Understand the investment in stock market in a simple way. When investing

Tweet sharing already that are increasingly more people who are interested in investment in stock market and above all that we are beginning to take seriously some of the advice that we give, we will try to explain How to invest and what knowledge you must have to invest on the stock exchange. I will put some examples of real people and basically we'll explain how to use common sense when analyzing value and enter it.

In the chart below show the evolution of a value, namely Banco Popular, although we could have taken virtually any value, that when the crisiscame, there was more or less the same descent of all the values of the IBEX, with some exception. Through this fact hence the first lesson we have, and the stock market is a reflection of the economic situation of a country. Some say that the stock market tells a few months before economic problems, which I put in doubt and later will also see the why.

To start, many people ask what they should study to be able to invest on the stock exchange. My answer is that to forecast when a value will rise and when fall, you don't have to study anything, because up to the people who have studied for this reason, fail to guess or 30% of the time. It is really impossible to know, as Warren Buffett said. The ups and downs of a value and the own Ibex are fitted to several external factors beyond our control:

The market itself and the investors. Before an unpredictable natural disaster, it is normal to occur a drop in the stock market and that no one can predict. On the other hand, we cannot control when thousands of investors decide to sell their shares, which also leads to a decrease in the value of the action.Once the time which approximates a significant downturn in the market, we find two types of investors or with two types of situations that have to deal with investors.Investor who is delighted: this investor clearly is delighted because at that time I had no capital invested in stock and now will have their moment of entering a price lower.Who despairs: This investor had invested capital and when there is a considerable drop in the market, knows that it has only two options, which are either selling the shares rather than continue down even more, or keep them and expect to pass the "Storm". In a way you will lose money and another may lose even more in the short term or regain his position in the long term.Knowing this, it is not necessary that you study anything, but you continue to the companies in which you want to invest, the news of the financial markets, you will need to know how can affect measures taken by the Government some companies of the Ibex, and that fear of a possible bailout may cause any unexpected movements in the stock market. But first and foremost, you need to know that the bag is only moved by two factors which are the fear and ambition of the investors.Returning to the graph put up, after the tremendous downturn which gave the action of people's Bank which was 16€ in 2007, he began making a bassist to be near the 9€ tour.In 2008 he began a short climbing. Analysts began to say that Banco Popular was at Bull trend and expected a resistance in the 11, 50 - 12€. Well, when analysts talk about bull market, it is that he began the ascent, by what you've already lost the first points of benefit.If the information of the peak of resistance comes from a source very followed by large investors or multitude of small and medium investors, not you doubt that speculators will buy and sell the action before the it clash with the peak of resistance. A question that emerges... is should peak of resistance if it were not speaking of it? This is said many times and is that the tips of some is not that they predict what will happen, but that have created you themselves with that advice.Action has no value or price, or is expensive or cheaper, it is worth as much as the investors are willing to pay. There are investors who we put price to the action.The fact is that this action of Banco Popular began a downward path and the fear of losing money from investors was in charge of the rest, to bring it to a minimum value of 3.34€. It is currently listed at 4.20€.My questions are... do you know of Banco Popular? Do you think that it would be a profitable value to earn money with it today? Upload, it will fall, will be kept? It will be good long-term, short-term option? When decidirías you invest in it? What tell you the technical analysis? What tell you the logic and common sense?I would like that you respondierais to this and to give me your opinion in the comments. In this way may be that you surprised yourself of how logic and common sense you prepared to invest and understand the investment on the stock exchange.Once I answer will make the next article explaining my opinion and some data more that you may understand why way am and where I want to go to stop. We will call this a theoretical class and practice at the same time. I hope your comments, but you do not tardéis, since you can annoy me the practical lesson. Tweet