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Investment Strategy - Stock Exchange
Investment in the stock market is not so complicated that some people might think.
However, you must have some knowledge on how to invest in stock exchange in order to win.
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1)
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You must determine the amount that you want to invest in the stock market.
You should never invest money that you don't have because this is very risky.
So you should never invest money that you need to pay the rent, food or
other essential expense.
We must invest only the money that is a part of your economy and
that you want to increase the performance.
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2)
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You must practice before investing in stock market exchange.
A virtual simulator lets you practice and learn to invest without losing your money.
It's better to practice with a simulator 2-3 months before you start to invest in stock exchange.
Investing in the stock market using the technical analysis is like riding a bicycle,
you should practice to become very good to make money.
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3)
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Why you should use technical analysis to invest?
Technical analysis is based on supply and demand.
So a stock will always continue to grow as long as the request to purchase the
company is greater than supply.
Using technical analysis, ensure that we never stay in a stock that goes down of 50%,
100% or goes down to zero.
If you use technical analysis to invest, you should never keep a stock with a negative
tendance in your portfolio.
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3) |
You must choose an investment strategy.
Here are some example of investment strategy:
1) "high risk" strategy is to buy a stock in bullish momentum. If the stock gained 10%, you sell 20% of the shares purchased, if the stock rises 20% you sell another 20% of your shares bought and sold the remaining shares only if the stock tendance is going down.
2) "medium risk" strategy is to buy a stock in bullish momentum. If the stock gained 10%, you sell 30% of the shares purchased, if the stock rises 20% you sell another 30% of your shares bought and sold the remaining shares only if the stock tendance is going down.
3) "conservative" strategy is to buy a stock in bullish momentum. If the stock gained 10%, you sell 50% of the shares purchased, if the stock rises 20% you sell another 30% of your shares bought and sold the remaining shares only if the stock tendance is going down. If the stock loses 10%, you sell 50% of the shares purchased. If the stock loses 15% you sell the remaining shares.
4) "very conservative" strategy is to buy a stock in bullish momentum. If the stock gained 10%, you sell 50% of the shares purchased, if the stock rises 20% you sell another 30% of your shares bought and sold the remaining shares only if the stock tendance is going down. If the stock loses 10%, you sell all shares purchased.
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