Understand the investment in stock market in an easy way. Part 2.

Tweet sharing.
We continue with our article "understand the investment in a simple way". If you didn't have the chance to see the first part, you can go to this link: understand the investment in a way easy-part 1. We will then respond to some questions that surfaced. To begin, one of the questions is...is why people's Bank and not Santander?. Therefore, I chose as an example the People's Bank in order to understand some things. The number one point is that people's Bank was not named as a buy recommendation. Point number two, is that we chose a bank value as that rising rates benefit Bank, and has been demonstrated as well has been.

To begin, following the advice of Warren Buffett, we ask a question: does is going to continue to exist Banco Popular in 10 years? Nobody can know it, but certainly the logic tells us that both the people as the Santander and BBVA will remain there, so with the passage of time these actions tend to be revalued by inertia and the own inflation.

Having said that, I I opted for Banco Popular because in business size is less than the of the Santander and therefore has more likelihood of growth. Let's say that a 12 year old boy is more likely to grow than one with 17, although both can grow.

Probably, as argued Gregory Horga, the problem with Banco Popular is that it has a national business and soon spread internationally, what is at stake great part of its business within the Spanish economy.

A point that is playing in favor of Banco Popular, is that their actions are touching the ground, so if you get a little more "pot effect" would occur (action touches ground and enters purchase recommendations). This should not take it at the bottom of the letter, because that could be the case that stays on the ground definitely and there is the break-up of the company. But let us not forget that it is a Bank and at least in Spain, they are like "termininator". There is no way to collapse them.

In summary, we chose popular because:

Not still purchase recommendations, rising rates would benefit from equally modoPorque has released several profitable deposits to attract foreign capital.Because it has potential for growth.Because its action is cheap (look at this point) the next day for our article, we invest in people's Bank and at the same time in Banco Santander. Similarly we could have done so in BBVA, that the entire banking system Spanish, he was going to upload, that was clear.We buy Popular 4.15 € per share and buy Santander 8.15 € per share.People's situation: to today is listed to 4.39€. Bearing in mind that with 10,000€ you can acquire 2,409 shares. The gain today is 575 €. (not counting with the Commission)Situation of Santander: to today is listed to 8.62€. If we look we can say that it has been more profitable than Banco Popular, but the reality is that with € 10,000 you purchase only 1227 actions, which are half of those acquired with the Popular, which is why the profitability of the SantanderIt has curiously been 576 €. Exactly like Popular.De there the importance of buying something cheap, because in case of rise, with less upload, it may be a more worthwhile investment.And finally, we once again appointed councils of purchase by analysts are not much better than when you use your own common sense.This article is going to have a third party to comment on some of the things that I'm seeing in foreign investment in stock exchangeforums, where you can receive very good advice and sometimes confusion by professionals who have forgotten that the stock market is a much more basic system that sometimes want us to believe. I accept comments thereon.Tweet

Does Twitter predicts the movements of the stock market?

Tweet sharing .
This week, BBC has picked up a study by a student in doctorate of the Technical University of Munich, which has associated the tweets of the network of microbloggin with movements of the stock market. As it has been argued, in the study have been look at a total of 250,000 Tweets that included the initials of firms listed companies.

The end result of this student has been overwhelming. "One can predict the rise or fall of a value with a 87% chance of success with the Twitter network". Obviously everything has an explanation more complex and simple at the same time.

We return to the usual, common sense. The Twitter network does not predict anything or form a pronosticador of results algorithm. Simply a story that speaks positively of a company, fell into the hands of an investor or are "tuiteada" by a newspaper whose "follower" are investors. This news is viralizará quickly reaching the hands of many more investors, which will invest in this company.

As a result and logic of what is the stock market, the company's value will increase in bag. Otherwise it would be bad news of another company, which would have the same impact but negative.

In conclusion: Twitter not tells you what value will go up or going down, but practically we can say that other investors reported receiving will make. Knowing this, it is as if you dispusieras "Insider".

If you get to know what others will do, you know perfectly what you must and have to do. There is no more mystery.

Tweet

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

Program to invest on the stock exchange (trading management)

Tweet sharing .
As plans for the management of stock market operations are going to choose two and will to separate by "levels", although I must say that the majority of the banks today can give you the program once that you invest on the stock exchange through them (a detail from the Bank).

As free software and not by them less "servible", we have Personnel Brokers. This program may not have as many functions as others found in the market but for start is ideal, at least to be assimilating the number of options you have in these full programmes.

Personal Brokers offers you:

Daily stock exchange data to the cierreGestión multicartera, Multicurrency and multimercadoAnalisis of profitability, printing and situation.Graphical analysis detalladoGestión of sale in time realInforme of I.R.P.F. adapted to the legislation vigentAyuda contextualDispone of configurable alarmasNotas associated to each title or all the funds of inversionComo daily índiceDatos can see, if you do not have much experience in the investment in stock marketyou have enough to entertain you.Once longer master this program, when you move to a more professional program. There are a wide variety of programs, including, I repeat, which you can offer your bank. Perhaps one of the programs is more recommended for large part of the investors is Visual chart, currently a totally complete program with all the variety of functions that you might need to operate in the markets.Visual chart gives you a period of trial of three days., and tell us your experience with both programs...Tweet