Many traders are eager to reach exactly the perfect entry and exit times, ie to “time out” the market.

Surely you have heard the story before:

A friendly investor has managed to buy a stock at (local) lows, hold it for a while and then sell it at highs. He proudly tells you about his coup.

With awe, if not envy, listen to his story. This strategy is called “timing” the capital market.

In order to “time” the market, investors often use technical analysis indicators such as up or down trends, evaluate economic fundamentals or rely on luck.

Many investors are eager to reach exactly the perfect entry and exit times.

Accordingly, the frustration is great if you do not succeed.

And since it rarely succeeds, many market timers are frustrated and withdraw from the stock market.

Not even Warren Buffett succeeds in timing the market

In the history of the stock exchange, no investor has ever managed to buy successfully at low prices and sell at high prices with various stocks over a stock exchange cycle, ie over a stock exchange cycle. ... 

The name alone makes so many an investor’s heart beat faster: Silicon Valley. The valley of innovative promises, the most powerful place in the world. With Silicon Valley tech stocks, many first-time investors got rich. Apple , Facebook , Google , Microsoft , Netflix …. The value gains of these titles put everything in the shade.

Exciting stocks in Silicon Valley

Geographically, Silicon Valley covers the southern part of the San Francisco Bay Area, the metropolitan area around San Francisco and San José. The 70 km long and 30 km wide valley is a magnet for numerous companies. Intel , San Disk, Adobe, Symantec , Nvidia , Hewlett Packard , Oracle , Cisco , Tesla, and Twitter or Ebay are other well-known Silicon Valley stocks.

But there are also a few other Silicon Valley tech stocks that not everyone instantly has on their radar.

Computer Games

Electronic Arts for example. If you like computer games, you probably know titles like Titanfall, Battlefield, Starwars Battlefront or Fifa Football. These are just the latest from a long list since 1984. At that time, the company was still young. Earlier, founder Trip Hawkins had given up his job at Apple and with the money he had earned through the IPO of his employer, built the company. ... 

Depending on the type, investors rely on different stock strategies. The most popular are Value & Growth. These are substance and growth stocks , so on the one hand, for example, Coca-Cola or Walmart and on the other hand about coveted FANG shares, ie Facebook , Amazon , Netflix and Google.

Value & Growth: often flowing transitions

The latter, in particular, have quickly become stock market giants and make stock names seem almost boring. Star investors Warren Buffet , the most famous representative of the Value Strategy , shows that they are able to generate a considerable return .

No wonder people like to look at value and growth stocks. An almost classic dispute, in which, however, already the rough comparison “Value & Growth “does not always work so easily, for example when growth stocks mature into companies with real substance.

This is shown for example by Microsoft. The stock is among those that can be accommodated in both camps. It is listed both in the MSCI World Value and in the Growth Index. These indices are the basis for ETFs that can be used on both strategies. With their wide dispersion, they reduce the risk, and with the mapping of the special indices, they simplify matters considerably. ... 

If the stock markets perform surprisingly well even in times of crisis, this is not least due to the injection of funds by the central banks.

But in artificially busy markets a handful of bad news is enough and already the values ​​plummet.

And finally, every crash is a nightmare for the investor.

Secure Deposit: There are funds against falling prices

However, sleepless nights can be avoided with the right tools.

There are a number of ways to secure the deposit and also to take advantage of falling prices.

With some products, one can make a virtue out of necessity and enjoy profits when others lose.

But since every commitment involves both costs and risks, every investor should first consider whether this fits in with his or her investment and investment goals.

If you rely on different asset classes over the long term and with a broad base, you can save yourself the trouble and simply let time work for you. Over longer horizons, short-term losses are barely noticeable.

The situation is different when an investor mainly calculates with stocks and shorter time periods. In this case, there are a few possibilities of depot security: ... 

Risk diversification can provide you with that security and protect your entire portfolio against losses. Therefore, as an investor, you should know how to most skillfully build your portfolio and make the risk so calculable.

The fact is: you can never completely avoid the risk

Risk diversification is certainly not one of the most exciting topics of the investment. Nonetheless, most investment professionals agree,  that diversification is the best way to achieve long-term financial goals while minimizing risk – even when there is no guarantee against losses, of course.

However, you can never completely avoid the risk , even if your portfolio is very versatile. So what do you need for a well-stocked, balanced portfolio? There are three main things to look out for to optimally spread your wealth:

• Your portfolio should include a wealth of different financial instruments – such as cash, stocks, mutual funds and, if possible, real estate.
• Your investments should be exposed to different levels of risk. You do not necessarily have to limit yourself to first-class stocks. The opposite is true: if you invest in different investment products with different returns, it is more likely that the total return will compensate for individual losses. However, this does not mean that you should fall for particularly risky investments (such as penny stocks ).
• Invest in companies as diverse as possible. Thus, the unsystematic risk that you incur with several small companies in the same industry is as small as possible.

Another important question is how many shares should one buy to minimize the risk to his portfolio. The so-called portfolio theory says that with 10 to 12 different possible stocks is already very close to the optimal risk diversification.

That does not mean that your assets are well invested in 12 different stocks of the IT industry. Instead, you should pay particular attention to the size and industry of companies. ...