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  1.  https://vfxalert.com/p/all-about-trading-and-investing
  2.  An investment is an investment of cash to generate income or save capital. There is a distinction between financial investments - the purchase of securities, and real investments-investments in industry, construction, and so on.
  3.  Investments are long-term investments of capital in economic sectors at home and abroad.
  4.  Trader and Investor: Similarities and differences
  5.  People who invest are called investors. Anyone can become a private investor — a mid-level manager, a financier, a doctor, a teacher, a student, or a pensioner. This does not require special education. For them, this is a way to earn extra income. Traders are the opposite of investors; they constantly conduct short-term transactions, this type of activity is their main source of income.
  6.  Despite the fact that investments are aimed at making a profit for the investor, they are not a guaranteed way to get it. Different investment methods provide different guarantees of income, but in all cases, there is a risk that the investor will receive a loss instead of profit.
  7.  Types of investments
  8.  There are many ways to invest money in exchange. Some do not require deep knowledge of the financial markets, while others are handled only by professionals.
  9.  The most common items for investment on the stock exchange include:
  10.  - Investment in stocks.
  11.  - Investments in government or corporate bonds.
  12.  - Investments in precious metals (gold, silver, platinum).
  13.  - Investments in exchange-traded funds
  14.  - Purchase of currency.
  15.  - Investments in derivative financial instruments (futures, options, swaps, etc.)
  16.  Terms of the investment
  17.  For convenience, private investments are divided into groups depending on the time frame. There are three of them in total:
  18.  - short-term (up to a year);
  19.  - medium-term (from 1 year to 3 years);
  20.  - long-term (from 3 years and longer).
  21.  Investment style
  22.  Nowadays, there are two main styles of investing. The first is passive investing. It is characterized by long-term investments. This style assumes that a person has invested money, for example, in company shares, and holds them for several years without selling them. As a rule, passive investments are made in large raw materials, technology, and financial companies — they have a lower risk of a sharp drop in quotations, and often such companies pay dividends.
  23.  The second style is aggressive investing. This implies that the investor invests in riskier instruments. For example, you can invest in shares of smaller companies rather than in locomotives of the industry — when the markets fluctuate, such securities grow or fall more strongly (that is, they have high volatility), but you can earn more money due to the same quality. This type of investment requires a deep understanding of the market and a willingness to lose the invested funds.
  24.  How to invest for an individual
  25.  An individual cannot trade on the exchange independently. Brokers do this, and they also act as intermediaries between the exchange and the investor. You need to open a brokerage account, after which the account holder has the opportunity to buy/sell securities.
  26.  Brokers also provide professional management services. Together with specialists, you choose an investment strategy, agree on the conditions under which shares to buy/sell, and then the manager makes situational decisions on your portfolio.
  27.  Profitability and risks
  28.  Investments have two key qualities that are directly interrelated. This is profitability and risk. The higher the risk associated with the investment, the higher the potential return can be. Conversely, relatively reliable investments never allow you to expect high earnings.
  29.  For example, a bank deposit, which can also be considered an investment, or the purchase of government bonds is a low-risk investment. But the return on such investments is also lower than the potential return on shares, which can be affected by a variety of reasons from market to corporate.
  30.  To illustrate the relationship between risk and return, we can give another example. Bonds with a 10-year maturity bring the buyer more income than, for example, three-year bonds. The following principle applies here: the higher the maturity of the bond, the more risk the investor takes on and, accordingly, the more he needs to be rewarded for this risk.
  31.  Investment portfolio and its diversification
  32.  The aggregate of all investments made by an investor is called an investment portfolio. An investment portfolio may consist of shares of a single company, but analysts and experienced investors recommend that you do not spend all your capital on one security. To reduce risks and increase the return on investment, the investment portfolio is diversified — that is, investments are divided between different securities.
  33.  Even developed economies and large companies inevitably face periods of recession and stagnation. To protect yourself from such situations, the investment portfolio includes not only stocks, but also bonds, deposits, and exchange-traded funds. Professional investors add contracts for the supply of commodities — futures-to their portfolio.
  34.  The riskiest, but at the same time, the most profitable part of the portfolio includes stocks. Exchange-traded funds are the golden mean associated with relatively low risk and high returns. The protective part of the portfolio — bonds and deposits that stabilize the portfolio in case of strong volatility, is the most reliable part of the portfolio.
  35.  In addition to diversification by assets, it is also important to distribute the portfolio by sectors or sectors of the economy. The importance of this principle can be clearly seen in a careful study of any economic crisis. In such periods, when some stocks fall, others rise. This creates a balance and allows you to minimize losses.
  36.  What are investments?
  37.  The concept of investment is not limited to private investments in securities or derivatives of financial instruments. In a broad sense, the term "investment" can be extended to any investment by an individual or company, whether it is money, tangible assets, or intangible assets.
  38.  Main investment classes:
  39.  -Real investments. These include, for example, the purchase of a ready-made business; acquisition of intangible assets such as patents, copyrights, trademarks, etc.; construction, reconstruction, and major repairs.
  40.  -Financial investments. These include the purchase of securities or derivatives of financial instruments.
  41.  - Speculative investments. In this case, the main feature of the investment is the rate of income due to changes in the asset price. The principle of "buy cheaper, sell more expensive" applies. The subject of speculative investments can be stocks, and in addition to the — currency, precious metals, bonds.
  42.  - Venture capital investments. This is what they call investing in young companies for a long time. Venture capital investments are associated with a high risk of completely losing investments, but they can also bring investors superprofits. An example of successful venture investment is the SoftBank fund's investment in the young Alibaba company in 2000. After Alibaba's IPO in 2014, SoftBank's stake grew from $20 million to $74 billion. An example of a failed venture investment is the bankruptcy of the Theranos medical project, which raised at least $500 million from venture investors before its collapse.
  43.  - Portfolio investments. These are investments not in one type of asset (for example, a share of a particular company), but in several at once, which are formed in the form of a portfolio of several securities.
  44.  - Intellectual investments. This is the name given to investing in an intelligent product. This may include training specialists, scientific developments, intellectual property objects, and the creative potential of a group of people.
  45.  Divestments.
  46.  The opposite of investment is divestments. This is how an asset reduction is called in economics. Divestments are the sale of a part of an existing business — companies do this if they want to focus on the main area of their business.
  47.  Divestments can also be committed for moral and ethical reasons. In recent years, environmental activists have been calling for divestitures of oil-related assets.
  48.  Sometimes a divestment is the result of antitrust policies. One of these cases occurred in 1984 when the US authorities ordered the telecommunications corporation AT&T to split and sell one of the divisions.
  49.  Notable Investors
  50.  Warren Buffett is an American businessman, one of the most successful investors in history, and one of the richest people in the world. He is known by the nicknames "Seer", "Wizard of Omaha", "Oracle of Omaha". Invests through his own investment company, Berkshire Hathaway. At the end of January 2021, his fortune was estimated at $86.4 billion.
  51.  Peter Thiel is a German-born American investor. Co-founder of the PayPal payment system, first external investor of Facebook, co-founder, and manager of the Founders Fund.
  52.  Yuri Milner is a Russian businessman and venture investor, co-founder of the DST Foundation. Through the DST fund, Milner invested in companies such as Facebook, Spotify, Airbnb, Groupon, Xiaomi, Twitter, Zynga, Alibaba, and WhatsApp. In 2020, Forbes estimated the state of Yuri Milner at $3.8 billion.
  53.  George Soros is an American trader and investor. Soros has a reputation as a daring financial speculator. He gained fame after 1992 when he took an active part in the collapse of the British pound.
  54.  Carl Icahn is known as one of the most successful activist investors. Icahn finds inefficient companies, buys up their shares, pushes through a reshuffle in the management, and then sells the securities that have risen in price. He bought large, often controlling stakes in companies from various sectors of the economy. Among the businessman's investments was Apple — Icahn bought 4.7 million securities of the corporation, after which he achieved a repurchase in the amount of $150 billion.
  55.  Cameron and Tyler Winklevoss are American investors known primarily for their legal battle with Mark Zuckerberg (the Winklevoss twins claimed that Zuckerberg used their idea to create Facebook) and as one of the first investors in bitcoin. Winklevoss became the first cryptocurrency billionaire.
  56.  Koos Becker is a South African businessman and CEO of Naspers. Under Becker's leadership, Naspers invested $34 million in a little-known Chinese startup called Tencent in 2001. As a result of the transaction, Naspers received a 46.5% stake in the unprofitable project at that time. Over time, Tencent has grown into a huge investment corporation. Tencent's main asset today is China's largest messenger service, WeChat.
  57.  Masayoshi Son is a Japanese businessman and founder of SoftBank. Created by SoftBank, Vision Fund Investments, which invests in new technologies, artificial intelligence, and robotics has become one of the largest investment funds in Silicon Valley in recent years.
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