Investing in the stock market in these times for a particular investor is a very big challenge. Volatility and uncertainty are the order of the day, causing a significant increase in risk investing in cryptocurrencies.
In this post we will tell you some very useful tips to invest in the stock market.
Prepare to act in short cycles
The global situation will be marked by uncertainty for some time to come, and stock markets will move with the pace of macroeconomic news.
Know how to interpret the information
If you think about investing your money in a certain value, the most probable thing is that you start looking for information and that a large part of it is totally contradictory. So always keep in mind that the important thing in the stock market is not having a lot of information, but rather the interpretation of it.
The bag is not a game
The bag is like bulls, you always have to respect them. You should bear in mind that the stock market is not a game, since there are many factors that can affect the price of a company and that must be analyzed.
Know what you want
Be clear about what you really want before investing in a security. To do this, you must previously mark your objectives, the deadlines and the maximum risk you are willing to assume.
Choose a good intermediary
Buying or selling through a bank or savings bank is usually more expensive than doing it directly through a company or securities agency. If you are going to invest in the short term, the most economical thing is to do it through an online broker.
Be dynamic, but not changeable
Once the investment is made, you have to be attentive and react when necessary, but keeping your strategy consistent. An untimely change can ruin the effort of several months or several years.
Diversify your investment to reduce risks
It is not advisable to focus all your capital on a single company, because if it were wrong you could lose a good amount of your money. It is preferable to diversify the actions between different companies to control the risk.
Establish supports and key resistances
For this, we will look for points where the value has stopped in both downs and climbs frequently, since that point will give us support or resistance to be taken into account in the future.
Do not let yourself be dominated by emotions
In a perfect world, each investor would develop an investment strategy, and an own method that would follow strictly under any circumstance. However, in the real world, emotions and feelings condition the operative to the point that they make the perfect market theories useless.
Do not let yourself be “abducted” by the Stock Market
Those who are not used to seeing their money at stake may end up suffering from stress because of the stock market. It is very common to see novice investors pending 24 hours of their investments.
Good planning (stop loss included), patience and calm are the best remedy. In addition, in the last case it is always possible to leave the market.