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- Herausgeber: Books on Demand
- Kategorie: Fachliteratur
- Sprache: Englisch
In this guide, we would like to offer newcomers to the stock market a clear overview of the variety of stock market strategies. Our aim is to show the reader of this book which strategies are worth investing time and effort in and which can be safely ignored. We want our readers to know which strategies actually promise success on the stock market. When you start your stock market journey, your first step should be to pick up this book. Here you will find the guidance you need to make smart decisions and focus on the strategies that really matter. In our more than ten years of stock market experience, we have devoured numerous books, attended expensive seminars and invested countless hours in testing trading strategies. We have painfully discovered that the market is flooded with a flood of strategies, from the reputable to the completely dubious and overpriced. Only after reading many books, trying out strategies and attending seminars did we find out what really works and what does not.
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Seitenzahl: 76
Veröffentlichungsjahr: 2024
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Disclaimer
The information and strategies on the stock market and options trading contained in this book are for educational and informational purposes only. The author and publisher assume no responsibility for any loss or damage that may arise directly or indirectly from the use of the information contained in this book.
The contents of this book do not constitute an invitation to buy or sell financial instruments or to participate in stock exchange or options trading. Trading in options and other financial instruments involves risks and is not suitable for all investors.
The examples, figures and strategies are for illustrative purposes only and should not be interpreted as specific advice or recommendations. Past performance is not an indicator of future results and the strategies described in this book do not guarantee profits.
The author and publisher have made every effort to ensure that the information contained in this book is accurate and up-to-date at the time of publication. However, neither the author nor the publisher can be held liable for any errors, omissions or for any results obtained from the use of this information.
Every investment decision you make is your sole responsibility.
Table of contents
Introduction
How can you invest in the stock market in principle?
Buy & hold strategies
Long-term growth potential
Compound interest effect
Lower transaction costs
Emotional comfort
Tax benefits
Diversification
Resilience to market fluctuations
Simplicity
Actively managed funds
1. high costs:
2. market efficiency:
3. timing and selection:
4. excessive trading:
5. size of the fund:
6. regulatory and compliance costs:
7. performance tracking:
ETFs (Exchange Traded Funds)
What are ETFs?
Investing in ETFs via Buy & Hold
Cost-average effect (cost-average effect)
Swing trading
Key features of swing trading
Advantages of swing trading
Challenges
Day trading
0DTE options in day trading
Time expenditure and psychological burden
Trading in shares and futures
Key aspects for successful day trading
Options trading
High hit rate
Little time required
Consistent yields
Time decay as a strategic advantage
Which analysis methods can be used?
Fundamental analysis: The science of investing
Core aspects of fundamental analysis
Key figures for fundamental analysis
Application of fundamental analysis in trading
Balance sheet analysis: Not just for long-distance runners
Information age and fundamental analysis
Chart analysis: An insight without promises
Supports and resistances
Support
Resistance
Breakthroughs
Application
Pattern recognition and technical indicators
Indicators
Candle formations
Result:
Options trading
Why is options trading so interesting?
What is an option?
The underlying
Which underlying assets can be traded?
The term of an option
Call and put options
The option premium
What are option writer transactions?
Advantages of options
Options trading opportunities
Seasonal effects
Strategies that work in detail
Buy & Hold
Actively managed funds
ETFs
Individual shares
Swing trading
ETFs
Shares
Raw materials
Currencies
Options trading
Day trading
Day trading with 0DTE options
Summary of promising strategies
INTRODUCTION
Welcome to the world of the stock market, a complex and dynamic place characterized by both opportunities and challenges. The stock market is a kaleidoscope of different strategies, each with its own nuance and specific approach. The choice is vast: from long-term investing in equities, using ETFs for diversification, immersing yourself in fund management, trading commodities, to agile trading in options and futures.
You can choose to hold your securities for the long term, sticking with them through the ups and downs, or you can take a more dynamic approach, switching positions frequently. Day trading may be the ultimate thrill for some - a quick, intense exposure to the market.
You may be wondering who I am to guide you through this world. I have been studying the intricacies of the stock market for over a decade. I have invested considerable sums in further education and have personally tested a variety of strategies - with varying degrees of success. My experience - my "learnings" - measure in a considerable range.
What can you learn from these experiences? Simply put, not every strategy delivers what it promises. Some are nothing more than wishful thinking, while others are solid and tried and tested. But it all depends on the individual approach. Every investor has their own risk tolerance and personal goals.
In this guide, I will introduce you to various proven and lesser-known stock market strategies. Together we will discover what works and what should be viewed with skepticism. Regardless of whether you are a risk-taker or prefer safety, there are strategies that suit your personal investment style. Join us on this insightful journey to find the right strategy for you.
HOW CAN YOU INVEST IN THE STOCK MARKET IN PRINCIPLE?
Enter the wide world of the stock market - a place where a wealth of strategies and methods are vibrant and alive. It is comparable to a large supermarket in the financial sector, where instead of fruit and vegetables there are shares and funds to choose from. So, grab your metaphorical shopping cart and let's start the journey of discovery!
Buy & hold strategies
Welcome to the well-stocked section of the stock market. This is the area where long-term investments are made in proven companies, companies that you are familiar with and that come from your own economic area. Imagine sowing the seed for an apple tree and watching it grow vigorously and bear abundant fruit over time. Patience plays a central role here. It often pays to act prudently and give the development space and time.
The buy-and-hold strategy is a proven method on the stock market that is characterized by its simplicity and effectiveness. It is based on holding securities for the long term instead of reacting to short-term price fluctuations. In the following, we will explain the reasons and advantages of this strategy in detail.
Long-term growth potential
The central idea behind buy-and-hold is that markets tend to increase in value over the long term despite short-term volatility. Historical data shows that stock markets tend to rise over longer periods of time. By holding on to investments, investors can benefit from this long-term growth.
Compound interest effect
Another advantage of the buy-and-hold strategy is the compound interest effect. Reinvested dividends and the increase in the value of the investments lead to exponential growth of the invested capital over the years. This effect increases the longer the investment is held.
Lower transaction costs
Compared to active trading strategies, which involve frequent buying and selling, the buy-and-hold strategy incurs significantly lower transaction costs. Each transaction can incur fees, which can quickly add up with active strategies and reduce returns.
Emotional comfort
Buy-and-hold relieves investors of the stress (but also the fun) of trying to time the market. The need to constantly monitor market developments and react to price fluctuations is eliminated. This can lead to a more emotionally stable investment experience.
Tax benefits
In many countries, long-term capital gains are tax-privileged compared to short-term gains. The long-term holding of securities can therefore bring tax advantages, which increases the investor's net return.
Diversification
Buy-and-hold investors often tend to invest in broadly diversified portfolios, such as index funds or ETFs that track an entire market or sector. This diversification can reduce risk, as the fate of a single investment does not determine the success of the entire portfolio.
At this point, it is important to emphasize that active trading strategies can also be applied in a diversified manner. The combination of different strategies and the consideration of different time frames in particular contribute to excellent diversification.
Resilience to market fluctuations
By holding on to their investments even in volatile market phases, buy-and-hold investors avoid the mistake of selling in panic when prices fall and overpaying when prices rise. Instead, they benefit from the recovery of the markets after downturns.
Simplicity
The buy-and-hold strategy is easy to understand and implement, which makes it particularly suitable for investors who do not have extensive market knowledge or who do not have the time or inclination to follow the market closely.
In summary, the buy-and-hold strategy is an attractive investment strategy due to its potential for long-term growth, its cost efficiency, its tax advantages and its simplicity. It is particularly well suited to investors who are looking for stable portfolio growth without the uncertainty and stress of day-to-day trading.
Actively managed funds
