1. Basic Concepts

  1. Position building: buy a little first, observe the market
  2. Add: Buy more as it goes up
  3. Cover: Buy more after a fall
  4. Sell down: Sell a little
  5. Full position: To buy all the money available for investment
  6. Heavy position: spend a lot of money to invest, buy than significant
  7. Half position: having half of your investable money
  8. Light cang: the time that buy is not very much, the hand still has a lot of money
  9. Blow up: Money is gone
  10. Stop-profit: selling after earning money for fear that the price will fall
  11. Stop loss: lost money is afraid to continue to sell
  12. Do long: look after the market value, loans to buy
  13. Shorting: A situation in which an institution borrows a stock and sells it, then buys it at a lower price, repaying the institution for the difference
  14. Chase up: the more rise more buy
  15. Kill: the more fall more sell
  16. Step empty: rise all the time, and then he didn’t get on the car
  17. Fund net value: point to a fund value how much money, accumulative net value is established to the present price, pay treasure every night after 8:00 update net value, every trading day 9:30 to 3:00 p.m. float valuation.
  18. Fund buy and sell: the fund recommended operation time 2:30~3:00 p.m., buy and sell before 3:00 p.m., according to the day’s price calculation, buy and sell after 3:00 p.m., according to the price settlement after 3.00 tomorrow.
  19. Buying rate: Class C funds are generally zero, charging about 2% of the annual management fee, custody fee, sales service fee, selling within 7 days 1.5% commission, selling within 30 days 0.5% commission, selling more than 30 days do not collect commission. Class A fund buying commission is 0.12% to 1.5%, A total of 1.5% of the annual management fee custody fees, selling within 7 days 1.5% commission, selling within 30 days 0.75% commission, half A year to collect 0.5%, A year to collect 0.25%, more than A year without charge. Fund buying and selling rates are different, specific charges please refer to the alipay fund charging rules.
  20. Price/earnings ratio (PE) : refers to the ratio of the total value of the stock to the earnings per share, for example, PE=10, which can be understood as the current company can only earn the total value of the stock in 10 years. The lower PE is, the shorter the payback period and the smaller the investment risk. The larger the PE, the higher the valuation, indicating long-term optimism
  21. Price-to-book ratio (PB) : refers to the ratio of the total value of shares to the cost of wage assets. For example, PB=10, the total value of shares is 10 billion, indicating that the current stock price is 10 times the company’s assets, and the company’s assets are 1 billion

Ii. Fund Terminology

  • Fund explain buy and redeem: explain buy namely buy fund, redeem sell fund namely, obtain capital
  • Index fund: it is the fund that tracks index, index is a package of stocks and stock selection rules, will make index by the country, index fund represents national transport
  • Active vs. Passive funds: Active funds are where the manager has the freedom to choose which stocks to invest in, and passive funds are where you invest in stocks by tracking a specific index (aka an index fund)
  • Broad-based index fund and narrow-based index fund: broad-based index is not limited to sectors for stock selection (CSI 300, SSE 50 and other market indexes), narrow-based index is limited to a specific industry for stock selection, such as consumer industry, pharmaceutical industry, etc. Wide – base index feedback national transport, narrow – base index feedback industry
  • Exchange-traded funds: Exchange-traded funds, like stocks, can be purchased directly on the exchange floor, with low fees, but usually with a minimum of 100 shares. Over-the-counter funds can only be purchased and redeemed by third parties (e.g. Alipay)
  • LOF: Exchange-traded open end fund
  • ETF and ETF link: ETF refers to the trading open index fund, is a kind of index fund, can directly track the fund manager to buy the same stock and proportion (small fee), can also directly purchase redemption on the exchange (large fee); ETF link is a fund of funds that invest in ETF funds and can only be bought over-the-counter, eliminating the 100 minimum share limit
  • Net value per unit/Accumulated net value: Net value per unit refers to the net value of a fund; Cumulative net worth refers to the accumulated net worth since its establishment
  • AC type fund: A type of fund high rate, C type of fund free rate, hold 30 days free redemption
  • Standard/Enhanced fund: Standard strictly tracking index; Enhancement is adjusted outside the index according to market conditions