The market is a core part of the modern financial system, and it is essential for investors to understand and master some basic terminology. In this article, we'll break down some of the most common terms to help you better understand this investment landscape full of opportunities and challenges.
1. Basic terms.
*: A certificate of ownership issued by a company that represents the ownership of the company by shareholders. Purchase** is to become a shareholder of the company and enjoy the corresponding rights.
Share Price: The market of the market, usually in per share. The fluctuation of the stock price reflects the market's evaluation and expectations of the company.
Market capitalization: refers to the total value of the company's outstanding shares, which is equal to the stock price multiplied by the total share capital. Market capitalization is an important indicator of a company's size.
Disk: refers to the real-time transaction, including price, selling price, trading volume and other information.
2. Technical Analysis Terminology.
*Chart: A commonly used technical analysis tool that represents the daily open, high, high, and low prices in the form of charts.
*: The price of ** in a certain period of time is averaged, and the resulting line is called **. It is an important reference for judging the trend of stock prices.
Support and resistance levels: The position where the stock price fluctuates up and down in a certain range is called a support or resistance level, which is the result of the power game between buyers and sellers.
Wave Theory: A theory of stock price movements, which holds that the rise and fall of stock prices follow a certain wave pattern.
3. Fundamental analysis terminology.
Financial data: including operating income, net profit, earnings per share, etc., reflecting the company's profitability.
Industry prospects: refers to the future development trend of the company's industry, which affects the company's growth space.
Corporate governance: refers to the company's organizational structure, management quality, board structure, etc., which affect the company's operating efficiency and risk control.
Valuation analysis: Evaluate the intrinsic value of the company through the analysis of the company's financial data, industry prospects, and other factors.
4. Trading strategies and skills.
Stop loss and take profit: Set a ** limit in the transaction, and buy and sell operations when the stock price falls below or ** to this limit, so as to control the risk and lock in the profit.
*Management: Investors allocate the proportion of their positions reasonably according to their own risk tolerance and investment objectives to reduce the overall risk.
Portfolios: Investors diversify their funds across multiple assets** or other assets to reduce the risk of a single asset.
Follow the banker: follow the trend of the main capital to buy and sell, in order to obtain higher returns.
By understanding these basic terms, you'll be able to better understand how the market works and make more informed investment decisions. Please note that ** is risky and should be invested with caution. In practice, please formulate a reasonable investment strategy and control risks based on your own situation.