We currently live in an economically much-globalized world and where every day will be hundreds of thousands or millions of investors on the planet who perform countless mathematical calculations, statistics, analyze thousands of graphs and read other hundreds of thousands of different forecasts referring to the different assets or financial products existing in the stock markets.
Media noise and stock market investment
The positive effects of globalization on the markets have been appearing for some time at the moment when the Internet opened and facilitated the door to the immediacy and operational accessibility for any stock exchange in the world by small and medium investors. In these autumnal days of the year 2017, you can still invest from your home in national stocks, the US markets (USA) (monitor commissions), which buy shares in investment funds oriented or referenced in assets such as gold, oil, stock futures, coffee, wheat or currency (forex) … etc.
Investing opportunities are repeated periodically and recurrently in the stock exchange markets and it is no longer enough to know the income statements of the various listed companies or their forecasts of future profits of the same. The daily reality in the stock markets is clearly influenced by interested media currents that in many cases encourage both the price rises in some specific stock quotes, as well as the strong corrections of these sometimes without clear, logical or partially evident motivations.
Make medium and long-term investment bets can avoid falling into specific situations of high volatility and excessive risk to the investor, it will also be desirable to study business accounts, historical returns and verify the good positioning of a company chosen in its sector or niche of the market
Comments and Tips
For purely logical training lack, for new or less experienced investors (for example from European countries), it is not usually easy to understand or be able to understand before investing in the next session, the latest statements by the president of the European Central Bank -BCE -, the stock market importance of the previous closing of the Asian markets, the current rise or fall of the euro / dollar, the volatility of Gold and even, the futures in the most representative indices such as the Dow Jones Industrial, SP500, Nasdaq , the German DAX or the Euro Stoxx 50.
There are many occasions in which the less experienced small investors get lost in reading very conscientious analyzes or forecasts about complex economic and financial matters, sophisticated graphs filled with trend channels, oscillators, moving averages, bands, volumes, MACD, RSI … etc.
The easiest investment solution to all these complicated investment methods only useful for trained people who can perform daily investments via trading, is to make comparisons and studies of historical prices in the graphs of the actions, look for their support prices and their technical resistance, mark a logical entry price (purchase) and most importantly, respect the price previously calculated output (sale).
To avoid falling into excessive unexpected losses, or expected, they must place the corresponding Stop-Loss (stop losses) at the time of the investment assuming a certain sensible percentage of losses and adapted according to each investor profile.
Equity markets can be perfectly profitable for those investors who, recognizing their own training gaps in the financial sector, are able to participate with part of their capital assuming controlled risks and always knowing that this type of investment in the stock market must initially be carried out for a Temporary long term, which does not imply or limit, that high monetary benefits can be obtained in a less broad and even short period, according to the future evolution of the market.
Remember in a didactic way in Bolsa Tips that there will always be around a binomial to take into account and know how to differentiate: “Media noise and stock market investment”. Trading Rules, Tips, Tricks, and Trading Books are the best option for you.