The choice of a stock market depends in most cases on a strategy that has to be defined before open positions in the financial markets. It will be something very necessary if you do not want to have some other problem with the money invested since it will be very common for handicaps to be installed in your operations. If you do not want to go through this situation so little desired by small and medium investors you will have no choice but to apply a series of tips that will undoubtedly be very practical when preparing your operations in equities.
Of course, there are some parameters that you have to set yourself at the moment you choose the best one on the stock market to make the capital available you have for this kind of operations profitable. We are not going to propose many, but all of them are essential to optimize each of the operations on the stock market. Not surprisingly, it will help you protect yourself from movements that are very dangerous for your personal interests. Where the technical aspect of them, although without forgetting the fundamental analysis.
Within this general scenario, we are going to propose from now on a few parameters in which you should look at the amount to choose the value. You will certainly better manage your operations in the equity markets. With safer movements and that will provide you with more efficiency to achieve your objectives more immediate and that are none other than having a higher balance in your correine account when undoing the positions. As for example, those that we expose you below:
Choose a value: in which trend?
A basic element to carry out this strategy is achieved by analyzing the trend that the financial asset is going through at that time. In this way, you will know with greater security if it is time to enter your positions or if, on the contrary, it is better to wait to obtain the business opportunity that you have been waiting for so long. This strategy is very simple to apply and in a couple of minutes you will know with great certainty if the value is in a downtrend, bullish or perhaps lateral trend. As you will well know, it is in the second of them where you have the best opportunities to make your savings profitable.
This is because the buyer flow it is imposing itself with some ease on the seller. You have little chance of being wrong and therefore it is a very prone area to make purchases in the equity markets. These kinds of periods do not have a defined duration but, on the contrary, can cover a few months or go on forever under many years where increases prevail. Despite the fact that some cuts in their prices may be generated that should be used to boost investments at a more competitive price than before. Do not forget it if you want to successfully complete each of the operations on the stock market.
Keys: hiring volume
This other parameter in the stock market is another of the most decisive for selecting a stock market proposal. Not in vain when we are referring to the volume of trading is what refers to the amount of securities traded for a share in a given period. In this sense, you cannot forget that the costumes indicates the interest of investors for a specific action. Because in effect, when there is a high volume of contracting it is saying that there is a great interest on the part of investors to buy your shares. It is that simple and this very special and relevant stock market parameter has no major mysteries. Beyond other technical considerations and maybe also from a fundamental point of view.
Another of the most important aspects in terms of what is the volume of hiring is the one that has to do with the relevance of the listed company. That is, you will find what equity blue chips, such as Santander, Inditex or Endesa are the ones that weigh the most in the index as they have a higher capitalization. While on the contrary, securities with a very low trading volume can create more than one problem in investment. Among other reasons because you will have more problems than desired to enter and exit their positions, at least with the desired price.
Historical quotes
Nor should you forget what the trajectory of the analyzed stock market value has been. You will be able to know what is its maximum and minimum price to see what the path it can take in the equity markets in the end. All you have to do is go to the value tab to easily find these essential data for a correct analysis of the investment that you wish to formalize from now on. Not surprisingly, you will get more than one surprise when you carry out this investment strategy. Especially if it is accompanied by an exhaustive analysis of the trend that he is going through right now.
On the other hand, do not doubt at any time that the historical prices they are more than just a piece of information about his past. It can give you the odd clue about how that stock may behave over the next few months or even years. Therefore, never underestimate the commitment to know about what has happened are the financial asset analyzed by yourself. In addition, it can also give you some signal about the trend in which the listed company is immersed. You may even get the odd surprise that you did not initially have.
Sector to which the value belongs
It may be a somewhat basic parameter, but no less important than the previous ones that we have exposed in this article. The stock market sectors are the ones that give the most relevant clue about how this financial asset may behave in the not too distant future, of course. For example, if we analyze the subsectors of the Spanish stock market, we can see which are bullish and which are bearish. It's a fundamental filter to channel your investments based on the profile you present at that time as a small and medium investor. That is, if you are aggressive, moderate or are somewhere in between.
On the other hand, the Sector to which the stock market value belongs can give you the guidelines for action to define the duration of the operation. Or what is the same, if it will be to short, medium or long term since for each case you will need a different sector depending on its own characteristics. It is another of the easiest and simplest strategies that you can use from this very moment. Because it will not require excessive knowledge in the financial markets unlike the parameters previously outlined.
Stock market figures
They are without a doubt the best strategy to initiate investments with greater success than before. In this sense, you should not forget that there are many and diverse nature and that you will be able to choose depending on the many systems that their analysis entails. Like a shoulder-head-shoulder, are the figures of double and triple ceilings / floors. While on the other hand, it is also very important to know that the examples of classical chart figures are repeated over and over again in time. There are as many as you can imagine from the beginning.
On the other hand, the ones most used by small and medium-sized investors are those that offer the signs of a change in trend, stock market figures: stock market figures, shoulder head shoulder, triangles or figures back, among some of the most relevant that they are within the technical analysis.
Bullish formations in stocks
One of those that is in the head of every self-respecting investor is the one called as ascending triangle. It is basically made up of a horizontal resistance line and a bullish guideline; the price is making increasing lows within the triangle. Its importance derives from the fact that these types of triangles are usually broken upwards on most occasions.
Like these, there are many that can be used to start operations in the equity markets. Although in this case, your biggest problem lies in the fact that more learning is required in this kind of technical analysis. And it may be that you do not have it yourself, in which case you will have no choice but to start in this analysis system to be able to detect some of these figures with which you can make the money profitable with greater guarantees of success than through other strategies in investment.
This system is within what is really the chart analysis which is the part of technical analysis that studies price movements. Those figures that make up the prices of quoted securities and that are repeated with a certain frequency give rise to what is known as chartism. A technique to which a good part of the actions of investors and financial intermediaries is linked.