RISK MANAGEMENT page 4

Investing is a highly emotional activity that many people fail to acknowledge. For example, the recent surge in the popularity of cryptocurrencies has prompted many novice, intermediate, and experienced investors to join the bandwagon out of fear of missing out, a phenomenon known in social psychology as the bandwagon effect.

Sometimes the market exhausts us mentally and psychologically. For example, you open a trade in full confidence that you have thought everything through and calculated. You are in a great mood, and mentally you are already distributing the earnings. And then this happens.

The growth of the world economy after the second industrial revolution and the further development of the post-industrial society, as well as the demand for new methods of exchange trading, brought about the need for an extended toolkit of operations on the financial markets. This, in turn, led to the emergence of derivative financial instruments, derivatives being one of them.

Initial Public Offerings (IPOs) can be an exciting opportunity for investors to get in on the ground floor of a promising new company. But what exactly is an IPO, and how can investors potentially benefit from it? In this article, we'll take a closer look at what an IPO is, how it works, and some key steps for investing in IPOs.

Trading is a highly competitive field that requires skill, discipline, and knowledge. Whether you are a beginner or an experienced trader, there is always room for improvement when it comes to trading performance. If you want to be successful in trading, you need to have a solid strategy, proper risk management, and a strong mindset.

In today's world, trading has become an attractive career choice for many individuals looking for financial independence and flexibility. However, becoming a successful trader requires more than just basic knowledge of financial markets and investment strategies. It takes discipline, perseverance, and a willingness to continuously learn and adapt to the ever-evolving trading landscape. In this article, we will explore the key steps and habits needed to become a successful trader in 2023 and beyond.

The tried and true formula for successful sales, "buy low, sell high," applies equally to financial markets. Traders use various types of transactions to achieve this, including short positions (betting that the price will go down) and long positions (betting that the price will go up). These strategies are commonly referred to as "short" and "long" in professional circles. This article will explain the meaning of these terms, their purposes, and how they work.

One person wants to save for retirement 25 years. Another wants to invest in various instruments for no longer than a year. These investors have different goals and investment timing, which means different market behavior. To avoid placing in rash positions, everyone needs an investment strategy. In this article, we will consider what that is and learn popular types of investment strategies.

ETF funds may become a good alternative to stocks for those who have just turned their attention to earning on the stock market. We have decided to find out what ETFs are worth choosing, how much can be earned from them, and what are the pros and cons of these investments. What Is an ETF? To assemble a portfolio of various securities, the average investor may need a lot of funds. Because many stocks are interesting to invest in, but they are quite expensive.

Almost all experienced traders of the forex market agree that it is necessary to set stop losses in any style of trading. Beginners, newcomers to the market, often neglect this rule, but with time they also come to understand it (or they simply stop trading because of the constant losses). Let's try to figure out why a Stop Loss is so important for successful trading and sustained profits.