It is convenient that when you invest you carry out a diversification of the portfolio. We advise you to invest in different securities and sectors to reduce risk, although it is not advisable to have a large number of securities in your portfolio, since monitoring them would be difficult to do. An adequate number would be around five values.
What is important? Know how to interpret the information
If you plan to invest your money in a certain value, it is most likely that you start looking for information and that much of it is totally contradictory. Therefore, always keep in mind that what is important in the stock market is not having a large amount of information, but the interpretation of it.
Always invest in favor of the trend
In the stock market, the terms “expensive” and “cheap” do not exist. Stock prices always move in trends, some of which often last for several years. Therefore, always invest in its favor, do not get obsessed with trying to find a bottom every time the market recovers, if the value trend is still bearish. Impatience usually takes its toll and in investing in the stock market “choosing the right moment” is the most difficult, but also the most important.
Let profits run and short your losses
The great speculator Kostolany said that the most common mistake among small investors was to “short profits and let losses run.” For most investors, we sell when we’re up 10% and don’t sell when we’re down in the hope that it will turn around. It is advisable to maintain positions as long as the trend is bullish (instead of 10%, we could have gained 20,30,70 or 100%…) and sell (or not take positions) in the event that the trend be clearly bearish (small initial losses could turn into big losses if we don’t realize our mistake quickly).
Take into account your tax situation
When making any investment you must take into account your tax situation, since we are all Treasury and at the end of the year we have to noho stock to it (click here and learn about the taxation of each one of financial products)
The stock market is not a game
The stock market is like bullfighting, you always have to respect it. You should keep in mind that the stock market is not a game since there are many factors that can affect the price of a company and that must be analyzed. Those investors who in a bull market think that the stock market will continue to rise forever, do not have a historical stock m
