In the world we are living in, we cannot say anything for sure, that is, there is a possibility, but there is nothing 100% in it. Therefore, the analysis of the financial markets is also similar to this issue, and it is possible that detailed analyzes performed with the lowest parameters may give wrong results. To solve this problem and our possible losses to save you from this mire, we use various strategies to operate in the financial markets, and one of these strategies is very useful in your work process, step purchase. By using this strategy, you may get a little profit at first, but it reduces your risk and by using it again, you can compensate for possible losses faster, and we will explain a little more about the step-by-step purchase strategy with us. Be.
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What is step purchase?
To express the meaning of buying a step, know that the trader reaches this conclusion with his analysis, for example, a share has growth potential, that is, it may increase or decrease, but you have no certainty that this share will grow in the long term or in the short term. . Therefore, the trader divides his purchase into several parts and allocates only a part of it to the purchase of that share at that price.
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If the trader is in a step buying strategy, the step will feel wrong
If the trader feels wrong in this area, the requester will also refrain from buying the next parts, which will save other parts of the capital. The trader buys and sells in steps when these conditions rule the stock market; The first hypothesis for step buying and selling is that we assume that the desired stock will grow, in the next step, the desired stock will not change its direction in the near future and will not be negative, also the price changes in the stock market should be slow enough that the trader can make the right decision and finally the price of the trader’s shares in Abandeh will increase in favor of the trader. Pay attention to this point as well; We assume that the trader will increase the stock he bought in a very short time. From this trader can increase the stocks he wants.
In other words, the trader has the ability to repurchase a stock that he has shorted. By doing this, you also use the possible increase in the price of the stock, and you can also buy and sell the stock with high frequency. These mentioned methods mentioned above also depend on the factors that we will explain to you; The first is the transaction cost, the lower the transaction cost, the more justified the trading frequency of the desired stock. The next step is the rise and fall of the stock price, which is the most difficult step in step buying, and if the market movement is not very positive and the trader cannot implement his goal, it will quickly reverse its direction and lose the profit obtained from the initial purchase. will give
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Step by step purchase training
You can use three methods to buy stocks step by step. As we said, you should be positive about the mid-term market forecast, and then stay with us to learn step by step purchase.
The first method
To explain, the first method is by buying a larger part of the desired shares at the very beginning of the work and reducing the purchase volume in the next stages in a stepwise manner. Let’s start with an example, you buy two thousand shares from a company in your first purchase, then in the next step you buy 1000 shares, in the third step you buy 500 shares and in the last step you buy 250 shares. The positive point of this method is in the initial investment, which is done with a high volume, which will get the most profit from this method. It is better to know that this method has a high risk because if the price of the trader’s stock does not increase or the analysis is wrongly measured, the investor will suffer a great loss.
The second method
In the next method, the trader divides his purchases into equal parts; For example, if an investor wants to buy 1,600 shares, he can divide his purchase into 4 stages and buy 400 shares in each stage. The positive point of this method is that if the analysis is wrong, the trader will get a small loss compared to the previous method, and the risk of this method depends on the fact that the stock price will grow instantly, in which case he will get a small amount of stock at the lowest price. brought
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The third method
The next method that is used in the step purchase is the method that, with the experience and analysis of the future of the market and the stock price, traders buy a step that is done by one of the above methods. In simpler words, the trader should predict the future of the market more accurately and choose and perform one of these two methods based on the analysis he has done.
The last office
In this article, we talked about buying a step and provided you with materials to understand this method. Buying a step, as the name suggests, you will advance step by step and by analyzing the future of the market and forecasting. Try to buy a staircase that has two methods; Your first method is with more investors at the beginning of the work and its deduction is done gradually or the same step. This method has a high risk because if your stock goes down, you will lose a lot. In the second method, you should divide your purchases into equal parts. For example, if you plan to buy 20,000 shares, divide it into 4 parts of 500. In this method, you will lose less than the previous method.
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