Business

10 golden rules when investing in the Stock Market

The market does not attack; it defends itself, because it tries to preserve its own capital.

This is the thesis defended by the manager of the London city Daniel Locale in his work “We the markets”, published by the Dust publishing house. This expert maintains that there is a very high level of competitiveness in the markets, but nobody wants the destruction of others, “neither countries nor companies… not even competitors. We try to be better and earn more money, but like any market, it needs the others to continue to exist. Otherwise, it would disappear,” he says.

Locale makes an extensive review in the work of the principles

On which the functioning of financial markets is base dandy debunks some popular myths about the activity of ‘hedge funds’. The work is full of anecdotes and first-person experiences of this Madrid-based fund manager based in London, although one of the most interesting sections has to do with the ten golden rules for investing proposed by this specialist. Even though “there will always be times when we will be wrong.”

Buy what you understand There is no value that cannot be summed up in three sentences.

Write down its main characteristics in terms of generating profits, what the consensus expects and what you know about that security that you alameda research portfolio do not know. “And follow it to the letter.” And if you don’t understand, for example, the balance sheets of the banks, where the provisions come from or the real exposure to a risk, ”

The worst of all is self-deception

If you buy growth, don’t put a stock in the portfolio for its value and hold it later for the dividend. Alternatively, if you bet on growth and it turns out later that the objective of the election is not met, then do not hold the value because it is cheap. And worse yet, don’t hold it when it falls even further from the dividend. Recognizing mistakes is essential. Spectacular growths may be indicative of a bubble. And when it erupts, the ground may be much farther away than previously thought. 3. – Look at figures, not comments – adam weitsman

General and vague comments such as “it is a diversified company with many assets abroad” are obvious. That’s what estimates are for. Look at the numbers, earnings and balance sheet and see if they match the company’s risk profile.

 

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