Active investing is very different from passive investing and hence requires a different mindset for decision-making. Indeed, active investing requires a completely different mindset to any other kind of buying and selling that you have done in the past, e.g. household appliances, motor cars, clothes, etc. All your life you have probably been taught to…
This week we move back onto the subject of “Investment Risk” and specifically the different “Types of investment risk”. As mentioned below in my 6th October 2010 post, there are two main types of risk, market risk and specific risk. Market risk is the downside potential that relates to the entire market or the industry…
For those who regularly follow my weekly Gary Stone Journal posts, you would be aware that 4 weeks ago I pointed to two important technical points on the All Ords index which, if broken, would indicate a high probability that the All Ords had finally broken out of a range bound sideways moving market. The…
When it comes to active investment in the stock market, the concept of Risk Management is about controlling the amount of capital that may be lost in the event that the market or a stock turns against your open positions. This week we will carry on from where we left last week’s post on Risk…
There are numerous risk and money management measures that can be adopted to protect capital but rather than focus on the varying methods of risk and money management, this post will look at “why you should apply risk management and money management rules to your investments”. What risk is there to manage you may ask?…
