If you are just getting started investing, it is natural to feel like you are entering an intimidating new world. Luckily, while investing is a topic that can be as complicated as you want it to be, it is also one that can be relatively simple. <\p>
Even better, "simple investing" is often more effective than "complicated investing," as it is much easier to make costly mistakes with a more complicated strategy.
This tutorial will look at how you can embrace the "Pareto Principle", simplify investing, and get started off on the right foot. <\p>
Risk has a few different definitions when it comes to investing. Our intuitive feel of it as "the chance that we will lose money" has some merit, but as we will see we can also think of the volatility of the returns of a portfolio as being a measure of risk.
Risk is one of the most important concepts to understand in all of investing. Most investors that fail do so because they failed to use good risk management practices.
This tutorial will examine ways that you can define, measure, and manage the level of risk in your portfolio.
Just about every investor will encounter some tentacle of the financial industry in one form or another. As maligned as "Wall Street" has become, avoiding it is pretty hard.
But in order to get the returns that you deserve and avoid getting ripped off, it is crucial that you understand a few of the basics about the major actors in the industry, and the products that each sells.
Reading this tutorial will give you the power to make an informed decision about who you will give your financial business to.
By just about all accounts, determining your target asset allocation is the most important decision you will ever make as an investor.
Despite this, asset allocation remains a mysterious topic to most individual investors, who are inundated by news stories about stock-picking instead.
This tutorial will introduce the topic of asset allocation and look at why it is so crucially important, what the major theories of asset allocation are, and how investors can build their own diversified portfolios from the ground up.
Getting an optimally diversified ETF portfolio set up is only half the investing battle. The other half is maintaining it over time. Luckily, this can be done effectively in only a few hours if you know what you are doing.
Two of the most important ongoing portfolio maintenance issues are rebalancing and tax management. This tutorial will look at both.
Behavioral Finance is the study of how people make financial decisions in the real world. It stands in contrast to traditional classical economics and finance, which both assume that people are always rational and make decisions according to a logical cost-benefit analysis of their options.
Recent advancements in behavioral finance shed an important light on one of the most important questions in personal finance: why do we continue to make poor decisions with our money, even when we basically know what we should be doing?
This tutorial will go over some of the behavioral finance research on how the brain deals with money decisions. It will also discuss their implications, including how you can insulate yourself from making money mistakes, and even how you can profit from the predictable mistakes of others.