How to invest in new technologies?

new technologies.

New technologies is one of the options you have to make your savings in equities profitable. Although if you want to do it in the national markets you will undoubtedly have more of a problem to satisfy your investment desire. This sector has become one of the leaders of all international markets. Through companies whose business models are based on the latest technological advances.

If there is a segment that has changed the structure of equities, that is none other than that of new technologies. To the point of create new stock indices that group the companies that present these characteristics. They are represented on the stock exchanges of the United States, Japan, China, Germany and a good part of the investment destinations. In these markets you can trade to take positions with this special class of companies

The arrival of these values ​​coincided with the landing of these business models. It has been transplanted into the investment world. Where you can already buy and sell shares of these companies to get to give some benefits to the patrimony. Next, we are going to provide you with all the necessary keys so that from now on you can invest your savings in the values ​​of new technologies.

New technologies: features

technology companies

The companies that are dedicated to these business models have many niche markets where they come from. Computers, components, social networks, internet, peripherals and hardware among the most important. They are recently created companies that are based, more than on their business results, on the expectations that they can generate. Due to this important peculiarity, it is normal for the oscillation in their prices to be very high. Above that presented by other sectors of the stock market.

It is an alternative that is provided by equities so that you can obtain important benefits in your operations. But for the same reason you can also leave a lot of euros on the way. The risk involved in their movements is very high. To the point that you can lose part of the invested capital. You will have no choice but to act with caution and measuring operations from the first moment.

These are values ​​that are not designed for all profiles of small and medium investors. But, on the contrary, the most experienced will be the ones who best come out of their operations. It is formed as an option that you have on hand to complement your other investments. Without having to invest a lot of money, or at least a very important part of your savings fund. It is convenient that you take it into account from now on so as not to commit recklessness.

Where can you trade?

Europe

The first question you will ask yourself is in which markets you can channel these most special operations. Well, in practically everyone in the world, but with a few small differences that you will have to know right now. If you want to go to a stock market with an important and diversified offer of these securities, you will have to go outside our borders.

What are the most suitable equity markets for new technologies? Undoubtedly the North American and Japanese, where you will find proposals of all nature. Even some certainly original due to the innovation of their businesses. In the United States, there is a paradise for these investments through its own stock index. Is he Nasdaq, where almost all the companies that have this business model are represented.

It will really be very difficult for you to opt for a single value in the face of so much magnitude of proposals. Investors who want to invest in new technologies choose this destination to get their money's worth. However, it has a disadvantage compared to domestic markets. It is none other than the presentation of more expansive commissions. They will make the operations more expensive because they represent payments for twice the amount you pay on the Spanish stock market.

European markets

On the continent, the best offers in this stock market come from the German and English stock markets. Without reaching the American level, they offer a varied selection of securities of these characteristics. Although it will not be easy to choose them either. The main problem you may run into is that their names will hardly ring a bell. And therefore you will not have reference on their income statements. It will be a financial deficit that you will have to assume if you really want to open positions in some of these companies.

Another aspect that should interest you about this option that you have in investment is that you will need to know its movements in the stock market. Not surprisingly, they are governed by very characteristic quotation codes. Their stocks go up and down with some frequency. To the point that its graphics they look like real slides in a few days. It is true that it is difficult to operate in these situations, but at least it will help you in intraday operations, that is, carried out on the same day.

What if I want to invest in Spain?

In this situation, your interests will be more complicated to fulfill. The explanation is due to the fact that very few new technology companies operate in Spanish equities. Just a handful of values, and not of great importance. These are small, small-cap companies that move very few stocks in the markets every day. Also, many of these companies come from lower indices that are very unrepresentative of our stock market.

Because in effect, they are integrated into the Alternative Stock Market (MAB) which is where the securities that have just been released are listed. With incipient businesses and in many of the almost no benefits. Or what is worse with a very important debt that can be a drag on your business development. As you can see, it is not easy for you if you want to meet your objectives of investing in new technologies in the national stock market.

You will only have the great advantage that it presents very competitive commissions in relation to other international financial markets. As a consequence of this, you will save some money in the operations of buying and selling shares. With a greater identification of the business models to which these companies are dedicated. But in any case, without having an attractive offer in any case.

How are these securities priced?

quotation

Securities from this equity sector maintain very well-defined characteristics. Volatility governs your every move. With some highs and lows in the quotation of their really extreme prices. They can reach in a single trading session differences of up to 10%. Even more exaggerated in some cases. It is very difficult to operate with this kind of securities. Especially if you do not have a minimum of experience.

They are also distinguished because sharpen their movements, in one sense or another. If the stock markets rise, the technological values ​​do it with a greater difference, and vice versa. It should be taken into account if you want this kind of investment from now on. These large price swings are very beneficial if you want to earn capital gains. But also very damaging in the opposite direction. You will not have rest in any of the investments that you formalize.

If the values ​​of new technologies stand out for something, it is because are very sensitive to economic cycles. In expansive scenarios they perform better than the market. And in times of recession, worse. With very important differences with the rest of its competitors in the equity markets. This incidence is due to the fact that they are based on business expectations rather than realities in their respective business lines.

The best strategies for trading

In any case, if you keep thinking about opening positions in any of its stocks, it will not hurt if you apply some behavioral guidelines that will be very useful in these situations. They will start from the following scenarios that we expose you below.

  • Don't force all your savings on these kinds of operations. But they will owe you serve as a complement to other investments that you have developed through your securities portfolio.
  • You should take advantage of expansive scenarios to start operations in the technology sector. Not surprisingly, the level of risks will decrease with great intensity.
  • Focus only on the values ​​that are more robust and have broader appreciation potential. Leaving aside the companies that offer many doubts in the development of their management models.
  • Not even remotely should you open positions without previously informing you of the real status of the company. Because you can have more than one negative surprise from the beginning of the investment in these markets.
  • If you are really determined to make this personal wish come true, you'd better formalize it. outside our borders. Where you will have more opportunities to channel your savings, with proposals of all kinds.
  • As an investment strategy it can be used to very short terms of stay, even on the same day. But by no means for many years, as on the other hand you do with other kinds of values.
  • Do not plan very quiet operations from the beginning. Since the oscillations they will be marking the evolution of prices constantly. You can win one day, and lose everything the next.
  • You will have no choice but to make a almost daily monitoring of your prices, since this class of investments require very fast operations in terms of sales orders. Or to avoid more serious falls due to its intensity.
  • Finally, it will be highly recommended on your part that do not abuse these operations in the stock market. There are many risks to which you are exposed. You will have no choice but to protect your money in all scenarios

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