Posts by Darryl H

A backtested investment strategy rooted in consistent fundamental data holds immense validity and reliability in the world of finance. Unlike strategies based on fleeting market trends or speculative indicators, fundamental data remains constant over the years. This stability provides a solid foundation for backtesting, enabling investors to assess historical performance accurately. When a strategy is…

Stock market volatility is a double-edged sword, capable of acting as both a formidable enemy and a valuable ally for investors. Understanding this duality is essential for navigating the complex world of investments.   Volatility, essentially the degree of variation in trading prices over a certain period, can be your friend in several ways. For…

Allowing daily news headlines to influence your investment decisions can have detrimental effects on your investment returns over time. This phenomenon is rooted in the tendency of many investors to react impulsively to breaking news, believing that staying constantly updated will give them an edge in the market. However, this approach often leads to emotional…

The consensus opinion that no investor can consistently outperform the market over time has persisted for several reasons, but it’s important to recognize that this is not an absolute truth. In reality, some individual investors have managed to achieve market-beating returns, provided they employ the right strategies and have the discipline to stick to them.…

Investment newsletters play a crucial role in guiding investors towards making informed financial decisions. When it comes to choosing between newsletters that emphasize building and managing a portfolio of stocks and those that focus on stock recommendations of a single stock on a recurring basis, several compelling reasons make the former superior.   Firstly, a…

Crafting an investment strategy that aligns with your individual or organizational style, personality, and values is crucial for achieving better investment results over time. This personalized approach to investing helps to manage risks, maintain discipline, and stay committed to your long-term financial goals.   A well-defined investment policy serves as the foundation of any successful…

“Buying the dip” is a popular investment strategy often advocated by traders and investors looking to take advantage of market volatility. The idea behind this strategy is simple: when a stock or asset experiences a significant price decline, investors rush in to buy at the lower price, hoping that the market will eventually rebound, allowing…

Managing your emotions can be just as, if not more, important than risk management when it comes to managing an investment portfolio. While risk management focuses on assessing and mitigating potential financial losses, emotional management centers around controlling psychological impulses that can lead to irrational decision-making. Emotions like fear and greed can significantly impact investment…

An investment plan or strategy can be likened to a dieting strategy or plan in a strikingly similar way – while countless individuals adopt them with good intentions, the lack of commitment often undermines their effectiveness. Just as many embark on dieting journeys with the goal of achieving better health and fitness, investors enter the…

Sticking with your own investment strategy is a fundamental principle that holds immense importance in achieving long-term financial success in the complex and dynamic world of investing. This consistency serves as a compass guiding you through the ever-fluctuating market landscape, shielding you from impulsive decisions and the often-misguided influence of others. By adhering to a…