Technical Analysis & Indicators
Practical Guide: The Relative Strength Index (RSI)
Category: Momentum Oscillator RSI Overview Definition The RSI (Relative Strength Index) is an indicator that measures the momentum and speed of price movements. Imagine it as a speedometer for a stock or any other financial asset. It is represented by a curve that always oscillates between 0 and 100. What is it used for? The primary purpose of the RSI is to detect market excesses. Markets do not rise (or fall) in a straight line indefinitely. The RSI helpFew readersPractical Guide: The MACD
Category: Trend & Momentum Indicator (Hybrid) Introduction to MACD Definition MACD (pronounced "Mac-Dee") stands for Moving Average Convergence Divergence. Unlike the RSI which is bounded between 0 and 100, the MACD has no limits. It is designed to reveal changes in the strength, direction, and duration of a trend. The 3 Components of MACD To read it correctly, you must understand that it is composed of three distinct elements displayed below the price chart: TFew readersPractical Guide: Moving Averages (SMA & EMA)
Category: Trend Indicator (Trend Following) Introduction to Moving Averages Definition A Moving Average is a line plotted on the price chart. It calculates the average price of an asset over a past period. Its purpose is to filter out the "noise" (insignificant small daily variations) to reveal the actual direction of the trend. SMA or EMA? The Big Difference There are two main types you will find on Investminder: SMA (Simple Moving Average): This is a classicFew readersPractical Guide: Composite Momentum (1-3-6 & 3-6-12)
Category: Asset Selection (Screening / Ranking) & Trend Tracking Introduction to Composite Momentum Definition Composite Momentum is a scoring method that measures an asset's performance over several simultaneous periods. Instead of just looking at whether a stock went up yesterday or last month (which can be noise), we look at its "health" over the short, medium, and long term at the same time. The Goal: Identify assets that have a robust and sustainable upwardFew readersPractical Guide: ATR (Average True Range)
Category: Volatility Indicator (Risk Management) Introduction to ATR Definition The ATR (Average True Range) does not concern itself with the direction of the price (up or down). It only focuses on the intensity of the movement. It measures the market's "nervousness" or "heat." Low ATR = The market is calm, the candles are small. High ATR = The market is volatile, the candles are large. The Intention: Why use it? It is mainly used to answer the question: "WhereFew readers
Investment Strategies
The Strategy: a Guiding Framework for Managing your Investments
With Or Without a Strategy Investing is not an impulsive act. It's a thoughtful approach that engages your financial future. Yet many investors jump in without direction, influenced by trends, emotions, or advice picked up randomly. A well-defined investment strategy provides the essential framework. It is your compass: it helps you stay disciplined, make informed decisionPopularHow to Design a Trend Following Strategy on Broad Index ETFs
Introduction: Why Trends Last Longer Than They Should Imagine two investors: One holds through the Dot-com bubble, the 2008 Financial Crisis, and the COVID-19 crash without ever reducing exposure. The other systematically cuts exposure when the market breaks its long-term trend. In the end, their total returns might not differ drastically, but their maximum drawdowns and stress levels are radically different. This is exactly what Trend Following seeks to capture: letting bull mFew readersHow to build an Investment Strategy?
The idea of "building an investment strategy" can seem daunting, something reserved for financial experts in three-piece suits. The reality is quite different! With a sound method and the right tools, defining a strategy that suits you is not only possible, but it's also the key to serenely achieving your financial goals. This guide is here to walk you through it step-by-step. We will break down this process into clear and simple stages, showing you how every feature of Investminder (https://wFew readersHow to Design a Dividend ETF Strategy
Introduction: The High Yield Trap The most common mistake among beginner dividend investors is confusing high yield with a good investment. This is almost never the case. A dividend strategy aims to generate a regular cash flow. The advantage of dividends is receiving passive income, a return to investors that is often appreciated although not tax-efficient. If you're seeking dividends, you probably want regular and available income: supplemental salary, retirement supplemenFew readersHow to design a Growth ETF Strategy?
Growth Investment Strategy: Maximizing Performance via ETFs Introduction: The Strategic Pivot of Growth Investing In the current economic landscape, the traditional definition of "growth" has evolved. Historically, low-interest rates favored speculative companies regardless of profitability; however, today's environment demands Quality Growth. The era of "cheap money" (2010-2020) that fueled unprofitable speculative growth is over. In today’s higher-interest-rate environment,Few readers
The Stages of an Investor's Life
Investing is much more than just managing money, it’s a journey that evolves alongside our aspirations, knowledge, and life stages. From the initial realization of the importance of growing one’s capital to passing on wealth to future generations, every investor goes through distinct phases, each marked by unique challenges and opportunities. This article explores the five key stages of this financial journey, providing a roadmap to help understand how to build, grow, and pass on wealth while fFew readersInvesting Against Inflation: Key Strategies for the Investor
For nearly twenty years at the start of the 21st century, inflation was largely absent from daily concerns. However, between 2021 and 2024, it returned forcefully, serving as a reminder of the real threat it poses to personal finances. Is your savings truly working for you, or against you? Effectively, inflation means your money loses purchasing power. What cost $100 two or three years ago may now cost $110 or $115. This is not just about a few products getting more expensive; it is a sustainedFew readersTypes of Investors
The Faces of the Investor: Understanding Different Investment Styles Introduction Investing is, above all, a matter of personality and vision. Each investor adopts an approach that reflects their risk tolerance, market understanding, and financial goals. Whether it’s going against the tide, riding market waves, or focusing on consistency without worrying about shoFew readersSustainable Finance & ESG/CSR ETFs: Criteria, Performance, and Costs
Introduction Does investing in ESG truly mean investing "better"? Will my money go toward companies I actually support? Will I save the planet through my investments? These simple, almost naive questions allow us to confront the ESG marketing promise with financial reality: you invest in a "green" ETF to protect the planet, only to discover it contains... an oil company. The rise of responsible investing—embodied by Environmental, Social, and Governance (ESG) or Corporate Social ResponsFew readersDiversification & Correlation
Beyond Simple Diversification: Understanding Asset Correlation for a Crisis-Proof Portfolio We all know the saying, "Don't put all your eggs in one basket." This conventional wisdom is the foundation of traditional diversification. But what if all your baskets fall at the same time? This question is not just a theoretical one. In 2008, during the global financial crisis, investors witnessed the simultaneous collapse of multiple asset classes. More recently, in 2022, we observed an equally unsFew readersHow to Achieve Financial Freedom?
Dreaming of a life where choices are no longer dictated by financial constraints is a universal aspiration. This freedom, which allows you to control your time to pursue your passions or simply enjoy your loved ones, has a name: financial freedom. Far from being a utopia, it is a realistic goal that requires strategy, discipline, and the right tools. Financial freedom is a state where your assets generate enough passive income to cover all your needs, without relying on a salaried job. ThiFew readersUS Inheritance: The Hidden Trap of Your Brokerage Account (and How to Avoid It)
If you pass away holding €250,000 in Apple and Microsoft shares and your country of residence at the time is not France, Germany, or the United Kingdom (among a few others), your heirs will discover they owe $57,800 to the IRS. That is nearly a quarter of the portfolio, even if you have never set foot in the United States. Welcome to the little-known trap of the US Estate Tax. Investing in Big Tech (Google, Apple, Facebook, Amazon, Microsoft) or major US indices has never been easier. WithFew readersThe UCITS Regulatory Standard Applied to ETFs
Introduction You have likely noticed it on your brokerage platform or banking app: those five letters, UCITS, systematically appear next to the names of your favorite ETFs. Whether you are investing in global indices or niche themes, this acronym is far more than just an administrative detail. It is, in fact, the real "engine" behind your financial security. Why should you care? Originally created to harmonize the European market, the European UCITS directive has become a globaFew readersDo you hesitate?
Thinking About Investing but Something Is Holding You Back? Taking the first step into managing your finances can be daunting. It's natural to have questions and hesitations. At InvestMinder.com, we understand this, and we want to address your concerns head-on. Let's explore some common reasons for hesitation and how we can help. "I hesitate because I’m notFew readers