Trading area: where to open positions

Trading consists of a peculiar strategy that is based on speculation in the financial equity markets with the aim of generating returns over time. But unlike a more traditional investment, el trading it is more short term; weeks, days, hours and even a few minutes in the same trading session. For a very well defined investor profile and that is those people who try to make their operations profitable in a very short space of time.

Trading, in short, allows users to clarify their goals in the financial markets. That is, something as understandable for everyone as buying low and selling high, so that they can be earn highly sought after capital gains. In this sense, it cannot be forgotten that trading on the stock market is, without a doubt, a strategy that undoubtedly needs proper learning to carry out operations. It is not indicated for small and medium investors who do not have knowledge in this kind of investment.

While on the other hand, we must also emphasize that we must have the services of a financial broker or intermediary that allows us to enter buy and sell orders in the market. If possible with the best commissions and expenses in its management and maintenance. Especially if we are going to carry out these kinds of operations on the stock market with great regularity every year. In addition, having enough capital to face this type of operation since we must be supported by a savings bag that we must have in our savings account.

Trading: when to use it?

In any of the cases, this more restricted operation in terms of space in time is distinguished because we can carry it out to search for trading positions aimed more at the short term. Within the actions of the Continuous Market and from where we will be in a position to make the capital invested profitable with a shorter maturity than through other investment strategies. Fundamentally with the stocks that have the best conditions to open long positions or buyers. From this approach, we are going to offer you some listed companies to opt for these securities.

We cannot forget that trading operations are not very easy to apply and require technical mechanics that are essential to carry out upward movements. These are operations that can be very profitable when there is a large difference between the maximum and minimum prices of the securities selected by small and medium investors. That is, when there are divergences greater than 5% or 7% and that allows greater flexibility in the movements that are carried out.

More conducive values

Another question that you should ask yourself from now on are the values ​​in which you should perform trading operations. Because in effect, not all of them are sensitive to operate with it and it will depend on the characteristics of each one of them. Within this general context, it will be very important to detect them so that you can put any investment strategy into practice. In the first place, they must provide strong oscillations in the conformation of their prices so that you have enough travel to make the capital invested profitable. In this sense, secondary values ​​are more favorable to carry out such aggressive operations. Like a higher volatility and that for example blue chip of national equities.

Another aspect that you should pay attention to from now on is the one linked to the fact that you should not look for values ​​with great stability in their prices. Where you will not have margins so that you can make profitable savings and they can even create more than one problem for you from now on. While on the contrary, the less stable values ​​according to these characteristics undoubtedly allow you to carry out these operations with greater guarantees of success. To the point that you can get very interesting interests for your income statement.

Linked to technical analysis

Although if you want to know what trading is, nothing better than to point out that it is a study of the markets through technical analysis and fundamental analysis to invest in different financial instruments with it. goal of making a profit. And that serves as an investment strategy to make personal or family assets profitable, from a different and above all very aggressive approach and that is only suitable for a very well-defined investor profile. Where at the end of the day it is about getting the maximum benefits in the shortest space of time.

On the other hand, it should be noted that these types of operations are not only linked to the stock market, but also to other financial assets. As for example, in the case of so-called currency trading, which is a decentralized world market for all currencies that are traded around the world. This market is the largest and most liquid in the world, with a daily volume of operations that exceeds 5 trillion dollars. That is to say, superior to that of the operations promoted from the stock markets. And where the risks are significantly higher. As another option that you have in your hand to make your money profitable from these precise moments.

New option in investment

It cannot be forgotten that the economic crisis has pushed some to try to make their money capital profitable in a more aggressive way. But without a doubt with greater risks than in the traditional operations of buying and selling shares on the stock market. Because any miscalculation can cost you dearly in the form of severe handicaps, whatever the financial asset chosen by small and medium investors. With a higher level of leverage than in the most common operations in the equity markets.

Within this general context, the first recommendation is based on being more cautious than ever and measuring or analyzing the financial asset where you are going to invest your money. As well as not allocating large amounts of liquidity to carry out this kind of operations in the trading sector. Where volatility can be extreme in good part of the occasions. Therefore, it is not a product intended for all investor profiles. If not, on the contrary, to the most aggressive of all and who want very fast profits at the expense of other much more conservative considerations from any kind of investment strategy. Where there is a very popular saying among retailers that says the following: "without money there is no investment and without investment there is no trading." It is to take it into account from now on if in the end you are tempted by this kind of special operations such as these.

Trading future transactions

Also trading operations can be executed through futures and with a higher risk in operations. In this sense, the MEFFMore it intends to enter contracts on the majority of securities listed on the national Continuous Market. For now, practically all of those included in the selective index of Spanish equities are integrated. Although you can also contract futures and options on a wide representation of companies that are listed on the main European stock indices.

In this way the investor has the advantage that he can bet on a long list of values ​​that have been added over the last few years. They are about solid companies, with a strong specific weight in their respective indices and that have a high volume of recruitment. On the contrary, small capitalization companies are not on this list as they do not meet the necessary requirements to be listed in this financial market. Either way, it is another option that you have at the moment to develop this kind of aggressive operations due to the risks they entail.

Opening hours in the markets

The market hours and the deadline for receiving orders for the same session are subject to the existence of a session that day in the market in question. Otherwise, orders will be processed for the next session. But the great advantage of operating with the European markets - unlike the American and Asian ones - is that they have the same opening and closing hours as the Spanish. Only the Portuguese has a lag of one hour with respect to ours. In addition, both have an automatic connection and have a trading calendar practically similar to that applied to the Spanish stock exchanges, which in principle does not imply any change in the habits to carry out the purchase and sale of shares.

You also have to bear in mind that the arrival of an economic recession will make trading on the stock market much more complicated from now on. Where only those who risk will win in the money sector.


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