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Investment Basics (What is Investment? (Types of investment (Other…

- - - - Never be talked to invest on something you don't understand or comfortable with.
      - So investing is all about buying valuable things, so when you have enough knowledge, you can invest on thing that are more interesting.
        
        Actively manage Mutual Fund
        
        Real Estate
        
        Individual stocks
        
        Other alternative investments (derivative etc.)
  - - - Hedge Funds
      - Real Estate
      - Private equity: allow companies to raise money without going public.
      - Liquid alternatives: new trading methods introduced to Mutual funds and ETFs.
  - - - Stock
        
        Mid-cap stock
        
        Small cap stock
        
        international stocks
        
        Large capital stock
      - Bonds
        
        Short term bonds
        
        Intermidate-term bonds
        
        Tax-exempt municipal bonds
        
        Foreign bonds
    - - IRA (Individual Retirement Account)
      - College saving portfolio
    - - Duration: what is the range of investment?
      - Tax: is there any possible tax-exemption choice?
      - Initial Investment
      - Does it rebalance back semi-annually (keep the investment proportion unchanged)
      - Correlation between different investments
    - - Conservative: 40/60
      - Moderate: 60/40
      - Aggressive: 80/20
  - - - Income
      - Safety
      - Growth of Capital
    - - Liquidity/Marketability
      - Tax Minimization
  - - - 低买高卖
    - - Are you an investor of speculator
        
        Do you value you stocks or just play?
- - - - What you read, who you discuss ideas with, and all of you inputs will determine your hight in this career and you life.
    - - Find things that are relevant to do
      - Finding an internship in HF is the most valuable progress
      - Learn the future and trends of Hedge Funds industry
  - - - UW career center
      - UW alumni events etc.
  - - - Equity Hedge
        
        Long/short (leverage)
        
        E.g: Long bias ("130 to 30")
      - Market Neutual
      - Global Macro
      - Convertible Arbitrage
      - Relative Value Arbitrage
      - Distressed
- - - - Frankfurt
    - - Dubai
    - - Illinois, Chicago
      - Boston, Massachusetts
      - New York
      - San Fransisco, California
    - - Hongkong
      - Shanghai
    - - Longdon
    - - Tokyo
    - - Zurich
    - - Japenses
      - French
      - German
      - Cantonese
      - Arabic
      - English
      - Chinese
  - - - e.g.: insurance companies
  - - - Mergers and Acquisitions (and consolidation)
      - Underwriting
      - PE
      - VC
    - - Hedge Funds
        
        This is probably the right job for you!
        
        Applicants from a wide variety of backgrounds wind up in trading jobs. Although the most common path is to come out of a good university and take a job at a bank or hedge fund to learn the ropes, the career path is somewhat less defined than in investment banking.
        
        Because of the increasing prevalence of higher mathematics in the financial markets, PhD's from a variety of statistical, scientific, or mathematical disciplines are also becoming more common on trading desks. Many traders take the Series 7 & 63 exams early in their careers.
        
        Now you can take the SIE exam without be in a FINRA sponsored firm
        
        As time goes by, the trader will be allocated more and more capital depending upon their performance. Many of the most successful traders eventually attempt to start their own hedge fund.
        
        You can Star-up and be the best if you have the real power of making money!
        
        This is a fair competition!
        
        It will worth you to pursue in your life, and you can publish your books, papers in data science and hedge fund as well!
        
        Note: Due to ongoing government regulatory changes, the field of trading is in some flux. If you are considering a career as a trader, you should pay careful attention to news headlines depicting the continuing evolution of government financial regulation.
        
        Most individuals should have an aptitude for math, an ability to react quickly to changing conditions, the fortitude to withstand market volatility and the ability to make quick decisions based upon incomplete information. Most successful traders are truly passionate about what they do and often spend their off hours studying the markets.
      - Buy-side trader
      - Sell-side Trador
    - - Location: Every every with client
      - Tests: CFP/CPA/Series 7 (SIE)
      - Types
        
        Stockbroker/Financial Consultant
        
        Certified Financial Advisor
        
        Private Banker
        
        Dealing with asset and investment issues of rich clients
      - Goal
        
        Not to beat the market, but to preserve the wealth
    - - Economist Jobs
      - Strategist Jobs
        
        Many public speaking and communication chances (even on TV)
        
        Can transfer to portfolio manager and enter HF firms after success
      - Quant Jobs
        
        The reward can be limitless if you want
    - - Investment writing
      - On-air commentator
    - - Entry-level Analyst
      - Investment Analyst
      - Financial Analyst (in big corporation)
    - - You need to really love the financial market and would like to manage portfolios for free when necessary.
      - CFA is very common, and so does graduate degree.
      - You need to be in the buy side and out perform the market every month and every day.
      - You will be able to start you own firm or fund. :red_flag:
        
        You also need to meet a lot of valuable clients
- - - - E.g.: Tesla 10-K
  - - - Assets = Liabilities + Shareholders' Equity
- - - - Centralize the power