In order for a novice investor to be aware of the different challenges and opportunities they face in this market, they need to benefit from many different investment strategies, such as investing in high-value, high-growth, or high-yielding stocks, or investing in defensive stocks, which include: Companies operating in essential sectors such as healthcare, energy and basic materials.
Also, novice investors should avoid gambling with their money by looking for stocks that enjoy stability and continuous growth, those that have a good historical track record of performance, are highly liquid and can be easily sold at any time.
While stock markets are expected to continue momentum next year, 2024, with central banks tending to ease monetary policy, this encourages many beginners to enter the market.
Important tips
If you are a novice investor in the stock market, or are thinking about entering it during 2024; Here are some important tips before starting your journey in this volatile world:
- Learn the basics and smart investing: Before you start investing, make sure to get basic training to best use the available strategies. Avoid risking your money as much as possible and be aware of the value of the money you have.
- Choose your financial intermediary carefully: Choose a licensed and reliable financial intermediary. It should make it easy for you to make investments and carry out operations easily.
- Diversify your portfolio: To reduce the risk of market volatility, stay away from investing in a single sector. Choose stocks from different sectors, as other sectors can offset your losses.
- Learn to read the market and analyze the news: Understand the mechanism of reading the market and analyzing news affecting stocks. Take advantage of the educational materials you have available.
- Invest small amounts at first: Don’t invest a lot of money at once. Start with small amounts to gain experience and avoid risks in the beginning.
Best investments
In this context, Hanan Ramses, financial markets expert and member of the Board of Directors of Al-Hurria Trading Company, says in exclusive statements to the “Eqtisad Sky News Arabia” website that one of the best investments that were made this year are the financial markets and stock exchanges, especially the Egyptian Stock Exchange due to the low price. exchange rate, the decline of the pound against the dollar, and the rise in inflation rates, confirming that in the current period it has the greatest opportunity and outperforms the gold investment fund and investment fund documents.
Regarding the sectors nominated for beginners, it indicates that there is the non-banking financial services sector and the electronic payment sector. Given that their stock prices are low and their financial values are relatively low; Therefore, it is suitable for small dealers and we always recommend it for beginners. While strategic stocks that belong to sectors such as banking, real estate and chemicals are best suited for professional investors.
In her advice for choosing between different markets, Ramses said that the investor must study and analyze the market and companies listed in different sectors carefully and on a case-by-case basis, and take into account the expected returns, risks, opportunities and challenges.
Regarding the best investment strategy for a novice investor in the financial market, Ramses advised novice investors to trade with small amounts in excess of their need and within their capabilities, and to benefit from electronic applications that provide simulation services, and follow stock market news, in addition to cooperating with an account manager in a reliable trading company.
Ramses calls for the novice investor to start investing in investment fund documents, which are financial instruments that allow him to diversify his portfolio and reduce risks and rely on specific strategies and invest in a group of stocks, bonds or other securities. After gaining experience and confidence in the stock market, he can move on to trading in low-risk stocks. A price that offers an opportunity to obtain high returns in a short time, but carries significant risks; Therefore, the investor must be careful and follow market news and analysis, and seek the help of a professional account manager at a licensed trading company who advises him on the best stocks to buy and sell, and provides him with reliable recommendations and information.
It stresses the need for a novice trader in the stock market to be careful and careful before entering into any trading deal, as it may be difficult for him to follow rapid and complex changes in prices and indicators. But if he has confirmed information about a specific stock or economic sector; He may benefit from it to make informed trading decisions, and thus, he can use the information he possesses to improve his performance in the stock market.
contrast
For his part, financial markets expert, Dr. Hossam Al-Ghayesh, mentioned in statements made exclusively to the “Eqtisad Sky News Arabia” website, that stock markets always move in the opposite direction to gold prices and interest rates. The higher the interest, the lower the stocks. While the relationship is positive with oil and energy prices; As energy prices rise, stock prices also rise.
He explains that expectations for next year 2024 for interest rates in most markets linked to the American market or to the dollar largely indicate reductions in interest rates in 2024 repeatedly by the US Federal Reserve, and therefore all stock markets, whether American or in countries that link their currency and economy to the dollar, will reduce interest rates. ; What gives stock prices a state of prosperity leads to their rise in markets linked to the American market or the dollar.
He adds that the second point is energy, which despite its current stability, always with the arrival of winter, is expected to rise at least in the first quarter of 2024, which will also be matched by a rise in stock prices. As a direct movement with energy prices.
The most important sectors
Regarding the most important sectors in which one can invest in the financial markets, he says that crises always create opportunities, as the Russian-Ukrainian crisis created some opportunities in the stock market in a large way, especially private stocks related to the petrochemical and fertilizer industries, of which Russia and Ukraine are among the most important exporting countries with very large volumes. As a result, there was a significant shortage in supplies for this sector, and then most stocks – in emerging markets in particular – began to rise in this sector very significantly.
He believes that investing in the real estate sector in the stock markets is considered a profitable and stable investment, especially in countries that suffer from high inflation rates. Increased inflation leads to an increase in real estate prices, and thus increases the revenues and profits of real estate companies. This increases their market value and valuation.
Regarding the best strategy for a novice investor in the financial market, and how it can be applied effectively and safely, he confirms that the best strategy for beginners is diversification in sectors, to protect against risks, and flexibility in dealing with prices, so that he tries as much as possible to have his portfolio diversified in terms of sectors no less than About two sectors, which protects him from the only sector in which he invests being affected by any sudden events, and after gaining experience he will have a greater degree of ability or flexibility to deal in one or two sectors at most.
2023-12-24 14:26:18
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