The most valuable asset in the financial sector is information. It is no wonder that stockbrokers invest in expensive research teams and that analysis houses have multiplied across the country. The market is dynamic and those who closely monitor its movements are better able to anticipate trends and, therefore, to achieve positive results.
Thus, the most attentive investors follow the progress of the Stock Exchange in real time or online trading. This makes them gain familiarity with the market and understand the behavior of assets. See, in this article, the importance of online trading platforms for those who want to invest in the stock market. Good reading!
Be prepared for possible unforeseen events
Market analysts follow companies closely, meet the companies’ top executives and study the market in which they operate. In addition, they know what the competition is like, what the legal and regulatory risks are, what the demand is for the products and services that company offers and how each line of the company’s balance sheet is.
All this to be able to project the company’s future results, bring them to present value and determine how much that company is worth. Likewise, chartists follow the chart of each asset, seeking to identify patterns that allow them to trace price trends.
However, we know that unforeseen events happen and, far from being rare, they are actually quite common. We have recently seen the effects of the new coronavirus pandemic on the entire market. No analyst would be able to predict such an event.
Even so, attentive investors, who follow the Stock Exchange in real time or online trading platforms, saw the problem more quickly and, thus, were able to make a decision about what to do at that moment. The same reasoning goes for smaller events, which happen daily.
Reduce risks and seize opportunities
One of the secrets to making money from trading on the stock market is to hit more than miss. It’s impossible to always win, but it’s important to know how to ride high and limit your losses.
Especially among individual investors, it is very common to see those who, in high moments, close the operation before the time for fear of seeing a trend reversal. In addition, in periods of low, they are slow to realize the loss because they do not want to assume that they have suffered a loss.
Those who follow the online trading platforms are more likely to be able to capture these movements and make better choices, whether to reduce risks or to take advantage of the opportunities that the market offers.
Those who want to invest in stocks have many opportunities, including to win with the market on the side or down. For this, there is a wide range of operations that can be carried out, such as stock rentals, long & short, covered or uncovered sales and other types of operations with options and derivatives.
Even in the spot market, it is possible to devise strategies to better adapt to the scenario, assembling a more defensive portfolio for periods of instability and another with greater chances of gains for scenarios of high Stock Exchange. To outline these strategies, however, it is necessary to be fully aware of what is happening in the market.