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Investment Strategies

3 Surprising Ways Human Behavior Can Make or Break Your Investments

Behavioral Finance vs. Traditional Finance: 3 Surprising Ways Human Behavior Can Make or Break Your Investments

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Behavioral Finance vs. Traditional Finance: 3 Surprising Ways Human Behavior Can Make or Break Your Investments Traditional finance is like that straight-A student who insists that 2+2 always equals 4. Traditionalists believe that investors consistently make decisions based on the expected value of outcomes, with equal weighting of gains and losses. They assume that individuals evaluate choices objectively, irrespective of how they are framed. It’s built on a few key principles: Rationality: Investors are as rational as Spock from Star Trek, always making logical decisions. Market Efficiency: Markets are all-knowing entities, quickly absorbing information and reflecting it in stock prices.… Read More »Behavioral Finance vs. Traditional Finance: 3 Surprising Ways Human Behavior Can Make or Break Your Investments

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Moving Averages: The Foundation of Your Investment Strategy

Moving Averages: The Foundation of Your Investment Strategy

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Moving Averages: The Foundation of Your Investment Strategy Hi Readers , Today let’s take a look at some theory on the daily moving averages and then delve in to the practical ways to make profitable trades. Types of Daily Moving Averages  ( Not limited to )  Simple Moving Average (SMA): SMA calculates the average price of an asset over a specific period. It’s a basic form of DMA and changes constantly with new price data. Backtesting has shown that SMAs are less effective in consolidating markets and produce most of their losses in such conditions. The SMA’s win rate, compared… Read More »Moving Averages: The Foundation of Your Investment Strategy

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