The modern portfolio theory: how to use it

Modern portfolio theory (MPT) or mean-variance model was developed by Harry Markowitz and published in 1952 by the Journal of Finance. It is an investing model that enables risk-averse investors to maximize returns for a given amount of risk or minimize the risk for a given amount of returns. For developing the MPT he was later awarded a Nobel prize. The risk of every investing portfolio returns has two components: systematic risk and unsystematic risk. The first is the market risks that cannot be diversified away. The second the specific risk of a stock and can be diversified away by… Continue reading

How to use Technical Analysis for trading

There are many opportunities for everyone to make money in the financial markets. Of course, it is not simple to find the best opportunity, but if you get started in the right mode, the probability of success increase. Before investing in the financial markets, it is necessary to create a solid financial plan, to determine the risk profile, to analyze the assets, to create an optimal portfolio etc. One of the most used methods by the traders to analyses the assets is stocks is the technical analysis. It is employed to evaluate every asset with historical trading data and identify… Continue reading

How to use Fundamental Analysis for trading stocks

Investing in the stock markets is not simple and it is risky, but in the other side there are many opportunities to make money by investing. Before investing in stocks, it is necessary to create a solid financial plan, to determine the risk profile, to analyze the stocks, to create an optimal portfolio etc. One of the best methods to analyses the stocks is the fundamental analysis. It assesses the intrinsic value of a security by analyzing various macroeconomic and microeconomic factors. The ultimate goal of fundamental analysis is to quantify the intrinsic value of a security. Its intrinsic value… Continue reading

Pension funds guide for beginners

A pension fund is any plan, fund, or scheme which provides retirement income and it is one of the most vital pieces of your long-term financial plan. Pension funds are pooled monetary contributions from pension plans set up by employers, unions, or other organizations to provide for their employees’ or members’ retirement benefits. They typically have large amounts of money to invest and dominate the stock markets where they invest. The pension fund is the best way to save for your future needs, so taking an early interest in pension planning will ensure that you are able to maintain your… Continue reading

The ultimate guide to life insurance

Life insurance is one of the most vital pieces of your family’s long-term financial plan. It is a contract between an insurance company and a policyholder. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. The policyholder typically pays a premium, either regularly or as one lump sum. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. Other expenses, such as funeral expenses, can also be included in the benefits. Choosing the best life insurance isn’t as simple… Continue reading