Trading in financial markets is a very complex business with high risks, from which almost no one is safe, and even billionaires. The fact is that no automated program or expert can completely predict the future movement of trading assets. Investors and speculators who make financial transactions in the stock market always risk their deposits and investments.
On the one hand, the income that can be received from trading is very high, but on the other hand, these are huge risks. Depending on the size of deposit funds, the volume of transactions and financial risks, it can reach from 20 to 1 thousand percent per annum. The more risk is embedded in the transaction and the more aggressive the trading system, the higher it is.
Stock Market - Investing
According to experts, there are two ways to make money in the stock market: investing and trading. The first option - the investor chooses an asset, for example, shares of large companies. In this case, he can earn on dividends. The faster and more assets increase in price, the higher the income.
All investment instruments are divided into 3 groups:
- Low-yield assets with little financial risk.
- Mid-income investment instruments.
- Highly profitable assets with high risks.
Each investor makes up a portfolio for himself, in which all groups are proportionally distributed. This is done in order to secure your investor account. In the event that any instruments bring losses to the investor, other assets will block them with their profit.
Trading in the financial markets
This method allows you to earn using speculative operations. The income from such transactions depends on many factors and, above all, on the change in quotations for a particular trading asset. Trading is based on buying an asset at a lower price and selling at a higher price.
The difference is the trader’s earnings. By the way, it does not matter in which direction the market price is moving, as a trader can earn both on purchases and on sales.
Naturally, the millionaires and billionaires themselves do not engage in trading, and this function is performed by specialists - managing traders.
The team includes:
- Experts.
- Managing traders.
- Financial Market Analysts.
Trading takes place with the help of special tools, such as automated programs, technical indicators and other types, which together constitute trading systems.
Stock market crash
When financial assets go down in value, investors and traders who have trades for purchase receive losses. This is precisely the situation that has recently occurred in the stock market and 18 billionaires suffered from a drop in quotations. They simply got huge losses in the billions.
Statistics in dollars:
- Bernard Arnault - losses amounted to 4 billion $.
- Mark Zuckerberg - 2.7 billion $.
- Larry Ellison received losses on the deposit of 2.5 billion $.
- Warren Buffett - 2.1 billion.
- Larry Page - the state of the deposit decreased by 1.7 billion.
- Ma Huaten - net capital decreased by $ 1.6 billion.
- Sergey Brin - 1.6 billion
- Mukesh Ambani - 1.6 billion
- Francoise Bettencourt Myers - 1.5 billion
- Jack Ma - 966 million dollars.
This is not an exhaustive list, and other billionaires also received enormous losses in deposit funds.
According to experts, stocks fell due to the fact that China was dismantling its national currency.These are the lowest indicators in relation to the dollar, which were recorded after 2008.