How to operate in the short term on the Stock Market?

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Short-term operations on the stock market are at this time the most appropriate to channel in the current economic context that permeates markets everywhere. In this scenario, medium and long-term operations lose all sense of profitability, or at least make them difficult. Only opening positions of a few days, or even weeks, can be profitable with a higher return margin. Especially taking advantage of the rallies that the financial markets will certainly have. But wait no more, open positions with longer terms will yield little more.

This is a new scenario, one that you have not been used to operating in recent years. As a result, its strategy de inversión tendrá que variar irrevocablementeSi no quiere salir de los mercados durante muchos meses, quizás inclusive años. Te involucrarán para que actúes con firmeza, y aprovechando todas las posibilidades de negocio que se presenten. Y eso indudablemente va a hacer acto de presencia, por muy mala que be la evolución de las bolsas.

How should your performances be?

Investing movements in such a short time must be governed by special characteristics in their performance. You should never forget it if this is your profile as a retail investor. And always respect a series of rules in operations. No en vano, consiste en movimientos en mercados altamente especializados, cuyo principal target es rentabilizar rápidamente los ahorros depositados en las acciones.

No valdrá ningún valor, como se puede ver en la información de este post, sino solo a través de quienes desarrollen un greater range of oscillation. The higher the volatility, the chances increase substantially. Until you get to the point where you can formalize your buy and sell orders in the same trading session. With the well-known intraday operations, which is the same.

So that you develop these movements correctly You must adjust to well-defined investment strategies., and which you will not be able to exceed to successfully meet your goals. Many euros will be at stake, and you should not leave anything to improvisation. It is one of the keys to carry out this type of operation, that another part implies more risk. As, on the other hand, you will be able to quickly verify it if you undertake this path in investment.

Advantages and disadvantages of this strategy

Trading in the short term can be very satisfying when your goals are achieved. But at the same time, a big problem if you don't use this strategy. You will only have two solutions. On the one hand, trading stocks with a handicap, something very frustrating for your interests, undoubtedly. And on the other hand, what is even worse, get hooked on value for a long time, maybe even in years. And at least until the purchase price is recovered to complete the operation.

However, there will always be more favorable scenarios than others to open short positions. You should keep this in mind before deciding on stocks. And either way, these operations will be dirigido a un perfil de Username comercial muy bien definido. Young investor with high purchasing power and stronger training in financial markets. Do you fit this portrait?

From this general approach, you must take care of the advantages and disadvantages that this type of short operations will bring you. And that can be channeled according to your expectations as a small investor. Especially by measuring the times set by the markets, which will ultimately be responsible for whether the operation is carried out successfully or not. Among its advantages are the following.

• They will allow you get high capital gains in very short periods of time, even within the same trading session. Anyway, as long as the quotes support your movements in the markets.
• If you can find the purpose of this strategy, it will be a very important tool to make optimal use of your savings every year, with a profitability superior to that of other more sophisticated equity products.
• You can get much more competitive rates for these operations, saving a lot of money on them every year, even opting for flat rates some of the country's banking entities have them. You can give unlimited buy and sell orders.
• It is one of the most effective ways to take advantage of the uptrend in financial markets, both in its indices and in the selected securities. Not surprisingly, it will be easier to achieve great returns in this scenario in the stock markets.
• Can take advantage of fluctuations in stocks They trade to make purchases in the lower band of their prices, and so that from this dynamic the potential for revaluation of their investment portfolio is even greater.

Once all these benefits have been analyzed, you will come to the conclusion that it will be very positive for your interests to opt for these very special operations. But it is not so total, because will be balanced by a number of disadvantages that involve the movements directed to the shortest space of time. And that you should definitely also review them with a very detailed analysis.

• You will need a greater experience in equity markets, as well as extensive knowledge about the operation of these financial assets. It will be the essential requirement to succeed in this long meeting.
• You must protect your performances more, since the risks of these operations are significantly higher. Even with the opportunity that you could lose a very important part of the investment. It is convenient that you take them into account so as not to be surprised.
• If you are not sure about the trend of your chosen security, you had better give up trying to place the buy order. Since in all cases, the operations should develop under bullish movements clear the markets.
• The expense that you will have to pay in commissions will be much higher, and as a result of the many purchases you will make throughout the year, and perhaps even more than one in the same day.
• You must have a lot of free time throughout the day, since you will have no choice but to be aware of appointments, almost to the minute. Not surprisingly, your operations must be very agile, where a loss of a few minutes in the formalization of the order can mean many euros in the operation.

What values are more sensitive?

The definitive time has come to take positions in the markets through these shorter-term operations. It is then that you will wonder if all the securities that are listed on the international stock markets serve you. Anyway, no, there are some more recommended than others, and that are governed by a series of very special characteristics.

To start trading your stocks, you will need to look for stocks that are listed with a wide divergence between your high and low prices. When larger swings originate, the better for your interests. From this very particular scenario, there will be no problems in finding the most suitable candidates for this strategy. In principle, all speculative assets on the market can serve you, since they meet this requirement. However, they carry more risks in your operations. It is the counterweight to these operations.

Another group of values open to this investment strategy comes from those that operate with greater volatility, and that it can also be represented in national benchmarks, including the Ibex-35. You will give yourself the essential guidelines so that they can be the object of your fastest operations. And what is better, in any term of permanence, from the shortest to the longest.

However, there is a select sector group that delights the hundreds and hundreds of speculative investors who take positions in equities every day. Comes from new technologies, and whose companies almost always suffer very marked divergences in their prices. And in any case, above other businesses represented on the Stock Market. Whatever the case, it will be very prudent to take this consideration into account if you are going to become a short-term investor in the coming months. Even with intraday operations, in other words, made in the same trading session.

If, after having analyzed the explanations presented in this post, you feel strong enough to participate in these brief operations, go ahead. Even though you will have no choice but to take charge of the high risk in which you run. Especially in adverse scenarios, such as the one we live in at the moment, and where these operations are not highly recommended due to high instability presented by all the financial markets of the world.

Sea cual sea el caso, será una de las opciones a tu scope para rentabilizar los ahorros, y cuya rentabilidad dependerá lógicamente del grado de éxito de las operaciones. En unos serás más generoso, en otros un poco menos, aún cuando seguro que más de uno se formalizará con pérdidas en el balance. En resumen, debes preguntarte si te valdrá la pena desarrollar tantas operaciones a lo largo del año. Solo tú tendrás la solución a esta pregunta.