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pattern
(efeas, Egypt)
pattern
efeas, Egypt
Posts: 0
14 days ago
May 4, 2022 1:22
Head and Shoulders reversal
The pattern contains three successive peaks, with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline.
As its name implies, the Head and Shoulders reversal pattern is made up of a left shoulder, a head, a right shoulder, and a neckline. Other parts playing a role in the pattern are volume, the breakout, price target and support turned resistance. We will look at each part individually, and then put them together with some examples.
Prior Trend: It is important to establish the existence of a prior uptrend for this to be a reversal pattern. Without a prior uptrend to reverse, there cannot be a Head and Shoulders reversal pattern (or any reversal pattern for that matter).
Left Shoulder: While in an uptrend, the left shoulder forms a peak that marks the high point of the current trend. After making this peak, a decline ensues to complete the formation of the shoulder (1). The low of the decline usually remains above the trend line, keeping the uptrend intact.
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Head: From the low of the left shoulder, an advance begins that exceeds the previous high and marks the top of the head. After peaking, the low of the subsequent decline marks the second point of the neckline (2). The low of the decline usually breaks the uptrend line, putting the uptrend in jeopardy.
Right Shoulder: The advance from the low of the head forms the right shoulder. This peak is lower than the head (a lower high) and usually in line with the high of the left shoulder. While symmetry is preferred, sometimes the shoulders can be out of whack. The decline from the peak of the right shoulder should break the neckline.
Neckline: The neckline forms by connecting low points 1 and 2. Low point 1 marks the end of the left shoulder and the beginning of the head. Low point 2 marks the end of the head and the beginning of the right shoulder. Depending on the relationship between the two low points, the neckline can slope up, slope down or be horizontal. The slope of the neckline will affect the pattern's degree of bearishness—a downward slope is more bearish than an upward slope. In some cases, multiple low points can be used to form the neckline.
Volume: As the Head and Shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. Together, the decrease in volume and the new high of the head serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head, then decreases during the advance of the right shoulder. Final confirmation comes when volume further increases during the decline of the right shoulder.
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Neckline Break: The head and shoulders pattern is not complete and the uptrend is not reversed until neckline support is broken. Ideally, this should also occur in a convincing manner, with an expansion in volume.
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Support Turned Resistance: Once support is broken, it is common for this same support level to turn into resistance. Sometimes, but certainly not always, the price will return to the support break, and offer a second chance to sell.
Price Target: After breaking neckline support, the projected price decline is found by measuring the distance from the neckline to the top of the head. This distance is then subtracted from the neckline to reach a price target. Any price target should serve as a rough guide, and other factors should be considered as well. These factors might include previous support levels, Fibonacci retracements, or long-term moving averages.

pattern
efeas, Egypt
Posts: 0
42 days ago
Apr 5, 2022 23:06
Value Investing
Value investors are bargain shoppers. They seek stocks they believe are undervalued. They look for stocks with prices they believe don’t fully reflect the intrinsic value of the security. Value investing is predicated, in part, on the idea that some degree of irrationality exists in the market. This irrationality, in theory, presents opportunities to get a stock at a discounted price and make money from it.

It’s not necessary for value investors to comb through volumes of financial data to find deals. Thousands of value mutual funds give investors the chance to own a basket of stocks thought to be undervalued. The Russell 1000 Value Index, for example, is a popular benchmark for value investors and several mutual funds mimic this index.

Warren Buffet: The Ultimate Value Investor
But if you are a true value investor, you don't need anyone to convince you need to stay in it for the long run because this strategy is designed around the idea that one should buy businesses—not stocks. That means the investor must consider the big picture, not a temporary knockout performance. People often cite legendary investor Warren Buffet as the epitome of a value investor. He does his homework—sometimes for years. But when he’s ready, he goes all in and is committed for the long-term.

Consider Buffett’s words when he made a substantial investment in the airline industry. He explained that airlines "had a bad first century." Then he said, "And they got a bad century out of the way, I hope."2 This thinking exemplifies much of the value investing approach. Choices are based on decades of trends and with decades of future performance in mind.

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For those who don’t have time to perform exhaustive research, the price-earnings ratio (P/E) has become the primary tool for quickly identifying undervalued or cheap stocks. This is a single number that comes from dividing a stock’s share price by its earnings per share (EPS). A lower P/E ratio signifies you’re paying less per $1 of current earnings. Value investors seek companies with a low P/E ratio.

While using the P/E ratio is a good start, some experts warn this measurement alone is not enough to make the strategy work. Research published in the Financial Analysts Journal determined that “Quantitative investment strategies based on such ratios are not good substitutes for value-investing strategies that use a comprehensive approach in identifying underpriced securities.” 3 The reason, according to their work, is that investors are often lured by low P/E ratio stocks based on temporarily inflated accounting numbers. These low figures are, in many instances, the result of a falsely high earnings figure (the denominator). When real earnings are reported (not just forecasted) they’re often lower. This results in a “reversion to the mean.” The P/E ratio goes up and the value the investor pursued is gone.
What's the Message?
https://www.gold-pattern.com/en
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The message here is that value investing can work so long as the investor is in it for the long-term and is prepared to apply some serious effort and research to their stock selection. Those willing to put the work in and stick around stand to gain. One study from Dodge & Cox determined that value strategies nearly always outperform growth strategies “over horizons of a decade or more.” The study goes on to explain that value strategies have




pattern
efeas, Egypt
Posts: 0
3 months ago
Feb 12, 2022 15:24
In Thread: EUR

RIA Benchmarking Study Means

In our recent webinar, we spoke with Lisa Salvi, vice president of Business Consulting and Education for Schwab Advisor Services, to discuss the findings of the 2020 RIA Benchmarking Study and highlight the factors underlying that growth.
The Importance of a Strategic Plan
Currently in its 14th year, the RIA Benchmarking Study is one of the leading studies in the industry and features findings from 1,010 advisory firms representing $1.1 trillion in AUM.
Conducted between January and March of 2020, the study found that advisors started the year in a position of strength following the longest bull market in recent history. Surprisingly, many firms continued to see ongoing growth even during the worst periods of volatility in March.
“Advisors are used to innovating... and I think that’s one of the things in this COVID world that has helped to set them up for success,” explains Salvi, emphasizing that a keen focus on client experience has made a crucial difference during a period of extreme uncertainty. “We saw people pivot their business model very rapidly and serve their clients extraordinarily well throughout this time period.”
One of the biggest predictors of success for many firms has been a clear and actionable strategic plan. In fact, 75% of the top-performing firms in the study had these plans in place before the start of the pandemic and have been able to adapt to challenges more effectively as a result. According to Salvi, a comprehensive strategic plan should include a long-term vision, SWOT analysis, a purpose, and a value proposition. She also emphasizes that firms of all sizes can benefit from having one.
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Persona Targeting Can Yield Significant Results

To create those personas, firms need to take into account the demographic and psychographic characteristics of their ideal clients and understand what matters to those clients and what they value. For firms that are still in the early stages of growth, Salvi suggests that it’s okay to take on clients outside of those ideal personas, as long as there is some overlap with the key demographic they aim to serve.

A focused business model that focuses on ideal client personas and a strategic plan can give your firm a clear sense of direction and a predictable growth trajectory. Best of all, it can help you navigate periods of volatility and still come out on top.

pattern
efeas, Egypt
Posts: 0
3 months ago
Jan 25, 2022 21:04
In Thread: EUR
What Is a Class C Share
In comparison, a front-end load carries charges paid when the shares are bought and a back-end load assesses charges when the investor sells shares; and no-load funds contain no commission charges at all, with the fees simply calculated into the net asset value (NAV) of the fund.
Class-C mutual fund shares charge a level sales load set as fixed percentage assessed each year.
This can be contrasted with front-load shares that charge investors at time of purchase and back-end loads that charge at time of sale.
Because the annual fee can compound investor cost over time, this class of fund is best-suited for those looking to hold fund shares for periods of 3 years or less.
The Basics of Class C Shares
Compared to other mutual fund share classes, class C shares often have lower expense ratios than class B shares. However, they have higher expense ratios than class A shares. Expense ratios are the overall annual management costs of running a mutual fund. As a result, Class C shares may be a good option for investors with a relatively short-term horizon, who plan to keep the mutual fund for just a few years.
The ongoing charges that constitute the C-share level load are officially known as 12b-1 fees, named from a section of the Investment Company Act of 1940. Total 12b-1 fees are capped at 1% annually. In this 1% fee, distribution and marketing expenses can be up to 0.75%, while service fees max out at 0.25%. Although designated for marketing, the 12b-1 fee primarily serves to reward intermediaries who sell a fund's shares. In a sense, it's a commission paid by the investor to the mutual fund every year, instead of a transactional one https://www.gold-pattern.com/en
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Other mutual fund share classes come with 12b-1 fees too but to different degrees. Those fees charged to class A shares usually are lower, compensating for the high upfront commissions this category pays. C-shares tend always to pay the maximum 1% and, since 12b-1 fees figure into the mutual fund's overall expense ratio, their presence can push that annual expense ratio above 2% for the class C-shareholder.
Unlike A-shares, class C shares do not have front-end loads, but they often carry small back-end loads, officially known as a contingent deferred sales charge (CDSC), just as class B shares carry. However, these loads for C shares are much smaller, typically only around 1%, and they usually vanish once the investor has held the mutual fund for a year.
Who Should Invest in Class C Shares?
Because of the back-end load charged on short-term redemptions, investors who plan to withdraw funds within a year may want to avoid C-shares. On the other hand, the higher ongoing expenses associated with C-shares make them a less-than-ideal option for long-term investors.
The differences in final values of investments with varying fees can be immense when held for a substantial period—say, in a retirement fund. For instance, take a $50,000 investment in a fund that returns 6% and charges annual operating fees of 2.25%, that is held for 30 years. The final amount the investor will receive will equal $145,093.83. A fund with the same amount invested and the same annual returns, but with yearly operating fees of 0.45% will offer the investor significantly more, with a final value of $250,832.55.
Class C shares would work best for investors planning to keep the fund for a limited, intermediate period, optimally more than one year but less than three. That way, you hold on long enough to avoid the CDSC, but not so long that the high expense ratio will take a major toll on the fund's overall return.
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pattern
efeas, Egypt
Posts: 0
4 months ago
Jan 11, 2022 19:47
Commingled Fund
A commingled is when an investment manager accumulates money from several investors and combines it into one fund.
Like mutual funds, commingled funds are overseen and managed by portfolio managers who invest in a range of securities.
Unlike mutual funds, commingled funds are typically not regulated by the SEC.
Commingled funds do not trade publicly and are not available for individual purchase; instead, they feature in institutional accounts such as pensions, retirement plans, and insurance policies.
Understanding a Commingled Fund
Commingling involves combining assets contributed by investors into a single fund or investment vehicle. Commingling is a primary feature of most investment funds. It may also be used to combine various types of contributions for various purposes
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In many ways, commingled funds are similar to mutual funds. Both are professionally managed by one or more fund managers and invest in basic financial instruments such as stocks, bonds, or a combination of both.
Also, like mutual funds, commingled fund investments benefit from economies of scale, which allow for lower trading costs per dollar of investment, and diversification, which lowers portfolio risk.
Oversight of Commingled Funds
One major and important difference, however, is that commingled funds are not regulated by the Securities and Exchange Commission (SEC), which means they are not required to submit a variety of lengthy disclosures. Mutual funds, on the other hand, must register with the SEC and abide by the Investment Company Act of 1940.
Commingled funds are not completely devoid of oversight, though: They are subject to review by the United States Office of the Comptroller of the Currency, as well as individual state regulators.
While mutual funds have a prospectus, commingled funds have a Summary Plan Description (SPD). SPDs offer more detail, describing the fund's objectives, investment strategy, and background of its managers. The SPD document states the rights and obligations that the plan participants and beneficiaries can expect. Any participant in a commingled fund should read the SPD carefully.
Advantages and Disadvantages of Commingled Funds
The lower degree of regulation results in lower legal expenses and operating costs for a commingled fund. The lower the costs, the less drag on a fund's returns. If a commingled fund and a comparable mutual fund post the exact same gross performance, the commingled fund's net return would likely be better because its expenses were lower than the mutual fund's.

A disadvantage of commingled funds is that they do not have ticker symbols and are not publicly traded. This lack of public information can make it difficult for outside investors to track the fund's capital gains, dividends, and interest income. With mutual funds, this information is much more transparent. https://www.gold-pattern.com/en
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Illegal Commingling
In some cases, the commingling of funds may be illegal. This usually occurs when an investment manager combines client money with their own or their firm's, in violation of a contract.
Details of an asset management agreement are typically outlined in an investment management contract. An investment manager has a fiduciary responsibility to manage assets according to certain specifications and standards. Assets agreed to be managed as separate cannot be commingled by the investment advisor.
Other situations may also arise where contributions provided by an individual or client must be managed with special care. This can occur in legal cases, corporate client accounts, and real estate transactions.


pattern
efeas, Egypt
Posts: 0
4 months ago
Jan 3, 2022 21:16
Tips for Diversifying Your Portfolio
Investors are warned to never put all their eggs (investments) in one basket (security or market) which is the central thesis on which the concept of diversification lies.
To achieve a diversified portfolio, look for asset classes that have low or negative correlations so that if one moves down the other tends to counteract it.
ETFs and mutual funds are easy ways to select asset classes that will diversify your portfolio but one must be aware of hidden costs and trading commissions.
What Is Diversification?
Diversification is a battle cry for many financial planners, fund managers, and individual investors alike. It is a management strategy that blends different investments in a single portfolio. The idea behind diversification is that a variety of investments will yield a higher return. It also suggests that investors will face lower risk by investing in different vehicles.
5 Ways to Help Diversify Your Portfolio and Trading Signals
Diversification is not a new concept. With the luxury of hindsight, we can sit back and critique the gyrations and reactions of the markets as they began to stumble during the dotcom crash and again during the Great Recession.
Here are five tips for helping you with diversification:
1. Spread the Wealth
Equities can be wonderful, but don't put all of your money in one stock or one sector. Consider creating your own virtual mutual fund by investing in a handful of companies you know, trust and even use in your day-to-day life.
But stocks aren't just the only thing to consider. You can also invest in commodities, exchange-traded funds (ETFs), and real estate investment trusts (REITs). And don't just stick to your own home base. Think beyond it and go global. This way, you'll spread your risk around, which can lead to bigger rewards.
People will argue that investing in what you know will leave the average investor too heavily retail-oriented, but knowing a company, or using its goods and services, can be a healthy and wholesome approach to this sector.
Still, don't fall into the trap of going too far. Make sure you keep yourself to a portfolio that's manageable. There's no sense in investing in 100 different vehicles when you really don't have the time or resources to keep up. Try to limit yourself to about 20 to 30 different investments.
2. Consider Index or Bond Funds
You may want to consider adding index funds or fixed-income funds to the mix. Investing in securities that track various indexes makes a wonderful long-term diversification investment for your portfolio. By adding some fixed-income solutions, you are further hedging your portfolio against market volatility and uncertainty. These funds try to match the performance of broad indexes, so rather than investing in a specific sector, they try to reflect the bond market's value. https://www.gold-pattern.com/en
These funds are often come with low fees, which is another bonus. It means more money in your pocket. The management and operating costs are minimal because of what it takes to run these funds.

One potential drawback of index funds is their passively managed nature. While hands-off investing is generally inexpensive, it can be suboptimal in inefficient markets. Active management can be very beneficial in fixed income markets, especially during challenging economic periods.

3. Keep Building Your Portfolio
Add to your investments on a regular basis. If you have $10,000 to invest, use dollar-cost averaging. This approach is used to help smooth out the peaks and valleys created by market volatility. The idea behind this strategy is to cut down your investment risk by investing the same amount of money over a period of time.

With dollar-cost averaging, you invest money on a regular basis into a specified portfolio of securities. Using this strategy, you'll buy more shares when prices are low, and fewer when prices are high.

4. Know When to Get Out
Buying and holding and dollar-cost averaging are sound strategies. But just because you have your investments on autopilot doesn't mean you should ignore the forces at work.

Stay current with your investments and stay abreast of any changes in overall market conditions. You'll want to know what is happening to the companies you invest in. By doing so, you'll also be able to tell when it's time to cut your losses, sell and move on to your next investment.

5. Keep a Watchful Eye on Commissions