Here, I will give you some advice on what I know. You need to work hard at a deeper level:
What is a stock? What are the characteristics of stocks?
Stock is a stock issued by a joint stock limited company to investors when raising capital. Stock represents the ownership of its holder (that is, shareholder) to a joint-stock company. This kind of ownership is a comprehensive right, such as attending the shareholders' meeting, voting, and participating in major decisions of the company. Receive dividends or share dividends, etc. Every stock in the same category represents the equal ownership of the company. The share of ownership of the company owned by each shareholder depends on the proportion of shares held by each shareholder to the total share capital of the company. Generally, stocks can be traded and transferred with compensation, and shareholders can recover their investment through stock transfer, but they cannot ask the company to return their investment. The relationship between shareholders and the company is not a creditor-debtor relationship. Shareholders are the owners of the company, and are limited by their capital contribution, taking risks and sharing profits.
Stock is the product of socialized mass production and has a history of nearly 400 years. As the fruits of human civilization, joint-stock system and stock are equally applicable to China's socialist market economy. Enterprises can raise funds for production and operation by issuing shares to the public. By controlling majority ownership, the state can control more resources with the same funds. Currently in Shanghai. Most companies listed on Shenzhen Stock Exchange are state-owned holding companies.
Stocks have the following basic characteristics:
Ability to repay without compensation. Stock is a kind of negotiable securities with free repayment period. After investors subscribe for shares, they can no longer ask for withdrawal, but can only sell them to third parties in the secondary market. Share transfer only means the change of the company's shareholders, and does not reduce the company's capital. As far as the term is concerned, as long as the company exists, the stock it issues exists, and the term of the stock is equal to the duration of the company.
(2) participation. Shareholders have the right to attend the shareholders' meeting, elect the board of directors of the company and participate in major decisions of the company. Shareholders' willingness to invest and economic benefits are usually realized by exercising shareholders' right to participate.
The right of shareholders to participate in the company's decision-making depends on the number of shares they hold. In practice, as long as the number of shares held by shareholders reaches the actual majority needed to influence the decision-making results, the company can grasp the decision-making control power.
(3) profitability. Shareholders have the right to receive dividends or bonuses from the company by virtue of the shares they hold, and to obtain investment income. Dividends or bonuses mainly depend on the company's profit level and the company's profit distribution policy.
The profitability of stocks is also manifested in the fact that stock investors can obtain the price difference or realize the preservation and appreciation of assets. By buying people at a low price and selling stocks at a high price, investors can profit from the difference. Take the stock of Coca-Cola Company in the United States as an example. If you invest 1000 at the end of 1983 to buy the company's shares, you can sell them at the market price of 1 1 554 before July of 1994, and earn more than 10 times the profit. During the period of inflation, the stock price will rise with the replacement price of the company's original assets, thus avoiding the depreciation of assets. In the period of high inflation, stocks are usually regarded as the first choice for investment.
(4) liquidity. The liquidity of stock refers to the tradeability of stock among different investors. Liquidity is usually measured by the number of shares that can be circulated, the trading volume of shares and the sensitivity of stock prices to trading volume. The more tradable shares, the greater the trading volume, the less sensitive the price is to the trading volume (the price will not change with the trading volume), and the better the liquidity of the stock, and vice versa. The circulation of stocks enables investors to sell stocks in the market and get cash. Through the circulation of stocks and the changes of stock prices, we can see people's judgments on the development prospects and profit potential of related industries and listed companies.
Those industries and companies that attract a large number of investors in the circulation market and keep their share prices rising can continuously absorb a large amount of capital into production and business activities by issuing additional shares, thus achieving the effect of optimizing resource allocation.
(5) Price fluctuation and risk. As the trading object in the trading market, stocks, like commodities, have their own market quotations and prices. Because the stock price is influenced by many factors, such as the company's operating conditions, the relationship between supply and demand, bank interest rates, public psychology and so on, its fluctuation has great uncertainty. It is this uncertainty that may make stock investors suffer losses. The greater the uncertainty of price fluctuation, the greater the investment risk. Therefore, stock is a high-risk financial product. For example, the share price of International Business Machines Corporation (IBM), which dominates the world computer industry, was as high as $ 170 when its performance was extraordinary, but when its position was challenged and its business blunder caused losses, its share price fell to $40. If you buy stocks at a high price at an inappropriate time, it will lead to serious losses.
In the most common sense, futures are all related to futures prices. Futures traders are essentially agreements to trade the prices of products that they usually want to buy or sell in a few months or less. These agreements are contracts that stipulate the quantity and other details of commodities to be traded.
Most investors are better at trading stocks than futures. Stock and futures exchanges are both managed by the federal government, and both require traders to take risks in the process of obtaining remuneration, but there are significant differences between them.
One of the main differences is that when buying stocks, you are usually required to provide 50% to 100% of the stock value for trading. When trading futures, only about 5% to 10% of the contract value is required. The leverage advantage of futures enables you to build positions in the market with less initial capital.
Another major difference between trading futures and stocks is that futures contracts have delivery dates. After buying a stock, you can hold it indefinitely. I bought a futures contract, which will terminate on the scheduled future date. On the termination date, futures contracts are settled in two ways-cash settlement or physical delivery (physical transaction). Most traders hedge their positions (sell what they have bought and buy what they have sold) before entering cash settlement or physical delivery.
Investors can make a profit only when the price rises. However, whether the futures contract market goes up or down, you can profit from it, because you can buy and sell any trading order-that is, you can sell the contract before buying. This efficiency and flexibility enable investors to make profits when the market is bullish or bearish.
Futures market participants
Who is the protagonist in the futures market? From trading places to electronic trading screens, the futures market attracts many participants, such as pension funds, investment consultants, portfolio managers, corporate treasurers, commercial and investment banks, brokers/dealers and individuals. Futures markets are prosperous because they attract two types of traders-hedge traders and speculators.
Hedge trader
Hedge traders trade futures because they want to reduce and effectively manage the price risk in investment and operation. Adverse spot price changes affect the business of hedge traders. Therefore, hedge traders try to protect their portfolios or products from this impact. Hedge traders buy and sell in the futures market in order to determine the prices of commodities or financial products they intend to buy and sell in the future. To this end, they strive to protect themselves from adverse price changes.
speculator
Speculators include investors who only want to profit from price changes. When there is no clear demand to buy or sell spot goods, speculators just want to profit from the ups and downs of the futures market. They are also an important part of market liquidity. Short-term speculators who actively trade their accounts in the electronic market have played an important role in promoting the liquidity of the market during the trading process.
Brokers and brokerage companies
Investors in the futures market generally entrust transactions through brokers or brokerage companies. As a communication link between the market and customers, these companies handle customer entrustment and execute it in the trading hall or through electronic means. Brokerage companies generally provide full service or only agency services. Full-service companies provide market information and suggestions to help customers make trading decisions. The proxy service only performs the client's entrustment.
Excerpt ————————:
In March, 2000, I started to enter the futures market due to the need of work. The leaves are green and yellow, and the scenery outside the window is dreamlike. How many people suffer from "futures and futures" day and night-futures, what about you tomorrow? Pots of hand-cultivated flowers and plants grow lush and tall from the roots, looking out the window at the cold winter: are they also looking forward to spring?
I met Mr. Wei Kefu, a senior reporter in the American futures industry. He talked about the experience of the futures market. I couldn't put it down. I compiled a series of articles and dedicated them to my friends in the futures industry. At the same time, as a memorial to bid farewell to the old and welcome the new-goodbye! Take away 2 1 century of my childhood and youth! And He Xun Finance Network, which has cooperated for many years! —— Compile Guo Jianjing
About the author Mr. Weikefu
I work as the chief technical and market analyst in Futures Garden, the world's number one futures and options website, and at the same time edit and publish two self-run futures investment consultant express reports: Review of American Market by Jim Weikov and Review of International Market by Jim Weikov. These two publications report the futures market information in real time and provide investment strategies. The content of the article is easy to understand. I hope my work will be beneficial to your success in the futures market.
(1) For investors who have entered the futures market for the first time or not for a long time, they can learn about the futures market and futures trading by reading these two publications frequently. Many readers want to know about futures knowledge, and the original intention of my publication is to meet this demand of readers. Anyone who has read my article knows that my writing is simple and easy to understand, even for beginners of futures. These two express reports are indispensable materials for futures investors.
(2) For the old hands in the futures market, they can get brand-new investment ideas and "other opinions" that they have always wanted to hear. Some ideas may come to light after you read them.
(3) For every investor, I will pay close attention to market changes, seize business opportunities in time, and let my loyal customers respond in advance.
Many friends have asked me about my personal experience and the concept of market investment. Here I will give you a brief introduction:
In the past 20 years, my best years have been spent in the stock, financial and commodity futures markets. I have been engaged in financial reporting for many years.
I started my career as a journalist on the Chicago and New York Mercantile Exchanges. The futures market is unpredictable. I often report the news of American and international futures markets, so I quickly learned some knowledge about futures. I soon found that in the futures market, whether engaged in pork, bonds or stock index futures, successful investors have a * * * nature: that is, almost all people win by technical analysis.
Soon after I entered the business of financial reporters, I began to study technical analysis methods. I think technical analysis is simply amazing! By studying technical figures and technical indicators, I realize that investors in the market can be divided into two levels: "professionals" and amateurs like me. Why do you say that? The price trend and historical price of futures (stock) market, including trading volume, contain and reflect all the news or fundamentals known by traders; The fluctuation of futures or stock market prices also digested the market's expectation of future market and related news in advance.
If an investor tries to understand the overall situation of a futures product or a stock, including fundamental changes and other aspects that affect the market, it is very difficult for a part-time person to do so. Even if a trader is committed to market research, he/she can't understand the market as comprehensively and quickly as a professional. Therefore, all successful investors use technical analysis to make up for this shortcoming.
I think people who have traded commodity futures, finance or stock index futures have an advantage in today's stock market. Because the current stock market is as volatile as commodity futures and financial futures markets. In order to win in the dangerous market, we must pay attention to the strategy of entering and leaving the market, so as to maximize profits. A successful futures trader should have a good psychological quality of changing constantly.
The following points are my personal market analysis and trading strategy experience, for reference only:
(1) Like other jobs, the success of market analysis and trading is inseparable from diligence. Don't try to take shortcuts. Every investor must do the basic work before trading.
(two) master the basic market, technical analysis and trading strategy. I have studied classic technical analysis books and discussed futures market knowledge face to face with the best professional investors in the world. As my friend Stuart Taylor said, when using successful trading tactics, "the simpler the better!" Most people agree with this. No matter how good the mid-range network and the computer trading system are in the world, they can't compare with a relaxed and well-thought-out trading plan. Don't confuse strategy and tactics. A simple investment plan is based on a lot of previous research and preparation work.
I was born and raised in Iowa, USA, and I still live here. The wife is virtuous and kind, and the children are smart and eager to learn: the son goes to middle school and the daughter goes to college. I usually work hard and play hard after work. I like adventure: from driving a jeep through the mountain pass of the highest mountain in the American continent, to camping in Boudary waters in winter, and even hiking in the jungles of South America, I always like to be greeted.