Gaining on the stock market is an eternal need for investors. According to our experience, this is possible by preserving a “timely” asset for both short and long periods of time. However, this condition is a stroke of luck for a beginner. Suggestion, do you want to create an opportunity or do you want to see concrete benefits? This won’t be just a banal sign that so many other stock market sites promise, here are some clever ideas to better interact with your stock market shares.
The movement of the chart
Like any other calculation operation, it is necessary to have a good understanding of the mathematical movement of the stock market, especially when visible online. To know precisely, in which case and when this movement is positive or negative. Let us agree that an opportunity is to be seized when the value of a share is positive or increases. You still need to know from which level it rises, from a very low level to a low level? Or from a medium level to a good one? or from a good level to a very good one. For this you need to refer to the potential value of an action. Namely how timely or risky an action is. Naturally, as a good investor, you should invest at a time when the stock seems opportune.
The rules of the first stock market investment
For beginners who need to learn how the business works, we’ve outlined these three rules to be applied only after you train via a trading demo account. The more you simulate, the more you get used to it. After that, once you have decided to invest, here are the rules to follow:
- First rule, remember that you are participating, not sacrificing. You must have a fund that is necessarily independent of the funds needed to run your daily life. Such a precaution avoids the unexpected loss of your entire reserve.
- Second rule, don’t forget that you must follow the movement of an action (where you put your money) before participating. You follow and analyze at least ten times before you put your small fund into it.
- The third rule is that 20% of your fund destined for the stock market is enough to make your first investment profitable. You should know that at the beginning you use this small amount to familiarize yourself with the tendency of triggering, either towards opportunity or danger.
Limit your gains and losses
In order not to fall victim to too many uncontrolled temptations, limit your gains and losses. This allows you to limit the amount of money you use. What is left in your hand, you will need for tomorrow or for a new investment. For example, if you have previously set a profit of 120% and/or a loss of 10%, you should stop playing at that level. Don’t be greedy. In addition, you will take up a new investment according to the three rules if the opportunity presents itself
If you lose your 20% cash register, stop and use your time to read your mistakes. Before resuming or investing in a share, look for an external source of additional funds to restore your loss to its normal state, i.e. from 80% to 100%.
Closely follow the index’s evolution
It would be nice to know that the stock market is changing at an unexpected time. You can spot it by familiarizing yourself with indices such as the CAC40, SBF 80 or SBF 120. Each index does not act in the same way at every moment, it can change in a matter of seconds. Constantly observing the evolution of the indices is a good attitude that the stock exchange itself is looking for on your side. Experienced people always act with this mentality so that they manage to adjust their money at the right time. But it is important to know this, they manage a campaign of selling shares on a network of websites to get by. You might as well follow expert advice rather than read generalist advice via websites.
Spotting bargain basement actions
Certainly there are positive traces of one action among thousands. In the universal platforms of the stock exchange, you have to study the number of previous shares centered on a company of your choice. As said before, before you participate, you have to follow the previous movement of a share to know if it is a dangerous path or not for your future. You can choose from several areas (houses, industrial tools, raw materials, beverages, food, etc.) and geographical axes. To be seen therefore, the publication of their previous shares in monthly, quarterly, or annual figures already justifies confidence in investors. This implies that you need to inform yourself beforehand about several sites and above all to identify the scammers. Of course, the latter exist and work like any other fraudulent online offers with a very flattering graphic table.
To tell the truth, there are indeed current companies with a good reputation, which offer some profitable shares (leading services or products on the stock exchange). And systematically, you are in a position to invest in company profiles with a good base of financial figures. You can also sign up for a savings account that allows you to use your own caisse.
When trading on the stock market, be sure to adopt a fairly reactive attitude at all times. Do you buy shares or sell your gains? Do you make capital gains? All these activities should be enjoyed during the positive phase when a value increases.