Many tips for success are provided on specialized websites or books, but few deserve to be followed because they are too complicated or simply unfounded. On the other hand, the methods we offer are mostly easy to apply and will allow you to behave as a real pro.
Financial results: forget them, only the price fluctuations
Dassault finally exports its Rafale, Renault climbs the slope ... "Good news, prices will climb," concluded savvy wise. Conversely, speculators, those who stay in front of their computer for several hours a day, do not care. They are followers, not analysts. They merely identify any price movements recorded in the hours that follow and, if so, take advantage of them to make gains by buying and reselling orders more or less close. It does not matter if the price is driven by the financial results. What counts is to take the train running as fast as possible thanks to the signals given by the graphic analysis. The meaning of variation? Not important there too. With a CFD, for example, the trader can play up or down. Certainly, when these operations are completed in the week, they yield little: around 3%. But if you succeed two or three a month, it can make a lot of money.
Choice of mediums: take a look at the German DAX index and currencies
It is the golden rule of stock trading or stock market indices (the most usual): we must bet on volatile stocks, the course of which makes the yo-yo. On the index side, the German DAX is very attractive (it is often preferred to the CAC 40, less reactive). With equities, it is more delicate: in order to aim for rapid gains (at a horizon of five to ten days), it is necessary to identify those whose prices have varied by at least 1% per session for several days. Luck will sometimes be with you, as with Altran Technologies: on March 13, the share oscillated between 8.39 and 8.94 euros. What to pocket a gain of 6.5% in the day! However, daily deviations are often smaller (rarely more than 2%). This is why many traders prefer the currency market: price spreads are no more explosive, but the trends are longer, which allows them to stay in position for several days in a row. So less waste energy.
Small companies: you may not be able to resell at the right time
Beware of this trap in which many beginners fall. You spot a small company during the stock market particularly unstable, so volatile, which lets you hope for comfortable and quick gains. You then buy a bundle of shares and then you decide to resell it when your target price is reached. And there, unpleasant surprise: there is no buyer in front! All you have to do is watch the price go down, or even fall below your purchase price. Morality: unless you have a lot of time in front of you, you have to rely on volatile and liquid stocks, those with high transaction volumes. This is the only guarantee of being able to exchange your securities at any time. This liquidity is ensured with the largest securities quoted in Paris, grouped together in the CAC 40, CAC Next 20 and CAC Mid 100 indices. For other companies, if the daily transactions amount is less than 1 million euros, Has a risk. This is the case with the small values of sub-fund C (less than 150 million euros market capitalization), such as Archos, Avenir Telecom or Signaux Girod.
TO BE CONTINUED..
