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 short-term fluctuations, investment styles … Read more
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 … Read more
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 … Read more
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? … Read more
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 … Read more
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, … Read more
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 … Read more
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 … Read more
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 decisions rather than react impulsively … Read more
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 … Read more
