Ask any reputable investor out there how you should be spending your money and chances are that they will immediately bring you up to speed on the concept of risk-to-reward and more specifically why you should always keep a close eye on the market before making any investments. This is …
**This is a post “in-progress.” New formulas will be added, when possible, until it is completed. Dividends are a simple concept. However, there are a lot of questions regarding their calculation. This post attempts to answer most of those questions. If you’re wondering “how to calculate dividend _?”, the answer …
You’re probably overwhelmed with the number of investment choices you have available. Having options is good, but the paradox of choice is a real problem. This problem can be addressed, at least in part, by realizing that most of those options will be poor ones. Remember the Pareto principle – …
The term “hedge funds” is thrown around all the time. Maybe you know all about them or maybe you have no idea what one is. More likely, you kinda know they’re like a mutual fund, but also different somehow. You know what hedging is. But not hedge funds, per se. …
You know that tech stocks have the potential to earn you a lot of money. Tech stocks have created vast amounts of wealth over the past 30+ years and you’re scared of missing out on your share. I can’t tell you, specifically, what tech companies to invest in. Though, you …
Risk tolerance, in investing, is a measurement of an investor’s resilience in the face of adverse events. Over a long enough timeline, an investor will be tested at least once. The riskier the investment, the more often, and more severe, they may be tested. Planning for and understanding how you …
A short-selling spreadsheet will help you, as an investor, to understand your margin requirements and your potential profit at different prices. Download a short-selling spreadsheet below or follow along to make your own. This post assumes that you are familiar with the basics of short selling and the accompanying margin …
In our fast-paced world, personal investment can go a long way in helping you achieve financial security. It is crucial to look into private investments to build wealth. Personal investments help avoid financial hurdles. This list of examples may help you decide what type of personal investments are best for …
Portfolio volatility measures how much and how often your investments change in value. The change can be positive or negative. By looking at the historic volatility of a portfolio in Excel, an investor can decide how comfortable they are with the potential changes in value. Everybody likes volatility. As long …
Stock picking involves actively choosing stocks to invest in with the goal of earning greater returns than would be earned with a passive strategy (e.g. index funds). Many investors open brokerage accounts for stock picking, but very few live up to their own expectations. Over the course of decades, index …