Professional Documents
Culture Documents
TRADING
by QUantbots
when/how
Page 01 of 15
INVEST
Have Short/medium/long term Have adequate knowledge
goals regarding personal finance
50/30/20 budgeting framework. Only Invest money you are willing
Emergency fund to lose
Reduce debt/liabilities study technical analysis
retirement for the long term willing to risk
borrow smart
stocks
what are
STOCKS
Partial owner of a company
Units of Stocks = Shares
Corporations issue (sell) stock to raise funds to operate their
businesses.
Historically, they have outperformed most other investments over the
long run
Page 02 of 15
2 types of stocks Page 03 of 15
COMMON
Entitles the owner to vote at shareholders'
PREFERRED
Essentially the same as a common stock
meetings and to receive any dividends but it gives a fixed dividend
paid out by the corporation Much more limited than common stock,
Distribution of dividend occurs when Scheduled distribution of dividend
declared Lower Volatility
Higher Volatility Regular CashFlow
Higher priority
s h o r t l o n g t e r m
other forms of assets
FOREX
Trades Currency pairs (EUR/USD)
Page 04 of 15
BOND
Less Risky than stocks
Betting on a Currency/Economy
Ex. 1.2 X 100,000 (Standard Lot)
= 120,000$
Bondholders are creditors to the Margin Requirement EUR/USD = 3%
corporation and are entitled to interest as (3 X 120,000/100) = 3,600$
well as repayment of principal Cannot borrow funds to trade, must be
Regular Scheduled payments from the traders account
Return of invested principal Margin requirements vary on size of a
Safer than most investments trade and currency pairs 2-20% but the
higher coupon rate, higher risk average is 3-5%
often rated by credit rating agencies Trades in "lots"
- Standard Lots = 100k Units
- Mini Lots = 10k Units
C r e d i t
Depending on brokers you can also trade
1000 Units (Micro)
other forms of assets Page 05 of 15
FUTURES CYPTO
no regulatory framework in place to
contracts that obligate parties to buy or
ensure protection of assets
sell an asset at a predetermined future
Highly volatile
date and price.
monopolized
short (sell) buy (long)
Traditional theories on trading does not
very complicated
apply most of the time
betting
Riskiest among assets
F u t u r e
n e w a n d
r i s k y
0.O
RESEARCH TOOLS/WEBSITES Page 14 of 15
https://simplywall.st/ https://edge.pse.com.ph/
https://finance.yahoo.com/ marketscreener.com
https://etfdb.com/ simplywall.st
https://www.gurufocus.com/ tradingview.com
morningstar.com https://www.reuters.com/
tradingview.com firstmetrosec.com
investagram.com
WallstreetBets (Reddit)
investing.com
Buying Page 09 of 15
STOCKS
literal na b
Buying Page 09 of 15
STOCKS