Types of Investments

- What kind of investor are you?

○ Passive vs Active
○ Risk Tolerance (high, moderate, low)
○ Time Horizon (short, medium, long -term)

- Preferred shares: for passive, long term investors; dividends

- Common stocks: the type of stock that is least prioritized when declaring dividends and
mostly profits through price appreciation

- Mutual funds: pooling funds from diff investors to invest in various assets; brokers; long
term
- UITF: same with MF; handled by banks
- Real estate
- Business
- Investing/trading

Comparison of Different Asset Classes

What is the stock market?

**follow lineman on investagram

80/50 rule on market leaders

- 80% chance market leaders will drop 50%
- 50% chance market leaders will drop 80%
Bid & Ask
 - Current buyers (bid side)
- Current sellers (ask side)
- Identify support and resistance levels
- See how much shares you can accumulate or dispose at a certain time
- Buy a fast moving stock - place a buy order higher than asking price; lowest prices will
be executed first
- Sell a fast moving stock - place a sell order; filled at best selling price

Why do people lose in the stock market?

- No strategy
- Buying on tips and rumors
- No research
- No risk management (boy all in)
- Boy kabado
- Not knowing yourself; self-awareness!

Components of successful investing/trading

Ask yourself
- Kind of effort?
- Time horizon? Short-term or long-term?
- Patience? Humble enough to cut losses? Re-allocate your portfolio?
- Emotional mastery? Market volatility, constant monitoring, execute objectively
- Personal strengths and weaknesses