Types of investors in the stock market Types of investment in stocks:

Types of investors in the stock market Types of investment in stocks:

Individual investors:
Investors buy shares of companies they think are selling for less than their value, and they plan to hold their shares for the long term (usually for years). Investors generally choose to ignore the short-term daily price fluctuations of the market. If everything goes according to plan, they find that the value of their investment increases over time.
One of the most successful long-term investors, Warren Buffett, likes to say that he does not buy shares, but rather buys a business, and he buys stocks at the best possible price and holds them for as long as possible.
Read more

Retaining Losing Shares and Selling Winning Shares

Retaining Losing Shares and Selling Winning Shares

Most people hold their losing shares in the hope that these shares will return to the breakeven point, and they also sell the winning stocks early to keep the profit. Unfortunately, strong stocks usually continue to rise, and stocks that lose value continue to fall.
There are many exceptions, but in general, if you keep the winning stock positions and get rid of the losers, you will definitely see a significant improvement in the results of your investments. But most people do the opposite: when they have a winning stock, they sell it once they get a small profit, and sometimes they miss the big move. And when they have losing stocks, many tend to hold them in the hope that they will reach the breakeven point.
One of the strategies that investors use is to buy when the stock falls, in which investors buy more shares from a preferred stock when its value drops, and although this strategy may succeed sometimes, it is, in my opinion, a risky strategy; Because the stock will mostly continue to decline. And I've seen this happen with many leading stocks.
Especially technology and financial stocks that looked indomitable. In a weak, low-priced market, any share may fall. Another lesson: the stock may rise or fall to a level that you did not think could reach it.
Read more

Strategies that professionals use to measure their stock profit

strategies that professionals use to measure their stock profit

It's all about points
To measure how much you earn or lose in the stock market, Wall Street uses the term points to denote dollars. First, remember that we talked about stocks which are part of the company. You can buy one share, 100 shares, 1000 shares, or as much as you can. Each share has its price, starting from several pence to hundreds or even thousands of dollars. And these prices are constantly changing.
Now, let's go over how to score results. For example, the transfer that you bought a group of shares in a company that sells the stock for 20 dollars. If your stock price increases from 20 dollars per share to 25 dollars per share, then your shares increased by 5 points, and that is another way of saying $ 5 per share. And that's how we record results on Wall Street.
Read more

How to calculate the cost of capital investment and financing for companies


Define the cost of capital
The cost of capital is known as the cost that the organization incurs to finance its projects. Within this framework, the intended capital is the funds raised by the Foundation to finance its long-term projects. The cost of capital varies according to the structure and sources of financing, and financing is usually done through a combination of different sources of financing. The cost of capital is considered one of the most important factors affecting investment decision-making from the point of view of the institution or from the viewpoint of the investor or financier.

Read more

Investment tips from John Bogle, founder of the Vanguard Mutual Fund

John Bogle

I have another surprise; John Bogle also agreed to speak to me about the stock market.
John Bogle is the founder and chairman of Vanguard Group, which he founded in 1974, and is also the author of ten books, including The Little Book of Common Sense Investing and The Common Sense on Mutual Funds. He is a strong advocate of long-term investment in mutual funds linked to indices.
Read more