that may have a divergence of more than 3% with respect to the rest of the values. In any case, it is one of the factors that small and medium investors must take into account in these last days of each trading year.
Reduce positions
In the event that the year has been very positive for the interests of small and medium investors, there is always the option of reducing positions little by little. That is, if you are in capital gains you can sell part of your shares to enjoy the profits generated so far. While on the other hand, you will keep the other half to be able to expand the benefits, and in case things do not develop as you wish, you will be protected by the sales made previously. It is an investment strategy that has been formalized with some frequency in recent years.
It is a management of the money invested in the stock market that is mixed. It is true, while on the one hand you maintain some of your positions, on the other you have finalized the positions. You can develop it as long as your income statement up to now is clearly positive. Never in positions where you are losing money in operations driven from equity markets. Not surprisingly, it is a formula to reduce risks in a more original and, above all, innovative way, aimed at preserving capital in the last days of the year.
Make more aggressive purchases
Another of the investment models that you can use in the last days of the year is to develop aggressive purchases to take advantage of the possible bullish in the financial markets. However, this investment strategy carries more risks than in the rest if these upward movements do not occur in the end. In this sense, it is very useful that this strategy can be very useful when the recovery in the equity markets is a reality. Among other reasons, because the potential for revaluation will be much higher than in other scenarios that may arise from now on.
As you may have seen, these kinds of operations have their practicality, especially in the periods of longer stay than shorts. Therefore, they are aimed at small and medium investors with a more defensive profile. Where the defense of capital prevails over other much more aggressive considerations from any kind of investment approach. In all cases, it will be one more option you have to face the last days of this current year. Although in this case, with some operations that generate more risks than in the rest and that are derived by this kind of share purchases that we propose.
Let the profits run
Another strategy that we can use these days is to leave the winning positions while there are no clear sell signals. In this sense, it is very important that when it is in a bullish value, the best strategy to obtain greater profitability from the stock market bet is to let it run in its price and, thus, obtain the widest capital gains until the listed company of the first symptoms of exhaustion in its trend. In this operation it is easy to enter, it is only necessary to detect that the value in question is in a process of increases, but with greater difficulties to leave the positions and take full advantage of the upward process, since statistically it is practically It is impossible to cover the entire process in which a signal that would invite you to sell the securities would be when it is listed in positions close to resistance.
While on the other hand, also a sales signal with a strong volume of contracts could be the time to abandon the investment and collect the accumulated capital gains. It should be noted that all bullish processes, like bears, have an expiration date, more or less prolonged in time, which in many cases is the main problem for small and medium investors, knowing how to detect the moment of the change in trend. In any case, this system is very useful to improve positions these days and even take advantage of the Christmas rally that occurs these days.
Another of the alternatives that you have on hand if things are not as positive as you expect at the moment is to take advantage of the bounces to carry out operations on the stock market. From this very particular approach, rebounds are very characteristic movements in the bag and they occur with great frequency. For this reason, you should take advantage of them above all to undo positions in the most adverse scenarios in the equity markets.
Trade with resistors
The latest increases in Spanish companies listed on the Spanish stock market have led many of them to be very close to their resistance levels. As a consequence of these actions, the most prudent thing to do is to wait and see if they definitely break them in order to take positions in some of these stocks during the coming months. Otherwise, there will be no solution other than expect further cuts in your price that could take their prices back to support levels, and that if they were not broken, they would be signals to buy shares to form a portfolio of values for the medium and especially long term.
In either case, you can attend trading sessions where volatility is the predominant note in their prices, with a lot of variation in the evolution of their prices. As has happened in the last sessions of the equity markets, which can lead to being more sensitive towards operations on the same day (intraday) to make the savings profitable more effectively. In any case, this strategy is only aimed at investors with more experience so that they can achieve significant capital gains in just a few hours. Without waiting for another class of longer maturities.