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Filipe Fittipaldi

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  1. Hello, thank you for your question! The difference between equity and stock is that all types of stocks are equity, not all types of equity are stocks. Equity consists of all the investments and earnings made by the owners, while stocks are just a way through which owners establish an equity stake in a certain company. Things that fall under equity are: The common stocks-which give someone an ownership stake in the company, The preferred stocks-which make sure that when earnings fall, those who have the preferred stocks are paid first, The retained earnings-when the company has a certain amount of earnings it can choose to issue dividends to stockholders or keep that amount for future needs, The contributed surplus-corporations issue stock which can be valued at $1 or less, which investors can buy at a higher price and excess is listed as contributed surplus, The treasury stock-is the stock that the company has purchased back from the customers. Share capital can be another name for the money invested into the company by stockholders, the difference between equity and share capital is that share capital doesn’t include retained earnings, while equity does. In conclusion, equity is capital invested in the company by owners, while shares are the division of this wealth between the owners and shareholders. Equity refers to the value of the business, while shares or stocks refer to the amount of involvement in the business.
  2. Hey Paul, Most of the brokers will tell you that you can only short sell stocks that trade above $5. While this may be the case in your particular brokerage company, it’s not a regulatory measure taken by the Financial Industry Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC). The best you can do is to talk to your broker. Many brokerage firms have a “short list”, which contains securities that the firm allows investors to short sell. If the asset you want to short sell isn’t on that list, your broker will have to contact the securities lending department and find out if the brokerage owns enough of that asset for you to short sell. Different brokerage firms have different shortlists and it’s your broker’s call whether he/she will let you short sell a particular security.
  3. Jumping back to this... As I wrote in my last answer, it seems that the Bitcoin price is more inclined to the downside. The price jumped on PayPal reports but there was no follow up on that. One of the more respected crypto analysts, Simon Peters, said that details surrounding the PayPal report are scarce. “The most interesting thing will be if (and how) PayPal utilises its pre-existing arrangements with various physical and online retailers. Given that a massive swathe of online retailers already have some deep integration with PayPal, will the firm begin to offer payment directly with crypto?” Peters said. “That would be exciting indeed and would be a huge step towards seeing crypto assets, such as bitcoin and its forks, being used to pay for everyday goods and services”. Of course, we all agree that if PayPal starts accepting crypto transfers, this would be absolutely huge for the entire industry. However, the Bitcoin bulls failed to sustain the momentum following PayPal news. This tells me that the market wants to move lower first. I agree with Peters that the move lower in Bitcoin price may be connected to the surge in new COVID-19 infections most recently. “After the news broke, Bitcoin hit a very respectable $9,699, dropping off towards the end of the week as markets got spooked about the spike in coronavirus cases in some parts of the world,” Peters concluded. It would be interesting to see what happens next. Bitcoin printed a new 1-month low this week below $8,900. I think that the realistic short-term scenario is a trip to low $8,000s before new buyers get in to support the price action and launch another attempt to clear the $10,000 resistance.
  4. Hello Trevor, thank you for asking the question. The symmetrical triangle is a chart pattern that forms usually as a part of a continuation pattern. The triangle consists of at least two lower highs and higher lows. Once they’re connected, the lines meet, forming a symmetrical triangle. The triangle also resembles a shrinking wedge that’s wide when the pattern forms and narrows over time. The symmetrical triangle is often a part of a continuation pattern, it can also indicate significant trend reversals in some instances. Still, the direction of the next important move can be identified only after a proper breakout. Triangle patterns serve as an efficient technical measure for trading the breakout which can be employed in other variations too. The chart below is an example of a symmetrical triangle. When conducting technical analysis, traders can measure the distance between the upper and lower trendline and use it to estimate the proper target once the price has broken out of the pattern. You should know that there are very few instances when you can spot a perfect symmetrical triangle so don’t rush into voiding imperfect patterns. Another thing to keep in mind is that analyzing triangle patterns is more about understanding the behaviour of the market through price action rather than trying to find a perfect triangle. Other types of triangle patterns are ascending and descending triangles. The main difference between the symmetrical triangle and the latter two is in symmetrical triangles, upper and lower trendlines are inclining towards a focal point in the centre. In ascending triangles, the horizontal upper trendline serves as an indicator for a potential higher breakout and in a descending triangle pattern, the lower trendline can signify a potential lower breakdown.
  5. Hello Anna, According to the reports from May, Vodafone met analysts expectations with a 2.6% increase in full-year core earnings, jumping to 14.9 billion euros ($16.10 billion). However, the second-largest mobile operator in the world didn’t provide full-year guidance due to coronavirus-related issues at the time. “We are experiencing a direct impact on our roaming revenues from lower international travel and we also expect economic pressures to impact our customer revenues over time,” Vodafone said. “However, we are also seeing significant increases in data volumes and further improvements in loyalty, as our customers place greater value on the quality, speed and reliability of our networks.” Vodafone said that uncertainties and issues caused by the coronavirus epidemic prevented it from presenting adjusted core earnings outlook for 2020. Still, the company said the guidance could be slightly lower compared to the 14.5 billion euros for the current year, due to the current economic situation in the world. However, Vodafone did report the outlook for free cash flow before spectrum expenses, noting we could expect at least 5 billion euros. The CEO of Vodafone, Nick Read, cut the company’s dividend last year, taking some pressure off from Vodafone’s balance sheet. The company’s full-year payout of 9.00 euro cents a share remained unchanged. As for some more recent news, Vodafone UK asked the government to speed up the 5G rollout process as part of its Covid-19 recovery plan, saying the new cellular network technology could inject as much as £158 billion to the country’s economy over the next 10 years. “It is crucial to recognise the role that fast and reliable connectivity will play in unlocking the digital potential that exist in every nation and region across the UK,” said CEO of Vodafone UK, Nick Jeffery.
  6. Hi Hakiza, Thank you for your question. If you are looking for more volatile digital coins than COMP is one of the tokens to look at. COMP is trading in a volatile manner since its rollout a few weeks ago. The token has been a popular subject over the past few days after it made a triple-figure rally since its rollout. COMP was listed at $80 when released, while the price action now trades comfortable above $200. The all-time high sits at above $370. Hence, the token gained more than 350% in value in just a few weeks. COMP is a governance token that’s provided to lenders free of charge. This way, new clients are attracted to the platform. Coinbase, a major crypto exchange, announced that it listed COMP digital coin on its popular exchange. COMP has been made available also on Coinbase's apps for iOS and Android. “Coinbase customers can now buy, sell, convert, send, receive or store COMP. COMP will be available for customers in all Coinbase-supported regions, with the exception of New York state,” Coinbase wrote in a blog post. Interestingly, Coinbase has a history with Compound. It supported the project two years ago and it admitted that it still owns a certain amount of COMP tokens. “Coinbase intends to maintain its investment in Compound for the foreseeable future and maintains internal policies that address the timing of permissible disposition of its digital assets, including COMP tokens.” Looking in the short-term, COMP gained around 15% on Friday, before paring back a portion of these gains today to trade 10% in the red. Overall, as said initially, COMP is one of the most volatile digital coins in the past few weeks.
  7. Hi Simon, Norway’s sovereign wealth fund plans to sell over $10 billion of stocks in companies related to fossil fuels as a result of recent recommendations for rubber-stamping made by Finance Committee recommendations in country’s Parliament. The move from fossil fuels to renewable energy was a part of several announcements released by the Norwegian government. Under the new recommendations, Norway’s sovereign fund will not be able to invest in companies that mine over 20 million tonnes of coal per year or generate over 10,000MW of energy with coal. In other words, Norway’s Wealth Fund will likely have to let go of 2.03% holding in Glencore, one of the largest commodity trading and mining companies in the world. The Wealth Fund’s 2,03% stake in Glencore is worth over $1 billion. Additionally, the fund will probably have to sell a 2.16% stake in Anglo American as well, which is worth about $620 million. “What this does do ... is give a very clear signal to both governments and companies that the time for financing fossil fuels is coming to an end, for the benefit of both people and planet,” said Martin Norman, Sustainable Finance Campaigner at Greenpeace in Norway. Other major disposals include Norway Wealth Fund’s 1.39% stake in Germany’s RWE ($186 million), 2.22% stake in Australia’s South32 ($266 million) as well as 1.03% stake in Germany’s Uniper. The new regulations set by parliament don’t allow the fund to invest in companies that generated over 30% of its revenues from coal. That forced the fund to let go of stakes in 83 companies that generate most of their revenues from coal, including Peabody Energy and Coal India and power producers like Portland General Electric and Korea Electric Power.
  8. Hello Grace, thanks for coming here. Japanese stocks tumbled on Thursday, with declining sectors such as the Paper & Pulp, Railway & Bus and Real Estate sent Nikkei 225 down 1.22% after the close. The top-performing components of the index include Olympus Corp. (T:7733), which advanced 11.15% to 2132.5 at the close. Also, shares of Rakuten Inc (T:4755) climbed 2.78% or 27.0 points to close the session at 998.0 and NEC Corp. (T:6701) rose 2.38% to 5170.0 in the late trading session. The worst of the bunch were Mitsui Engineering & Shipbuilding (T:7003), dropping 6.35% or 29.0 points to hit the 428.0 mark at the close. Shares of J.Front Retailing Co., Ltd. (T:3086) were down 6.25%, ending the day at 810.0 while Dentsu Inc. (T:4324) dropped 5.38% or 145.0 points to 2550.0. The declining components overshadowed the top performers on the Tokyo Stock Exchange, with 2665 decliners, 871 climbers and 149 unchanged stocks. However, the Nikkei volatility didn’t change, remaining at the 28.90 mark. Crude oil tumbled 1.03% to $37.62 a barrel. Brent oil for August delivery declined 0.89% to $39.95 a barrel and August Gold Futures contract climbed 0.16% to $1777.90 a troy ounce. This is not the first time the Japanese stock market index dropped this month, Tokyo stocks declined sharply two weeks ago, sending Nikkei tumbling over 3%, following Wall Street declines due to rising concerns over the impact from a potential second wave of the coronavirus epidemic. At the time, every industrial sector declined, with worst performers including marine transportation, mining and nonferrous metal concerns.
  9. Hi Peter, Thanks for the question. I'm not sure about Bitcoin rally. The reasons are twofold. First, it appears that bigger Bitcoin miners moved thousands of Bitcoins to exchange wallets, most likely to sell in the near future. This is in addition to thousands of Bitcoins transferred through over-the-counter (OTC) deals. Situations like this usually lead to a bear rally. Miners are looking to cash in their assets, that's why they hoard them before moving them to an exchange. Selling then, of course, impacts the prices in a bearish way. It appears that the majority of 2,650 BTC (one of the transfers) was transferred to the Bitfinex exchange. Even bigger transfer was made earlier this week when over 9,000 BTC (approximately $86 million) was transferred. According to analysts, this is the biggest transfer in the past six months. Secondly, we tested $10,000 - a strong resistance - and failed to clear it two times in the past two months. Technically, this is a bearish development. Following buyers' failure to clear this resistance, the price action pushed lower towards the $9,000 support. A break of this support is likely to signal a new short-term bear cycle for Bitcoin. I hope you can use my assessment in a positive manner.
  10. Hi Sam, thanks for asking the question. Three inside up and three inside down refer to candlestick patterns that can be spotted on charts. In order for the pattern to take shape, three candles need to form in a specific order, signifying a momentum slowdown and a likely move in the opposite direction. Below, you can see the example of both patterns: The Three Inside Up is a bullish pattern, signifying that the declining asset could stop falling further and a price reversal can be expected. Those will help you identify the Three Inside Up pattern: - The market should be declining. - The first candle has a large black body - The second candle has a small white body that opens and closes inside the first black candle - The last candle is also white and closes above the close of the second one. The Three Inside Down, on the other hand, is a bearish pattern. It indicates the end of an uptrend and a bearish reversal. Here are its features: - The market should be moving up - The first candle is white featuring a large real body - The second candle is black featuring a small real body that opens and closes inside the real body of the first one. - The third candle has a black body that closes below the close of the second candle. Usually, investors don’t trade the Three Inside Up/Down pattern. The reason for this is because it merely serves as a signal for a price reversal. Also, I should note that this pattern is not always reliable because sometimes the price reversal is short-term and the price could easily revert back to its original direction. Let me know if you have any more questions.
  11. Hello John, Arbitrage trading refers to buying and selling the same assets in different markets to capitalize on price differences between those markets. Investors use arbitrage to take advantage of price differences of the same or similar asset in different markets. Arbitrage came to be because of market inefficiencies. Given that supply and demand are the two main market drivers, a slight change in one of these factors can impact the value of an asset. As a result, momentary glitches occur in the market, providing investors with an opportunity to make a quick profit. One of the ways to use arbitrage trading is by utilizing automated trading systems. Those systems use algorithms to identify price differences between the markets and notify the investor to make a move before the market readjusts. Here’s a common example of arbitrage trading. Let’s say a price per share of a company on one exchange is $15, while the same stock is trading at $14.95 on another exchange. Buying the stock on the second exchange and selling it on the first one right after would bring a small but quick profit to the investor, hence the arbitrage trading. Types of Arbitrage Two-currency arbitrage refers to taking advantage of the different quotes of two currency pairs rather than price discrepancies between two currencies in the same pair. Covered interest arbitrage refers to a strategy in which an investor benefits from interest rate differences between two countries while utilizing a forward contract to control the risk of exchange rates. Triangular arbitrage is a trading strategy that exploits the price differences between three different currencies and takes advantage of the conversion process of one currency into the other two. Glad if I’ve helped.
  12. Hello Michael, thanks for asking the question. The CEO of China Telecom Blockchain and Dig­i­tal Econ­omy Joint Lab­o­ra­tory, Jiang Wei, has recently made comments on this matter, saying that blockchain has high-potential use cases to improve 5G network services. It is estimated that around 170 million subscribers will use 5G services in China by the end of 2020. Wei believes that blockchain technology will play a major part in trusted management, secure interaction, and efficient cooperation between participants of the network and devices. He also said that blockchain in 5G will bring social capital to the 5G landscape as well as help the sector crowdsource the 5G infrastructure. Wei believes that blockchain could bring 5G resource sharing and usage tracking. His company is trying to use blockchain to make improvements in international roaming services. Wei thinks that blockchain could remove the need for third-parties and if that’s the case, the mentioned services could become more consistent and convenient. “Before we could see an efficient integration of blockchain and 5G, there are multiple issues that need to be dealt with blockchain technology,” said Wei. “Of those, the legality and security aspects of smart contracts are a major concern.” “In addition, from a design perspective, smart contracts cannot be repaired or upgraded. Therefore, 5G smart contracts need to formulate standardized solutions for bug fixes and updates.” However, the road to the implementation of the blockchain technology in 5G is difficult. Some of the main issues that make this process complex are scalability and interoperability. Still, Wei believes that with proper collaboration and research the two technologies could become one and bring substantially better communication services to the world. Hope I’ve managed to help.
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