One of the consequences that we must have from the crash that has occurred in the stock markets around the world is that from now on we will have to be more selective in buying shares in the equity markets. If not, on the contrary, there will be no choice but to be much more selective than until now to try to hire the best stock values at all times and that provide fundamentals that are clearly solid. So that in this way, it is much more feasible to make the capital that we contribute to these operations in the world of money profitable. As for the fact of achieving greater security in open positions.
In addition, applying the recipes to open positions in the stock market, there is no doubt that in the end it will help us to optimize operations in a much more balanced and efficient way than until now. From where we can have the money in better conditions to have a more or less stable savings bag for the medium and especially long term. Knowing at all times that the only solution to achieve a return on savings is to risk a little more and this can only be achieved through the purchase and sale of shares on the stock market. Above other more moderate investment strategies that may be based on banking or fixed income products.
On the other hand, when opening positions in the stock market, it will be necessary to be more disciplined from now on to carry out some other investment strategy that leads us to the goal desired by all of us. This represents a substantial change with respect to the habits to which we have become accustomed in recent decades. Everything will not be the same as until the month of March and this is a factor that will have to be assumed from the approaches of any small and medium investor. From this investment approach, we are going to present a series of recommendations to open positions on the stock market with certain guarantees of success.
Open positions: in bullish values
A rule that never fails on these occasions is to opt for stocks that show a clearly bullish trend in their technical analysis. At least with regard to the short term and therefore allow profitable operations to be carried out in a very short space of time. Even in the most unfavorable scenarios in the equity markets there are always a small handful of companies that are in an upward trend in the conformation of their prices and that allow them to have a positive evolution in the next trading sessions. Beyond the fact that very specific cuts can be produced that can be used to enter their positions with a greater potential for revaluation.
While on the other hand, we cannot forget that this strategy can be very interesting to develop an investment portfolio that is aimed at the shortest term and always in an exceptional way in its permanence. As well as the fact that this election system will at least reduce investment losses that occur in recessive periods in equity markets, both national and outside our borders. So that in this way you can protect your investments with greater guarantees of success. In this sense, there are a series of securities that do meet these characteristics and therefore give us the opportunity to make the savings profitable in any kind of scenario.
Companies with good fundamentals
This is another of the systems that we must use to enter the equity markets and that gives us more confidence in our entry into the financial markets, whatever the stock market sector chosen by small and medium investors. In this sense, it is highly advisable that in the end you can opt for companies that offer very positive fundamentals and that are accompanied by a very low level of debt. It is the best way for this class of listed companies to withstand less positive scenarios in the economy and, of course, in the equity markets better than others. With a more optimal response capacity to mark prices that are presented as suggestive for the interests of small and medium investors.
While on the other hand, there is no doubt that in the end the companies that present good fundamentals with those that perform better in the equity markets. Although it may not be in the short term, it will be a much more feasible scenario in the medium and especially long term. Which is, after all, the term of permanence of small and medium investors of a more defensive or conservative cut. So that this way, the real possibilities in its revaluation are higher from the precise moment where they have made their purchases. That they are, in short, companies are solid balances in their business accounts above other series of technical considerations.
Take advantage of oversold levels
This is undoubtedly an investment strategy that carries more risks in operations, but it is equally effective because this is a signal that anticipates future rises in its price from this scenario in its technical analysis. It is therefore highly recommended to follow these guidelines to start trading on the stock markets from now on. Especially because the results can be very satisfactory for users in this kind of financial movements. Where they have more to pay than to lose because there is a state of sales that has been pushed to the limit in the hiring of titles. As well as its greater speed to produce rapid rises in the listed markets and that is, after all, one of the most immediate objectives for users in the purchase and sale of shares on the stock market.
On the other hand, we cannot underestimate that at no time taking advantage of oversold levels can be the shortest way to reach a level of capital gains in our investment portfolio. From where we can cement the success of the operations since it is a complex that can develop from these levels deeper falls in the configuration of their prices. If not, on the contrary, it is a level where a trend change can occur, to go from bearish to bullish or at least lateral. Always with regard to the shorter term and therefore it is not a very suitable investment strategy for movements in the stock market for longer periods of permanence because it may happen that the bottom trend continues to be downward.
In another vein, it must be emphasized that taking advantage of oversold levels is a technique that investors who maintain a higher level of learning when it comes to buying and selling stocks are often used. One of the lessons we are receiving in this exceptional period in the international economy is that investments will have to be adapted to the profile presented by each of the small and medium investors. And in this specific case, looking at and analyzing the level of sale that a company that is listed on the equity markets has. To the point that it can indicate the entry level of a listed company or at least very approximate. So that in this way the operation can be optimized with greater guarantees of success.
Buy close to resistors
The latest declines in the Spanish companies listed on the Spanish stock market have led many of them to be very close to their resistance levels, hence the most prudent thing to do is to wait to see if they are definitively they break them to take positions in some of these securities during the development of the last quarter of this year and, in this way, to be able to close this year with benefits in our securities portfolio. Otherwise, it would be necessary to expect cuts in their price that could take their prices back to support levels, and if they do not break them, they would be signals to buy shares of those values for the next few months.
In either case, you can attend stock market sessions where volatility is the predominant note in their prices, with a lot of variation in the evolution of their prices, as has happened in the last sessions of the equity markets, which it can lead to being more sensitive to same-day (intraday) trades to earn a few euros. Although in this specific case, this strategy is only aimed at investors with more experience who can achieve significant capital gains in just a few hours.
Other patterns of behavior
To keep it as simple as possible, and for the purposes of this guide, a stock market is simply a place where buyers and sellers meet to sell stocks, each a small part of a publicly traded company.
Why do stocks exist in the first place? To grow and hopefully increase profits to turn a business into financial success, companies offer investors the ability to back them with their own money.
Entering a stock market: In exchange for your cash, a company offers you a stake in its future, so that you essentially own a small part of that company and become a "shareholder."
And if you want, this part of the company that you own can be exchanged with anyone who wants to buy it.
This is normally the question that most investors want an answer to, and the very reason for most people's decision to put their money in the stock market. Let's be frank: we can't tell you what you'll get (and don't believe anyone who says they know - they're lying). But we can give you an idea of what can be achieved.
With savings rates hovering at historically low levels - for example, 1,3% in a typical competitive savings account - the incentive to look elsewhere for decent returns is strong.
Of course, everyone would prefer to earn 5% of their money, but only if you take the level of risk that is right for you. We have said it before, but there is nothing wrong with repeating this until we get very clear ideas regarding your investment and that is the end of what is in these cases.
- Always remember the five golden rules of investing:
- The higher the return you want, the more risk you will have to accept.
- Don't put all your eggs in one basket. Try to diversify as much as you can to reduce your risk exposure, that is, invest in different companies, industries and regions.
Tips for investing
If you are saving in the short term, it is wise not to risk too much. It is recommended that you invest for at least five years. If you can't, it's often best to avoid investing and leave your money in a savings account.
Check your portfolio. An action may be a failure or you may not be willing to take as many risks as before. If you don't check your portfolio regularly, you could end up with a money-losing stock account.
Do not panic. Investments can go down as well as up. Don't be tempted to buy or sell stocks just because everyone else is.
It doesn't matter if you are about to buy your first stock or choose a stock fund for the first time, always ask yourself why you are looking to invest.
In the long run, stocks and shares have historically outpaced the money in savings accounts.
But that does not guarantee that they will do so in the future. It all depends on your personal circumstances. For example, you could be one of the many who have despaired of lousy rates on savings accounts and are willing to take a chance in the pursuit of higher returns.
Or you may have come up with a well thought-out plan to save $ 10.000 over the next decade to help pay for your children's school fees. In both cases, it is a clear green light to go and invest.
Be careful if advice is offered
If a friend has suggested a tip to share in the pub, or a family member or friend has suggested that you "put a few pounds" into a stock or fund that currently - in industry lingo - "turn off the lights "It's probably best to think twice unless you have money to spare that you can afford to lose.
Take a good, honest look at your finances. If you're struggling to keep up with your credit card payments, say, or you've taken an expensive remortgage and have little savings, it's time to take a step back and think again.
This may sound like basic house management, but the lure of quick wins in the stock market can prevent many people from seeing how dire their overall financial situation can be.
Too many people think that it takes a lot of money to be able to invest in the stock market, but it does not, and many small investors who "feed" on small sums on a regular basis can do much better than those who simply pour a large amount. sum of money in the market.
As a general rule of thumb, you should never invest more than you can afford to lose. This is because, in the event of a stock market crash, you could face the loss of a large part of your wealth if you have too much money invested. Many financial advisers suggest that you invest for at least five years. This gives you enough time to get over any market bumps that could cause you to lose your money.
Remember, as we said before, if you have little savings and are heavily in debt, gambling in the stock markets could be bad for your financial health. However, if you have amassed a nest egg and are fed up with low savings rates, putting a chunk of it (which you don't need to depend on for your living expenses) in the stock market might be a decent way to try. get higher profits. Being one of the options that many small and medium investors have in their learning and that they can carry them out from now on.