Investment principles
Is leverage trading risk-free? Simple answer – No. Nothing in investing and trading is without risk. Leveraged trading just amplifies your potential gains and your potential losses. So why use leverage for trading? There are many possible answers to that… Continue Reading
Did it come to a point in your stock trading history where looking back you can say, – I realized that I kind of suck at picking stocks? Well maybe, just maybe that marks a point in time when you… Continue Reading
What’s your investing horror story? Anyone who has been investing or trading for some time will have one, possibly more than one. Apart from the entertainment value, depending on your appetite for relishing the misery of others, there are also… Continue Reading
Economic news headlines have been flashing Inflation Predictions 2021. When you think of everyday food and gas prices, there is an alarming story we are all witnessing as consumers. However, the official story is – don’t worry, this is just… Continue Reading
What does the Sharpe ratio mean? The Sharpe ratio is one of those really useful metrics to assess either individual investments or a portfolio. Here is a definition. The Sharpe ratio is a measure of the risk-adjusted return of an… Continue Reading
What is the Black Scholes pricing model for? This is a very simple question that deserves a simple answer. The Black Scholes pricing model is an equation that expresses the price of a European call or put option in terms… Continue Reading
What is the best way to start investing for beginners? If you are asking yourself this question the chances are that you are expecting to be told where to put your money. We’ll get to that, but you need to… Continue Reading
Who really controls the stock market? This is a popular question and one that has inspired many conspiracy theories. There are variations on the obvious answer to this, each with some grain of something. But first, let’s just answer the… Continue Reading
What are investing style factors, and how can you use them to improve the returns on your stock portfolio? Both are excellent questions. Style factors are different ways to slice and dice approaches to the market. Many investment funds draw… Continue Reading
What’s sector investing and why is it important? Though this is always a very important consideration, some would say the most important consideration in investing, it so happens that this is also a very timely question. Those of us with… Continue Reading
There has been a lot of buzz in the investing and trading community in recent years around momentum investing. But if you were wondering what’s momentum investing, and you try to search on the topic you may become quickly frustrated.… Continue Reading
What’s growth investing, how does that compare with value investing, and is one better than the other? This seems a simple question. The simple answer is – that depends. We already looked at value investing with a thorough review of… Continue Reading
In this first of a sequence of articles comparing the main approaches to investing, we will be looking at what is the value investment strategy. It is widely accepted that the main reference work on value investing is “The Intelligent… Continue Reading
What is investing in the stock market? This is a very direct question and deserves a direct answer. Investing in the stock market is buying and selling shares in the ownership of companies. When you buy shares, the money you… Continue Reading
What is an index in the stock market? We’ve all heard newscasters report the stock market activity with a few words, like – ” The markets were strong today, the DOW closed one hundred points up, the Nasdaq Composite was up… Continue Reading