This is why Stop-Loss is a good idea

stop loss

No matter how much we analyse and study, we can never eliminate the risk of not knowing something vital, or the risk of simply being wrong. Hence the stop loss. Mathematically it becomes harder and harder to recoup capital as your ‘unrealised’ losses increase. Not losing (much) is the first principle of investing. I like … [Click to read the full article…]

Trading vs Investing

The famous Chinese leader Deng Xiaoping once said: It doesn’t matter whether a cat is white or black, as long as it catches mice. Let us compare two main approaches on making money from stock markets: Trading vs Investing. Before we begin, let me confess that I am very biased in favour of Investing. I am trying to explain the reasons … [Click to read the full article…]