investing
'Buy low, sell high' is just the tip of the iceberg; learn the art of investing from expert traders and how to make your money grow.
What Is Futures Trading? How Does It Work?
The futures trading in the stock market relies on the futures contract. In this contract, two parties, one the purchasing party (the one with the long position), sign an agreement with the seller (the one with the short position) where the buyer agrees to purchase a derivative or index at a specific time in the future for the predetermined price. As time passes, the price of the contract relatively changes to the fixed price at the time of agreement. As a result, it creates a profit or loss situation for the trader. The stock market governs each of these transactions before exchanging stocks.
Nitya SharmaPublished 15 days ago in Trader
Why are we afraid to buy stocks that are so cheap after the crash?
First, the fact that the crash was cheaper and nobody bought it. Stocks became much cheaper after the crash, and both amateur and professional investors were afraid to buy in large quantities, or even sell to reduce their positions. Buffett spotted this phenomenon back in 1979. Zweig found the same phenomenon repeated in YourMoney&YourBrain. Look at China's fund investors, the stock market rose in 2007, the share of stock funds jumped from 220 billion shares to 1041.8 billion shares in a year, more than 1 trillion capital high trapped. In 2008, the Shanghai Stock Index plunged by more than 2/3 in a year, but the fund's share remained basically unchanged. Considering that 45.2 billion new stock fund issues were issued that year, the basic people did not take the opportunity to buy a large number of low, but also sold 50 billion shares. Or look at Chinese fund managers. On August 2, 2010, China Business News published an article titled "How the fund inverse index is refined", which said that according to caihui information statistics, the fund position in 2007 has been maintained at more than 77%. In October 2007, the Shanghai Stock Exchange Index reached a record high of 6124 points, and the fund's position reached more than 80% in the third and fourth quarters, reaching a record high. In 2008, the stock market began to decline all the way, and the lowest fell to 1664 points on October 28. The fund positions also gradually decreased, which were 75.33%, 71.78%, 68.50% and 68.81% respectively in four quarters, falling to the lowest level in history.
Why is stock investing the most difficult industry in the world to succeed
I have written hundreds of investment notes. If God had decreed, "When you die, all your notes will be burned and no one will remember what you said. You will leave only one for posterity." Then I will choose to leave this article without hesitation. I have been in the secondary market for more than 10 years and have contacted at least 1000 investors, but less than 10 of them have successfully achieved financial freedom, that is, the success rate is less than 1%. Here those securities service industry people are excluded, such as investment banking elite, brokerage bosses. They don't make money trading stocks, they make money providing services. Also get rid of the people who get rich from the egg, such as the public fund manager, who is in charge of $1 billion and earns 20% for Tijimin, who gets millions for himself. I'm talking about those grassroots who started from tens of thousands of yuan to tens of millions or even over 100 million yuan. I am not saying that these people are more successful than the heads of securities firms and elite investment banks (in fact, they make less money than the heads of securities firms), but we can copy their path, but we cannot copy the path of the heads of securities firms.
What is the underlying logic behind stocks making money?
There is nothing wrong with this saying, but many people take it wrong. It is not enough to describe the absurdity of his learning results. Some people say that you should never lose more than 10% after buying, or you should stop your losses immediately. If you continue to lose, your losses will continue to grow. Cutting losses before they grow and closing with a smaller loss is the most effective way to protect capital. But someone said, no, the theory I heard was that you can't lose more than 20%, and you only need to stop if you lose more than 20%. At this time, some people said, you are wrong, I a period of time before the teacher of a short master, his stop loss line only 3%, more than 3% must stop loss. Other popular stops are 5%, 8%, 15% and so on. Are these people right or wrong? Every one of them is right, but they are also wrong. The essence of stop-loss theory is never to sell at a loss, let alone discuss how much loss is appropriate to sell. What is stop loss? Stops are a corrective mechanism for your own mistakes, and unless you are always right, you will die a terrible death without stops. Only the market is always right, anyone can be wrong, so anyone must have a stop loss. However, the form of stop loss, but not the same. I always say that you have to understand why a stock is going up. Because if you understand why it's going up, you don't know if it's going to go down in the future. If you don't understand, or don't understand fully enough, no matter how much money you make in a bull market, you will give it away in the future. There is a common sense that everyone must be clear, the bull market is the main reason for retail losses. See clearly oh, is the bull market leads to retail losses, not bear market, I wrote correctly. Because only the bull market, after the boom, retail investors will enter in large quantities. And then there was no more.
5 Behaviours' that cause Investors To Make Bad Decisions
Imagine you find $100 on the street. Would you spend it on an expensive meal? Or would you invest it? The answer lies with behavioral finance, which examines how our brain affects how we manage and invest money.
Strategic OverloadPublished 19 days ago in Trader
10 Questions to Ask Yourself Before Investing In The Stock Market
If your investing career began after March 9, 2009, your returns have likely been amazing. This particular day is when the S&P 500 bottomed out during the Great Recession.
Strategic OverloadPublished 21 days ago in Trader
Guide To Investing In Gold
Gold Coins: Historical Background: The first historical evidence of gold coins came from Lydia about 70 B.C, which is current day western Turkey. Romans followed expansionist policies in their era therefore and they kept gold in the form of reserve instead of Coins. This began the change, where some aristocrats were getting the right of minting coins from gold reserves. Later Italian introduced numerous techniques in gold production. with these coins grew in fame and acceptance due to their purity. hence, it is a fact that Italian brought Renaissance in gold production and gold Coins designing.
James NickPublished 23 days ago in Trader
What is the use of a perforation tester in the packaging industry?
The appropriate packaging has a tremendous influence on increasing the shelf life of food goods and so preserving their nutritious content. Therefore, it is important for you to select the appropriate packaging material so as to deliver accurate products to your customers. A perforation can be a small hole or a row of holes punched into materials, pouches, and packaging products. The purpose of perforation is to make it easy for the customers to tear off the package.
PRESTO GROUPPublished 28 days ago in Trader
The Price Of Bitcoin, BNB, Ethereum, Terra’s Luna, Cardano, Dogecoin, XRP & Solana ALL Begin Free Fall
Over the past week, bitcoin lost about 33% of its overall value, hitting a low nearing $20,000. (at the time of this writing, bitcoin had recovered to a little over $22,000.) Altcoins are suffering heavily too. Ethereum’s price fell 31%, Cardano dipped by 16%, Solana dropped just under 10%, and Terra’s luna, dogecoin, BNB, XRP, BNB, dogecoin, Terra’s luna are down 23%, 30%, 24%, 15%, respectively. [1]
Matthew KlodtPublished 29 days ago in Trader
What Made Warren Buffett a Billionaire?
Warren Buffett is currently worth 95.8 billion dollars as of 2022. Buffett is the most successful investor by any measure. He becomes a billionaire by investing in good businesses.
Arsalan HaroonPublished 29 days ago in Trader
The Public World of Global Commodity Trading
Companies that specialize in trading, buying, and selling different assets are known as commodity trading firms. In other words, these companies focus on physical inventory and its potential value.
Nikolas PerraultPublished about a month ago in TraderBenefits of Hard Money Loans For New Investors
In addition, the borrower may take out multiple hard money loans at the same time and stagger projects. Financing your property with a hard money loan may be the right move for those in the real estate business, but less experienced investors need to educate themselves on the subject so they can make the best decision for their specific project. Before applying, a potential borrower should know the main pros and cons of using a hard money loan.
EMCAP LendingPublished about a month ago in Trader
