Last year was not negative for equities, as some financial analysts expected. In any case, you will have no choice but to correct the mistakes made during 2017. In this sense, you cannot forget that the selective index of Spanish equities, the Ibex 35, I end up with a revaluation above 5%. However, everything seems to be that this new year will be a lot more complicated to open positions in the financial markets.
Given this scenario, one of your most immediate objectives will be not to repeat some of the most common mistakes made in the previous exercise. Of course it will not be an easy task to carry it out. But that with a little perseverance you will be able to satisfy your demand. At least in a good part of the most frequent mistakes that you have made in your operations in the stock market. Surely they will be much more than you imagine from the beginning. Not in vain, many euros will depend on the resolution of these problems in each of the operations carried out.
If you want this year to be completely fruitful in all the operations that you are going to carry out in the stock market, you will have to learn from the mistakes of the past. And what better way than to do it than remembering where you went wrong and trying to give answers to these failures that you have had in previous exercises. It will be the simplest way so that you do not repeat them from these precise moments. So that in this way, your movements in the equity markets are more profitable and you can get many more capital gains from this moment. It will certainly be worth a try.
First mistake: anticipating at the entrance
Of course, there is no more costly mistake for your interests than not knowing when is the right time to open positions in a financial asset. To the point that it can define the strategy you must undertake to optimize operations in the equity markets. Where one of the main objectives will undoubtedly be adjust prices. Both when it comes to purchases and sales. So that you have more facilities to improve the final result of all your performances. If you put it into practice, you will see how little effect the effects will attract your attention due to their special effectiveness.
You cannot forget at any time that most of your problems in the stock market come from an inauspicious entry into the equity markets. And as a consequence of this action, you will have to risk more in maintaining your positions if you really want to make the savings profitable effectively. It is preferable that you do fewer operations per year, but that these are safe. In this sense, you should pay much more attention to their quality than their quantity. At the end of the day, it will be one of the keys to achieving your desired goals during the 2018 financial year.
Second mistake: not looking at trends
Sometimes it usually happens that when you enter a stock market You don't even notice what trend the price is plunged into. Another serious mistake because your operations will be doomed to failure in most actions. Not even luck can come to your aid so that you can get a few profits through this investment strategy. In any case, it is a mistake that few small and medium investors with some experience make. Not surprisingly, they know that the trend is decisive to start operations in any financial market. Not only from bags, but even the most alternative that you can find. As for example, those linked to precious metals or raw materials, among some of the most relevant.
As the uptrend is more pronounced, you will have a much greater chance that you can earn much more money in each of your operations. Whereas if it is in the opposite trend, that is to say the bearish one, the only thing that you will obtain is to be hooked in the value. Perhaps during a very high period of time that you make it impossible to enjoy liquidity to face some of the most necessary expenses in your domestic economy. Such as, for example, facing your tax obligations, paying for school for the youngest children or simply satisfying your consumer desires.
Third mistake: not choosing the right value
It goes without saying that an excellent selection of stock market proposals will help you achieve your goals in the equity markets. Of course, for them, you will have no choice what is the profile that you present as a small and medium investor. Because depending on these important characteristics, you will have some values above others. The option of a company in the electricity sector is not the same for an aggressive user than for a moderate user. Among other reasons because their behavior will be substantially different.
Also the terms of stay will be especially important to make a decision. This action is because it will influence opening positions with completely different strategies. To the point that you can determine what path your investment portfolio is going to take during the next few months. Not surprisingly, for short movements the securities that present greater volatility in their prices will be much more effective. So you can take advantage of the difference that is established between its maximum and minimum prices. Even in the same trading session, where distances of up to more than 5% can be established on many occasions.
Fourth mistake: invest all your capital
Another of the most frequent mistakes in the stock market derives from investing all the capital that you have available for this kind of operations. A serious mistake that can lead you to very undesirable situations to defend your interests. And that of course they can lead you to make bad operations when the evolution in its price is not as favorable as you expected from the beginning. You may have even suffered this action in recent months and you will see how the effects have been very detrimental to your checking account balance. Almost always materialized in serious losses that can affect your household budget or your financial expectations.
Fifth mistake: echo from dubious sources
There is no greater mistake than following the mandate of some undesirable sources. In this sense, you will have no choice but to be very careful in this regard. And if necessary, it will be completely necessary for you to be very selective in them. Not in vain, you cannot forget that after all it is your money that you are gambling and not that of others. They are mistakes that in the end make them very expensive promissory notes. Where it is preferable to stay in liquidity and wait for the time to take positions in the appropriate financial asset or security.
Sixth mistake: the bag is expendable
You must reflect on what you want to achieve from now on. Because it is not mandatory that you invest your savings in the stock market. Of course not, since you have a wide range of alternatives. Of all nature and that fit your real needs as a small and medium investor that you are. Not just from equities. But also of the fixed, where you can subscribe time deposits, bank promissory notes or high-paying accounts. Where the risk will be significantly lower and you will have a fixed and guaranteed interest rate every year. To the point that it may be the best solution to meet your needs from now on.
Seventh mistake: being very greedy
As surely has happened to you on more than one occasion, greed can lead to more than one problem in the always complicated relationships with the world of money. You must know at what point you should undo positions. Although this action implies that you can lose a part of the upward stretch of a security or financial asset. It is preferable to know how to withdraw in time that you can catch the effects of a downtrend that will cancel out all the gains made up to that moment. Even with the possibility of leaving you many euros along the way. All this regardless of the term to which your investments are directed: short, medium or long. It will always be better to carry some liquidity to your savings account than not to leave part of your monetary contributions. Don't forget it from now on.
Eighth mistake: not knowing the values
This is a mistake that even the most experienced investors in the financial markets have. Not knowing exactly where they invest their savings. Not even the business lines of the selected companies. With disastrous effects on the results of operations in most cases. You will not be able to blame anyone for your serious mistake, but simply a lack of interest on your part. And that can lead you to very unwanted situations. These are certainly common actions in speculative investors who try to make profitable their savings in very short periods of time.