𝐭𝐲𝐩𝐞𝐬 ⭝

• 🌽 Commodities
  • duration: short to medium-term
  • e.g. cude oil, gold, natural gas, soybeans, corn, sugar, silver
  • liquidity: low
  • max leverage: 1:10
  • trading hours: exchange hours (e.g. mo-fr during day)
  • volatility: high
• 🏙️ Real Estate
  • barf
• 💱 Forex (Foreign Exchange)
  • duration: short to long-term
  • e.g. EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD
  • liquidity: high
  • max leverage: 1:30
  • trading hours: 24/5
  • volatility: high
• 📈 Stocks / Equity
  • duration: long-term
  • e.g. 'the magnificent seven': Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, Tesla
  • liquidity: medium
  • max leverage: 1:5
  • trading hours: fixed hours (e.g. mo-fr during day)
  • volatility: moderate
• 🪙 Crypto
  • e.g. bitcoin, ethereum, tether, bnb, usd coin, xrp, cardano, dogecoin
  • liquidity: high (high risk!)
  • max leverage: 1:100
  • trading hours: 24/7
  • volatility: high

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𝐠𝐥𝐨𝐬𝐬𝐚𝐫𝐲 ⭝

• Cost-Average-Effect
• 'Letting the Winners Run' = keeping a profitable trade open until the trend ends
• 'Ten Bagger' = a stock in which you make 10x your original investment
• (Dollar) Cost Averaging (Durchschnittspreismethode) = the system of regularly buying a fixed dollar amount of a specific investment, regardless of the price (see also: Full/Half Position)
• (Government) Bond (Anleihe)
• (Investment) Portfolio ((Wertpapier-)Bestand) = collection of all investments you have
• accumulating vs distributing
  • accumulating (thesaurierend) profit gets re-invested
  • distributing (ausschüttend) profit is given out to you
• Annuity Payment (Rentenrate/Rentenzahlung) = additional contributions to an investment during its life (e.g. every month/year)
• Asset Class (Anlageklasse) = e.g. stocks, real estate, bonds, ...
• Balance sheet (Bilanz(aufstellung)) = document that lists a company's assets (what is owns) and liabilities (what it owes). important values: cash (equivalents), long-term debt, total shares outstanding (= amount of shares available for purchase right now)
• Bearish vs Bullish
  • Bearish: (baissierend) belief that prices will fall
  • Bullish: (haussierend) belief that prices will rise
• Beta = volatility of an asset in relation to the overall market (above 1.0: higher volatility than usual, below 1.0: lower volatility than usual)
• Broker (Börsenmakler) = person/entity that arranges the buying and selling of stocks. legally necessary.
• Brokerage Account (Brokerkonto/Courtagekonto/Maklerkonto) = like a bank account of investing, into which you can deposit money (for a fee)
• Candlestick chart = a type of chart that shows how stock prices change. (see section below)
• Cash Flow (Geldfluss/Finanzstrom/Zahlungsfluss/Jahresgewinn)
  • negative cash flow: more money went out than came in
  • positive cash flow: more money came in than went out (does not necessarily mean profit!)
• Certificate of Deposit (CD) (Einlagen-/Depositenzertifikat) = a low-risk investment with a bank
• Compounding = when the money you earned starts earning money
• Day Trading vs Investing
  • Day Trading: (Tageshandel) buying and selling every few minutes/hours, high-risk (volatile)
  • Investing: over years/decades, lower risk ‍‍ ‍ ‍‍ ‍
• Diversifying = spreading the risk across a number of investments by having a range of companies and sectors (e.g. market cap, sector, country, asset class)
• Dividends (Ausschüttungen) = regular (monthly/quarterly/yearly) payments from the company to its shareholders. not every company pays dividends. a company that pays dividends is usually secure (low-risk) but does not expect huge growth anymore since it already is big
• Enterprise Value (Unternehmenswert) = Market Cap minus Cash Plus Debt. If the enterprise value is less than the market cap the business has more cash than debt.
• FDIC = Federal Deposit Insurance Corporation = a US agency that protects bank depositors against loss
• Friction = money you need for investing into stocks that is not used to buy shares (e.g. fees)
• Full Position = The most you are willing to invest into a single company (see also: (Dollar) Cost Averaging)
• Fund (Fonds)
  • Hedge Fund (Hedge-Fond/Risikofond) = a limited partnership of private investors whose money is pooled and managed by professional fund managers
  • Index Funds = pooled investments (e.g. mutual fund or ETF) designed to follow certain preset rules that passively aim to replicate the returns of market indexes
    • ETF = exchange-traded fund (Börsengehandelter Fond) = a bundle of assets (e.g. stocks) that can be bought and sold like one stock. automatically managed
    • Mutual Fund (Anlagefonds/Investitionsfonds) = an investment fund that pools money from many investors to purchase securities. (Their ticker symbols end with an X, e.g. UUPIX)
      • Equity Fund (Aktienfond)
• Hedging (Gegendeckung) = a method that aims to limit losses by purchasing investments that offer an opposite position to an existing investment in your portfolio
• Indexes (Aktienindizes)
  • ATX (Austria) ➚
  • DAX (Germany)
  • Dow Jones Industrial Average
  • EU50 (Euro Area)
  • FTSE 100 (UK)
  • MSCI World
  • Nikkei 250 (Japan)
  • S&P 500 (US) = 500 stocks that represent the market ("beating the market" = when your stock portfolio goes up by ore % than the S&P)
• Inside Ownership = How many stocks of a company are owned by its CEOs/officers/board members, in %. A good percentage is 5+%.
• IPO = Initial Public Offering (Börsengang) = when a company "goes public", aka sells shares for the first time
• Large-cap = a company with a large market cap
• Leverage (Fremdkapital) = borrowed money to enter larger positions than you can afford yourself to increase potential gains (high-risk!)
• Liquidity = the ease at which an asset can be bought or sold in a market
• Long/Short Position
  • Long Position / 'going long' (Hausse-Position) = buying stocks that you believe will go up in value
  • Short Position / 'going short' (Baissier-Position) = borrowing shares from a broker and selling them in the open market. Once the shares’ value falls to a certain level, you’ll buy the shares back and return them to the broker. (see: Short Selling)
• Margins = borrowed money from brokers (you have to pay interest, and it all back eventually)
• Market cap (Börsenwert/Marktkapitalisierung) = Market capitalization = the number of shares of a company * share price = the 'size' of the company = a good indicator of a company's value
• Opening/Closing Price (Eröffnungskurs & (Börsen-)Schlusskurs) = the price of the stock the moment the market opens/closes on a day
• Order Types (note: fancier orders have higher broker's commissions)
  • Limit Orders = buy/sell at a predetermined price (maximum prepared to pay or minimum prepared to receive)
  • Market Orders (Bestensauftrag) = an order that is guaranteed to be filled at the best price (even if not the price you wanted). good for long-term investments for which short-time price differences are of no matter
  • Stop Limit Orders (limitierter Kaufvertrag) = like a stop market order, but with a minimum asking price
  • Stop Market Orders = triggers a sell once your predetermined price is reached (note: price is still not guaranteed) good for when you're going on long vacations, etc.
• OTC = over-the-counter = a trade that is not made on a formal exchange, but between two parties, often handled via a dealer network
• Overnight/Weekend Rollover Fees = cost of holding a position overnight / over the weekend, depending on the broker and asset (typically only apply to leveraged trades and short (sell) positions)
• Penny Stocks (Kleinaktien) = stocks with a low market price (lower than 5$ or 10$) by small, less-established, high-risk companies
• Pink Pages = an OTC trading service where companies' stocks are quotes with less stringent requirements than a major exchange like the NYSE
• pip (percentage in point) = 0.0001 difference between the buy and sell price of an asset (e.g. 1.14988 vs 1.14998)
• Principal (Nominale?) = starting amount for an investment
• REIT = Real Estate Investment Trusts (börsengehandelte Immobilien-Aktiengesellschaft) = ???
• Return on Equity (ROE) ((Eigen)Kapitalrendite/-rentabilität) = Net Income ÷ Shareholder Equity = how effective a company is at using shareholder capital to generate profits (good: 15-20%)
• Return Rate (Ertragsrate/Gewinnrate/Rendite) = a percentage on how much return you get on your investment
• Short Selling (Blankoverkauf) = betting on a company to lose value (instead of gaining) by borrowing stocks and buying them when the price drops. Potential for infinite loss (because there is no limit to how high the value of a company can rise), so extremely high-risk!
• Slippage (Kursabweichung/Schwund) = difference between the expected price of a trade and the actual price at which it is executed (can be good or bad for you)
• Spread (Marge/Spanne) = the difference between the buy and sell price of an asset (how brokers make money from trades)
• Stock Buy Backs
• Stock Exchanges
  • Nasdaq = National Association of Securities Dealers Automated Quotations (in NYC)
  • NYSE = New York Stock Exchange
• Stock Screener
• Stock Splits (Aktiensplit/Aktienaufteilung) = e.g. 2-for-1 split: 500 $20 shares become 1000 $10 shares. It does not affect the value of the company, but increases liquidity.
  • Reverse Stock Split decreases liquidity, makes the company more reputable
• Stock (Aktie) = piece of ownership of a company. owners of stocks might get dividends and can make decisions for the company (depending on how much stock they have)
• Stop-loss Order = capping losses at a set level
• Technical Analysis vs Fundamental Analysis
  • Fundamental Analysis: evaluating securities by trying to measure their intrinsic value, using financial statements and economic indicators (e.g. a company's balance sheet, a country's GDP, ...)
  • Technical Analysis: using statistical trends of price and volume
• Ticker Symbol = the abbreviation for a company on the stock market, e.g. MSFT for Microsoft
• to open/close () = ???
• Types of Businesses
  • (Limited) (Liability) Company _(Kapitalgesellschaft)
    • Private Limited Company (Ltd) (GmbH Gesellschaft mit beschränkter Haftung) = shares/stocks are not sold on the stock exchange
    • Public Limited Company (PLC) (AG Aktiengesellschaft) = shares/stocks are sold on the stock exchange
  • Partnership (Personengesellschaften) = multiple people own the business, at least one full partner (unlimited liability), maybe some limited partners (limited liability)
    • Limited Partnership (KG Kommanditgesellschaft)
    • Unlimited Partnership (OG Offene Gesellschaft)
  • Sole Trader/Proprieter (Einzelunternehmen/Alleininhaber) = a single person owns the business with unlimited liability
• Volatility (Schwankungsfreudigkeit/Schwankungsanfälligkeit/Kursausschlag) = how much and how quickly prices move over a given span of time. increased volatility is often a sign of fear and uncertainty.
• YOY = year over year (im Jahresvergleich) = compared to last year
  • e.g. YOY sales growth = how much the sales have grown compared to last year

also

• Blue-Chip Stock = a common stock of a nationally known company whose value and dividends are reliable; typically have high price and low yield
• Bubble = a speculative scheme that depends on unstable factors that the planner cannot control
• Control Stock = shares owned by shareholders who have a controlling interest
• Holding = something owned
• Holding Company = a corporation with controlling shares in other businesses
• Yield = the income or profit arising from a transaction

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𝐜𝐚𝐧𝐝𝐥𝐞𝐬𝐭𝐢𝐜𝐤𝐬 ⭝

A candlestick chart shows changes of stock prices. A candlestick consists of:

• (Real) Body (the thick part)
  • green candles are bullish (price went up), so their opening price is at the bottom. red candles are bearish (price went down), so their opening price at the top.
  • top and bottom of the body show the opening/closing price of that stock on that day/period. => The length of the body shows the difference between the opening and closing price of that stock on that day/period.
    • long body: price of the stock changed a lot during the day/period
    • short body: market is undecided
• Shadows/Wicks/Tails (thin parts at top and bottom)
  • top and bottom show the highest/lowest price point on that day/period. e.g. If the upper shadow on a down candle is short, it indicates that the open on that day was near the day's high.

‍ ‍‍ ‍ ‍ ‍ ‍ ‍⌕ 𝐩𝐚𝐭𝐭𝐞𝐫𝐧𝐬:‍ ‍‍ ‍ ‍ ‍ ‍ ‍📈bullish 📉bearish 📊neutral ➡️continuation ↩️reversal

‍ ‍‍ ‍ ‍ ‍ ‍ ‍ ‍‍ ‍ ‍‍ ‍ ✞

• 📈↩️ Hammer
• 📈↩️ Inverted Hammer
• 📉↩️ Hanging Man
• 📊 Doji
  • Classic Doji
  • Dragonfly Doji
  • Gravestone Doji
• Marubozu
• Pin

‍ ‍‍ ‍ ‍ ‍ ‍ ‍ ‍‍ ‍ ‍‍ ‍ ✞✞

• 📈↩️ Bullish Engulfing
• 📈↩️ Tweezer Bottom
• 📉↩️ Bearish Engulfing
• 📉↩️ Tweezer Top
• Dark Cloud
• Harami
• Piercing Line

‍ ‍‍ ‍ ‍ ‍ ‍ ‍ ‍‍ ‍ ‍‍ ‍ ✞✞✞

• 📈↩️ Morning Star
• 📉↩️ Evening Star
• Three Black Crows
• White Soldiers

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𝐧𝐨𝐭𝐞𝐬 ⭝

• Time in the market beats timing the market!
• Ideal withdrawal rate from a trading account (to cash out some profit): 10% of annualised return
• Max 1% of your investment for one trade ??
• Never compare a month's sales to the previous month, instead compare to the same month in the previous year.
• Realistic daily gain: 1% of account size
• The average annual US stock market return is 7%-10%
• The difference between 1.2 and 1.5 pips can make a huge difference
• The price of a single share doesn't say much about a company. You also have to factor in how many shares there are. (see: market cap)
• When deciding which companies to invest in, think about...
  • Can it be wiped out by a bigger company, e.g. Amazon?
  • CEOs and Visionary Leaders
  • Company Culture (e.g. how they treat customers and employees) (glassdoor.com's best places to work)
  • Competitive Advantages (e.g. well-known brand name, new technologies, patents, ...)
  • What do you and your friends in your personal/professional lives like, support, use, know about, ...?
  • Will it increase in value in the next 5-10 years?
• When to sell?
  • When something that made you buy has changed (e.g. CEO)
  • When you no longer believe in (the future of) this company
  • When you see you've bought something for the wrong reasons.