DAILY INVESTMENT: WHAT TO PAY ATTENTION TO?

The turnaround is part of our life. When we talk about Investments, there is no doubt that uncertainties always hinder us a bit, and that is why most of the time we fail to make money: the risk.

However, when a business is overvalued, the idea of profit in relation to activities and shares is almost uncertain. In my Investment experience, I agree with what everyone says: "Buy low and sell high." This is a saying that is always effective. However: how to identify the low and identify the high? It is certain that one does not expect the Company to go bankrupt nor to become an infinite money machine.

Based on the entire Investment procedure, some reflections are due: What is desired when investing? And the answer may be: dividends, stability, or reserves.

Regarding Dividends, these are a portion of a company's Net Profit that is distributed to its shareholders as a form of compensation for the investment made.

As for Stability, this is the condition of something that remains constant, safe, and balanced over time, without major variations or disturbances.

In turn, the Reserve is the state or condition of something that has been composed for a specific purpose, that presents some practice, some objective.

A fact and also a reality is: no one wants to lose money. And this explains many things when it comes to investing. Whether in Long-Term Investment, Short-Term Investment, or even in Day Trade: what is expected is monetary accumulation. And how to ensure that this happens?

Well, that will depend on the form of Investment and the Strategy you acquire over time. In this post I will focus on Day Trade. A small Introduction to a series of posts that I will begin to make from today onward.

"Day Trade", that is, Daily Trading, is a type of negotiation that occurs on the Stock Exchange where the Investor buys and sells the Asset on the same day, in pursuit of Profits obtained quickly, but through small price variations.

From experience, I can say that it is possible to carry out this type of Negotiation several times throughout the day, and the limit is the end of the trading session. Understand trading session as the records of operations on the Stock Exchange.

Among the Day Trade options, perhaps the one that best fits a clearer logic of approach is stocks. Some stocks present more stable charts than others, due to Variation. The variation in stock prices is directly responsible for the Investor's buying or selling options.

And even more interesting is that the same frequency with which these Investors act on a particular stock, whether by buying or selling, determines, in an average way, the price, and this we call Quotation.

Finally, Penny Stock Companies tend to have more accessible and clearer charts, although they have smaller fluctuations. For those intending to start in the investment market, a good option is these companies, which present charts in a more "geometric" and less irregular way, unlike the charts of trading index of each of the Stock Exchanges in the World.