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Showing posts with the label financial markets

Investment Business Helicopter View

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  At the most basic level, investing/trading is about buying and selling assets for long-term/short-term gains [1,3]. It is all about buying X value of assets worth of intrinsic (fair market) value Y such that Y/X<<1. When you buy high-value companies for half of their value, you can experience quite generous returns. While investments can be profitable, they are also associated with risks. Risk  is central to investing because without the more risk you run, the greater your chances will be of losing your investment. On the other hand, a good rule of thumb is that greater returns come with greater volatility.  Therefore, it is important to use stock market risk management strategies that minimize the risk and maximize the gain [1-3]. This guide will support and advise you in order to enable quantitative and bias-free comparison of the risk profiles of various banks and investment companies. As an individual investor without prior knowledge of stocks and finance...