Why is the stock market trend so important?

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All financial assets listed on the markets show trends. Despite what some investors may think, not only is divided into bullish or bearish. Desde luego que no, debido a que la lateralidad además es una tendencia. Aún cuando no se trate de autodefinirse para emprender subidas o bajadas. Pero en definitiva es otro tipo de tendencia y muy importante establecer la strategy que vas a llevar a término en los mercados financieros.

La primera lección en cualquier inversor mediano o pequeño es detectar la tendencia de los valores. Será de especial relevance para que puedas rentabilizar tus ahorros a partir de ahora. Debido a que en efecto, sabrás lo que debes de hacer y utilizarás una serie de herramientas para que tus operaciones puedan develop more successfully. You cannot forget if you do not intend to make more mistakes than necessary since it is a serious mistake that some investors make.

Such is the relevance of a trend that will be decisive for opening or closing positions in financial equity markets. We cannot forget that they will give the right signals to open an investment strategy, one way or another. To such an extent that it can make you earn a lot of money in operations. Or in the worst case, limit losses when the most adverse conditions occur in the financial markets. Because, at the same time, they do not require special training from users in this type of operation.

Bullish trend: buy stocks

There is no doubt that the uptrend is one of the most beneficial for the interests of small and medium investors. Because in effect, it will be the one that gives the guidelines on the decision that will have to be made in the coming months. Not surprisingly, in any upward trend, buying shares is an operation that can be carried out with greater risk control. In particular, because of the long upward path that a security or financial asset can present.

At the same time, there is a figure in technical analysis that can be even more beneficial to your interests, such as the so-called cost-free increase. For a very special reason and that resides in that the chosen value will no longer have any obstacles along the way. In other words, ha exceeded all resistance levels that has been introduced to you during your dating evolution. To the point that it has all the way clear at the top, with no apparent limits that can slow down its price.

In any uptrend there is always a strategy that can help you achieve your goals more clearly. It is especially based on buy low peaks where they quote their prices and sell the maximums. To the point that you can strengthen your positions in equities with greater guarantees of success than through other stock market procedures. With the important advantage that you will not need special training to detect these entry and exit levels on the stock exchanges.

Bearish: preserve savings

Durante la configuración de esta tendencia, no buscará un retorno de sus ahorros. Desde luego que no, pero al contrario, su principal target es proteger sus aportes monetarios. Y una de las formas más efectivas es a través de loss limitation. Nothing less than losing less money than the stock market can dictate. In these cases, it is a very prudent measure so that you do not lose as much capital as you will have spent on more than one occasion. Even using a stop loss order so things don't get worse.

As if there was a free rise, en la tendencia bajista la caída libre además está presente. Uno de los escenarios más desfavorables que puedes hallar en el análisis técnico. Y eso puede hacerle perder más de la mitad de los activos invertidos en acciones. Si lo detecta, debe marcharse rápido y sin excusas. No es de extrañar que be lo más práctico que puede hacer a partir de ahora. Su racha bajista es muy alta sin ningún soporte durante esta racha. No tendrá más alternativa que comercializar sus acciones si no quiere verse en una situación mucho más peligrosa que la anterior.

Unlike the uptrend, in this there are no ways to develop any type of investment strategies. Just sell, sell and sell. The only thing that there is a small difference is in when it is formalized. Because, in effect, you can take advantage of a bounce to get away from the stock markets. Perhaps with a better sale price than expected when the fall in prices originated. Whatever the case, you should not take these scenarios into account to try to take advantage of the low prices that the shares of the securities bring.

How to give truth to uploads

Another problem that you may encounter from now on is what are the parameters that will certify that the load is an incontestable fact. Well, just two and one of them is if the increments are accompanied by a significant increase in your recruitment volume. If this is truly the case, it will be a sign that the climb is serious this time. To the point of being in a position to open positions in the financial markets. With heavy purchases if it is viable.

The other technique is represented by the fact that the rising highs and lows increase at the close of each week. It will be another of the clues that the Stock Market will provide you on the trend of a security or financial asset. As long as it is not uncertain, it will be that it remains vigorously under the uptrend. It can last a few weeks or, conversely, it can last for a very long period of time. In any case, will never continue definitively since equities are dominated by continuous trend changes. Even though they may have a different duration, depending on each specific case.

Whatever the case, if confirmed, it will be a possibility for you to make savings more efficient. Because, in effect, you have a high probability of not being confused with the decision you made. Therefore, you may hold positions As long as the highs and lows do not drop in their weekly prices. Then it would be time to undo the positions and collect the capital gains. Although prices may rebound.

Why is it so important to detect it?

It is highly recommended that you have this information in advance. Enough so that you can develop it with the most convincing and established strategy. Be aware at all times of the supports and resistances that can be overcome at any time. With the intention of seeking profit or limiting losses, respectively. Because depending on this variable, you must use one or another strategy to make the most of the operations. We are going to be a movement that will help you defend your interests as a small and medium investor.

It is also very convenient that you analyze the technical analysis to verify what is the real value situation or financial asset. It will be a highly effective tool so that you can make the best decision to make your savings profitable. Because indeed, one of the best strategies in the investment world is to bet on an established trend. In some cases it will help you get extra money, and in others not to lose more contributions. By following these recommendations, you will likely optimize all your equity trades.

Merchant operations

Another aspect that you should pay attention to is that laterality is also a trend, even though it may surprise you. With the only difference that it does not develop upward or downward, but maintaining very similar levels in its price. As a result of this action, it will be much more difficult to trade on the stock market. Where only traders will be in a better position to achieve their most desired goals. With very fast operations and even that they take place in the same negotiation session. It is something that differentiates them from other profiles of small and medium investors.

A very practical recommendation in these scenarios is that you can never go against the grain. Because indeed, if so, you will have all the ballots to carry out terrible operations that will materialize in large losses in your income statement. Therefore, you must take advantage of the bullish trends and select the bearish ones to exit the financial markets. It is one of the most basic lessons for any investor, above other more complex or technical considerations.

As has possibly happened to you on more than one occasion, at times when a change in trend is generated, it will be the occasion for you to change your investment portfolio. Adapt it to the new scenario that is presented in equities. Quickly, analytically and checking the intensity of the movements. All these actions can be visualized in the charts of stocks, sectors and stock indices. It will be the best tool you have to operate on the stock market with the maximum guarantees.