STOP WORK GET RICH

EASY !… : JUST LEARN HOW TO DEAL WITH 3 BASIC TYPES OF INVESTMENT TRANSACTIONS !…(BUT REMEMBER THAT ONLY A FOOL TESTS THE DEPTH OF THE WATER WITH BOTH FEET !…)

AN INVESTOR CAN MAKE A NUMBER OF BASIC TYPES OF SECURITY TRANSACTIONS. EACH TYPE IS AVAILABLE TO THOSE WHO MEET CERTAIN REQUIREMENTS ESTABLISHED BY VARIOUS GOVERNMENT AGENCIES AS WELL AS BY BROKERAGE FIRMS.

« GOING LONG » AN INVESTMENT MEANS BUYING IT IN THE EXPECTATION OF A FUTURE PRICE RISE.

« GOING SHORT » IS THE OPPOSITE : SELLING SOMETHING YOU DO NOT OWN IN THE HOPE OF BUYING IT BACK MORE CHEAPLY IN THE FUTURE.

THE THREE MOST COMMON TYPES OF TRANSACTION ARE :

  1. THE LONG PURCHASE
  2. MARGIN TRADING
  3. SHORT SELLING
  • LONG PURCHASE.

IS A TRANSACTION IN WHICH INVESTORS BUY SECURITIES IN THE HOPE THAT THEY WILL INCREASE IN VALUE AND CAN BE SOLD AT A LATER DATE FOR PROFIT.

WHEN YOU GO LONG, YOUR LOSS IS LIMITED TO WHAT YOU PAID FOR THE STOCK.

  • MARGIN TRADING.

IS THE USE OF BORROWED FUNDS TO PURCHASE SECURITIES. IT MAGNIFIES RETURNS BY REDUCING THE AMOUNT OF CAPITAL THAT THE INVESTOR MUST PUT UP.

  • SHORT SELLING.

IS THE SALE OF BORROWED SECURITIES, THEIR EVENTUAL REPURCHASE BY THE SHORT-SELLER, AND THEIR RETURN TO THE HOLDER. IT ALSO MEANS MAKING MONEY WHEN PRICES FALL.

WHEN YOU GO SHORT, YOUR LOSSES ARE POTENTIALLY WITHOUT LIMIT AS THE BUYBACK PRICE MAY RISE EVER HIGHER ABOVE THE PRICE AT WHICH YOU SOLD.

  • OUR ADVICE : « NO HORSE CAN GO AS FAST AS THE MONEY YOU PUT ON IT » !

 

PHLDUCX