Hvordan skal det lønne seg å forvalte pengene sine framover? Vil renta gå opp eller ned?
Om man trenger penger kan dette være et gunstig tidspunkt å søke forbrukslån, se denne guiden for mer informasjon om forbrukslån uten sikkerhet.
Se også dette blogginnlegget skrevet om hvordan man søker forbrukslån og hva et forbrukslån er.
Har du andre spørsmål om forbrukslån? Ta kontakt i kommentarfeltet.
Day trading is when you buy and sell within the same trading day such that all positions are usually closed before the market close of the trading day. Traders that participate in day trading are called active traders or day traders.
Day traders usually trade stocks, stock options, currencies, and futures contracts like equity index futures, interest rate futures, and commodity futures.
Day trading used to be avilable only to finacial firms and professional investors. Many daytraders are specialists in equity investment and fund management.
With the Internet and electronic trading, day trading can be done by anyone witha computer.
As a day trader you don’t hold positions over night to avoid risk. If you hold over night you better have an edge. Day trading involves risks, as with any trade or investment.
The college of trading
You will lose money before you graduate from the college of trading. This training can take months. In this learning period it’s essensial to lose as possible so you have you capital when you start making money. You should only trade with your own money in the beginning. If you are going to be a serious day trade, save up some money before you go pro.
Day traders don’t invest
As a day trader you don’t hold positions over night, that’s to risky. You don’t invest and you don’t care about things like fundamental analysis. Most people think long term to try to find out if a company is over- or underpriced. To us, that’s irrelevant. As a day trader you have to find other strategies.
Your background doesn’t matter
If you are a carpenter, construction worker, or unemployeed, it doesen’t matter. You make your own luck in this business.
Timothy Sykes wrote the book An American Hedge Fund in 2007, the book is about how he turned his Bar Mitzvah money into $1.65 million from 1999 to 2002. He only started with $12,415. He also started a hedge fund, Cilantro Fund Management in 2003.
Timothy Sykes wrote this book because he wanted to tell people about the Hedge Fund indutry. He hated that hedge fund managers couldn’t talk to the press or advertice. They were only allowed to talk to rich people. In a way, that also what’s this blog is about, giving you the knowledge about trading to make you hedge fund rich (our term for being very wealthy).
In the book Timothy Sykes talks about how he started trading, how he started to find patterns and how he went from 12k to 1,6 M. It’s a very good book. I highly recommend it. It will teach you about hedge funds and the market.
Take a look at this interview with Tim.
An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund
The Wolf of Wall Street is a book by Jordan Belfort about how he made Stratton Oakmont and how he was the wolf of wall street.
Jordan Belfort (born in 1962) was CEO of brokerage firm Stratton Oakmont. He served 22 months in federal prison for stock manipulation (using “pump and dump” methods).
Have you seen the movie Boiler room? If not, see it. The movie is based on Stratton Oakmont and Jordan Belfort. It’s one of my favorite films, it’s about the art of selling.
Read this book, you can learn so much from business genius Jordan Belfort. This book is filled with sex, drungs, insider trading and swiss bank accounts. Jordan Belfort partied like a rock star and lived like a king. He did so much drugs no other man could do, his favorite choice of drugs was “ludes”. If he stayed away from the drugs he would probably avoided taking all the wrong turns.
You should read this book because it takes you inside the brilliant mind of Jordan and you will learn how smart salespeople think. Learn from his mistakes and copy what he did right. After all he did some amazing things.
Jordan Belfort has an amazing tallent, he can sell, motivate, lead and presvaise people. That’s what you should learn to master if you wan’t to become rich and live the good life, like the Wolf.
Read about the rise and fall of one of the greatest minds of Wall Street (or the sickest).
According to Bloomberg.com hedge funds world wide will have to fire 20 000 people in 2009. That’s 14% of all jobs in the industry. And thats on top of the 10 000 jobs that was lost in 2008.
Hedge Fund Research Inc has estimated that 920 hedge funds closed shop last year. When 70% of all funds lost money in 2008, it’s going to take a while before anyone can cash in.
Even worse times
Morgan Stanley has predicted additional falls on $250 billion dollars. Thats a 21% fall. If that happens hedge funds will have $950 billion total, which is the lowest since 2004.
Looking for a job?
gordon gekko from the movie wall street
“The hiring process is turning back to the 1990s, when candidates had 15 to 30 interviews before being hired,” said Michael Karp, chief executive officer of Options Group to Bloomberg.
Source: Bloomberg.com
“I am happy to buy when faced with irrational fear, but the fear that I see around me today appears reasonably rational. - Crispin Odey”
Hedge fund investments peaked in June 2007 and bottomed in October 2008.
Q1: January, February, March 2008
“Data from Hedge Fund Research showed that the overall return for hedge funds during January was -1.8 per cent.”
Q2: April, Mai, June
Q3: July, August, September
Q4: October, November, December
In October over $21 billion was taken out of the industry. Investors got desperate and wanted to sell in a market short of buyers. Money was aggressively taken out.
November 2008 was almost as bad. $19.4 billion was taken out of hedge funds. The total outflow of hedge funds for 2008 was at $44 billion.
Hedge Funds in general finished 2008 -18.3%.
See a list of top 10 hedge fund winners and losers
Hedge Fund Riches is giving you the list of the best and the worst hedge funds of 2008.
List is sorted in Investment funds - return - date.
Top 10 winners
Top 10 losers
Source: Read full report here, Michael Covel - 2008 Hedge Fund Performance
One of Norway’s richest heirs used parts of the family fortune to build a large fund. All went well, until 2008.
After doing very well for years Thor Johan Furuholmen and Explora European Small & Mid Cap met the wall.
In 2008 the hedge fund was down 65 %, and is ranked at 2322th of 2409 in the Bloombergs database. A total night mare for the fund.
“Everyone had to sell the same stocks. It has been like pushing ten elephants out of one door. It didn’t go very well. We had to sell in a market that didn’t have buyers. I was asked by the investors to sell 80 % of the fonds assets in a very bad market”, says Furuholmen to a Norwegian newspaper.
He also point to the fact that their fond is relativly high risk, which makes it go very well in the good years, and has a high risk in bad years.
Furuholmen says the fund have a big investment for the next month. But he don’t say if its more of the families money.
Active Premium - A measure of the Investment’s annualized return minus the Benchmark’s annualized return.
Additions – Frequency at which fund additions are accepted by the fund.
Administrator – The offshore fund entity that manages the back office work and individual accounts for the fund.
Alpha - Alpha is the measure of a fund’s average performance independent of the market, (i.e. if the market return was zero.) For example, if a fund has an alpha of 2.0, and the market return was 0% for a given month, then the fund would, on average, return 2% for the month. To view the formula for Alpha, please download the word document.
AUM – Assets Under Management
Average Annual Return or Average Rolling 12 Month Return - The average of the rolling 12 month performance periods of the fund. For example. If a fund begins in January 1997, and it is currently March 1998, then there are four rolling 12 month periods for the fund. (The first is January 1997 - December 1997, the next is February 1997 - January 1998, the next is March 1997 - February 1998, and the last is April 1997 - March 1998.) The average annual return is the average of the four rolling 12 month periods.
The average annual return might not match an annualized calculation of the monthly return.
Average Monthly Gain – The average of the profitable months of the fund.
Average Monthly Loss – The average of the negative months of the fund.
Average Monthly Return - The average of all the monthly performance numbers of the fund.
Average Number of Positions – The number of securities that a fund holds on any given day.
Average Portfolio Turnover – The percentage of the portfolio that is bought and sold each year.
Benchmark for Correlation Values – The benchmark that the fund has chosen to run correlation values such as alpha, beta, R and R squared.
Benchmark for Graphing – The benchmark that the fund has chosen to graph itself against.
Beta - Beta is the measure of a fund’s volatility relative to the market. (Almost all fund managers correlate themselves to the S&P 500). A beta of greater than 1.0 indicates that the fund is more volatile than the market, and less than 1.0 is less volatile than the market. For example, if the market rises 1% and a fund has a beta greater than 2.5, the fund will rise, on average, 2.5%. For a fund with a beta of 0.4, if the market rises 1%, the fund will rise on average, 0.4%. The relationship is the same in a falling market. (Please note that funds can have a negative beta, meaning that on average they rise when the market falls and vice versa). To view the formula for Beta, please download the word document.
Calmar Ratio - This is a return/risk ratio. Return (numerator) is defined as the Compound Annualized Rate of Return over the last 3 years. Risk (denominator) is defined as the Maximum Drawdown over the last 3 years. If three years of data are not available, the available data is used. ABS is the Absolute Value.
Compounded Annual Return – The compounded annual return is simply the compounded monthly return multiplied by the 12th power.
Compounded Monthly Return – The compounded monthly return is the return that if compounded over the life of the fund would lead to the total return of the fund. For example, if a fund has 10 months of return equaling 100% as a total compounded return. The compounded monthly return would be 7.18%.
Current Leverage – The amount of leverage currently used by the fund as a percentage of the fund. For example, if the fund has $1,000,000 and borrowing another $2,000,000, to bring the total dollars invested to $3,000,000, then the leverage used is 200%.
Current Net Exposure – The exposure level of the fund to the market at the present time. It is calculated by subtracting the short percentage from the long percentage. For example, if a fund is 100% long and 25% short, then the net exposure is 75%.
Downside Deviation - Similar to the loss standard deviation except the downside deviation considers only returns that fall below a defined Minimum Acceptable Return (MAR) rather then the arithmetic mean. For example, if the MAR is assumed to be 10%, the downside deviation would measure the variation of each period that falls below 10%. (The loss standard deviation, on the other hand, would take only losing periods, calculate an average return for the losing periods, and then measure the variation between each losing return and the losing return average).
High Water Mark – The assurance that a fund only takes fees on profits unique to an individual investment. For example, a $1,000,000 investment is made in year 1 and the fund declines by 50%, leaving $500,000 in the fund. In year 2, the fund returns 100%, bring the investment value back to $1,000,000. If a fund has a high water mark, it will not take incentive fees on the return in year 2, since the investment has never grown. The fund will only take incentive fees if the investment grows above the initial level of $1,000,000.
Highest 12 Month Return - The best or highest 12 month period of a fund’s performance
Highest Monthly Return - The best or highest monthly return of the fund.
Hurdle Rate – The return above which a hedge fund manager begins taking incentive fees. For example, if a fund has a hurdle rate of 10%, and the fund returns 25% for the year, the fund will only take incentive fees on the 15% return above the hurdle rate.
Incentive Fee – The fee on new profits earned by the fund for the period. For example, if the initial investment was $1,000,000 and the fund returned 25% during the period (creating profits of $250,000) and the fund has an incentive fee of 20%, then the fund receives 20% of the $250,000 in profits, or $50,000.
Inception Date – The date that the fund began trading.
Jensen Ratio - The Jensen Ratio, developed by Michael Jensen, quantifies the extent to which an investment has added value relative to a benchmark. The Jensen Alpha is equal to the Investment’s average return in excess of the risk free rate minus the Beta times the Benchmark’s average return in excess of the risk free rate.
Lockup – Time period that initial investment cannot be redeemed from the fund.
Longest Losing Streak – The number of consecutive months of negative performance.
Lowest Monthly Return - The lowest or worst monthly return of the fund.
Lowest 12 Month Return - The lowest or worst 12 month period of a fund’s performance
Management Fee – The fees taken by the manager on the entire asset level of the investment. For example, if at the end of the period, the investment is valued at $1,000,000, and the management fee is 1%, then the fees would be $10,000.
Master-Feeder Fund – A typical structure for a hedge fund. It involves a master trading vehicle that is domiciled offshore. The master fund has 2 investors: Another offshore fund, and a US (usually Delaware) Limited Partnership. These two funds are the feeder funds. Investors invest in the feeder funds, which in turn invest all the money in the Master fund, which is traded by the manager.
Maximum Drawdown – The worst period of “peak to valley” performance for the fund, regardless of whether or not the drawdown consisted of consecutive months of negative performance.
Minimum Investment – The minimum initial investment for the fund.
Peak to Valley Drawdown – The worst period of return of the fund.
Percent Long – The percentage of the fund invested in long positions
Percent Short – The percentage of the fund that is sold short.
Profitable Percentage – The percentage of monthly returns that the fund made money.
Pro-Forma - A monthly return that, for some reason, was not completed by the fund in the exact structure as it is now. Examples: 1. A fund manager who managers a master feeder structure does not have any money in the offshore fund, but since the offshore fund is simply an investor in the master fund, he reports the returns as pro-forma. 2. A fund manager runs managed accounts with the same exact strategy and fee structure as his new fund. He may list the performance of the managed accounts as pro forma, for while there was a real track record, it just was not in the fund structure. 3. A fund manager leaves his management company and brings the fund with him. He may report the performance under the old management company as pro-forma. 4. A fund of funds launches with 10 funds in the portfolio. It may report the historical results of the weighted funds as pro forma. Note: HedgeFund.net discourages the reporting of pro-forma results, as they oftentimes confuse investors because there are so many definitions of pro-forma results.
R and R Squared - R and R Squared show if there is any correlation between the fund and the market. 1.0 is perfect correlation, 0.0 is absolutely no correlation and –1.0 is perfect negative correlation. The industry assumes that an R squared below 0.3 has no correlation to the market.
Redemptions – Frequency at which fund redemptions are accepted by the fund.
Reporting Agent – Any third party that analyses and verifies the monthly returns of a fund.
Risk Free Rate for Sharpe Ratio: 5%
Risk Free Rate for Sortino Ratio: 5%
Standard Deviation or Average Standard Deviation - The Standard Deviation of monthly returns. If you need a definition of standard deviation, please download the word document.
Rolling 12 Month Standard Deviation - Standard Deviation of Rolling 12 Month Returns.
Sharpe Ratio or Annualized Sharpe Ratio - Here are two ways of stating the same thing:
* The average monthly return minus the monthly risk free rate (we use 0.41%) divided by the Standard Deviation. We take that number and multiply it by the square root of 12 to annualize it.
* [(Average Monthly Return - Risk Free Rate (0.41%) / Standard Deviation] *12 to the 1/2 power.
Rolling 12 Month Sharpe Ratio - It is the same calculations as the above Sharpe ratio, except we use annual and rolling 12 month numbers. So, it’s the Average Annual Return - the Annual risk free rate (5%) divided by the rolling 12 Month Standard Deviation.
Sortino Ratio – The Sortino Ratio is similar to the Sharpe Ratio, except that instead of using standard deviation as the denominator, it uses Downside Deviation. The Sortino Ratio was developed to differentiate between “good” and “bad” volatility in the Sharpe Ratio. If a fund is volatile to the upside (which is generally a good thing) its Sharpe ratio would still be low. To quote the Sortino web site: “A comparable downside risk ratio that has come to be called the Sortino ratio has for the numerator the difference between the return on the portfolio and the MAR. The denominator for the Sharpe ratio is standard deviation, and for the Sortino ratio it is downside deviation.” The MAR is the Minimum Acceptable Return (We are using 5%).
Sterling Ratio - This is a return/risk ratio. Return (numerator) is defined as the Compound Annualized Rate of Return over the last 3 years. Risk (denominator) is defined as the Average Yearly Maximum Drawdown over the last 3 years less an arbitrary 10%. To calculate this average yearly drawdown, the latest 3 years (36 months) is divided into 3 separate 12-month periods and the maximum drawdown is calculated for each. Then these 3 drawdowns are averaged to produce the Average Yearly Maximum Drawdown for the 3 year period. If three years of data are not available, the available data is used.
Total Return Since Inception - The total Cumulative return for the fund since inception
Treynor Ratio - The Treynor Ratio, developed by Jack Treynor, is similar to the Sharpe Ratio, except that it uses Beta as the volatility measurement. Return (numerator) is defined as the incremental average return of an investment over the risk free rate. Risk (denominator) is defined as the Beta of the investment returns relative to a benchmark.
Typical Leverage – The amount of leverage typically used by the fund as a percentage of the fund. For example, if the fund has $1,000,000 and borrowing another $2,000,000, to bring the total dollars invested to $3,000,000, then the leverage used is 200%.
Typical Net Exposure – The exposure level of the fund to the market that the fund attempts to maintain over time. It is calculated by subtracting the short percentage from the long percentage. For example, if a fund is 100% long and 25% short, then the net exposure is 75%.
Source: http://www.hedgefund.net/glossary.php3
Hedge Fund terms you should know.
Share. Describes the total share holding of a company divided into bits or slices to be purchased by institutions or individuals.
Securities. The unit shares you hold are well protected to the extent you invested by the regulatory authorities. Once a share is created, it cannot be destroyed, stolen, and can only be transferred.
Equity. Means the distribution and sales of shares are equitably done i.e. once a price is fixed; it remains the same for everybody irrespective of where you live unlike property investment whose prices are affected by location.
Stocks. Describes the total volume of shares held by the individual in company.
Rally. Means simply that the stock market goes up from whatever point it stood at when the rally started.
Blue Chips. Describes solid, quality stocks on the stock exchange e.g. Nestle, First Bank, Cadbury, Nigerian Breweries, Zenith Bank. The term is derived from the blue chip used in gambling especially in poker, which has the highest value.
Correction. When the market has moved rapidly in one direction, then changes (usually not so rapidly) in the other direction.
Long pull. How high an investor thinks a stock price will go before they sell.
Pull back. When the price rise reaches its peak, slows and then stops and begin to decline or fall back, people begin to sell at this point.
Bottom out. When the price has gone as low as it can, investors begin to buy again.
Liquidity. When we talk about liquidity on a stock exchange, we are talking about how easily and quickly a company shares can be converted to cash. If it is very liquid, it means is easy to trade in the shares.
Bull trend. Upward move or trend. It means the market is going up and is doing well, as reflected in share prices.
Bullish. Investor who believes that the market prices are going to go up.
Bearish. Investor who believes that the market prices are going to go down.
Stag. Investor who wants to make profits from new issues of shares. He buys the shares before they are listed. Then sells them at a higher price soon after they are listed.
Automated Trading. Is when the buying and selling of shares is done on a computer? dealers enter buy and sell orders for shares into an electronic trading system on a computer. The computer automatically does a transaction with the best selling and buying prices.
Brokers Contract Note. The broker’s contract note is very important. It shows everything about the deal that the stockbroker has done for you. It tells you how much you have to pay the stockbroker for the shares he has bought for you. If you have sold shares it tells you how much you will receive for the sale of your shares.
Certificate of Stockholding. Shows how many shares you own. It is a very important document. You must keep it safe place.
Capital Market. Refers to the Stock market, it is a platform for raising money or capital from the investing public to meet company’s financial needs.
Money Market. Refers to Banks and other financial institutions that offer loans investment opportunities and capital for businesses.
Source: http://www.bestezines.com/?Stock-Trading-terms-You-Must-be-Familiar-With&id=10715
