The preface
Disclaimer: the financial knowledge mentioned in this article is my own understanding, there may be errors, please screen
structure
It is mainly divided into five parts: the nature of capital, market people’s mind, professional language, several kinds of investment, how to participate;
Nature of capital
What is capital
It’s explained in Wikipedia
In economics, Capital (French, English, Spanish: Capital, German: Kapital) is a factor of production. It refers to durable goods used in production, that is, Capital, plant, equipment, materials and other material resources, and accumulated material and financial resources used to produce other goods or generate income [1]. In the field of finance and accounting, capital is usually used to represent financial wealth, especially financial assets used to do business and start enterprises. In a broad sense, capital can also be used as a general term for all kinds of social and economic resources that create material and spiritual wealth.
A successful financier has managed to knock your socks off by coming here.
It’s money. (We will not go into the details of what money is and why it has purchasing power.)
State of capital (state of money)
Capital is static and capital is active
A stationary state
In layman’s terms, you put it at home, under your pillow, in the bank, or in Treasury bonds. (a)
dynamic
Colloquial speaking is: lend others to collect interest, buy stocks, buy funds, add leverage
(Think about how this is different from depositing a bank and buying treasuries.)
Circulation of capital (money)
In fact, it is losing money and making money
There are many ways to lose money: necessary expenses, lost, lost playing mahjong… In general, your money goes to all kinds of people (landlord, insurance, transportation, milk tea shop).
The way to make money is basically one: to make other people’s money into their own money
Rob, steal, cheat, trade, serve.
How to make money
It’s your income > your expenses
Nature of capital
The essence of capital is, in a word, profit. When capital from static to dynamic process, the most primitive driving force is profit. In layman’s terms, when you’re willing to take money out of the bank in the first place, it’s for profit. It must be to make money
The necessary process of capital flow
In general, any capital activity goes through four stages: beginning, foreshadowing, climax, and end. Let’s take real estate for example
Start: the government has a piece of land for development, I as a real estate, I bid for this land, DO I have to pay, buy this land
Bedding: after I buy this land, is it necessary to construct, to deal with all kinds of construction permits, and then dredge the relationship
High point: After the house was fixed in six months, I started selling and people started buying
End: The house is sold, I get the money, and start to buy new land, start a new cycle
This is an important example to keep in mind
Now let’s talk about asking some questions about the example above
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I am a developer why buy land to build a house?
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Why should I buy a house as a buyer?
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Why do I, as the government, need all these permits?
The key period
Everything has a period of different lengths
As we mentioned above, the development cycle is six months, and every six months a new community is built
Can you list the periodic phenomena around you?
Price and Value
What is the price
Baidu Baike explains
Price is the amount of money required per unit of commodity quantity to exchange goods with money. In other words, price is unit value (unit price). Price is the transformation form of Commodity Exchange value obtained in the circulation process. In economics and business, a price is a number of values for goods, services and assets expressed in money. In microeconomics, price is one of the important variables in the redistribution of resources between demand and supply.
In the daily application of modern society, Price generally refers to the Price or payment that the buyer needs to pay for the transaction.
In modern market economics, price is generated by the interaction and balance between supply and demand [1]. In classical economics and Marxist economics, price is the external embodiment of the intrinsic value of goods. [2] In fact, these two statements exist dialectically and work together in production activities.
What is value
Wikipedia explains it this way
It generally refers to the positive meaning and usefulness of the object for the subject. An amount that can be regarded as a fair and proper reflection of the equivalent value of goods, services or money. [1]
In economics, value is an important property of a commodity. It represents how much a commodity can be exchanged for other commodities in exchange. Value is usually measured by money and is called price. The value in this view is actually the expression of exchange value.
According to neoclassical economics, the value of an object is the price of that object in an open and competitive market, so the value is mainly determined by the demand for that object, not by the supply. Some economists often equate value with price, whether the market is competitive or not.
Classical economics argues that value and price are not the same. According to the viewpoint of Marxist political economy, value is the undifferentiated human labor that condenses in commodity, namely commodity value. Marx also divided the nature of goods into use value (the value given to the buyer of the goods) and exchange value (the amount of use value exchanged).
The relationship between price and value
Key ！！！！
Prices always fluctuate periodically with value
Consider the following questions
- Why do prices always fluctuate with value
- Who defines value (e.g., house)
- Let me give you an example
People in the market
Review the necessary characteristics and attributes of the last capital flow
Let’s go back to the last paragraph,
First: dynamic? Static?
The second is the beginning, foreshadowing, climax, end;
Ok, now that you’re an investor, let’s derive the following mental journey
Let’s take A look at China’s A-shares
Let’s take a closer look at 2019-2020
The figure above also has two lines
The top line is called the pressure line
The line below is called the support line
Know the terminology
1, the compound interest
Compound interest is calculated as interest accrued on the principal plus interest accrued during the previous interest period. Those who point to is on the foundation that did not draw interest, the new interest that can earn according to the interest rate place of principal, often weigh interest rate on interest rate, profit rolls profit, come down so, rely on principal not only to be able to make money, rely on interest to also be able to produce interest. The opportunities for making money have greatly increased.
2, wash dish
Stock market language. Banker for their own interests, must at midway to let low buy, some retail investors can because of not enough resolute so will throw out the stock he holds, in order to reduce the file pressure, so come, the stock in hand of shareholding people will price rises, so helpful for the implementation of the way to do zhuang, gain more interests. In any kind of area, may appear the banker wash dish action, the basic purpose is to raise the overall position cost, clean up the redundant chip.
3, positioning
What is a position? It refers to the proportion of actual investment funds and actual investment of investors. For instance you have 100 thousand yuan to be used at investment fund, used 40 thousand yuan to buy fund or stock now, your position is 40%, if you bought fund or stock completely, you full storehouse. If you redeem all funds to sell stocks, you are short.
Generally speaking, at ordinary times the position should maintain in half storehouse condition, that is to say, have reserve army, in case of accident. Only when the market is very good, can be short of full position.
4, dividends.
Dividends refers to the ratio of total dividends to the total number of ordinary shares at the end of the period, that is, the cash dividends received by each share during a certain period. Total dividends refers to the total amount of cash dividends used to distribute common stock. Only common stock is considered here. At present, in the dividend distribution practice of listed companies in China, investors need to pay attention to whether the dividend per share is taxable, because according to the provisions of the individual income tax law, the dividends and bonus income of individuals should pay 20% of the individual income tax, which is generally withheld by the issuing department.
5, daily limit, daily limit
In order to prevent the sharp rise and fall of prices on the stock market and avoid causing excessive speculation, the stock exchange shall, according to law, limit the rise and fall of market prices on the same day. That is, the market price of the day rose or fell to a certain limit shall not rise or fall again, the special term of this phenomenon is stop board. The highest limit of the market price that day says limit board, the market price when limit board calls limit board price. The minimum market price of the day is called the limit, the market price when the limit is called the limit price.
6, jump empty
After the stock price is affected by the positive or negative, there is a large jump up and down the phenomenon. When stock prices rise due to gains, the opening or low price of the day on the exchange is more than two units higher than the closing price of the previous day. When the stock price falls, the opening or highest price of the day is more than two units lower than the previous day’s closing price. Or rise or fall by more than one filing unit in a day of trading. Above this kind of stock price jump phenomenon is called jump short.
Net value of 7,
Net worth, also known as “book value,” is calculated from a company’s financial statements and is an accounting reflection of Stockholders’ equity, or the value of the company’s own capital in which the shares are held that year.
K line diagram terminology
So that’s the basic representation of the k-plot
The morning star
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One day in the downtrend, a long negative entity with strong selling pressure appears, indicating that the short-term trend may still be downward, the decline may continue;
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On the second day, there will be a cross or hammer that jumps down and opens low, and the highest price may be lower than the low of the first day, and there will be a gap between the negative line of the first day, indicating that the decline and volatility has contracted slightly, bringing a possible turn for the better signal.
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The third day appeared a Changyang entity, strong buying, showing that the market has turned good, gradually recover lost ground.
Morning star K line form generally appears at the end of the downtrend, combined with volume and other indicators analysis, get the corresponding investment reference.
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One day in the uptrend, a changyang entity appeared, showing a trend to continue to rise;
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The next day, there is a cross or hammer that jumps up and opens high, and the lowest price may be higher than the highest price of the previous day, and there is a gap between the positive line of the previous day, sometimes there may be some deformation, we need to flexibly grasp;
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The third day a long Yin entity, selling strong.
The evening star is the opposite of the morning star as it signals a reversal in a stronger uptrend. The K line combination pattern of the Evening star should be noted if it appears in an uptrend, because at this time the trend has sent a relatively clear reversal signal or short to medium term pullback signal, which may be a very good time for us to sell or short to medium term to avoid the opportunity. At the same time, if combined with the research and judgment of trading volume, it will be of better help to improve the accuracy of judgment.
There are several kinds of investments
Investment,
Financial markets,
The stock market,
Futures markets,
The currency market
Some are legal and some are illegal
The financial markets
The stock market at all levels,
Rule of thumb: Buy low, sell high
futures
Futures are similar to stocks, but usually with leverage
What is leverage
Let’s take an example,
If now a person with 100 dollars, do futures
Now if you make 10%, you’ve made 10 dollars, and if you lose 10%, you’ve lost 10 dollars, and you’re left with 90 dollars, you could say, in this capital flow, even though it’s 100 dollars to participate, it’s 10 dollars to participate effectively, is there any way to make your money, your effective participation rate, even bigger? And the answer is leverage if you increase leverage 10 times, you’re like, you’re making 10% on 100 x 10, you’re making 100 dollars if you lose 10 times, you’re losing 100 dollars
The exchange rate
The nature of the exchange rate is similar to that of the stock market, except that the commodity it trades is money itself
How to participate in
The stock market, the most simple (simulated) jingyan.baidu.com/article/0eb… Futures (digital currency) Suggest 3 transaction taxes (Coin security, currency, OK)(need to climb the wall)
Exchange rate, : private placement