Why the concept of “settlement” is necessary in traditional stock trading?
In today’s era of the global digital wave, we’ve become accustomed to instant transfers and near-instant payments. Therefore, many people are confused: why, after clicking “sell” on a stock, does my funds not immediately clear in full and become available, but instead takes one or two business days? This is precisely a crucial and historically significant concept within traditional stock trading – settlement.
prompt: Why does traditional stock trading require the concept of settlement?
“Making an investment and making money isn’t urgent, and getting anxious won’t help either.”
Reflecting on years of stock trading experiences, although I didn’t make a fortune, I also didn’t lose too much. The biggest issue was an unreasonable allocation of funds and an unstable mindset. Currently, my primary source of income is work, earning a fixed salary each day through part-time jobs, and my ability to withstand financial fluctuations remains at the level of bonds and bank deposits. However, people are inherently greedy; if you buy too little, even when prices rise, you won’t make money; and if you buy too much, you will lose money.
“Increased scrutiny of third-party advisor regulation, and the beneficiaries behind the ‘Douyin (TikTok) stock trading’ phenomenon face a crackdown?”
The hammer is falling. Following the surge of short videos, investment advisory services are reportedly entering a fast lane. In late September, after a period of intense activity in the A-share market, Douyin (TikTok) recommendations for stocks garnered attention from various parties. Numerous financial commentators have risen to prominence on Douyin, indirectly causing some volatility in capital markets. Behind these rapidly rising financial commentators lies a significant force: third-party investment