Slide financial invesment english (đầu tư tài chính)

Chapter 1. Overview of Investments Chapter 2. Equities investment Chapter 3. Bond investment Chapter 4. Derivative and others Chapter 5. Technical analysis Fundementals of investments: valuation and management, second edition, Charles J.Corrado and Bradford D.Jodan  Securities analysis, Benjamin Graham and David L. Dodd  The intelligent investor, Benjamin Graham  common stock and uncommon profits, Philip A. Fisher  How to make money in stocks, William J. O’Neil  The SnowBall  The Warren Buffett Way, Robert G. Hagstrom  Warren Buffett and George Soros, Mark Tier  The Tao of Warren Buffett, Mary Buffett and David Clark  Warren Buffett and interpretation of financial statement, Mary Buffett and David Clark  Rule 1, Phil Town  The theory of investment value, John Burr Williams

Investments Phd Luu Thu Quang Banking University of HCM Study plan: link Chapter Overview of Investments Chapter Equities investment Chapter Bond investment Chapter Derivative and others Chapter Technical analysis Reference books             Fundementals of investments: valuation and management, second edition, Charles J.Corrado and Bradford D.Jodan Securities analysis, Benjamin Graham and David L Dodd The intelligent investor, Benjamin Graham common stock and uncommon profits, Philip A Fisher How to make money in stocks, William J O’Neil The SnowBall The Warren Buffett Way, Robert G Hagstrom Warren Buffett and George Soros, Mark Tier The Tao of Warren Buffett, Mary Buffett and David Clark Warren Buffett and interpretation of financial statement, Mary Buffett and David Clark Rule 1, Phil Town The theory of investment value, John Burr Williams Chapter 1: Overview of investments Investment definition Types of financial investment Financial investment process Methods of analysis Investment methods Investment definition According to Malkiel (2007), Investment is a method of buying assets to make a profit in the form of reasonably predictable income (such as share dividends, bond dividends or rental income) and/or the value of the investment will increase later a long time (Random walk on Wall street)  “An investment operation is one which, upon thorough analysis, promise safety of principal and a satisfactory return” p54, Security Analysis, Benjamin Graham & David Dodd “Investment, in finance, the purchase of a financial product or other item of value with an expectation of favorable future return In general terms, investment means the use money in the hope of making more money”, InvestorWords “The investment process is almost like waiting for the paint to dry or the grass to grow If you feel excited, take $ 800 to Las Vegas " - Paul Samuelson (Forbes 7/2015) Investment definition  From the writer's perspective: Financial investment is a plan whereby investors use idle funds to trade appropriate financial instruments, based on careful analysis, with a reasonable degree of risk tolerance to make a satisfactory profit in order to achieve your financial goals Why we need investment?  Financial Freedom  Take advantage of compound interest  Without investing your free cash flow, you will be guilty to humanity  Most of the world's billionaire assets are in the form of stock Mistakes in investment  Realizing profits too early: This is a classic mistake when new investors realize profit too hastily just to make a small profit Meanwhile, the momentum of market growth has just begun, the profits can still be greater and it is clear that new investors missed the big wave just because they were too impatient CNBC's advice is to be patient with the investments that are yielding profits before realizing profits Sometimes, big waves last for several years and not many investors have the patience to wait for this opportunity Quite simply, because many investors thought, "This stock has rallied so hard, it can't go up anymore.“  "Fear" to cut losses: CNBC stated that this is the second classic mistake when new investors go wrong but still not accept CNBC's advice is never to be patient with losses Bad investors often take the reason why the market is falling against their expectations, but the reality is that the market is always right Thinking like "This stock went down too deep, it cannot go down further" is incorrect, the stock may still go down further Mistakes in investment  Herd effect: CNBC believes that new investors are often influenced by other investors, or by market movements They mistakenly believe that if a stock is bought by more people, the quality of the stock is good The herd investment is often compared as gamble When making small profits from gambling, people often mistakenly make this profit too easily and start being affected by psychology Then suddenly, the player lost all their money and didn't understand what was going on  Listen to celebrities: It is not wrong to seek professional advice, but listening them absolutely is not recommended CNBC believes that when a well-known investor publicly declares his or her remarks, it is not merely to the mutual benefit of the market or to prove its worth Behind the public statements of investors always come with personal purposes, so be careful with statements like this 10 Trần Tuấn Vinh 524 Trần Tuấn Vinh 525 Trần Tuấn Vinh 526 The problem of phase time Long-term trends will affect the short-term trend If the short-term trend is the same direction as the long-term trend, the market will have more momentum and the price range will last longer than the case of the short-term trend opposite to the long-term trend If investing in a short Months phase, the analysis must begin with a day, hour chart and end in a Months chart to make a decision If investing in daily time phase, it must start with monthly, weekly chart, then end with daily chart 527 Trần Tuấn Vinh 528 Trần Tuấn Vinh 529 Trần Tuấn Vinh 530 The psychological issue Why are some investors not buying and selling on their own but following rumors even though he is financially savvy? Why would an investor lose 10%, 30%, and 50% and then be forced to cut losses at 70%? Why would an investor analyze the market go down, but at the beginning of the first 30 minutes he decided to buy when he saw the market go up, and then at the end of the session he "regrets" when he saw the market plummet? The general answer is: he has no trading rules yet or he does not comply with the trading rules 531 The psychological issue Why most investors want to sell instead of buying when the price breaks up the previous highest level (Resistance) Meanwhile, everyone knows that when prices break above the previous high, it will continue to reach new highs The general answer to these two issues is confidence We often lose confidence in the moment we decide to invest 532 The psychological issue Why most people who trade based on patterns tend to trade early before the patterns are completed? Because, they are always motivated by the mentality "surely the model will happen, the wait will reduce profits." Top Top The high-risk sell region, but many sellers Low-risk sell area, but few sellers Finish pattern are completed 533 The psychological issue Why are most MA traders tend to trade when the price contact with the MA? Because, they are always motivated by the mentality "definitely price will cut through MA, waiting to reduce profits." 534 The psychological issue The common answer to these two questions is patience A recommendation of professional investors is "no opportunity, no trading" 535 The psychological issue In summary, to solve psychological issues: rules, confidence, and patience, what should investors do? Practice! Start by researching and creating a trading model; After that, retest the effectiveness of the model with historical data or Demo transactions Once you have a reliable trading model, always be patient with the rules set by the model 536 The process of writing technical analysis report Start the analysis with a long time phase, then analyze it carefully with the trading time phase Identify and draw a major market trend line Note the interaction between the trend line and the price line Look for Patterns to analyze trend reversals or continuity Use the moving average (MA) to confirm the main trend 537 The process of writing technical analysis report Using Money Flow Index to confirm the strength of trend Using MACD, RSI, Stochastic … to early warning the reversal Note the divergence of this indicator group Make final judgments about future price trends And finally, we can predict the future price level with the Resistance & Support, Fibonacci, Elliot Wave or Patterns tools 538