• Aug 24, 15
  • Professor Chart

When investing in financial markets is always important to establish pattern of behavior, a plan to follow in ordert to take firm steps. It is therefore crucial to establish objective, a goal to which we are going. In investment strategies, these objectives must be achievable, it is important to see this objectives as future doors that will open new posibilities. Having a goal in mind, can establish an action plan by which to reach it.

Do not forget that when setting goals, it is very important to be as concrete as possible. Is not enough a "I want to make money with this asset". That is a very broad goal, it should be much more precise, and has to be something that, if may seem difficult, it has to be be possible or feasible with the means that are available.

Once the target has been set, now it is time to design a path to achieve our goal. This is where all the training of a trader or investor comes into play. Establish our strategie is just  implement what a investor has learned about stock markets and stock prices. Financial assets are analyced, how much capital is decided to be reversed, how much risk is the investor able to assume, possible future benefits, the current economic cycle and its possible evolution (in the previous articles it was said how to analyze the state og the global economy ) and it is time to set the entraces and exits from this specific asset. The plan has to be flexible, ready to take small changes in order to solve problems, and the most important, it has to be ready to make the investor recover from a possible failure in a certain value. 

It is important to define the possible entrance signals in an asset, analyzing and shuffling different options and scenarios, the different market movements, and prepare and action for each of them. The controlables aspects by the trader are those who have to shuffle, so it makes no sense to plan a series of movements in stock based on rumors, news releases, etc...

It is also important to be realistic when it comes to taking risjs, because they have to depend on the economic capacity of the trader or his training and experience. Take high risks affecting so anxiety about the operations and movements in the market will be higher.

It should be noted that it is important to pay particular attention to when setting possible solutions as it is here where you will determine which gain or loss is taken. As before, we must raise several possibilities of behavior and analyze them to know how to react to these movements and how the exit of the asset will be.

Once the action plan has been set, it is time to pay attention to psycology. The investor or trader has to be fully focused on his plan, and has to react without hesitation in order to correct any adversity. By making a plan, part of the analysis carried out on the assets help to predict a possible future behavior, and see if that one fails forecast, the natural reaction may be to panic and abandonment of markets. Controlling emotions is crucial to invest in the stock markets since they can lead us to hasty and wrong decision-making. Patience and calm are qualities that are essential when it comes to stock investing. Able to face the changes that may occur in the markets is something that can only be done from a right mindset. The fear of losing my hinder the proper execution of the planned strategy.