Behavioral patterns between Stocks Vs Real Estate and How to stay profitable in both markets_DESIRE-The Realtor

Trading Stocks and Real estate investments, while they are both investment vehicles, their trading patterns might be slightly different. By stocks here, we are going to be including all capital markets instruments and Forex.

While chart patterns in both scenarios may follow a similar structure, entry points vary for both, for investors who intend to stay profitable. For Stocks on the left, Investors enter trending markets, joining the big players on the uptrend. A trending market indicates the presence of big players placing buy orders on the market thereby significantly pushing up the price over a short while. The trend is your friend and this the a good entry point.

On the other hand, Real estate entries are best when the market is flat and not trending. At this point, owners don't get many offers on their properties, so they are willing to consider the few offers they get. Best time to buy and hold on to the property until trending markets come and give you flexibility to compare offers and sell at a suitable price.

Here is what makes investing into real estate a little more challenging as compared to stocks. Data on stocks is very timely and readily available but real estate reports are not so current and by the time you get to compile the data to make a decision, the market might have already shifted significantly.

However, you can get timely information working with brokers. Here is how. If a broker lists a property at market price in Downtown Dubai in September 2023 and gets a mad rush of calls on it, he knows markets are trending in the area at the time, making it a suitable time to sell. If the same broker lists another property in Downtown in February 2024 at market price but gets maybe one call a week, then he knows there is a consolidation or flat markets in that area at the time, A good time to buy.

Whether you are investing into stocks or real estate or both, you should consider this before making your investment decisions. Nothing is worse than trying to invest into real estate without a broker, it is like jumping off an airplane without a parachute and you don't need a magician to tell you what would happen to you.

For the exit strategies;

On Stocks, you should exit before the next resistance. Think of it as a stick of cigarettes in the fingers of a smoker. As it burns up towards your fingers, you don't want it to come roast your fingers before you through it away. As soon as the tobacco rod is fully burned up and the fire reaches the filtration zone (Resistance), you throw it away (Exit the trade). at this resistance or filtration zone, there will be a slowdown in the heat of the fire or a slight consolidation (rejections and long wicks) so you should exit the trade.

With Real Estate, it is a little different, you should not wait for the filtration zone as there is nothing as such. The market is either trending up, making a slight correction or consolidating. You are to exit at trending markets and enter at consolidating or correcting markets.

If you are looking to invest into the Dubai Real Estate market, serious investor ready to take action and not just seeking for information, reach out to me on whatsapp or email.

+971525501694

chewealth1@gmail.com

Meh Didier Che

RERA certified.

FMVA & FPWM Certified

Bsc Accounting and Finance

Real Estate Investments Financial Modeling CFI