Investing, Finance & Economics

Learn about the world of investing, finance and economics.

The Defensive Investor

The Defensive Investor

Resource Center 27/06/2019 0
The Defensive Investor  Most people are better suited for the defensive strategy as the time they are willing to dedicate to investing is limited. The defensive investor should create a portfolio with a mixture of bonds and stocks, 50% stocks & 50% bonds. How much one should devote to each asset cat...
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Meet Mr. Market, (PS: he is bipolar)

Meet Mr. Market, (PS: he is bipolar)

Resource Center 27/06/2019 0
Meet Mr. Market, (PS: he is bipolar)  Imagine that you own a part of a business that you paid $1000 for. Everyday a certain bipolar person called Mr. Market comes to your home with an opinion about how much your part of that business is worth. Furthermore he offers to buy your share or sell you an a...
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Buy The Haystack

Buy The Haystack

Resource Center 27/06/2019 0
Buy The Haystack  An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio...
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The Role Of Chance

The Role Of Chance

Resource Center 26/06/2019 0
The Role Of Chance  Randomness contributes to or wrecks investment records to a degree that few people appreciated fully. As a result the dangers that lurk in thus far successful strategies often are underrated. Appreciating the role of luck is an important thing. You cannot judge the propriety of a...
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Do NOT be a Sheep in the Herd

Do NOT be a Sheep in the Herd

Resource Center 26/06/2019 0
Do NOT be a Sheep in the Herd  To buy when others are despondently selling and to sell when others are euphorically buying takes the greatest courage but provides the greatest profits. While most investors follow the current trend, the best investors a lot of the time do just the opposite. When ther...
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Mind your Psychological Influences

Mind your Psychological Influences

Resource Center 26/06/2019 0
Mind your Psychological Influences  The biggest investing errors come not from factors that are informational or analytical but from those that are psychological. The most important thing is combating negative influences. Greed & fear, the occasional dismissal of logic & reason, being envious, egois...
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Be Aware of Market Cycles

Be Aware of Market Cycles

Resource Center 26/06/2019 0
Be Aware of Market Cycles  Cycles will never stop occurring, if there was such a thing as a completely efficient market and people really made decisions in calculating in an unemotional manner perhaps cycles would be banished but that'll never be the case. Being aware of cycles is a tool that gives ...
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Controlling Risk

Controlling Risk

Resource Center 26/06/2019 0
Controlling Risk  The road to long-term investing success runs through risk control more than aggressiveness. Skillful risk control is the mark of a superior investor. Over a lifetime of investing the result will have more to do with the sizes of investment losses than the magnitude of winners. The ...
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Recognizing Risk

Recognizing Risk

Resource Center 25/06/2019 0
Recognizing Risk  In order to be able to achieve above average results, you need to have a way of identifying what risk a certain asset carries and then deciding if that is reasonable compared to the risk the market is expressing through the price of the asset. For example, pretend there is a compan...
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