One of the key moments in every investor are those when he has to opt for a specific security to make his savings profitable. It will be the moment, without a doubt, when doubts will increase in a very noticeable way in your aspirations, even spending many hours in this difficult process to select a security in the equity markets. Not surprisingly, there is a lot at stake, and even the possibility of losing part of your heritage. Therefore, you should not underestimate this step that you will have to take to take positions in the markets.
That is why it should be constituted as a period of reflection and analysis that will end with the destination of our savings. With all certainty that you will have more than one proposal in the bedroom, and you do not know definitely which of them to choose. You should take a period of time to carry out this laborious task, but of course, without eternalizing the process. Not surprisingly, if this were the case, your interests as a small investor could be harmed, even arriving late to operations in the financial markets. Or even with bad purchase prices.
Your main objective will be set yourself some minimum goals, to develop a strategy according to these terms that you will impose. Not only with regard to the potential returns on investment, but also linked to places of permanence, protection of contributions or risks of purchases, among other factors. If you meet these requirements, you have surely started your investment with good prospects in its evolution in the financial markets.
What values should you select?
The first task will be none other than build an investment portfolio completely appropriate to the profile you present as a small or medium investor: aggressive, defensive or intermediate. Depending on these criteria, one or the other will be the selected companies. And of course under different strategies to make your proposal.
As a consequence of this model of choice, if you are going to create an eminently conservative investment portfolio, you will not be able to include securities from the technology sector, from newly created business lines, and much less speculative. In any case, what you can consider is to give the investment a greater risk depending on the expectations you want to create. And of course, you will also have a lot to see the monetary contributions you have at that time to invest in equities.
It is really highly advisable that you opt for highly liquid companies, and that they move infinity of titles in all the stock market sessions. Only then will you be able to enter and exit the markets with greater agility, and not get trapped as a result of a bad purchase order. Not surprisingly, it will be easy for you to wear down the investment for a long time, perhaps excessive months or years in which you will not have revaluations.
With these important filters you will have already discarded many values, and you only have a range of companies vulnerable to your next purchase decision. Surely you have bought time in all this complicated process of imposing candidates to enter the equity markets.
What parameters should you look at?
The most decisive moment to enter the stock market arrives, in which you must check some of the most important characteristics of listed companies. But what are they? Do not worry because we will give you the most decisive keys when selecting your preferred values. They are various and of diverse nature, as you will see from now on.
Negotiated titles: the more active they are in their quote, the better it will be for your interests, since you should try to find those that are more hired. They will provide security to the ready-made portfolio, but it is also that you will avoid that they can be manipulated by the strong hands of the market, as you can see in some small capitalization companies that with very few titles their prices can skyrocket, in one sense or another. .
These shares generally belong to a group commonly known as chicharros. They can make you rich in a few trading sessions, but for the same reasons, leave you without a very important part of your wealth. They are very difficult actions to handle to take positions, that only the most experienced investors know how to treat them to achieve their objectives.
In its uptrend: without a doubt you should choose the values that are developing important bullish figures in their price. It will be an unequivocal sign of complete security to achieve the desired objectives from the beginning. Not in vain, it will be the anticipation of greater rises in the next trading sessions. And above all, a guarantee to close operations with the maximum possible performance.
Don't miss out on these favorable scenarios in equities to set up your portfolio. You will certainly not fail in the proposals you make taking advantage of this very favorable trend. And if they enter what is known as a free climb, much better, since there will be no resistance along the way. And the capital gains may be higher, up to levels that are very satisfactory for your interests as a small investor.
With broken supports: when the price of the securities surpasses these important levels, it will be the perfect occasion to take positions in the markets. It will be, once again, the anticipation of further increases in its price, without a doubt. And that as an investment strategy you could maintain it until they reach the following resistances. Where it would be the occasion to undo the positions and enjoy the profits.
Moreover, it is a very easy figure to detect, and that you can view it in the graphs of listed companies. You usually have them available in specialized media, and especially in digital ones dedicated to the stock market, and investment strategies. In addition, you will not need any training to understand them, much less attend training courses that are advertised with some regularity so that you learn to invest successfully.
Oversold levels: when the shares of a company reach this situation, it indicates that the downward process is about to end, and with a tendency to develop an upward trend in the coming days. Not in vain, it will try to adjust its prices to its supply and demand, as is normal. And as a consequence of this, you will be in the best conditions to take advantage of the upward sections presented by companies that are in this technical situation.
You should understand that when there are very high levels of oversold it will be indicating that sales are clearly dominating purchases. Due to many circumstances, from poor management of the company, to a terrible technical aspect in its price, among other possibilities that will generate this movement. Many investors, especially the more experienced ones, look to this variable to take positions in the equity markets. And in many cases, with undoubted success in operations.
Debt of companies: if this is the actual status of the listed company that is the object of your attention, you better renounce this option. It is precisely the most indebted companies that are most prone to developing deep downward movements. If you want to act with greater protection of your investment interests, you will have no choice but to subscribe for shares in powerful business groups, and whose level of indebtedness is not very high. It will be the safest way not to make mistakes, or at least, not on a regular basis.
Every quarter listed companies They are obliged to present their business results to the National Securities Market Commission (CNMV), and whose data are public and transparent. It will be a reference point of undoubted relevance to correctly direct your investments, and choose the healthiest securities on the financial market. Not surprisingly, if large investors like their figures, it is common for them to experience notable advances in their price quotation. With an intensity that can last several days, even weeks.
Top tips for taking positions
Surely one of the ways you have to invest your savings is by learning from the bad experiences of the past. Without a doubt, but also applying a very energetic line of action in your performances. With discipline, and a certain rigor when completing them. And that would basically come from the following recommendations that we expose you in this work.
- Never rush when making a decision to enter the equity markets. It is preferable that you wait a few days, but that you do it informed, and knowing at all times what you buy.
- Take advantage of all the signals provided by the charts to formalize an objective purchase operation, and with great expectations to revalue. There are many that will be generated from its technical aspect, and you cannot waste them in any way.
- Your purchase orders must be executed on securities that develop a flawless bullish channel, and never in downward processes. It is the first rule of the good investor, which he will apply decisively to take positions in the stock market.
- You need benefit from favorable conditions offered by the financial markets, and rarely disappointed in their expectations. Both in short and long terms, and under any kind of investment strategy.
- Follow the path of the strong hands of the market, since they will give you the keys to select the most profitable securities of any stock market, whether national or outside our borders.
- Lastly, tries to replicate the investment portfolios made by some managers. They will surely give you more than one clue to develop your purchases.