MBA How To Trade Stocks 如何股票交易

HOW TO TRADE STOCKSMichael Hansen CEO, Lion Fund Capital Management LLC

LET S START WITH A FEW QUESTIONS

If I offered you……$1.00 for $0.50, would you take the offer?

For

What if I offered you……$1.00 for $1.20?

For

WHAT ARE STOCKS?

What is a stock? Simply put, a share of stock is partial ownership in a

company (also known as equity) If I own one share of Apple, I own (a small) part of the company As an owner, I am entitled to the future earnings of the company If I own 200 shares, and there are 1000 shares outstanding, I own 20% of the company

Stock market The stock market, or equity market, is the aggregation of

buyers and sellers of stocks Allows companies to raise additional financial capital for expansion by selling shares of ownership of the company in the public market Total world stock market valued at approximately $40 Trillion Total world bond market is valued at approximately $82 Trillion Total world derivatives market is valued at approximately $800 Trillion, or 11x the size of the world economy

Types of stocks Mega Cap: exceeding a market cap of $100 Billion Large Cap: exceeding a market cap of $10 Billion Mid Cap: market cap between $2 and $10 Billion Small Cap: market cap between $300 Million and $2

Billion Micro Cap: market cap between $50 Million and $300 MIllion Nano Cap: market cap under $50 Million Each category has unique opportunities and risks

INVESTMENT PRINCIPALS

Why is Warren Buffett so good?

He listened to Ben Graham

Graham is considered to be the father of modern

investing Literally wrote the book on investing, The Intelligent Investor Graduated from Columbia University, taught at Columbia Business school 2 main points: Mr. Market Margin of Safety

Mr. Market A good friend of yours who will buy and sell stocks from/to

you every day Has human behavioral manic-depressive characteristics: Is emotional, euphoric and moody Is often irrational Offers that transaction are strictly at your option Is there to serve you, not guide you A voting machine in the short run, while a weighing machine in the long run Will offer you the chance to buy low, sell high Is frequently efficient, but not allways

Margin of safetyI need to build a bridge that will carry a truck that weighs 20 tons. How much weight should the bridge be able to carry? Graham advocated for buying securities at a margin of safety; i.e. buying a dollar for $0.50 Serves several important purposes Helps limit your downside while increasing your upside According to Graham, you shouldn t pay more than 2/3 the fair value of a security