RISK AWARE INVESTMENT GUIDE FOR EVERYONE

  Let’s focus our attention on Risk that involves multiplying the loss/impact/severity and likelihood or probability [16] Risk = Impact * Likelihood, where Likelihood is the possibility of a risk event (negative or smaller than expected return) occurring, whereas Impact signifies beneficial or harmful effect of a risk event on the investment objectives. According to the proposed TLS, we will define the following Likelihood and Impact Low, Moderate and High scores. Table 1 shows that the risk severity matrix is a square containing 9 colored boxes in a 3x3 pattern. On the left are the Likelihood Levels, which is how we rate the likelihood that the event will happen. On the top are the Impact Levels, or severity if the event occur. Likelihood and related Probability P goes from Low (at the top left) to High (at the bottom left): Level 1 (Low) Not expected, but possible (P~0.25+/-0.2); Level 2 (Moderate) May occur sporadically (P~0.5+/-0.2); Level 3 (High) Likely to occur soon and repe...

  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...

  Many investors today realize the power of Business Intelligence (BI) analytics. According to the most recent BARC survey, such as Data, BI & Analytics Trends Monitor (09/2021), BI analytics was highlighted by 60% of respondents and has also been among the top trends over the recent years; 47% of respondents confirmed that the establishment of a data-driven culture is having a significant impact on their investments. The present guide is aimed to design data-rich BI applications that convert market data and financial KPI’s from myriad financial sources (annual report, balance sheet, income or cash flow statement, etc.) into meaningful information for investment decision-making. Specifically, the focus is on open-source BI investment solutions as a low-cost alternative to major BI vendors such IBM, Oracle [14], and MS Power BI. These solutions compare baseline metrics against current ones (to target difference in both relative and absolute terms), identify credible trends and e...

  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...

 

  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...

  A cknowledgments This blog is dedicated to the Animal Welfare Foundation (AWF) led by the Veterinary profession. Animal welfare should be at the forefront of every human action involving animals. They are there to ignite something in people’s consciences and in their hearts. This is also a contribution to HiSciDat - an emerging open communication platform that supports t he creation and dissemination of data-driven knowledge for the benefit of society .      While in the process of contributing to the Open Software Foundation (OSF) and E-Learning organizations (MOOCs), I began to assemble materials for the beginner’s investment guide, a process that allowed me to accomplish in-depth stock market research in terms of investment risk management. This research would not have been possible without the in-kind collaboration with major public cloud computing services (GCP/AWS/Azure) and the industry leaders in analytics (MS, Google, SAS, MathWorks and RStudio)....