In these last trading sessions of the year, small and medium investors may have one of the following two objectives. On the one hand, maintain the capital gains that have been obtained during this year and try to ensure that these do not evaporate. While on the other hand, it makes up its results in stock operations after a few months that surely have not been very beneficial. In any of the cases, they have several investment strategies that can be of great advantage to face this last part of the year that is about to end.
All of these types of actions should be taken at one of the most troubled times for the stock markets. Because they are faced with a new recessive scenario in international economies and that will mean a change in the approach they were giving to stock market operations in recent months. To the point that if necessary, you will have no choice but to vary your investment portfolio. To bring it closer to the reality of the equity markets since any mistake can lead to your bank accounts suffering in their balance.
Another aspect that you have to take into account from now on is that the last part of the year needs a significantly different treatment from the rest of the months. Not surprisingly, it is one of the most bullish periods of the year and you must prepare your investment strategies towards this important variable in the financial markets. To the point where you must focus them to achieve maximum capital gains. Because in effect, there will be time for corrections to be the common denominator in places around the world, such as the first or second quarter of each year. These are factors that you have to take into account before taking positions in the stock market.
If this last stretch of the year is characterized by something, it is because the well-known and long-awaited rally of the Christmas holidays is being held. Where stocks frequently be appreciated in greater or lesser intensity and how many joys they bring to minorities in most years. To this end, it is a movement that usually arises in the last days of the year and that usually lasts until the first days of January. It is not certain that it occurs every year, even though in recent years it has almost always been present in the operations of the Spanish equity markets.
Although on the other hand, it should be noted that they can be a possibility to get the last benefits of the year. With a few percentages that can go from 3% to more than 10% in the most aggressive movements of the financial markets. Where the most aggressive values are the ones that perform the best on those days and that may have a divergence of more than 3% with respect to the rest of the values. Whatever the case, it is one of the factors that small and medium investors must take into account in these last days of each trading year.
Decrease positions
In the event that the year has been very positive for the interests of small and medium investors, there is always the option of reducing positions little by little. In other words, if you are in capital gains you can sell part of your shares to enjoy the benefits generated so far. While on the other hand, you will keep the other half to be able to expand the benefits, and in case things do not develop as you want, you will be protected by the sales made previously. It is an investment strategy that has been formalized with some frequency in recent years.
It is a management of the money invested in the stock market that is mixed. It is true, while on the one hand you hold some of your positions, on the other you have finished the positions. You can develop it as long as your income statement so far is clearly positive. Never in positions where you are losing money in operations driven from the equity markets. Not surprisingly, it consists of a formula to reduce risks in a more original and fundamentally innovative way, which aims to preserve capital in the last days of the year.
Make more aggressive purchases
Another investment model that you can use in the last days of the year is to develop aggressive purchases to take advantage of the doable bullish in the financial markets. However, this investment strategy involves more risks than the rest if these upward movements do not occur in the end. To this end, it is very useful that this strategy can be of great advantage when the recovery in the equity markets is a reality. Among other reasons, because the potential for revaluation will be much greater than in other scenarios that may arise from now on.
As you have seen, this type of operation has its practicality, especially in periods of stay longer than shorts. Therefore, they are aimed at small and medium investors with a more defensive profile. Where the defense of capital prevails over other much more aggressive considerations from any type of investment approach. In all cases, it will be one more option you have to face the last days of this current year. Even though in this case, with some operations that originate more risks than in the rest and that derive from this type of share purchases that we propose.
Let the profits run
Another strategy that we can use these days is to leave the winning positions while there are no clear sell signals. To this end, it is very important that when it is in a bullish value, the best strategy to achieve a higher profitability of the stock market bet is to let it run in its price and, thus, achieve the highest capital gains until the company's listing. of the first symptoms of exhaustion in its trend. In this procedure it is easy to have access, it is only necessary to detect that the value in question is in an increase procedure, but with greater difficulties to exit the positions and optimize the bullish procedure, since statistically it is practically It is impossible to cover everything the procedure in which a signal that would invite you to trade the securities would be when trading in positions close to resistance.
While on the other hand, also a sell signal with a strong volume of contracts could be the time to abandon the investment and collect the accumulated capital gains. It is important to highlight that all bullish processes, such as bearish ones, have an expiration date, more or less prolonged in time, which in many cases is the main problem for small and medium investors, knowing how to detect the moment of the change in trend . Whatever the case, this system is very useful to boost positions these days and even take advantage of the Christmas rally that occurs these days.
Another option you have on hand if things are not as positive as you expect right now is to take advantage of the rebounds to carry out operations in the stock market. From this very particular approach, bounces are very characteristic movements in the stock market and occur with great frequency. For this reason, it is convenient to take advantage of them fundamentally to undo positions in the most adverse scenarios of the equity markets.
Trade with resistors
The latest increases in Spanish companies listed on the Spanish Stock Exchange have led many of them to come very close to their resistance levels. As a result of these actions, the most prudent thing is to wait to see if they break them definitively to take positions in some of these actions during the next months. Otherwise, there will be no other solution than expect more cuts in your price that could bring their prices back to support levels, and that if they did not break them, they would be signals to buy stocks to build a portfolio of values in the medium and especially in the long term.
Whatever the case, you can attend trading sessions where volatility is the predominant note in your prices, with a lot of variation in the evolution of your prices. As has happened in the last sessions of the equity markets, which can lead to being more sensitive to operations on the same day (intraday) to make savings more efficient. Whatever the case, this strategy is only aimed at more experienced investors so that they can achieve significant capital gains in just a few hours. Without waiting for another class of longer maturities.
