Investments. Events of the week (№6)

Hello! The week has come to an end, so it's time to take stock, recall events in the stock markets and analyze portfolios. About all this today in #IISLike post!

Investment news

The week started with a strong fall in the markets. The Moscow Exchange index on Monday fell by 1,64%. Continue reading “Инвестиции. Events of the week (№6)”

LESSON 29. COVERED AND UNCOVERED SALE OF OPTIONS

Covered and uncovered sale

Any option sale can be:

1. Covered- we have sold the option and have long position in the underlying asset in case Sales Call or short position in the underlying asset in case Put sales. The position in the underlying asset covers your risks on the sold option. Continue reading “УРОК 29. ПОКРЫТАЯ И НЕПОКРЫТАЯ ПРОДАЖА ОПЦИОНОВ”

Review "Russian Aquaculture": there are practically no rivals, shares rise on circulating redemption

"Russian aquaculture" (MCX: AQUA) — management company of the group of companies of the same name. The group includes fish farms and factories for growing smolt - young fish weighing up to 150 grams.

About company

В принадлежности группы 36 fish farming sites. Continue reading “Обзор «Русская аквакультура»: there are practically no rivals, акции вырастают на оборотном выкупе”

AI vs. neurology and cancer: what BioXcel Therapeutics does

BioXcel Therapeutics (Nasdaq: BTAI) — biotech start-up from the United States of America, whose drugs are in clinical trials. The company focuses on the introduction of artificial intelligence for the development of pharmaceuticals in the fields of neurology and immuno-oncology. Continue reading “ИИ в противоборстве с неврологией и раком: чем занимается BioXcel Therapeutics”

Markowitz portfolio theory

Hello! ? Last post on stock market volatility, the construction of an investment strategy based on it and its connection with the Markowitz portfolio theory caused a great response among subscribers on Instagram✏️ in that sense, that many asked to tell in more detail about Markowitz's theory. Continue reading “Портфельная теория Марковица”

Market news: bankruptcy Johnson & Johnson and Mountain Reporting

Johnson & Johnson is going to declare bankruptcy, to resolve the issue of possible claims. Lordstown Motors will get a ton of money in exchange for nothing and set an example for other scams.. And let's also look at the reports of companies, which were previously reviewed on the site. Continue reading “Новости рынка: bankruptcy Johnson & Johnson и горы отчетности”

How to earn 1 million. with salary 25 thousand?

Hello everybody! Investment topic in conditions, when many people have low incomes, may be relevant. Therefore, you can put any numbers in the title of the post., but the point is, to earn a lot, with a small monthly income. For example, you can also ask: "How to earn 10 million. with salary 250 thousand. Continue reading “Как заработать 1 million. with salary 25 thousand?”

antifragility. Nassim Taleb | Video sammari

Table of contents:

01:31 Insight 1. Use a barbell strategy.

03:10 Insight 2. Practice is safer than theory.

05:12 Insight 3. Via negative.

07:12 Outcome. The main idea of ​​the book. Continue reading “Антихрупкость. Nassim Taleb | Видео саммари”

Fundamentals of Risk Management in Cryptocurrency Trading

Types of risks

There are risks in any financial transactions, there are quite a lot of varieties.

For example:

  • market risk - the risk of an unfavorable change in the value of an asset;
  • credit risk - the risk of bankruptcy of the cryptocurrency issuer or failure to fulfill its payment obligations;
  • liquidity risk - the risk of being unable to convert the entire position volume into fiduciary currency (or equivalents) at the best prices;
  • operational risk - the risk of being unable to perform trading operations or deposit / withdrawal of assets.

These and many other risks affect the operation and stability of financial markets and individual participants.. When a financial institution or corporation defaults, suffer losses from transactions in financial assets or in operating activities, this negatively affects the prices of the respective assets. Такое положение дел обычно идет вразрез с интересами стейкхолдеров.

Continue reading “Основы риск-менеджмента при торговле криптовалютами”

We buy cheap, we sell dearly.

Say, to make money on the stock market, we must wait for the market correction, buy stocks and forget about them for several years. Even if the correction is slightly delayed in time, then there will be no losses, since the loss has not been fixed yet, then it is not. You just need to hold the shares and not sell them until they grow and a significant profit is made.. Quite a logical idea, at first sight, because stocks always go up, так зачем же фиксировать убытки — надо просто подождать пока акции вырастут и все дела.

But let's take a closer look at the technology of acquiring shares during a correction.. Здесь сразу же возникает логичный вопрос — что считать коррекцией, when to start buying shares? There are two extreme scenarios for the development of events, and each has its own disadvantages.:

1. Buy during minor correction, for example -10%. But is the entry price too high?, as the market could fail even more.
2. Buy during a major correction, Sort of -60-80%. But such a correction may not be expected during the course of your activity on the exchange., and money will stand idle and depreciate.

That is, the point is that you want to buy as cheaply as possible, but whether it will be allowed to do it raises a lot of doubt. And buying at a higher price is fraught with a further large and prolonged drawdown.

I am sure, that the vast majority, which 95-98% from all investors, just look at the index chart for the last two or three years and determine the maximum corrections for this period. For example, there were a couple of corrections for -20%, this figure will become decisive for the purchase. Let's see how it would look in the distant 1929 year for the American market. The market grew, nothing foreshadowed trouble. Someone was waiting for a correction, the size of the previous. And finally, дождался — накупил акций на коррекции индекса -20% and began rubbing his hands in anticipation of future profits.
The market is down, не беда — пока убыток не зафиксирован, he is not. All that had to wait 25 years to close your investment to zero, break even.
Dissenters, I think, getting ready to start a song about dividends, Sort of, the share price is not important, the main thing is that dividends are paid, and the return of the price can be expected for a hundred years. But the problem is that most companies during this period not only refused to pay dividends, but also completely ruined. And this means that, least, half of the investments turned to zero and close at breakeven in 25 years, like on a picture, in fact it would not work. Not to mention inflation and depreciation of money.

Good, but the smartest, of which in total 2-5% from all investors will not make a full purchase of shares at the same price, that is, when the market corrects by -20%. They will still leave money for correction in 35% And 50%. Unless such a deep correction happens, then they will be present in the bull market underinvested on 66% and as a result, they will show the result much worse than the benchmark. But, allowable, that they were right and the market reached their planned entry levels.
Total, ideally, will have to wait 22 years to close at zero. But given the massive bankruptcy of companies, wait for breakeven.

Now let's play with interest. Someone will say what to buy at 50% correction as it is safe, because the market has already dropped by half, and the rest of the half will somehow survive, if anything. Но проценты это такая интересная штука — допустим, bought for correction in 50%, but, how it turned out, from the point of purchase, the market subsequently declined by another 79%. Imagine a drawdown 79% on account. Almost no one can stand it. Will run away from the market with a meager balance of money much earlier.

Well, if you buy at 70% drawdown, then this is definitely a safe investment, since there is nowhere below. But, as it turns out, even after this level of purchase, the price dropped by another 64%.

Even after 80% Fall, the price dropped by another 47%. Imagine you invested 100 000 dollars at a safe level, when there is nowhere lower, and after a couple of months there were only 53 000.

And now, summarizing, I'll tell you a secret, even if we bought shares after the index fell by 99%, over time, from the entry point, the index may fall by another 99%. Такая уж эта вещь — проценты…. :)

So that, hardly anyone can get rich by buying (or not bought, who failed) stocks on correction. Except that, smartlab analysts :)

Say, to make money on the stock market, we must wait for the market correction, buy stocks and forget about them for several years. Even if the correction is slightly delayed in time, then there will be no losses, since the loss has not been fixed yet, then it is not. You just need to hold the shares and not sell them until they grow and a significant profit is made.. Quite a logical idea, at first sight, because stocks always go up, так зачем же фиксировать убытки — надо просто подождать пока акции вырастут и все дела.

But let's take a closer look at the technology of acquiring shares during a correction.. Здесь сразу же возникает логичный вопрос — что считать коррекцией, when to start buying shares? There are two extreme scenarios for the development of events, and each has its own disadvantages.:

1. Buy during minor correction, for example -10%. But is the entry price too high?, as the market could fail even more.
2. Buy during a major correction, Sort of -60-80%. But such a correction may not be expected during the course of your activity on the exchange., and money will stand idle and depreciate.

That is, the point is that you want to buy as cheaply as possible, but whether it will be allowed to do it raises a lot of doubt. And buying at a higher price is fraught with a further large and prolonged drawdown.

I am sure, that the vast majority, which 95-98% from all investors, just look at the index chart for the last two or three years and determine the maximum corrections for this period. For example, there were a couple of corrections for -20%, this figure will become decisive for the purchase. Let's see how it would look in the distant 1929 year for the American market. The market grew, nothing foreshadowed trouble. Someone was waiting for a correction, the size of the previous. And finally, дождался — накупил акций на коррекции индекса -20% and began rubbing his hands in anticipation of future profits.
The market is down, не беда — пока убыток не зафиксирован, he is not. All that had to wait 25 years to close your investment to zero, break even.
Dissenters, I think, getting ready to start a song about dividends, Sort of, the share price is not important, the main thing is that dividends are paid, and the return of the price can be expected for a hundred years. But the problem is that most companies during this period not only refused to pay dividends, but also completely ruined. And this means that, least, half of the investments turned to zero and close at breakeven in 25 years, like on a picture, in fact it would not work. Not to mention inflation and depreciation of money.

Good, but the smartest, of which in total 2-5% from all investors will not make a full purchase of shares at the same price, that is, when the market corrects by -20%. They will still leave money for correction in 35% And 50%. Unless such a deep correction happens, then they will be present in the bull market underinvested on 66% and as a result, they will show the result much worse than the benchmark. But, allowable, that they were right and the market reached their planned entry levels.
Total, ideally, will have to wait 22 years to close at zero. But given the massive bankruptcy of companies, wait for breakeven.

Now let's play with interest. Someone will say what to buy at 50% correction as it is safe, because the market has already dropped by half, and the rest of the half will somehow survive, if anything. Но проценты это такая интересная штука — допустим, bought for correction in 50%, but, how it turned out, from the point of purchase, the market subsequently declined by another 79%. Imagine a drawdown 79% on account. Almost no one can stand it. Will run away from the market with a meager balance of money much earlier.

Well, if you buy at 70% drawdown, then this is definitely a safe investment, since there is nowhere below. But, as it turns out, even after this level of purchase, the price dropped by another 64%.

Even after 80% Fall, the price dropped by another 47%. Imagine you invested 100 000 dollars at a safe level, when there is nowhere lower, and after a couple of months there were only 53 000.

And now, summarizing, I'll tell you a secret, even if we bought shares after the index fell by 99%, over time, from the entry point, the index may fall by another 99%. Такая уж эта вещь — проценты…. :)

So that, hardly anyone can get rich by buying (or not bought, who failed) stocks on correction. Except that, smartlab analysts :)