If there is a figure in equities that is really beneficial to your interests, that is none other than the free rise. You may not know what it is about, but it will be good to review it because through this movement in the financial markets you can get excellent capital gains from now on. Not surprisingly, it is one of the points desired by all investors. Whatever profile you present to carry out operations on the stock market.
The free rise occurs in a not very common way. It is not generated in all situations, but when it does, you should be prepared to formalize your purchase orders. And if you can even aggressive way. You will have all the ballots to obtain a great benefit in each operation that is presented under these special characteristics. It is seldom developed, but when it appears on the scene, you cannot miss it.
In this article we are going to provide you with the keys, not only to understand and know what a free raise is, but also some guidelines for actions to make these movements profitable from now on. You will certainly have the opportunity to apply some of these strategies in the coming months. Not surprisingly, it is a very easy technique to carry out and that it will not suppose excessive complications to execute them. You are willing?
What is free upload?
The first thing you will have to know is its real meaning. Well, the free rise occurs when a security or other financial asset they have broken all the resistances that he had in his wake in the quotes. Without having more obstacles along the way. So its upward path is total and without any limits to rise in its price. As a result of this action, its revaluation potential acquires very high proportions. Above those generated in other figures.
The formation of the figure of the free rise of a stock also coincides with its all-time highs. This implies a stronger signal of strength than usual. Where purchases are clearly imposed on sales. Without hardly failing in his intentions. Although it may generate specific cuts in its price. Something, on the other hand, completely common in the formation of this class of such forceful figures.
The free rise has a bullish connotations beyond all doubt. Offering few doubts about the continuity of this trend, which on the other hand can last weeks or even months. Depending on other factors unrelated to the price of the security or financial asset itself. It tends to develop very seldom in a stock market value, or rather just once. In any case, you have to know how to take advantage of it and above all be very attentive to their training.
Strategies to develop
When it is clear that this figure occurs in the equity markets, there is no choice but to make the most of it. Via bulk purchase on that financial asset. You have to be very aggressive, and do not mind raising the capital that you are going to dedicate to the investment. It is one of the few moments where it is worth risking money. Not surprisingly, the reward can be very suggestive. More than you may initially believe.
Another strategy that you can apply in this kind of exceptional movements is to perform buybacks. Especially in situations where you already have open positions. Also very aggressively to try to get the highest number of shares. You must know that in these situations you have everything to win. Something that does not happen with other figures of technical analysis and that their evaluations are more subjective.
In addition, in the case that it is a stock market that distributes dividends among its shareholders, it will give you the opportunity to improve the payment. For something so simple, how is it you will have more shares in your investment portfolio. With what in the end the return will be much more satisfactory for your interests as a retail investor that you are. And of course, what you should never do is close positions in the security that presents a very clear free rise. It will be a major mistake that you cannot make under any circumstances. You will not be worth the excuse that you are an inexperienced investor in the equity markets.
Current values in free rise
To better gauge the importance of this stock market figure, some of the examples that you can find in the Spanish stock market under the formation of this clearly upward trend. One of these companies is Ferrovial and from which savers who opened positions around a year from now have benefited. They will have achieved significant returns. Despite the cuts it has suffered in its price. In any case, it is too late to get on this trend. We will have to look for other options generated by the national stock market.
Another similar case is that of the textile shares Inditex, which has developed a process similar to the previous one. With a constant increase in the price of its shares, with few pauses and caused by causes beyond its price. Many of its investors have achieved strong gains by opening positions. Being, in any case, one of the most profitable values of the reference index of the Spanish stock market. With very few cuts in its price, and of little intensity.
What returns can you get?
Of course, it is not very unreasonable to think that you can earn an interest higher than 10% each time you open positions in equities with this very defined trend. To the point that it is not very complicated to form a savings bag more than remarkable through the free rise. It will be necessary detect it in time so that the potential for appreciation is much more important than on other occasions. During the year you will have a couple of opportunities of this magnitude. They will be few, but you will not be able to waste them in any way.
Operational in these scenarios
To take advantage of this clearly upward trend, the investor - as in your own case - can use a series of strategies to face these trading processes with greater guarantees of success. In order for you to meet these objectives, you will have no choice but to import some of the following actions that we will expose you below.
- Wait on your investments until situations arise of free rise and you can develop the operations in stock market under important economic contributions.
- These figures will only be featured in the listing a couple of times a year. You have to be predisposed to act quickly and without limitations in each one of the operations. Not surprisingly, you have much more to gain than to lose.
- Don't forget that these are scenarios that can last a long time, more than you can imagine. It will not be a bad idea that you formalize these proposals with a level of permanence in the medium term.
- At the moment in which the values that present a free rise you will have to use any weakness in your quotes to undo positions. Although these are only partial. It will be a management model that will help you protect your positions more effectively.
- Do not confuse what is a free raise with a clearly bullish trend. They are different and you can make mistakes in the strategy you are going to use. With uneven and even contradictory results.
- Try by all means that the gains go running in your income statement. Without selling the shares as long as their prices show a certain strength.
- If you have been left out of these values, you will always have the opportunity to hook yourself to them when they are generated their corresponding corrections. Not surprisingly, it will be another entry point that you will have to benefit from this very particular scenario.
What should you do?
In these situations, you should not ignore a series of actions that go through very well-defined strategies. From here we provide you with some of the most important ones to preserve your interests. They are as follows:
- Do not waste it from any stage. It is a very favorable movement for your interests. above others not so decisive.
- During the year you will only be presented a couple of times, no more. Not surprisingly, it is not a figure that is abused in the financial markets.
- Small-cap stocks are very prone to developing these movements. You have a lot to choose from, as long as the free upload appears.
- You are in a position to develop heavy purchases, above those made with another class of securities. They have a unique treatment that you always have to give them.
- It is present in the technical analysis and you can view it very easily from any chat or graphic.
- Not entering the financial markets when this scenario occurs is a mistake that you cannot commit in any way.
- For the same reason, when a freefall you will have to get out of their positions as quickly as possible.
- It is one of the more objective data that you have in equities, and that you can use it with complete confidence.