Hello Tigers!In the second lesson, I took you through cognitive biases, helping you understand why we often make repeated mistakes in investing. In this lesson, we're going to delve into another crucial aspect affecting your investment gains and losses: market sentiment.I. Why Market Sentiment Influences Investment DecisionsTraditional finance theory holds that stock prices always reflect the underlying value of listed companies. But is this really the case?Investors who have put their money into stocks should be aware that in actual financial markets, stock prices frequently diverge significantly from the true value of the listed companies. This phenomenon is primarily driven by investor sentiment.Emotions are a dominant force affecting various aspects of our lives. Our decisions, conclus

Hello Tigers!In the last class, I used three investment scenarios to help you understand what behavioral finance is. You should have noticed that behavioral finance permeates all aspects of investment, constantly influencing our investment decisions.In this class, I will take you deeper into the classic theory of behavioral finance: "Cognitive Biases".What are cognitive biases?In simple terms, it implies that you're unable to perceive things accurately as you wish. If you're still unclear, I'll elaborate further with two sections below.1.Do you really understand a company?Let's first talk about a common cognitive bias: Do you really understand a company?Many will first get to know a company before making investment decisions. They believe that without a thorough understanding of a company,

Hello, Tigers！In this issue, we will explore a fascinating course: "Behavioral Finance".This course is captivating because it unravels many mysteries commonly encountered in investments: What is the mechanism behind financial markets? Why do certain trading strategies yield profits? How can one avoid investment mistakes? And how to overcome erroneous psychological and emotional tendencies? How to achieve stable returns?In this class, I will vividly introduce to you what behavioral finance is through three lively trading scenarios.1.Every time you buy a certain stock, it starts to fall, but when you sell it, it rises again?Scenario 1:Whenever you invest in a particular stock, it seems to start falling continuously. However, when you sell that stock or prepare to buy another, it begins to ri

Hi Tigers!Since the launch of Treasuries products on the Tiger Trade app, many Tigers have been eager to purchase them. However, some still have questions during the purchase process. Today, I will address some frequently asked questions and tell you how to maximize the yield of Treasuries.1.Why do orders fail? - System cancels order Many Tigers encounter this system prompt when placing treasuries orders: "This bond order may not be able to achieve positive returns. It is recommended that you choose other bonds."Why does this prompt appear? The reason is that the system believes your order may result in a loss.Many Tigers might be puzzled. Aren't Treasuries "principal-protected" products with minimal risk? Why would there be a potential loss?First, consider a simple principle: before makin

Hello, Tigers!In the last lesson, we focused on the definition and categorization of bonds and learned about the five basic elements of bonds. In this lesson, I'll take you through: why you should invest in US treasuries and the risks of investing.In addition, I'll show you hands-on how to calculate the return on US treasuries.I. Why invest in US treasuriesMany Tigers may say that the returns on US treasuries are so low compared to assets like stocks and options that they don't feel attractive.It's certainly true that bonds seem less attractive when looking only at potential future returns. But from a long-term asset allocation and risk management perspective, the US treasuries offer three unique advantages:1.Low entry barrier:Unlike many other bond products that require a high starting in

Hello, Tigers!Welcome to the "US Treasuries Investment Courses." Bonds as an investment option are typically lower risk and offer relatively stable dividend payouts compared to stocks. Bonds may be a good choice for investors who are looking for long-term, stable investments and want to earn "passive income."Those courses will focus on US treasuries and expand into other types of bond investments, exploring the characteristics, risks, and relationships between different types of bonds and returns.Not only does bond investing provide a relatively low-risk investment option, but it also offers the potential for portfolio diversification and hedging against market volatility. So, I'm going to go into more detail for you in the next four lessons.Ⅰ. What is a bond?A bond is a financial instrume

WeWork has filed for bankruptcy protection. Once backed by Softbank and other top VCs and valued at $49 billion, the company made its stock market debut via SPAC merger in October 2021, trading for $11 at a market cap of $9 billion. Today it’s 99% down. The company has been burning cash since its statements are made public. Revenue growth inconsistent, net income & EBITDA negative. Free cash flow and operating cashflow has been negative. No economic moat. Not everything that IPOs is investable. In fact IPOs are used to transfer wealth from investors to the venture capitalists who have stakes in the IPO company. If the investor had done some basic checks using Gurufocus, Seeking Alpha & Morningstar, he would have known that this wasn’t a good investment to begin with. How to dec