RISK AWARE INVESTMENT GUIDE FOR EVERYONE

      It is all about Min(Risk)/Max(Return) Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return , as illustrated in Figure 6. Generally, the  R isk /R eturn trade-off  is calculated with the the aforementioned key drivers of returns in combination with Risk FMR   such as STDEV, Alpha/Beta, the Treynor/Sharpe ratio,   VaR/CVaR, R-squared, DCR,   DER, ICR, and DCL. Let’s say we have to select either TSLA or AAPL based upon current EPS and STDEV values (Q4 2021): Table 14 : Example EPS and STDEV for TSLA and AAPL. Stock EPS $ Q3 2021 STDEV Q4 2021 TSLA 1.86 3.56 AAPL 1.3 1.54   Even though EPS(TSLA)>EPS(AAPL), your investment in TSLA would be considered   much more risky than that in AAPL because STDEV(TSLA)/STDEV(AAPL)~2.3.   For instance, in the...

  Let’s get down to the nuts and bolts of the TLS and related metrics. As mentioned earlier, the ultimate universal goal of a resilient investor is to minimize the Risk/Return Ratio (RRR) by minimizing Risk whilst maximizing Return as follows: min(RRR)=min(Risk)/max(Return), where RRR = (Entry Point – Stop-Loss Point)/(Profit Target - Entry Point). The problem is that Return and Risk are intertwined cogwheels: they influence and counteract each other. Depending on the involved investment decisions, the focus can be on either one of them, but the effect will always  impact both. That’s why this problem is sometimes referred to as the Risk-Return Trade-Off “No Risk, No Return”.     For example, RRR=0.1 means that an investor should be prepared to lose $1 for the prospect of earning $10. Here, Risk is the difference between entry point for the trade and the stop-loss order [1]. The unrealistic zero value Risk=0 refers to the theoretical rate of return of an absolut...

  Hi there and welcome to your passive income journey! Your path to financial success starts now! I am your 24/7 Virtual Assistant (VA), an experienced digital consultant, educator and developer . I am a member of an emerging international consortium (HiSciDat) dedicated to fostering the use of t ech education for positive social impact without borders. I am working remotely with a few tech companies on a variety of business, technical and educational topics. I am very passionate about learning and teaching online. This is a 7-day risk aware investing/trading tour for all  levels of newbies to benefit from. The goal is to answer the million-dollar question: How do I get started within 1 week (!) without prior knowledge, what to invest in – and how much? Based on an extensive stock data analysis of the largest Fortune 500 companies as well as start-ups, this guide will show you how to maximize your returns while dealing with the risk of losses. In fact, even though some compani...