Abexglobal | Stocks

Stocks

This is one of the basic and most popular instruments in an investment portfolio. By purchasing a share, you have the opportunity to earn on the growth of the market value. Historically, stocks demonstrate sustainable growth in the long term, especially securities of stable and growing companies.

There are a huge number of companies issuing shares, from tech startups to stable dividend giants. This gives investors ample opportunity to diversify their portfolio.

Popular Stocks assets

Features of Stock Trading

Advantages

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Liquidity: Stocks are easy to buy and sell in the stock markets; investors can quickly convert their assets into cash.
Market flexibility: Traders have the opportunity to make money on both rising and falling prices.
Access to information: The stock market has a high degree of transparency and information about companies is often widely available.

Disadvantages

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Unpredictability: Stock price movements are unpredictable and depend on news, political events, and economic indicators.
Long term results: Uncertainty as many factors such as economic policies and competitiveness are not easily predictable.
Loss of capital: Investments always carry risk if assets are not chosen properly or risk management is inadequate.

Stock Investment Strategies

01 / Long-term investments

Reliable companies with sustainable businesses and good growth prospects are selected, and the stocks are held in the portfolio for years. For investors who do not want to intervene frequently in the market.

02 / Trading technical analysis

Decisions to buy or sell stocks are made based on analysing historical price charts and trading volumes. The market moves according to certain patterns and trends detectable on charts.

03 / Diversification

A risk management strategy in which capital is allocated across different assets, industries or regions to reduce the impact of bad investments. Losses in one investment can be offset by gains in others.

04 / Growth strategy

Focuses on high-growth companies, often in technology. These stocks may not pay dividends, but they offer rapid capital growth for investors willing to take higher risks for high returns.

Criteria for Stock Selection

Financial goals: An investor who clearly understands his goals can more easily avoid impulsive decisions, stick to the chosen strategy and ultimately achieve the desired result.
Risk management: The ability to analyze potential threats allows you not only to avoid major losses, but also to build more sustainable and effective portfolios that correspond to your financial goals and risk level.
Company research: Understanding the fundamentals of a business helps assess its revenue sustainability and growth potential. Analyze its competitive position, strategies, and level of innovation.
Liquidity: A small spread reduces the costs of transactions. In crisis situations, investors in liquid securities suffer less: supply and demand remain even when the market falls.