7 fundamental tips for investing in the stock market
I would like to invest in the stock market but feel some fears… this is not the case! Follow these tips to invest in the stock exchange and make money . Find out what is the strategy of the best investors.
Don’t waste any more time!
Investing in the stock exchange is one of the most profitable types of investments, however it is a big challenge for many people, as they do not have the necessary attributes to achieve success. Volatility and uncertainty are two of the factors present in this investment, but you will be able to manage risk by following the advice shared by some of the best investors ever in this financial market.
- Get ready to act in short cycles – The situation in Europe and the world is marked by a variety of news and economic and political events that last from a few hours to a few days. Financial markets, including the stock exchange, move according to this data. Therefore, the publication of this type of information provides good entry points for buying and selling shares.
- Know how to interpret the information – If you are thinking of investing your money in a specific company listed on the stock exchange, it is more likely that you will look for related information, however part of that information may be old or already discounted in the share price. So always bear in mind that the important thing on the stock exchange is not having enough information, but knowing how to interpret it.
- The bag is not a game – The bag is like bulls, it is always necessary to have respect and know how to tame. Contrary to what many people think, the stock market is not a game or a casino, because here there are a wide variety of factors that can influence the price of a company and that you must analyze in order to make money with all its positions.
- Choose a good intermediary – Nowadays it is possible to buy and sell shares through the homebanking system of the main Portuguese banks. Before opening an account and starting investing, check what are the fees charged for opening and closing positions, as well as the securities custody fee.
- Diversify your investments – It is not advisable to invest all your capital in one company, since if something bad happens you can lose a good amount of money. It is preferable to diversify shares between other companies and sectors to control risk.
- Establishing supports and resistances – To do this, you must access the stock chart in which you are interested, and look for the minimum and maximum points of the last months. These quotes will give the supports and resistances to be taken into account in the future.
- Do not be overwhelmed by emotions – In the perfect world, each investor develops an investment strategy, and his own method that he follows under any circumstances. However, in the real world, emotions and feelings condition your trading strategy to the point where you start making the wrong investments. Before making any decision think carefully!
As such, we leave here some suggestions as a bonus of the best books we can find to learn about the scholarship !
We will share 10 books, so that beginners and not so beginners can learn a little more about this world, because as many know in the financial market we never learn everything . We can find books on psychology, fundamental analysis and technical analysis.
The Intelligent Investor
The greatest investment advisor of the 20th century , Benjamin Graham, taught and inspired people around the world the philosophy of “value investing” – which protects investors from substantial mistakes and teaches them how to develop Graham’s long-term strategies made The Intelligent Investor – stock market bible since the original publication in 1949.
It is considered the best book by Benjamin Graham, in which he explains the different types of investment, characteristics, advantages and disadvantages . We try to help any type of investor to be based on solid and reliable ideas, without depending on irrational decisions.
One Up On Wall Street
Peter Lynch believes that average investors have an advantage over Wall Street experts. Since the best opportunities can be found at the local mall or at their own workplaces, beginners have a chance to learn about potentially successful companies long before professional analysts discover them.
In this book, Lynch explains how to look for stocks and offers easy-to-follow instructions for ranking good investments or not . He also gives valuable advice on how to learn as much as possible from a company’s history.
Study Guide to Technical Analysis of the Financial Markets
For those who like or want to learn technical analysis, this book is ideal.
John Murphy is an excellent reference, having taught thousands of traders the concepts of technical analysis and its application in the futures and stock markets. Covering the latest developments in computer technology, technical tools and indicators, the second edition features new material on candlestick charts, intermarket relations, actions and volume rotations, as well as state-of-the-art examples and figures.
From reading charts to understanding indicators and the crucial role that technical analysis plays in investment, readers get a complete and accessible overview of the field of technical analysis, with a special emphasis on futures markets.
The Initiate Scholarship
Warren Buffett and the Strategies of a Great Investor
Warren Buffett is the second largest fortune on the planet, the biggest investor in the stock market, an infallible businessman and a philanthropist. In Buffett’s own words, anyone has the ability to follow in his footsteps, but in order to do so it is essential that he knows the essence of his investment philosophy and the twelve timeless principles that guided him in all circumstances and markets . And it is precisely here that this work assumes a major importance when it presents with clarity the analysis of these immutable principles and investment strategies. A must for all those who want to know the relationship between the behavior of the economy, the performance of companies and the ups and downs of the stock market and make the perfect investment.
Stock Exchange: Investing in Financial Markets
This is one of the most successful titles published in Portugal on markets and financial instruments and is the most comprehensive and updated, written by a Portuguese author who works in the market. This edition has been fully updated with data for June 2018. It is divided into three main areas:
- Basic concepts of stock markets and other financial markets, constituting an essential tool for investing.
- Products : detailed approach to trading in stocks, ETFs, CFDs, Forex, Commodities, Bonds, Investment Funds
- Strategies and alerts to trade safely on new trading platforms, in simple or leveraged products.
Earn on the Exchange
The core idea of Winning on the Stock Exchange is that anyone, and not necessarily an expert, provided that they have adequate knowledge and sufficient information, can surely win on the Stock Exchange, possibly a lot and possibly in an extraordinary way, even using a strategy averse to risk.
For that, it is not even necessary to commit a great deal of time, although a permanent and qualitative attention is required.
It is a pedagogical and reading book for anyone interested in the capital market.
I Love You Bag
It is a book that reflects the author’s experience in stock market trading. Ulisses Pereira, an analyst in the stock markets, gathers 20 years of trading experience in this book. With the inclusion of new references and articles, it provides the reader with valuable information about the day-to-day life of the markets, with an emphasis on the psychological aspect and behavioral management of everything that is not mentioned in the more technical manuals, but that only experience teaches.
Winning on the Exchange with Technical Analysis
It is a work that demystifies technical analysis, making it accessible to a broader and less experienced audience.
In a simple and accessible way, the authors explain how it is possible to adopt winning strategies using graphical analysis, to understand how prices may behave in the future and the degree of predictability for these behavior trends.
- Fundamental concepts: the foundations of Technical Analysis , from the conceptual bases to its valences in terms of investment.
- Tools to win : detailed approach to graphical analysis, variables, types of graphs, models, trends and their formation or construction.
- Trading and Trading Systems: use of Moving Averages, Oscillators, Standards and construction of the winning investment system itself.