
This is my first time investing in stocks. Basics
Description
Book Introduction
Basic knowledge is thorough, All the latest systems and issues are reflected! The best-selling introduction to stock investing, revised 2022 edition! "I'm New to Stock Investing: Basics" is the 2022 revised edition of "I'm New to Stock Investing," a long-time bestseller for beginners in stock investing. It reflects the latest stock trading systems, latest issues, and the most recent data. This introductory book for beginners in the stock market, starting from the very basics, not only provides easy-to-understand stock investment techniques, but also thoroughly introduces the basic knowledge step by step so that anyone can make their own investment decisions like the book's main character, Il-kwang, thereby solidifying their investment knowledge. In particular, we will teach you how to properly use Kiwoom Securities HTS 'Youngwoongmun 4', which boasts the largest number of domestic subscribers. From learning how to trade stocks to creating your own investment screen, we provide complete know-how to transform the seemingly complex HTS into a stock investment tool that fits your needs. |
- You can preview some of the book's contents.
Preview
index
Attached to the revised edition
preface
How to get started with stock investing?
Chapter 1: Understanding the Basics
Mr. Ilgwang's Grow Up | Let's dive in, an introduction to stock investing.
01.
How much do you know about stocks? - Knowledge before learning how to make money
Is there a difference between securities and stocks? / Honestly, what are stocks? / Can I trade any company's stocks? / What are paid-in capital increases and bonus capital increases?
Stock Plus Knowledge | When did stock companies begin?
02.
How are stocks classified? - Types of Stocks
How many different types of stock are there? / If I become a shareholder, can I participate in the company's management?
03.
Where and How Do I Trade Stocks? - Stock Market, Composite Stock Price Index, and Stock Trading Structure
Where is the stock market? / Why should I look at the composite stock price index? / How are stocks traded? / Are market managers involved in stock market trading?
04.
Is it okay for me to invest directly? - Direct investment, indirect investment
Should I invest directly or indirectly? / Why invest directly?
Stock Plus Knowledge | Funds: A Representative Indirect Investment Product
Mr. Ilkwang's Level Up
Investing Principles | Your Approach to Investing Just Starting Out
Chapter 2: Preparing to Buy
Mr. Sunlight's Grow Up | How Dangerous Are You?
01.
How risky is your investment style? - Understanding your investment style and choosing financial products
Checking your investment propensity is essential for self-diagnosis. Financial products vary depending on your investment risk level.
02.
Which brokerage is best? - Choosing a brokerage and opening your first stock account.
Proper common sense about brokerage firms / The lure of commissions / Four ways to trade stocks / How to open an account?
03.
How to Invest in Stocks from Home - Home Trading System HTS
Let's download HTS / Let's take a look at the stock price chart.
04. I want to utilize HTS to its full potential! - HTS optimization, account management
Create a screen that suits you / Account management is very important /
Stock Plus Knowledge | Explore HTS in 30 Minutes a Day
05.
Different orders every hour? - Stock market time divisions, trading principles, and the single-price trading system.
What time does the stock market open? / There are rules to follow when trading. / Use the single-price trading system.
06.
How to place a stock order - HTS
There are some terms that are required for ordering.
Stock Plus Knowledge | Investing on Mobile Devices
Stock Plus Knowledge | Select, Buy, and Sell Stocks on Your Mobile Device
07.
Are there different ways to order? - Types of Ordering Methods
Let's take a look at the different types of ordering methods.
08.
Buy and sell stocks in installments? - Installment purchase, installment sale
Split purchase and split sale
09.
Selling receivables is a shortcut to ruin! - Selling receivables, selling on margin
Risky Stocks / Account Balances: Why Do They Fluctuate So Much?
Mr. Ilkwang's Level Up
Investing Principles | 10 Things to Keep in Mind Before You Start Trading
Chapter 3: Understanding the Market
Mr. Ilgwang's Grow Up | Turn your back on the computer and look at the market.
01.
How do you analyze the market? - Top-down analysis, bottom-up analysis
Fundamental Analysis
02.
Do Stock Prices Rise When the Economy Grows? - Economic Growth Rate and Stock Prices
How to Determine Economic Growth by Looking at GDP
03.
Do you see stock prices when you look at economic indicators? - Economic indicators and stock prices
The composite economic index moves in tandem with stock prices. Surveys are also indicators.
04.
If you know the business cycle, you can see the stock price? - Business cycle and stock price
Investor strategies vary depending on the economic situation.
05.
Bank Deposits vs. Stock Investments: Which Should You Choose? - Interest Rates and Stock Prices
Interest rate is the premium received in exchange for giving up liquidity / post-report interest rate of stock price fluctuations
06.
Do Stock Prices Rise When Exports Rise? - Trade Balance and Stock Prices
Trade balance and stock prices
07.
They say you should buy stocks when the exchange rate falls? - Exchange rates and stock prices
What is the relationship between exchange rates and trade? / What is the relationship between exchange rates and stock prices?
Stock Plus Knowledge | What Affects Exchange Rates?
08.
What is the relationship between prices and stock prices? - Prices and stock prices
Factors affecting demand-pull inflation / Factors affecting cost-push inflation / Price index to measure inflation
09.
How do stock prices move when money supply increases? - Money Supply and Stock Prices
The impact of currency fluctuations on the economy / The impact of currency fluctuations on stock prices
10.
What is the relationship between raw material prices and stock prices? - Raw material prices and stock prices
Factors affecting raw material prices
Mr. Ilkwang's Level Up
Investing Principles | 10 Must-See Economic News Stories
Chapter 4: Selecting Stocks
Mr. Sunlight's Grow Up | You're Already Judging Everything
01.
What Exactly Is Value Investing? - Value Investing: Finding Undervalued Stocks
True value investing seeks long-term compound returns.
02.
Which company should I choose? - Company capabilities, core products, and financial statements
Understand the company's capabilities / Check the company's main products / The company's financial statements are essential!
03.
How do I view the statement of comprehensive income? - Statement of Comprehensive Income
Be sure to check your operating profit
04.
How do you view the financial statements? - Financial Statements
Look at the size of your current assets. Focus on depreciation for non-current assets. Be sure to check the size of your current liabilities. Check for capital increases. Look into the possibility of a capital increase through capital surplus.
05.
How do I view the cash flow statement? - Cash Flow Statement
Cash flow from business activities
06.
You select stocks using financial ratios? - Financial ratios
Liquidity ratio / stability ratio / profitability ratio / activity ratio / growth ratio
07.
How do I find stocks with good management performance? - Return on Equity (ROE)
The pitfalls of ROE
08.
How do I find stocks with high earnings value? - Price-to-Earnings Ratio (PER)
There are pitfalls to PER as well / Factors that affect PER / Let's predict stock prices using PER.
09.
How do I find stocks with high cash flow? - EV/EBITDA
What do EV and EBITDA mean? / Are there pitfalls to EV and EBITDA?
10.
How do I find stocks with high asset value? - Price-to-book ratio (PBR)
Factors Affecting PBR / Investment Strategies Using PBR
11.
How do I find stocks with high sales value? - Price-to-Sales Ratio (PSR)
Factors Affecting PSR / Investment Strategies Using PSR
12.
Wouldn't it be easier to manage your stocks? - Managing stocks with HTS
Mr. Ilkwang's Level Up
Investing Principles | 10 Rules for Picking Undervalued Stocks
Chapter 5: Analyzing Charts
Mr. Ilkwang's Grow Up | Stocks are Time Travel
01.
Why Learn Charts? - Technical Analysis for Predicting Stock Prices
Can charts predict the market? / The debate over technical analysis / Why is technical analysis useful?
02.
What is a candlestick chart? - candlestick chart, types of candlestick charts, candlestick chart structure
The meaning of positive and negative candles
03.
Can you tell the buying trend from the candlestick chart? - Patterns on candlestick charts that signal buying trend.
A candlestick pattern that signals a stock price rise / A candlestick pattern that signals a stock price fall / A candlestick pattern where selling and buying forces are balanced
04.
How to Use Trendlines - Support and Resistance Lines, Trendlines
Let's develop a trading strategy using trend lines.
05.
Can you tell stock prices from moving averages? - Moving Averages
What is a moving average? / Let's develop a trading strategy using moving averages.
06.
How to Use Moving Averages - Stock Price Analysis Using Moving Averages
Let's analyze stock prices using moving averages.
07.
How do I know when to buy and sell? - Using Moving Averages to Identify Buying and Selling Points
Let's use moving averages to identify trading points.
08.
Finding trading points through pattern analysis? - Reversal patterns, continuation patterns
Reversal pattern that changes the trend / continuation pattern that continues the trend
09.
How much is that stock moving? - Analyzing power by volume, the reciprocal curve
Predict stock prices based on volume movements / Develop trading strategies using the reciprocal curve.
10.
Who's Buying That Stock? - Analyzing Investment Value Through Transaction Subjects
Analyze value as a trading entity
11.
How do I apply auxiliary indicators to trading? - Using auxiliary indicators
Trend analysis indicator MACD / Momentum analysis indicator / Volatility indicator / Market strength analysis indicator
12.
Can Wave Theory Predict Investment Timing? - Elliott Wave Theory
The rise and fall of waves
13.
Can Dow Theory Predict Investment Timing? - Dow Theory
Six Phases of the Market
Mr. Ilkwang's Level Up
Investing Principles | 10 Rules for Deciding When to Buy Stocks
Chapter 6: Catching Up with the Masters
Grow Up by Ilkwang | Do you have the confidence to become a true expert?
01.
How do I invest in dividends and long-term investments? - Dividend Investing, Long-Term Investing
Stock prices and dividend yields move in opposite directions. How can I make good long-term investments?
02.
What is the relationship between derivatives and stock prices? - The relationship between derivatives and stock prices
What are derivatives? / How are they different from futures contracts?
03.
What are stock index futures?
How to Create Stock Index Futures / Futures Features
04. How are KOSPI 200 Index Futures Traded? - KOSPI 200 Index Futures Trading
Trading of KOSPI 200 index futures
05.
Learn about stock index futures and program trading! - Stock Index Futures and Program Trading
Understanding Arbitrage / Utilizing Program Trading / Program Trading Regulations
06.
What are Options? - Options Trading, Call Options, Put Options
Options trading: buying and selling rights / Right to buy, call options / Right to sell, put options / Differentiating premiums, intrinsic value and time value / Let's look at the types of options.
07.
How are options traded? - How to trade options
How to trade options
08. What is an ELW? - Equity-Linked Warrant Securities (ELW)
ELW Features / Things to Consider When Choosing ELW Stocks
09. What is an ETF? - Listed Fund Index ETF
Let's take a look at the characteristics of ETFs, the advantages and disadvantages of ETFs, and the types of ETFs.
Mr. Ilkwang's Level Up
Investing Principles | 10 Principles for Deciding When to Sell Stocks
Search
preface
How to get started with stock investing?
Chapter 1: Understanding the Basics
Mr. Ilgwang's Grow Up | Let's dive in, an introduction to stock investing.
01.
How much do you know about stocks? - Knowledge before learning how to make money
Is there a difference between securities and stocks? / Honestly, what are stocks? / Can I trade any company's stocks? / What are paid-in capital increases and bonus capital increases?
Stock Plus Knowledge | When did stock companies begin?
02.
How are stocks classified? - Types of Stocks
How many different types of stock are there? / If I become a shareholder, can I participate in the company's management?
03.
Where and How Do I Trade Stocks? - Stock Market, Composite Stock Price Index, and Stock Trading Structure
Where is the stock market? / Why should I look at the composite stock price index? / How are stocks traded? / Are market managers involved in stock market trading?
04.
Is it okay for me to invest directly? - Direct investment, indirect investment
Should I invest directly or indirectly? / Why invest directly?
Stock Plus Knowledge | Funds: A Representative Indirect Investment Product
Mr. Ilkwang's Level Up
Investing Principles | Your Approach to Investing Just Starting Out
Chapter 2: Preparing to Buy
Mr. Sunlight's Grow Up | How Dangerous Are You?
01.
How risky is your investment style? - Understanding your investment style and choosing financial products
Checking your investment propensity is essential for self-diagnosis. Financial products vary depending on your investment risk level.
02.
Which brokerage is best? - Choosing a brokerage and opening your first stock account.
Proper common sense about brokerage firms / The lure of commissions / Four ways to trade stocks / How to open an account?
03.
How to Invest in Stocks from Home - Home Trading System HTS
Let's download HTS / Let's take a look at the stock price chart.
04. I want to utilize HTS to its full potential! - HTS optimization, account management
Create a screen that suits you / Account management is very important /
Stock Plus Knowledge | Explore HTS in 30 Minutes a Day
05.
Different orders every hour? - Stock market time divisions, trading principles, and the single-price trading system.
What time does the stock market open? / There are rules to follow when trading. / Use the single-price trading system.
06.
How to place a stock order - HTS
There are some terms that are required for ordering.
Stock Plus Knowledge | Investing on Mobile Devices
Stock Plus Knowledge | Select, Buy, and Sell Stocks on Your Mobile Device
07.
Are there different ways to order? - Types of Ordering Methods
Let's take a look at the different types of ordering methods.
08.
Buy and sell stocks in installments? - Installment purchase, installment sale
Split purchase and split sale
09.
Selling receivables is a shortcut to ruin! - Selling receivables, selling on margin
Risky Stocks / Account Balances: Why Do They Fluctuate So Much?
Mr. Ilkwang's Level Up
Investing Principles | 10 Things to Keep in Mind Before You Start Trading
Chapter 3: Understanding the Market
Mr. Ilgwang's Grow Up | Turn your back on the computer and look at the market.
01.
How do you analyze the market? - Top-down analysis, bottom-up analysis
Fundamental Analysis
02.
Do Stock Prices Rise When the Economy Grows? - Economic Growth Rate and Stock Prices
How to Determine Economic Growth by Looking at GDP
03.
Do you see stock prices when you look at economic indicators? - Economic indicators and stock prices
The composite economic index moves in tandem with stock prices. Surveys are also indicators.
04.
If you know the business cycle, you can see the stock price? - Business cycle and stock price
Investor strategies vary depending on the economic situation.
05.
Bank Deposits vs. Stock Investments: Which Should You Choose? - Interest Rates and Stock Prices
Interest rate is the premium received in exchange for giving up liquidity / post-report interest rate of stock price fluctuations
06.
Do Stock Prices Rise When Exports Rise? - Trade Balance and Stock Prices
Trade balance and stock prices
07.
They say you should buy stocks when the exchange rate falls? - Exchange rates and stock prices
What is the relationship between exchange rates and trade? / What is the relationship between exchange rates and stock prices?
Stock Plus Knowledge | What Affects Exchange Rates?
08.
What is the relationship between prices and stock prices? - Prices and stock prices
Factors affecting demand-pull inflation / Factors affecting cost-push inflation / Price index to measure inflation
09.
How do stock prices move when money supply increases? - Money Supply and Stock Prices
The impact of currency fluctuations on the economy / The impact of currency fluctuations on stock prices
10.
What is the relationship between raw material prices and stock prices? - Raw material prices and stock prices
Factors affecting raw material prices
Mr. Ilkwang's Level Up
Investing Principles | 10 Must-See Economic News Stories
Chapter 4: Selecting Stocks
Mr. Sunlight's Grow Up | You're Already Judging Everything
01.
What Exactly Is Value Investing? - Value Investing: Finding Undervalued Stocks
True value investing seeks long-term compound returns.
02.
Which company should I choose? - Company capabilities, core products, and financial statements
Understand the company's capabilities / Check the company's main products / The company's financial statements are essential!
03.
How do I view the statement of comprehensive income? - Statement of Comprehensive Income
Be sure to check your operating profit
04.
How do you view the financial statements? - Financial Statements
Look at the size of your current assets. Focus on depreciation for non-current assets. Be sure to check the size of your current liabilities. Check for capital increases. Look into the possibility of a capital increase through capital surplus.
05.
How do I view the cash flow statement? - Cash Flow Statement
Cash flow from business activities
06.
You select stocks using financial ratios? - Financial ratios
Liquidity ratio / stability ratio / profitability ratio / activity ratio / growth ratio
07.
How do I find stocks with good management performance? - Return on Equity (ROE)
The pitfalls of ROE
08.
How do I find stocks with high earnings value? - Price-to-Earnings Ratio (PER)
There are pitfalls to PER as well / Factors that affect PER / Let's predict stock prices using PER.
09.
How do I find stocks with high cash flow? - EV/EBITDA
What do EV and EBITDA mean? / Are there pitfalls to EV and EBITDA?
10.
How do I find stocks with high asset value? - Price-to-book ratio (PBR)
Factors Affecting PBR / Investment Strategies Using PBR
11.
How do I find stocks with high sales value? - Price-to-Sales Ratio (PSR)
Factors Affecting PSR / Investment Strategies Using PSR
12.
Wouldn't it be easier to manage your stocks? - Managing stocks with HTS
Mr. Ilkwang's Level Up
Investing Principles | 10 Rules for Picking Undervalued Stocks
Chapter 5: Analyzing Charts
Mr. Ilkwang's Grow Up | Stocks are Time Travel
01.
Why Learn Charts? - Technical Analysis for Predicting Stock Prices
Can charts predict the market? / The debate over technical analysis / Why is technical analysis useful?
02.
What is a candlestick chart? - candlestick chart, types of candlestick charts, candlestick chart structure
The meaning of positive and negative candles
03.
Can you tell the buying trend from the candlestick chart? - Patterns on candlestick charts that signal buying trend.
A candlestick pattern that signals a stock price rise / A candlestick pattern that signals a stock price fall / A candlestick pattern where selling and buying forces are balanced
04.
How to Use Trendlines - Support and Resistance Lines, Trendlines
Let's develop a trading strategy using trend lines.
05.
Can you tell stock prices from moving averages? - Moving Averages
What is a moving average? / Let's develop a trading strategy using moving averages.
06.
How to Use Moving Averages - Stock Price Analysis Using Moving Averages
Let's analyze stock prices using moving averages.
07.
How do I know when to buy and sell? - Using Moving Averages to Identify Buying and Selling Points
Let's use moving averages to identify trading points.
08.
Finding trading points through pattern analysis? - Reversal patterns, continuation patterns
Reversal pattern that changes the trend / continuation pattern that continues the trend
09.
How much is that stock moving? - Analyzing power by volume, the reciprocal curve
Predict stock prices based on volume movements / Develop trading strategies using the reciprocal curve.
10.
Who's Buying That Stock? - Analyzing Investment Value Through Transaction Subjects
Analyze value as a trading entity
11.
How do I apply auxiliary indicators to trading? - Using auxiliary indicators
Trend analysis indicator MACD / Momentum analysis indicator / Volatility indicator / Market strength analysis indicator
12.
Can Wave Theory Predict Investment Timing? - Elliott Wave Theory
The rise and fall of waves
13.
Can Dow Theory Predict Investment Timing? - Dow Theory
Six Phases of the Market
Mr. Ilkwang's Level Up
Investing Principles | 10 Rules for Deciding When to Buy Stocks
Chapter 6: Catching Up with the Masters
Grow Up by Ilkwang | Do you have the confidence to become a true expert?
01.
How do I invest in dividends and long-term investments? - Dividend Investing, Long-Term Investing
Stock prices and dividend yields move in opposite directions. How can I make good long-term investments?
02.
What is the relationship between derivatives and stock prices? - The relationship between derivatives and stock prices
What are derivatives? / How are they different from futures contracts?
03.
What are stock index futures?
How to Create Stock Index Futures / Futures Features
04. How are KOSPI 200 Index Futures Traded? - KOSPI 200 Index Futures Trading
Trading of KOSPI 200 index futures
05.
Learn about stock index futures and program trading! - Stock Index Futures and Program Trading
Understanding Arbitrage / Utilizing Program Trading / Program Trading Regulations
06.
What are Options? - Options Trading, Call Options, Put Options
Options trading: buying and selling rights / Right to buy, call options / Right to sell, put options / Differentiating premiums, intrinsic value and time value / Let's look at the types of options.
07.
How are options traded? - How to trade options
How to trade options
08. What is an ELW? - Equity-Linked Warrant Securities (ELW)
ELW Features / Things to Consider When Choosing ELW Stocks
09. What is an ETF? - Listed Fund Index ETF
Let's take a look at the characteristics of ETFs, the advantages and disadvantages of ETFs, and the types of ETFs.
Mr. Ilkwang's Level Up
Investing Principles | 10 Principles for Deciding When to Sell Stocks
Search
Detailed image
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Into the book
So, let's take a closer look at the advantages of direct investment and keep them in mind.
First, direct investment can yield high returns.
Most funds aim to generate returns equal to the rate at which stock indices rise.
However, if you select stocks yourself, you can expect high returns depending on the individual circumstances and value of the stocks.
Moreover, even if the rate of return is the same, direct investment has the advantage of being able to generate high returns in the short term, while indirect investment is viewed as a long-term investment.
Second, direct investment is convenient in terms of liquidity.
If you need cash, you can sell your stocks right away to get cash.
Indirect investments are not freely available to investors, so they cannot be quickly converted into cash. Furthermore, early cancellations can result in disadvantages.
Third, direct investment can ultimately leave you with information and experience.
Indirect investing means you don't have to bother collecting information or worry about making investment decisions.
However, this also reduces the ability to gather information about stocks and increases the ability to respond to the market.
--- p.
47
Since stock investment is ultimately about making profits, account management can be said to be the foundation of investment.
You need to learn how to manage your accounts efficiently.
First of all, don't use all of your investment capital for purchases, and make it a habit to keep a certain amount of money in cash.
If you don't have any cash in your account, you won't be able to buy when you find a good stock or good timing.
If you get greedy and borrow money to invest, your investment principles may be shaken because the investment amount you had planned for will be exceeded.
Second, be sure to decide on the financial product you want to invest in.
If a beginner gets greedy about investing in futures or options, he or she will most likely suffer losses.
It is best to take on the challenge after you have consistently practiced stock trading and have firmly established your investment principles.
Even if you really want to invest, it is recommended to limit the amount to 5-10% of your investment in risky products.
Lastly, when you make a profit, don't just leave it in your account; transfer it to another account.
It is recommended that you remember your initial investment amount and only manage the principal amount for a certain period of time.
If profits are added to the investment principal, it can lead to increasingly risky investments.
Keep in mind that good profit management will help you preserve your principal and continue to invest prudently.
--- p.
85
As mentioned before, interest rates reflect risk.
Therefore, low-credit bonds have higher interest rates because they are riskier.
A sharp widening of the credit spread means that the interest rates on low credit bonds have become much larger.
This means that money is only flowing to companies with high credit ratings and not to companies with low credit ratings, meaning that money is only flowing to safe places.
However, if the credit spread is narrowing, it means that money is flowing into companies with low credit ratings, and credit easing is taking place.
This is a phenomenon in which money circulates, which is also good for the economy.
--- p.
155
From this perspective, it would be normal and stable for the cash flow statement to show at least (+) cash flow from operating activities and (--- p.) cash flow from financing activities.
Cash flows from investing activities can be interpreted differently depending on the company's circumstances.
However, it is important to remember that if a business can generate profits without additional investment, then it can be considered a profitable business.
--- p.
210
The basic purpose of technical analysis is to examine the flow of charts and find regularities in stock prices.
There is a hidden intention, an assumption, here:
First, stock prices are determined solely by supply and demand.
Stock prices are formed at the point of balance between the forces of buying and selling.
If the buying force is strong, the stock price rises, and if the selling force is stronger, the stock price falls.
Second, if we ignore minor market fluctuations, stock prices tend to move in consistent trends for a considerable period of time.
If the buying force is strong, the stock price will rise, and if the selling force is strong, the stock price will fall. If the buying force does not change its mind overnight, a period of time in which they have the upper hand will be formed.
During this process, stock prices show an upward trend for a considerable period of time.
Conversely, if the selling force is stronger, the stock price will show a downward trend for a considerable period of time.
(syncopation)
Technical analysis, with its slogan "the future is in the past," is widely used by investors.
--- p.
268
The size of the transaction volume is said to be the size of the energy.
Just as an airplane needs strong propulsion energy to take off, stock prices need to be filled with energy as trading volume increases to rise.
Conversely, just as an airplane lands slowly by reducing engine thrust, when a stock price falls, a decrease in trading volume is seen first.
To put it the other way around, if the trading volume that was decreasing starts to increase, you can expect that the stock price will soon rise, and conversely, if the trading volume that was increasing starts to decrease, you can expect that the stock price will soon fall.
--- p.321
Since an option is a right, when an option is bought and sold, the buyer of the option pays a premium to the seller.
Conversely, the seller of an option receives a premium from the buyer and sells the option.
If you think about it carefully, the buyer of the option will never have to put in any additional money.
Whether you are a call option buyer or a put option buyer, you have already paid the premium and purchased the option, so all you have to do now is decide whether to exercise the option or give up the option.
So, no margin is required from the buyer of the option.
First, direct investment can yield high returns.
Most funds aim to generate returns equal to the rate at which stock indices rise.
However, if you select stocks yourself, you can expect high returns depending on the individual circumstances and value of the stocks.
Moreover, even if the rate of return is the same, direct investment has the advantage of being able to generate high returns in the short term, while indirect investment is viewed as a long-term investment.
Second, direct investment is convenient in terms of liquidity.
If you need cash, you can sell your stocks right away to get cash.
Indirect investments are not freely available to investors, so they cannot be quickly converted into cash. Furthermore, early cancellations can result in disadvantages.
Third, direct investment can ultimately leave you with information and experience.
Indirect investing means you don't have to bother collecting information or worry about making investment decisions.
However, this also reduces the ability to gather information about stocks and increases the ability to respond to the market.
--- p.
47
Since stock investment is ultimately about making profits, account management can be said to be the foundation of investment.
You need to learn how to manage your accounts efficiently.
First of all, don't use all of your investment capital for purchases, and make it a habit to keep a certain amount of money in cash.
If you don't have any cash in your account, you won't be able to buy when you find a good stock or good timing.
If you get greedy and borrow money to invest, your investment principles may be shaken because the investment amount you had planned for will be exceeded.
Second, be sure to decide on the financial product you want to invest in.
If a beginner gets greedy about investing in futures or options, he or she will most likely suffer losses.
It is best to take on the challenge after you have consistently practiced stock trading and have firmly established your investment principles.
Even if you really want to invest, it is recommended to limit the amount to 5-10% of your investment in risky products.
Lastly, when you make a profit, don't just leave it in your account; transfer it to another account.
It is recommended that you remember your initial investment amount and only manage the principal amount for a certain period of time.
If profits are added to the investment principal, it can lead to increasingly risky investments.
Keep in mind that good profit management will help you preserve your principal and continue to invest prudently.
--- p.
85
As mentioned before, interest rates reflect risk.
Therefore, low-credit bonds have higher interest rates because they are riskier.
A sharp widening of the credit spread means that the interest rates on low credit bonds have become much larger.
This means that money is only flowing to companies with high credit ratings and not to companies with low credit ratings, meaning that money is only flowing to safe places.
However, if the credit spread is narrowing, it means that money is flowing into companies with low credit ratings, and credit easing is taking place.
This is a phenomenon in which money circulates, which is also good for the economy.
--- p.
155
From this perspective, it would be normal and stable for the cash flow statement to show at least (+) cash flow from operating activities and (--- p.) cash flow from financing activities.
Cash flows from investing activities can be interpreted differently depending on the company's circumstances.
However, it is important to remember that if a business can generate profits without additional investment, then it can be considered a profitable business.
--- p.
210
The basic purpose of technical analysis is to examine the flow of charts and find regularities in stock prices.
There is a hidden intention, an assumption, here:
First, stock prices are determined solely by supply and demand.
Stock prices are formed at the point of balance between the forces of buying and selling.
If the buying force is strong, the stock price rises, and if the selling force is stronger, the stock price falls.
Second, if we ignore minor market fluctuations, stock prices tend to move in consistent trends for a considerable period of time.
If the buying force is strong, the stock price will rise, and if the selling force is strong, the stock price will fall. If the buying force does not change its mind overnight, a period of time in which they have the upper hand will be formed.
During this process, stock prices show an upward trend for a considerable period of time.
Conversely, if the selling force is stronger, the stock price will show a downward trend for a considerable period of time.
(syncopation)
Technical analysis, with its slogan "the future is in the past," is widely used by investors.
--- p.
268
The size of the transaction volume is said to be the size of the energy.
Just as an airplane needs strong propulsion energy to take off, stock prices need to be filled with energy as trading volume increases to rise.
Conversely, just as an airplane lands slowly by reducing engine thrust, when a stock price falls, a decrease in trading volume is seen first.
To put it the other way around, if the trading volume that was decreasing starts to increase, you can expect that the stock price will soon rise, and conversely, if the trading volume that was increasing starts to decrease, you can expect that the stock price will soon fall.
--- p.321
Since an option is a right, when an option is bought and sold, the buyer of the option pays a premium to the seller.
Conversely, the seller of an option receives a premium from the buyer and sells the option.
If you think about it carefully, the buyer of the option will never have to put in any additional money.
Whether you are a call option buyer or a put option buyer, you have already paid the premium and purchased the option, so all you have to do now is decide whether to exercise the option or give up the option.
So, no margin is required from the buyer of the option.
--- p.
401
401
Publisher's Review
Because the author teaches it himself
Easy, yet so easy, personalized video lectures!
"I'm New to Stock Investing, Basics" includes a QR code that allows you to directly access the author's lecture videos.
Since it highlights only the most important parts, it saves a lot of time, and since the author teaches directly, it's incredibly easy. Just scan the QR code to access a one-on-one lesson with the author! You can acquire investment knowledge and start investing in stocks today.
Where should I invest?
Protect my hard-earned money
How to make a decent profit
The world economy is becoming more and more unstable, and our retirement is becoming more and more uncertain.
How should we raise and raise money?
Even at this very moment, there are people who are making money little by little.
If you haven't started investing in stocks yet, it's because you don't know how to properly invest in stocks.
"I'm New to Stock Investment, Basics" is a proper introductory book on stock investment for beginners who only know rumors and don't know exactly what stock investment is.
For beginner investors, it serves as a solid stepping stone, a fence to protect assets, and an alarm to alert you to risks.
So how should you start investing in stocks?
If you are a beginner, the first thing you need to do is develop the ability to make your own judgments.
You won't succeed in investing simply by memorizing stock market terms and learning how to analyze charts.
You need to know what stocks are, how money flows, and how the market works.
Only such a person can know the right time to buy and sell, identify good stocks, and avoid market traps.
Even if it's a theme stock that's good to buy right now, the market and environment will always change, so you need to be able to read it yourself.
This book covers the parts overlooked by many introductory books in bookstores in an easy and fun way for beginners.
A salaryman who values the weight of 1 million won as seed money
An introductory guide for beginners!
In "I'm New to Stock Investing: Basics," a complete beginner named Ilgwang appears.
I am a friend who has similar concerns about investing that any working person would have.
What we, as complete beginners, need is a story of someone who has shared our struggles and can share our concerns.
You will be able to grow together because it provides refreshing questions and answers before you even know what to ask.
The 2022 revised edition of "I'm New to Stock Investing: Basics" is designed to help beginners learn about stocks, markets, and investing in an engaging way, alongside Ilgwang.
Additionally, as an appendix, we provide a video lecture directly from the author for beginners, and beyond simple stock recommendations, we teach you how to conduct industry analysis and introduce companies that fit that industry.
After reading "I'm New to Stock Investing, Basics," you'll have a blueprint for how you'll invest going forward.
This is not an introductory book that simply tries to explain everything from A to Z in an easy way or with as much information as possible. It is a book that walks alongside beginners while understanding their hearts, helping them grow steadily and level up naturally.
This book will help you become a true investor, not just a super ant.
If you're a beginner who hasn't started yet because you're afraid of wasting even just 10,000 won of your precious money or because you're afraid of not knowing anything, I recommend you start investing in stocks now.
How to read this book
In the 2022 revised edition of "I'm New to Stock Investing, Basics," you'll learn everything from basic stock knowledge like how to use HTS to market analysis, corporate analysis, and chart analysis, all while following the lead of a complete beginner.
You can also become a truly smart investor with growth stories, quizzes, and Super Ant's investment principle advice.
1.
The more beginner you are, the more crucial it is to build a solid foundation! Is it really better to blindly follow the usage instructions? Or is it better to pour out every last bit of information about stock investing? Neither is the case.
This book provides the most important basic knowledge and economic common sense to those who don't even know what stocks are, and explains only the essentials in a friendly manner.
2.
This is my story! I empathize and enjoy learning.
Investing in stocks is much more scary to start because it involves your precious money.
This book will help you, along with Ilgwang, a complete beginner who started out trembling with fear and not even knowing what stocks were, to feel, ask questions, and learn together, so you can grow into true investors.
3.
Create a weapon that fits your hand perfectly by properly utilizing HTS! From learning how to trade to configuring your own screen, HTS is the ultimate teacher and information resource for beginner investors.
By teaching you how to properly utilize Kiwoom Securities' Hero 4, the No. 1 HTS in Korea, you can transform what may have seemed complex into a powerful investment tool of your own.
4.
Fight with the latest weapons! An introductory book on stock investing should include the latest information and trends in the stock market.
It's designed to fully reflect the latest stock trading systems and provide the latest data, issues, and corporate data, allowing you to invest with confidence.
GOODS SPECIFICS
- Date of issue: January 10, 2022
- Page count, weight, size: 432 pages | 766g | 152*225*30mm
- ISBN13: 9791157845491
- ISBN10: 1157845495
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