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Saturday 20 February 2016

Investment strategies with share trade: Which strategy for small investors?

Profits receive and, finally, walk unconcernedly by the life. For most people in Germany it would be very nice if one could come with an easy method certainly and easily to more money. Indeed, not only a risk exists with every possibility for the moneymaking, but a lot of work must be also invested. At least, there do not fall the bank notes from the sky. Nevertheless, hard work can be also a little light if you have found the right method to approach money. Trade with shares is very interesting and can provide for very good yields. On the other side you must note with trade that you have to include in the plan, nevertheless, also a risk to make possibly deductions concerning the capital.
Now the beginners who exactly do not know, how should be traded actually and with which strategy for small investors success is to be protected should particularly pay attention. I would like to offer to you to earn a possibility with the right strategy for small investor Geld which, otherwise, you would not receive. Unfortunately, on account of the jungle of the investment strategies it is not particularly easy to clear which strategy  is suited concerning share trade mostly. Finally, the numerous strategies which are suited supposedly for trade with shares are introduced above all in the technical literature and also on the Internet.

Small investors react emotionally

Small investors are different than investor who can act already very long and show a lot of experience. If you also belong to the small investors, I would like to attack you by no means. However, is known that small investors are more emotional than experienced stockholders. These have themselves because more under control and preserve a chill head. This entails that one can control himself on the whole line emotionally and can make, in addition, good decisions. Accordingly on this basis the strategy is based for small investors. A good strategy and the sure yield following from it would like to be celebrated, finally, after the sales of a share by you as a success. First you should work on yourselves and make sure that you begin share trade properly. It is to be cleared whether you know the basic terms on trade and whether you know at the same time which risk comes up to you. The people who have enough money on the high edge and do not depend on the capital which they invest in share trade can act with a chiller head.
That's why they should deal with the different commercial-psychological facts to clear, to what extent you fall under influence under trade. The commercial kind and also the sudden purchase and sales decisions are based as a rule on emotions what is to be recognised with small investors very often. The way out for this problem would be the production of a commercial plan. The plan should indicate which aims you have and when you consider a purchase or sales of a share. You should perform certain rules to keep to the plan and to make no decisions which are based on emotions. Now therefore you have found out that you can receive no good results with a strategy for small investors if you fall under influence under other factors. The control of the emotions is the most important criterion about which it is with the action.

The strategies for small investors


At this point it is a time to talk about the strategy for small investors. The fact is to be assumed of course that you should keep always only to a trend. "The Trend Is Your Friend" is called it in an old saying which not only is valid on the stock exchange, but also is important with außerbörslichen trade. To reach in the falling knife you should completely avoid to make no losses which are unforeseen. The development of the shares is to be carried out with the help of the basic analysis. They should study the history of the well-chosen shares and learn how the analyses lead to success best of all. They can protect because with the best strategy for small investors no success if you do not help yourselves of the analysis methods and examine the shares before the investment., Among the rest, the following approaches belong to the known strategies for small investors:
  • Momentum strategy
  • Empty sales
  • Blue chips
But also with these strategies there are the different opinions which not always assure of high-quality security. This means that on the one hand the strategies can promise a success, still a risk exists which precipitates above all with the Momentum strategy not quite unsubstantial. With the strategy it is tried to use the swing of the moment to receive for a short time a good entrance for the other share value increase. They can use of course here different strategies, so that you make sure that the shares with her courses were analysed to deliver clear results. The Momentum strategy is connected by many experts for beginners with a special risk. At least, it can absolutely happen that Bi is no rarity to 30 percent of loss in the month. Though the strategy is interesting for small investor, could lead on the other side, nevertheless, to possible losses with beginners. A good yield is possible with the expected success with the Momentum strategy.

By empty sales it is important to divide the shares into good and bad shares. You buy the good shares accordingly and ignore the bad shares. With these shares you would become on falling rates bets. The profits are achievable with empty sales what means that you lend the shares and sell afterwards. Hope to sell the shares later for a higher price is hope of the traders. Professional traders state that the empty runs are not possible as a rule in Germany for small investors. Scientific studies prove that the commercial costs have not been considered and, unfortunately, by a possible profit not more a lot for the traders is left.

The blue chips show an other strategy for small investors. Most investors turn to this strategy, because here the most top-selling shares are considered by important enterprises. The signs, a high commercial volume are given to have, protects the success with trade. Shares of large-scale enterprise are often connected with a very low risk and bring many advantages for you. Nevertheless, as a condition is valid that you have selected to yourselves enterprise which show a stable turnover and perform an also sure profit situation. They should avoid shares from threshold countries and Nebenwerte and not follow if you liked to use a low risk for yourselves.

Never without analysis and basic figures

Very importantly it is natural that you never get without analysis into share trade. To be able to value shares and the matching courses, you must turn to the identification numbers which analyse enterprise and explain clear. The course-profit relation as well as the course-book value relation are only two factors to be followed. Also the Kurs-Cash-Flow-Verhältnis which is known under KCV shows an interesting characteristic. The better the identification numbers are in her dimensions and assessments, the more favourably the share is valued as a rule. The identification numbers are often different according to enterprise branch and show no uniform rules. An overestimation of shares is to be followed also, as well as an underestimation which could pose problems to you in an analysis. The analyses with the identification numbers as well as the foundation analysis it does not seem to be quite easy for beginners. At least, numerous bases must be examined and be given, in addition, the basis information, so that you can begin an analysis.

Other tips

An extensive base which can assure of success you for trade with shares is very important. If you liked to deal in the future with share trade and use a strategy for small investors, you should follow the additional following tips. These help you to create a suitable security and to protect at the same time that you fade out special risks which lead to losses:
  • Commercial costs: One knows that commercial costs can reduce the yields of the traders. The small investors who often do not act must search for themselves an on-line broker who shows low commercial costs and prescribes accordingly clear fees. Only on this way a good profit is possible.
  • Course variations: A strategy for small investors is successful only if they let go profits long enough and brake losses rather. This means that if the share price rises, you should not sell too fast her shares. If the share value sinks, you may not leave the shares too long in the depots. On this way higher yields are sure.
  • Money puts in: They should put on only money which you do not need. To depend on the money and to have to sell the shares possibly at a later time because the money is needed, is senseless and careless. That's why share trade makes sense only with a capital which is not required during the coming five years.
  • Different shares: Trade different shares, you can make sure that you do not have too many losses if shares fall. To have from eight to ten different share types in the depot is more sensible, than to invest in only one or two shares.
  • In the long term act: They must act in the long term to achieve success which raises at last good yields. As an age security shares are very attractive and assure that you receive, among the rest, special advantages. Good profits gain is possible in the long term for you if you buy not only shares for a year.

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