Surely one of your most immediate wishes in investment is to buy shares in equities with certain guarantees of success. Well, a good purchase on the stock markets is a very important step that will lead you to ensure that capital gains are not long in coming. For this, it is necessary that you take a series of precautions with the aim that a bad taking of positions can weigh down the investment that you are going to develop from now on.
In this sense, it is very practical that before to take positions in a value you study its technical and fundamental aspect. You cannot stop performing this action as its effects can be devastating on your bottom line. In particular, because you will have a greater chance of developing disabilities that may affect your savings account, at least in the short term. This is a scenario that you should avoid above all other considerations.
Of course, it is very practical to enter the most bullish sectors at all times to create a powerful and balanced portfolio of securities. And that can also be supported by some really positive fundamental data from the companies. This is a task that you must do before making a decision about where you should direct your savings at that time. Beyond other technical considerations and those that have already been discussed in this blog.
Guidelines for buying at a good price
The minority investor must proceed to have solid guidelines to carry out their purchasing process. In this case, through a series of recommendations that may be very useful at some point in your life. For example, through the following actions in the equity markets:
Opt for values that are in a bullish movement. They are the best guarantee so that there are no mistakes in the decision and if it can be under the figure of free rise, then much better for your personal interests. It will be more complicated that you do not achieve your most desired goals.
Buying values close to their support prices. To later sell them in the resistance zone, although also in the event that the supports were broken. It is one of the simplest strategies that are used in the stock market, although for this it is necessary to keep a punctual follow-up of the evolution of the prices of the stock values.
Values that they have hit bottom: it is one of the ideal scenarios for any investor who has to deal with purchases. But with the disadvantage that it is very difficult to detect the exact point where these levels are formed.
Enter the most favorable sectors: It is another option that is certainly interesting, which consists of betting on stocks that integrate sectors with good growth expectations for the coming months. With a broader revaluation potential than in the other stock market sectors.
Prioritize an analysis of the values
Studying your technical and fundamental analysis is a good strategy to enter the equity markets at a good price. To the point that it is an operation that can save you a lot of money in the adjustments in the purchase and sale prices of the shares.
On the other hand, search for values with higher appreciation potential It is always highly recommended for the security it provides in our stock market operations. This strategy would consist of finding those securities that are further away from their target price, and therefore, have a higher degree of appreciation. At this time, you can find purchases that are listed at a discount of up to 30% on their price assigned by financial intermediaries.
Recommendations from brokers: financial intermediaries regularly set more suitable values than others to make their purchases. It is an indication that is widely followed by a large part of investors, although with the disadvantage that on some occasions the forecasts are not met for different reasons.
Do not risk in decisions. Safer investment strategies can be used than the others. For example, opt for the most conservative values: little volatile, reliable, stable in their prices and that pay dividends annually. The choice of this strategy will be aimed at taking positions in the medium or long term. In any case, never for operations that are carried out on the same day or even for a few weeks since they require another treatment.
Review prices with some regularity: to show that it is the right time to invest, it would not hurt to analyze the general state of the index where we are going to take positions, whether national or international. It will provide a greater guarantee in each market bet, as well as a very useful work tool to achieve our most immediate objectives. To the point that it will avoid incidents in our investment portfolio from then on.
Actions that should not be done
On the contrary, there are a series of guidelines, which due to their dubious effectiveness, should never be used when channeling an investment in equities. Especially because they can undoubtedly harm small and medium investors. Therefore it is advisable to keep these actions in mind so as not to fall into them and, not can weigh down the profitability of our investment. It will effectively lead to savings in all position taking by stock market users. For example, through the following actions that we expose you below.
Buy to buy, that is, select a security regardless of the technical or fundamental aspect that it has at that time. It leads in most cases to unwanted effects.
Have the predisposition to open positions in securities with high speculative power with the false belief that it will be possible to obtain capital gains more easily. They are high risk and the investor must be aware of the dangers incurred by betting on them.
Enter in the market in bearish periods where the purchase price can take a long time to reach. It is what is vulgarly said to be "hooked".
Get carried away by unobjective recommendations or interested parties that can disorient the investor in his strategy of entering the stock markets.
Take positions when a security has almost fully realized its bullish processAs the only thing left is to return to selling positions after having appreciated for a more or less prolonged period.
Investing in stocks that are in a totally clear bearish process, with the belief that your recovery is soon. Unless the market offers clear buying signals, it is better to abstain from them.
And, special care to the values that are object of corporate movements, rumors or changes in its shareholding. Not in vain, they are characterized because they can revalue in a few stock market sessions, but also the falls can be pronounced and in a few sessions they can drop strongly in their price. This class of investment strategies are intended for the most seasoned investors who have the experience when investing in this class of securities. Among other reasons because they really know their behavior.
Take advantage of cuts
In upward trends, a very common rule among the most experienced investors is to wait for cuts in the prices of companies to enter the market. at more competitive prices. This strategy so common in investments can lead to a greater upward journey in value and, therefore, greater possibilities of revaluation.
It cannot be forgotten that these specific cuts occur when there is a certain fatigue in the buying positions and sales start to float, that is, when the market is overbought. Not surprisingly, an adjustment in prices is needed to continue its upward climb. These so logical breaks on the other hand in your price quote are highly desirable as it encourages sales to begin to emerge. They occur several times during a bullish process, even the stock market analysts describe it as "completely healthy market movements”That serve for indices, sectors or stocks to gain more strength in the next trading sessions.
They are especially suitable for those investors who are targeting the shorter term and want to make the most of the upward movements experienced by equities. One of its most relevant reasons is that it can be have a greater number of shares for the same amount in investment. An action that is enhanced when the securities distribute dividends among their shareholders since it will mean a greater benefit in this regular payment that is made on a regular basis.
On the other hand, you cannot forget that this is a strategy that can be generated to gradually create a stable savings bag. Beyond other technical considerations and maybe also from the point of view of its fundamentals. So that the final objective is met, which is to make the capital invested profitable, which is what it is all about after all.