The term “risk” refers to the probability that an event will occur.
The event can be positive or negative. However, we generally associate risk with the probabilities of negative events.
Financially, risk is defined as volatility. Asset classes have varying degrees of volatility. A dollar bill will not fluctuate in value whereas a gold [...] Read more »
There are some “truths” that investors should know. They are fundamental to investing. To know them gives you insight that you can leverage to make better day-to-day financial decisions.
Treating Funds Differently Based on Source
This is a financial trap where the source of the money affects your investing mindset. An example of this [...] Read more »
To invest properly we need to understand a couple of truths about our investing environment.
The Efficient Market
Markets are efficient. When we know something others do too. As a result the market is already priced to reflect that knowledge.
For this reason, when we read some information from a public source (newspapers, magazines, internet) we [...] Read more »