Understanding The Market Scanner

Rotating a portfolio too quickly is not a viable option. It is best to identify companies with high longevity potential, able to withstand the long term. This principle made the fortunes of billionaire Warren Buffet. We must therefore monitor earnings growth over time and integrate only the best values. For the individual, the cost of untimely rotations strikes the performance as shown by the Market Scanner. And the smaller the portfolio, the higher the brokerage fees on sales and purchases.

The best tax envelope for investing in equities? The stock savings plan (PEA). With a maximum of 132,000 dollars in payments, this plan includes a securities account and an associated cash account. All gains are exempt from capital gains tax if the holder does not make any cash or securities withdrawals in the first five years.

Only social security contributions are due at closing. As a comparison, on an ordinary securities account capital gains are taxed from the first euro to the progressive income tax scale at a rate of up to 45% plus 15.5% of social security contributions.

Our recommendation to remain as responsive as possible to financial information: it is better to manage a portfolio of ten to fifteen securities using the Market Scanner with no value weighing more than 20% of the total.

Liquidity of securities

Like professionals, be sure to study the liquidity of securities before you buy them. Liquidity is measured either in the number of securities traded on average per day or in the amount of capital. At purchase, you may overpay an illiquid security, especially if you do not place orders at limited prices or use the Market Scanner.

If the amount of your order is large in a narrow market, you run the risk of shifting the market upwards. Conversely, on resale, you will have all the trouble in the world to part with a non-liquid title if you need fresh money. Except to agree to sell it.

To focus on the cost price or the level of the courses, compared to the highest, is to look at the past. However, to imagine, for example, that financial stocks will find their past valuations tomorrow is an error likely to cost a lot.

These are, in fact, expectations of earnings growth that make the stock market. It is better to separate from securities with disappointing fundamentals, as well as those bought too expensive. Buying or keeping values should depend only on the answer to this question: what are the prospects?

In the stock market, it is better to set rules. With each purchase, systematically define the two main reasons justifying your choice. Then do not attach to the securities held. For this, sales discipline is just as important as the purchase price. Set a goal from the beginning and stick to that limit as shown by the Market Scanner.

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