4 Best Companies to Buy Stocks - Swing Trading Part II 📊
- Smart Trading Indicators
- Feb 8, 2024
- 4 min read
We all want a financially solid future, dear trader.
But how do we get there?
Investing in shares of companies with growth prospects is a smart strategy to achieve this goal. In this article, we are going to complete some questions that were leftour first article on swing trading and we will also guide you through a selection of stocks that could generate long-term profits, highlighting the reasons that make them attractive opportunities.
Let's get started!
What assets are ideal for swing trading?
Swing trading can be applied to a wide range of financial assets, including stocks, currencies and commodities. However, each type of asset has its own characteristics and factors that must be taken into account when applying the strategy. For example, stocks can be ideal for swing trading due to their high liquidity and volatility.
Currencies may also be suitable for swing trading due to their high liquidity and the ability to trade them 24 hours a day. Commodities may be more volatile and less liquid than other financial assets, which may require greater investor attention.
How to choose the right time to enter and exit the market?
Professional technical analysis tools based on charts and indicators such as moving averages or Bollinger bands. Others use fundamental analysis based on economic news or political events that may affect the market. And those of us who are truly in the game maximize opportunities with everything that AI has to offer us.
What are the risks of swing trading?
One of the biggest risks is market volatility, which can cause prices to change quickly and unexpectedly. Additionally, external events such as natural disasters or political crises can affect the market without prior notice.There is no lack of control over external events that may affect the market. Investors must be prepared to adapt quickly to changing situations and make informed decisions about when to enter or exit the market.
It is important to have discipline and good risk management. Investors must set clear objectives for each trade and follow a carefully designed plan to minimize risks.
Where to buy shares
Let's now see a list of the best companies to buy shares to complement your swing trading strategy and put our stability a little more into perspective to continue diversifying our trades. As you will see, all of them have technology in common and, therefore, you must have your critical eye and an objective mentality.
A good way to put this into practice is to think about your past self.
10 years ago, did you expect this cryptocurrency boom? Did you imagine the metaverse?
Surely not.
Or better yet, 10 years ago it was practically impossible to consider an AI or artificial intelligence that worked like the ChatGPT tool, or AI-powered trading indicators for example.
Looking to the future, trader. In 10 years, many things will also change.
Without further ado, let's begin:
1. APPLE
As you know, Apple is a company with a strong market position and a long history of business success. In terms of fundamental analysis, Apple has had constant growth in its revenues and profits over the years, with a wide diversification of products (Iphone, Ipad, apple watch, Macbook, AppleTV, etc.) and above all, what Apple has achieved through products is loyalty, and this factor is one of the ones that you should take into account the most.
Furthermore, the financial position is very healthy. It has plenty of cash in its reserves and effective cost management. This allows the company to invest in research and development to remain a leader in the technology industry.
2. Novo Nordisk
Novo Nordisk is a Danish pharmaceutical company focused on the treatment of diabetes and other chronic diseases. It has a strong track record of financial performance and progressive growth, as is also reflected in its chart through consistent growth. In addition, its price is still reasonable if you are considering investing.
According to the WHO, diabetes is expected to be the seventh cause of death worldwide by 2030. In addition to this, according to The bmj report, the incidence of type 2 diabetes in the world skyrockets by almost 60% in three decades among the adolescent and young population.
3. Spotify
Always growing, Spotify proves to adapt to demand quickly. It is estimated that during the end of the year, its “Spotiffy Wrapped” shares have skyrocketed by up to 15% on average for the last three years.
As for long-term technical analysis, we see that the trend is bullish after having drawn a U on the chart to recover this year.
Companies that draw a U on the graph can represent great opportunities. Since they are recovering from a strong fall. However, we must remain vigilant so that they do not fall again. In this case, Spotify seems to do well.
4. Nvidia
Nvidia is a leading company in this field, due to its specialty in the manufacturing and design of graphics cards (GPU) and its application to the world of the metaverse and 3D. As you can imagine, with quite a long-term journey.
Think about the growth of video games, computing, even autonomous vehicles, a sector it is entering.
Regarding the analysis of its shares, we see that its chart also experienced a drop in 2022 to recover upwards last year.
Conclusion
The game is to be present in the now, always valuing the past and always planning the next step, trader. Don't let it take you by surprise. The market offers many opportunities and we must be prepared.
Find out about all the tools we offer you to improve your technical analysis with the power and potency of AI.
Don't forget that we are just a click away. Keep in touch.
Much success in your operations, trader! See you soon.
REFERENCES
For this article, prompts have been used to request information
interpreted and provided by AI (Google Bard). Written and edited
by Kevin David Terán and verified by Pedro Arizaleta and Erwin Sánchez
The cover image is from Freepik.
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