![uploads-1-3534668](<a href="https://rmarketingdigital.com/en/wiki/https/" target="_blank" data-wpel-link="internal">https</a>://rmarketingdigital.com/wp-content/uploads/2021/04/subidas-1-3534668.jpg)
After a severe punishment in the equity markets, a recovery is generated that is momentary. Through the bounces, that it can last a single dayor, on the contrary, extend it to several trading sessions and recover part of its price quotation. Bounces are easy to identify and require no special skills so you know that you are facing this common scenario in the stock market.
If you are a follower usual de medios especializados en el mundo de la inversión, estarás acostumbrado a este término. No en vano, es uno de los más utilizados por los analistas para describir la realidad de los mercados financieros. Tanto en plazas nacionales como fuera de nuestras fronteras. Lo que es una tendencia alcista frecuentemente se confunde con los rebotes. No es sorprendente que estos movimientos no sean una tendencia, sino un clear reaction to oversold shares.
Rebounds: Why do they occur?
No es ningún misterio que su origen be muy claro y no ofrezca ninguna duda, o al menos muy poca. La primera premisa para que ocurra es que debe haber un downtrend background. Without it, it is not feasible for these movements to develop in the stock markets. They will be something very different, but of course the rebounds are not, or something else similar in their operation.
Another of its main characteristics is that it never recovers the value of previous falls. It is even very normal for rebounds of such little consistency to appear that they can only last a few hours. It is easy for you to check it in the markets since they develop with a certain frequency. Being a trap in which investors with less learning fall They tend to buy stocks believing in a more positive reaction from the stock markets.
To give you an idea of what these movements consist of, nothing better than a practical example. Imagine that the price of a publicly traded company has depreciated by about 20%. Well, due to the oversold it presents, it is very common for it to have an upward momentum as reactions to so many sellers there are. They can recover a 2%, 4% or even something more than its real value. But not much more, since we would not be talking about rebounds, but something more forceful.
What can you do with the rebounds?
Otra cosa muy distinto es cuando estás en pérdidas. Tu strategy no será la misma, pero deberás de variarla para tu beneficio. A través de una doble acción en la administración de sus intereses. Por una parte, puedes close to avoid having more losses. Waiting later for the trend in the stock markets to change.
And on the other, if you go to the medium and long term, you maintain your positions with the hope that the stock market can change and gradually recover the value with which you have acquired the securities. In this circumstance, it would be the reaction of an investor with a clear conservative profile. Is this your specific case? Because if that were the case, it would be pretty much the same as generating this specific upward reaction.
What if the bounce lasts?
In addition, there may be a scenario in which the rebounds can last for more days, even weeks. It will be a lot more conducive to short-term operations since you have a greater margin of days. Even with the opportunity to make your savings profitable during this period of time. However, it is a very delicate move to make because it can be finished at any time. And as a result of them, deactivate your strategy, with the opportunity to develop losses in the stock exchange.
Don't forget that you are not facing an upward cycle as in other situations he has experienced in the financial markets. You can come to the conclusion that it was not worth opening the positions since the equation between profitability and risk is not the most interesting for your personal interests. You will have no choice but to wait for better times to come to trade these financial assets.
As the rally continues, the possibilities you have to make profitable each of the operations that you have open will be greater. However, it will be very important that assess the risks that these movements entail because they originate in bearish scenarios, as we have previously explained. It is a price you must pay to take over prices at these quote levels. Since when the rebound ends with all the certainty that prices will fall again in their quotation. Perhaps even more virulent than ever.
What are your strategies?
Faced with this possibly complicated scenario, you will have no choice but to clearly establish your actions. So as not to see yourself in very unwanted situations. Especially dealing with rebounds they must be very short duration. Without having access to benefits, it is best to close the positions and enjoy the capital gains generated. Do not try to lengthen the procedure as it may have an unexpected end.
On the other hand, if you buy into a security, it can be the perfect excuse to abandon positions, whatever the balance of your portfolio of securities. Until possibly you do them in a negative situation regarding the prices of the purchases. Even when what it is about is that the losses are minimal, and that they do not excessively affect the general balance of your assets.
Another action that you can apply in the stock markets is to try arrive at entrance prices en los mercados financieros. Sin otro target que abandonar además tus posiciones compradoras. Fundamentalmente si este procedimiento es más largo y puede durar más días o inclusive semanas.
Why are they formed?
Of course through an act of adjustment of the financial markets themselves. Since sales have previously been imposed on purchases, there must be a reaction from them. At the same time, the strong hands of the market, in other words, the big investors, take advantage of the possibility to buy shares that are traded with significant discounts in their prices. In very short-term trades, they will possibly fool you by their intentions.
It's about a truly temporary procedure That shouldn't stop you from seeing the bottom of the stock markets. If you don't, you will make a serious mistake that you will have to regret later. Bounces are especially suitable for investors with long and extensive experience in this type of investment product to be traders.
Overselling is clearly imposed on purchases and this causes that this radical reaction is generated in the financial markets. In rebounds, it is absolutely normal for there to be daily revaluations above the 2% barrier, even higher. It is not surprising that they attract a lot of attention to small and medium investors. It is the operations that come into play during these very special situations in the stock market.
Whatever the case, they are not moves that you can get out of a millionaire. Win anyway yes, but something else. For that you already have the bullish scenarios, in which you can make profitable savings with higher profit margins. It is convenient that you remember it for your next operations in the coming months. Where, undoubtedly, there will be many rebounds, more than you imagine now.
The keys to trading with bounces
- Take advantage of them to operate in the short term, but no more. Any recklessness can pay dearly, and it is not worth risking your money in this way.
- Don't look at the rebound as a possibility for profit. But primarily as an excuse for you close the positions in the bag.
- If you enter during these reactions in the sector of the actions that is low amounts that are not very high. Better to limit monetary contributions to a minimum.
- Through this type of stock exchange will not be in a position to collect any dividend. Nor to set very high goals.
- Be very careful with the bounces in the bag, because you will come later, or rather The price drop will continue. Until reaching levels well below the current situation. Prudence should be the common denominator of your actions.
