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Investing in the Stock Market Tips

Given this complex moment of doubt, fear or simple market speculation "small and medium investors" should be aware that historically the stock market crashes and phases of economic recession has been followed by periods of recovery and growth, therefore, this current will not be different from previous ones that were based on sectoral bubbles, financial speculation and even armed conflicts worldwide. Bearing in mind that the stock market has its own pace and not have to match specifically with the rhythms of many investors. Let's see how the training method: "7 commandments for investing in the stock market."

The tips listed below may seem, at times, very basic and acquaintances and even too logical, so it could fall into the wrong temptation to give them for granted, concluding with the idea that warnings are simple lacking real value investing Well ... so NO!

The years of investment experience have shown us that if we had more than once used correctly or radical these precepts, we had saved some money troubles, in addition to passing the bitter feeling of having committed "childish mistakes" that could have avoided taking a clear concept that should be done for each situation or time the market. Let's see what are:

To start is advisable to invest in mutual funds: If you have not invested in the stock market and never tries to take something of return to savings in time deposits, it is preferable to start investing through mutual funds investment, preferably mixed 40/60 or 60/40- where the combination of equity and bond market fluctuations attenuated in their yields. Management fees and deposit of these funds are not cheap but to get to know the world market is successful.

Investing in the stock market will be held for the long term: This is one of the main provisions to respect, besides being the basis of any idea of market share. The prospective investor must be aware that your money can be invested several years to recover from some point of the stock market corrections, which require long periods of time for the return of previous prices in the actions chosen.

Do not risk all your capital in a type of investment: The word most used language in the economic-financial-DIVERSIFICATION is certainly sounds them-is not to invest all the money for investment in a single value or company or even industry particular business. The mixture of shares of Spanish companies, foreign purchases of bonds and stock elections in several different sectors, can affect getting lower returns, but will protect against the specific risk of crisis in a certain action.

Compare what the broker you need: As we know, purchase orders and selling of securities must be made through a company or broker-broker, the price comparison and tracking means for our investment offered by these Companies must adapt to our economic capacity, type of investment and number of movements in the market.

Must invest, not speculate aggressively: The risk is always accompanied by profitability so investing in equity securities of new sectors or forward-looking, is not recommended for new entrants. It is preferable to start in large-cap established companies, which distributed dividends and especially with a history established market within the periodic ups and downs logical-not venture in so-called "peas", companies with strong revaluation losses and primers specific for investment.

Buy down and sell when prices are high: It seems the "truism", but thousands of times or millions of them, less experienced investors have made the mistake of buying too expensive a stock-for media influence in television, print or Internet - like other times, have held titles that already had a strong appreciation in the hope that the value increased in price continue infinitely. There technically, overbought and oversold moments in a particular stock or index and these benchmarks should be taken into account to adjust the buy-sell orders timely.

Become an investor emotionally stable: It seems difficult, but just a matter of experience and above all time, not allowing himself to "scare" with the first negative movements of the investment made, or to proceed with the sale of shares before the initial change trend adverse to their interests when it was planned for long term. What is always essential in investment is to limit losses by placing Stop Loss, these "firewalls" prevent losses higher than expected or tolerated by each investor.