Be wary of unique opportunities

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In the stock market there is no goose that lays the golden eggs. There is no investment that ensures a spectacular return without having to take any kind of risk. That is why when faced with proposals on large profits above the market, the first thing to do is to act with caution , not to believe anything that we have been told and to inform ourselves. Likewise, if you only see strengths in your analysis of a company, doubt your conclusion. These types of companies only exist in stories. There is also no magic formula for determining whether a stock will go up or down. The PER , the dividend yield, other fundamental analysis parameters or the different technical analysis systemsthey are indicators about the action, not an oracle that tells us without margin of error when to buy or sell or the future of the security.

Stock exchange

Trading on the Stock Exchange: Ten terms in English that you will be interested in knowing

In stock market operations it is very common to find terms in English that define part of the daily activity. These are some of the terms that you will be interested in knowing if you want to trade on the stock market .

Nobody knows anything, follow your own strategy

This is one of the maxims of trading on the stock market. Thanks to the Internet, there are many forums, specialized web pages and blogs where information about securities, possible blows, and different types of advice are shared. To these we must add the traditional media and the different financial analysts. The amount of recommendations and advice that you will find is infinite and that is why you must bear in mind that it is always about opinions, more or less interested, more or less well-founded, but opinions. After all, the experts reach clct stock of conclusions through an analysis, fundamental or technical, it doesn’t matter, which doesn’t have to be better than the one you do yourself. That is, if your analysis tells you to buy, do not stop doing it because of the opinion of a certain expert.

Follow the trend, but not the mass

When it is time to actually enter the market and start trading, it is advisable to invest in favor of the trend. Stock prices always move in trends , some easy and others more difficult to identify, that can last for years and that it is advisable to follow. At this point it is advisable to be patient before venturing to identify a change in trend. On the other hand, this does not mean that you have to strictly follow the indications of the market in general, since it is also necessary to have a sufficiently critical and independent spirit so as not to get carried away by moments of panic or euphoria. In addition, if you manage to stay safe from the so-called market sentiment, it will be easier to identify investment opportunities precisely because of an excess or lack of sentiment.

Let your profits run and cut your losses

It is one of the great premises for any investor. Investors are more likely to sell when we win 10% than to sell when we lose. In other words, it is difficult for us to accept losses and we tend to wait until the loss is already too great. In this sense, it is necessary to be consistent with the objective set, especially with regard to the deadline and act accordingly. In any case, the first thing you should learn as an investor is to put a stop to your losses , that is, establish a so-called ‘ stop loss ‘ or level of losses that you are willing to assume and from which you will automatically sell the shares.

Following these rules is not always as easy as it seems, because to begin with they require a good dose of patience, one of the characteristics that every investor must have. In any case, if you still don’t see it clear to invest according to your own criteria, you can always leave your money in the hands of professional brokers or ‘foguera’ in stock market games where the investment is not real, of course neither will be the profits you get.

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