Stock market. Equity valuation. Portfolio management. Investments. Blog.

  I made a free stock market course , devoted to express equity selection and portfolio construction.  

  Dear stock investors. Today I will not be sharing financial models or talking about the valuations. I want to share the investment strategy for the month. As you all know, the US stock market is highly volatile now and declining fast. This time may be challenging for some retail investors as it is difficult to understand what can be the trading/investing strategy under a very unpredictive market. I decided to help stock investors/traders and created a great update in my Diversset web-based app. You can now see your possible monthly investment strategy based on market volatility, investor confidence, and money market activity. I will be posting a new investing strategy every month. So the investors will have guidance on what could be the possible actions on the stock market. Please follow   the link   if you are interested in exploring monthly investment strategies. You can also go to the   main page   to use the Diversset, a stock and ETF screener and efficien...

Stock price movement has a chaotic element, in the sense that you cannot predict the price movement due to the speculative capital and larger players' unpredictable intents. But you can assign the maximum possible loss your selected stock or stocks can bring you. This measure is called VAR or value at risk. IT defines what could be your maximum possible loss on your stock chosen or loss for your asset portfolio for a given time interval, given a high confidence level of (95 or 99%). First, let me talk about how to calculate a VAR for a single asset, and then I will talk about how to calculate for a portfolio. In this example, I will be talking about stocks, but you can calculate VAR for other financial assets, including FX, Commodities. VAR is not an expected loss of your stock or portfolio. VAR is the maximum possible loss of your stock or portfolio for a given period.     VAR calculation for a single stock is straightforward. You indicate your investment volume, the amount y...

  There are many coefficients and approaches investors use to undertake equity valuation. But before investors start the time-consuming fundamental analysis, there is one Important coefficient every investor should pay attention to. I use this coefficient to answer whether it is worth analyzing the company or if I should switch to the other company from the peer group. This coefficient is ROIC or return on invested capital. Let me first start with its components, and then I will tell you how to use them to define good companies.    Companies can use different sources of funding. One of the most well-known is borrowing money from the bank, issuing bonds, or issuing stocks. ROIC compares companies' profits to the volume of funding attracted by the company. It is done to see whether the company is generating profits on its attracted funding. And investors examine this figure to see if the company is making some profits on its attracted funds. The higher the ROIC, the better ...

  About.   I am a former institutional  trader,  treasurer , and  financial analyst. I left my job two years ago and decided to start my own business. My business began with financial  courses . I was teaching stock investors how to undertake equity valuation and portfolio management. I had online and offline classes. After a year and a half, I decided to diversify my business and started an IT project. I wanted to connect my previous equity valuation, portfolio management, and teaching experience and build an app that will help investors with no or little financial knowledge find great stocks, construct an efficient portfolio, and get valuable investment ideas. As a result, I made two applications. The first one is an iOS application, "Stock Target Price," that calculates a stock's target price and growth potential, extracts investment ideas, and defines a good time to buy or sell stocks. The second app is a web-based application, "Diversset," a stock and ...

  1. Understand what you want to buy. If it's equities, learn   fundamental analysis   and equity valuation. If it's bonds, learn   bond valuation   and bond pricing. If it's   foreign exchange , understand how micro and macroeconomy work and geopolitics. It all depends on the types of financial instruments you want to buy.   2. Define your goals. Understand what you want. What is your expected rate of return, and what losses are you willing to carry. The higher the return, the more losses you can expect. Equities and FX are the riskiest financial instruments. Equity ETFs are less risky than individual stocks. Bonds (investment grade) are less risky than stocks and so on. What market you will be trading on, and what is a country. If it is a developing country, you will have higher political risks and indirectly lose because of currency devaluation. And what is the size of your capital that you want to invest? The higher the capital, the less risky you ...

  My approach can be different from others. For me, it's always a custom approach to every stock. I never have a standard algorithm for every stock in my portfolio. Because stocks have different volatilities and trading histories, company sizes can differ, and my required returns can also vary from equity to equity, company industry, and many other things. That's why it's better to have a unique, custom approach to every stock.    But there are some common things that you should pay attention to if you consider selling your stocks. I usually start my fundamental analysis and see how data has changed. If I see dramatic, negative change (in a financial statement), I can sell my equity. Below are the recommendations for mid-term or long-term investors. If you are a short-term trader, you can use my iOS app, " Stock Target Price ," go to the "buy signal" screen, input your stock ticker and see the right time to buy or sell your selected stock. My app also ca...

  Dear Stock investors and traders, Great news! I am launching a few excellent services for you! I can help on your investment journey! Here are the things I can help you with: 1.       I can teach you   fundamental   analysis   and equity valuation. You will be able to find great stocks. 2.       If you don’t want to learn, I can manually   calculate   your selected stock’s target price and growth potential, provide you with complete equity research, and construct an efficient portfolio. 3.       I can provide you with a great web-based app,   Diversset , to help you find exciting stocks and ETFs and build a well-diversified investment portfolio. 4.       I also made an iOS app, “ Stock Target Price ,” to help you find undervalued stocks and great investment ideas and define the best time to buy or sell stocks. 5.       You can ...

  Please watch the video if you are interested in constructing your efficient stock portfolio. Or you can use my web-based app  Diversset  if you don’t want to go through manual calculations and also if you want to find great stocks.

  Signs that show that it is time to buy stocks. First, let me start with how to prepare to invest in the stock market, and then I will share things I pay  attention  to that tell me when to start buying stocks again.    The best thing that traders and investors can do now (then the United States stock market is falling) is to prepare to enter the market and start investing when the time comes. I can share some great resources to help you prepare:   ·         The first tool is the  iOS application  “Stock Target Price” with this app; you can find undervalued investment ideas, define stock entry and exit points, and calculate stock target price and growth potential.  ·         The second tool is  Diversset .  Diversset is a stock and ETF screener and portfolio builder that allows users with no financial knowledge to find great stocks and ETFs and construct an effic...

  Diversset was made by a former institutional trader and treasurer to help investors find value or growth stocks depending on investors’ investment goals and construct well-diversified investment portfolios. No financial knowledge is required to use the app. In this article, I will explain how to use Diversset for both risk-averse investors and risk-seeking investors.  The first step, visit  Diversset  and press the “TRY THE APP” label at the navigation bar (top bar), as shown in the picture.  After you press the label, the Register/login screen will appear. If you don’t have an account, create it by inputting your email and password and pressing the “REGISTER” button. After that, you can use your email and password to log in. Input your email and password and press the “Login” button. Please read the Terms of use before registering.  After you log in, the main screen will appear. First, let me show you how to choose stocks if you are a risk-seeking invest...