Stocks represent a very popular form of investment in financial markets, with which investors achieve stable income. However, investments in stocks can be risky, especially if you lack specialized investment strategies. Consequently, if you use the strategies described in this article, you can reduce risk and enjoy more successful investments. This article will describe some of the most well-known concepts in investment strategies.
Basic rules for stock investments
After opening an account and starting to use the IQ Option investment platform, you should follow some rules to avoid losses. Here are some of them that you may want to follow:
The trend will always be your best friend
One of the main rules postulated within the most popular strategies is to understand the trend as one of the best friends to follow. To avoid losses, you must follow the trend and not bet against it.
For example, before carrying out a purchase option, you must ensure that the trend is rising. In this way, the chances of making profits will increase, instead of trying to execute an order in a market that shows a downward trend.
Practice proper risk management
Another important strategy regarding stock investments is proper risk management. As a general rule, the broker advises investors to decide in advance the amount of money they wish to and are willing to invest in each order. In this way, investors can avoid major losses that would otherwise be unbearable, thus achieving good results.
Stay vigilant against emotional investments
The sense of the strategy in general points out that emotional decisions can cause investment results that do not achieve maximum fullness. Therefore, the broker advises investors to strictly follow their strategies and avoid making decisions based on their instincts (instead of following market conditions).
Practice!
IQ Option offers its clients a demo account so that investors can practice their investment strategies without any risk, allowing them to learn to perfect themselves in the art of beating the market. With this strategy offered by IQ Option as a broker, you will be able to adequately familiarize yourself with the investment platform, as well as with other offers, before you wish to implement them in a real investment account.
Most popular strategies
Here you will be able to learn about some of the most popular investment strategies thanks to IQ Option. You can see all the educational videos by visiting the Tutorials page.
Japanese Candles
Investors, when using the IQ Option platform, will be able to use Japanese Candles to analyze the market and identify possible investment opportunities. As a trading strategy, Japanese Candles allow investors to carry out their technical analysis effectively, helping them to place profitable transactions in the market. Some important patterns in candlestick charts include candles, three black crows (Japanese: sanba garasu), engulfing patterns, and the hammer.
Trend Lines
In stock investments, trend lines show lines that have been drawn to illustrate the prevailing direction of the market. If you have analyzed them on the IQ Option platform, you will notice that they can show you highly rewarding investment opportunities. By using this investment strategy, you can effectively identify the current market trend; that is, whether the market shows an upward, downward, or neutral trend.
Bollinger Bands
Most investors are interested in measuring the level of market volatility, as a change in volatility usually indicates changes in market conditions. Consequently, as part of your strategy, the broker offers Bollinger Bands on its platform to help investors measure market volatility and, thus, identify potential areas where they can place and close their investments.
Moving averages, by its English abbreviations (Simple Moving Average – SMA, Weighted Moving Average – WMA, Exponential Moving Average – EMA, Simple and Smoothed Moving Average – SSMA).
Another important strategy available on the platform is moving averages. With this tool, you can appropriately resolve market fluctuations over a specific period, helping you make good decisions when buying or selling. Some of the better-known types of moving averages offered by IQ Option include simple moving average, exponential moving average, and weighted moving average.
Conclusion
All the tools presented in this article were created with the sole purpose of making your investment activities even more profitable. With them, you can reduce the risks associated with investments, ensuring success in your career.
