It must always be borne in mind that when capital losses occur in equity markets, it is a failure of the investor's strategy. In any case, it must be borne in mind that there are some cases in which this undesirable scenario can be avoided, at least minimized. For this, it is necessary to take a series of precautions that vary depending on the profile of each of the small and medium investors. With the primary purpose of preserve the money invested and that it can generate some other liquidity problem in the savings account.
To avoid undesirable operations, it is advisable for the investor to previously carry out a self-diagnosis of their real investment needs. So that in this way, it can be detected if your profile is aggressive or defensive. And what is more important, the need for liquidity that you will have for the future to meet some of your most necessary expenses. In none of the cases should securities whose prices are at historical lows should be sold, despite the fact that it is difficult to detect it. Although you should keep in mind from now on that technical analysis generally provides some clues about trend changes.
Through a series of tips that are very easy to apply you can avoid these embarrassing situations for some of us. They are really worth carrying out because you can have a higher balance in your income statement. What is the purpose you are looking for after all. Because you cannot forget that we are in front of the stock market and everything that this kind of operations implies in the financial markets. Where you can not forget that you can lose large monetary contributions in a very short space of time.
Not to undersell: not to be impatient
Of course, being patient in the equity markets can give you more than one joy from now on. Not surprisingly, a good part of the errors that the purchase movements come from the urgency of carrying out this operation. In order to have liquidity in the current account, pay household bills or simply face unexpected expenses. To the point that you can lead you to materialize these orders with disabilities. When you can see that if you had delayed the operation you would have done much better selling the shares.
While on the other hand, you cannot forget that bad sales can be caused by a lack of knowledge of the equity markets. And that before the lack of data you are influenced in making this move. To avoid this scenario so unwanted by small and medium investors, you will have no choice but not to be impatient, even if you see that your investments are not developing as you thought at the beginning of taking positions. You must meditate on this operation before carrying it out and if necessary you must count many times before undertaking this action that may go against your personal interests. Which is, after all, what it is all about on these occasions.
Do not sell in uptrends
On the other hand, you must also take into account from now on that it is another serious mistake to make sales on the dates that equities traditionally experience a rally bullish. This is something that happens with some frequency at Christmas parties. Where stock prices are usually revalue between 5% and 10%. Under no circumstances should you have as an investment strategy to undo positions at these times of the year. With all certainty that in a short time you will have regretted having made this bad decision in the financial markets.
Just as it is very interesting the fact that many times you can let yourself be managed by the inertia of the financial markets and miss possible additional revaluations that you can generate in the securities portfolio. This is something very frequent that happens among small and medium investors who have a less learning in this class of operations.
There is also assessing what you can sell the shares at least a setback you have in the equity markets. With completely disastrous results for the defense of your interests as a stock user that you are. These cases must be taken into account from now on to eliminate instability processes in your investments. Not surprisingly, there is a lot of money that you are gambling through these operations in the stock market.
Choose the best time of the year
Some of these subjective techniques and, in many cases illogical (but effective in the same way) are those that promote buying and selling depending on the day, month or time of year and, which are the following. In this sense, a filter to carry out transactions on the stock market is based on selecting the day of the month on which to formalize purchases. The prices of the securities they usually go up the first days of each month. Hence, if it is bought in the last week of the previous month and sold in the first week of the next month, the investor has many possibilities to make a profit on his investment in a relatively short period of time and, in a simple way to the practice.
On the other hand, you can also carry this strategy in investment depending on the days of the week where to carry out these operations in the financial markets. In this sense, Tuesdays, Wednesdays and Thursdays are generally stable, no big oscillations, while on Mondays they have a clearly bearish profile and on Fridays it is bullish. In the first one because you are waiting for how it will open Wall Street and, the last day of the trading session, because there are always movements on the part of the brokers before the weekend, where sales are formalized. Where, if there is a sector that is very weakened at the moment, that is none other than the banking sector. It is at minimum levels of the last