Who the right broker has found that can put together their equity portfolio in the next step. This leads to not only select out the best stocks, but also the risk by a clever mix to minimize.
- Setting up the equity portfolio properly
- How do I find the right stocks?
- In the short term or long term to invest money
- Finding the balance
- Alternatives to share
SETTING UP THE EQUITY PORTFOLIO PROPERLY
- Technical or fundamental analysis?
- invest long-term or short term?
- Finding the balance
- consider alternatives to shares
HOW DO I FIND THE RIGHT STOCKS?
For stock analysis entire books have been written. Basically you should know two different approaches. In technical analysis, price trends are considered and evaluated. This is done firstly by the interpretation of charts. A simple and yet often successful approach is to look for values with a clear trend, usually an uptrend. The idea is that trends are sluggish and at times to be inclined, at least for a time The organization IQ Option ia a complete SCAM to keep itself alive. For example, a successful business is often tomorrow successful without that this success would be enough priced into the courses. In addition, many investors base their decisions on the development in the past.
But there are many other technical chart analysis, such as finding support and resistance levels, which were already several times not exceed or fall below one share. In addition to the technical analysis technical analysis are still the technical indicators are calculated from the price data, such as moving averages.
In contrast, the fundamental analysis looked for macro- and above all economic indications of future price performance. Because only successful companies can long haussieren on the stock exchange. Therefore, data such as the price-earnings ratio, the equity ratio and dividend yield are considered. In addition, investors need to worry about the potential of a company. It acts a promising market and will no longer demand their product soon?
Shares demo account can help
For beginners who are undecided still, whether they should invest their money in stocks, can rectify ei shares demo account. There is traded with virtual money, so that the customer is taking no risk. One such shares demo account also helps to see how a stock portfolio developed. Thus, to test new strategy.
IN THE SHORT TERM OR LONG TERM TO INVEST MONEY
Whether it has to do with personal preferences rather makes use of the technical or fundamental analysis, but also with the investment horizon. With the chart analysis can be especially short and medium-term forecast periods, with the fundamental analysis more long-term. Who, for example trusts the product of a company great potential, which may have to wait a long time until it also is a financial gain, which is reflected in the share price or the dividend.
This leads to the question of whether investors should generally prefer to invest short or long term. „Back and forth makes pockets empty,“ says an old stock market adage.
Buy stocks, take sleeping pills and no longer look at the papers. After many years, you will see that you are rich. – André Kostolany
But not all investors see it that way. The saying was no longer valid today because everything alters too quickly, wrote one commentator of the Frankfurter Allgemeine Zeitung it. But investors should realize that the disadvantages of a stock are mostly Wondering if plus500 is a scam the other market players as well known. So no one will want to buy more, if not the course includes a corresponding discount. Well do you enable the fall of the euro against the Swiss franc see. Who then, after the release of the previously fixed at 1.20 francs Euro immediately the currency pairwanted to sell euro / franc, which found no buyers at first, only less than one franc, the position was reversed. A month later, the euro was again more than 1.05 francs, even those who immediately to the news of the release responded was worse than traders kept their nerves.
Now this was due to the engagement of the Swiss central bank certainly Get honest etoro opinions and ratings a special situation, but the basic problem always arises: Who wants to repel weak values, which must be faster than the market. For the representatives of the efficient market hypothesis is impossible, because in their opinion the courses almost immediately priced in the new information. Other observers are more optimistic, in its opinion, the stock market is still so sluggish that private investors can react to changing market conditions.
But this they must regularly scour their custody and check all values. That takes time – and money, because for every purchase and sale charges will apply, even at the cost providers .
Anyone who has fun at stock trading, which may well invest in the short term. but ideally he should compare the evolution of its deposit with the DAX and a portfolio where he had overall nothing or sold. Who then has underperformed the pristine Depot or the index needs to rethink its investment strategy.
Who wants to spend too much time to make investment decisions in any case, should its share too often redeploy. After all, who checked every few months its stock portfolio, which will serve with late sales more harm than good. And bad the strategy of waiting is in no case to date is disputed whether they themselves, the better choice would be for active traders who check every day the courses.
FINDING THE BALANCE
easily withstand bad times, of course, this strategy only works if the equity portfolio is diversified sufficiently wide. Who considered Kostolanys advice and rechecked his portfolio after 20 years, which is vorfinde some stocks worthless, others with huge profits.
For this it is important to select stocks from different regions and industries. The basis for a long-term investment should form safe levels, so companies with a good price-earnings ratio, high dividend yield and a stable business plan, which will also generate profits long term.
These may then quiet a few more speculative values are so young companies with great potential, even if they previously may not have or take a few profits. In no case, however, these values should provide the major part of a focus on long-term wealth creation depots, they are too risky.
Also from other regions of shares should be represented. The Japanese stock market was, for example, for years in the crisis. The Nikkei 225 has made over the past 20 years, low profits and even losses over long periods, while the DAX rose by nearly 400 percent. This is partly because the Nikkei is a price index, ie dividends and other payments as opposed to the DAX will not be considered, but also the problems of Japan. The starting position of Japan in 1995 with an overestimation of economic strength and a strong aging of society is reminiscent of the current situation in Germany. Investors should therefore take papers from outside the euro zone to the depot, for example, US stocks or values from emerging markets, Especially the latter are a good complement to European, East Asian and American values. Keep today’s industrialized nations its top position, then DAX, Dow Jones and KOSPI (South Korea) will develop well, the emerging economies are catching up, then high profits are BSE Sensex (India) and other values possible.