March 1, 2018

Basic Portfolio Math

Some of the stuff in portfolio management is so basic that we often forget how really basic it is. The building block of a portfolio is the position taken in some shares of a listed company as an investment or as a short-term speculative move. In both cases, the objective is to make a profit. We buy an asset and hold on to it, or resell it later on for a profit. Trading is simply doing the latter more often.

The problem is not with the understanding of the game, it comes from asking very basic questions, like: what, when, and how much. An even more basic question is: why initiate that trade, at that time, in the first place?

The following HTML file looks at the math of the problem in a different way. Even if math is used, in order to put equal signs on the table, none is required to understand what is presented.

What the file might do is slightly change your perception of the trading game.


HTML file


Created... March 1,  2018   © Guy R. Fleury. All rights reserved  

Alpha Project