Investment basics

A positive return on investment (ROI) is the holy grail of investing. It’s what all investors are after when they place their confidence and money in a certain asset, and has come to be a universally accepted measure of profitability. 

An asset is any item, either physical (tangible) or non-physical (intangible) that holds value and can be of benefit to the owner in the future. A house, a vehicle, gold, money and art are all examples of tangible assets, while…

A trading strategy is an approach for longing or shorting financial markets with the aim to earn a profit as consistently as possible. There are lots of different approaches for trading that depend on a trader’s objectives

Profit is essentially what’s left over in revenue once expenses, costs and taxes involved have been deducted.

Options allow traders to reserve now and pay later for assets in exchange for a fee.

Overexposure is when a trader has invested too much into one asset.

A long is when a trader buys an asset with the hope of selling it at a later time for a higher price.

A short is when a trader borrows an asset at the current market price with the hope that prices will fall.

A rally is an upward movement in an asset’s price in a relatively short period.

Scalping is when traders enter and exit trading positions quickly based on relatively small price movements in order to make a profit.

The investment strategy you choose will determine which assets you choose to invest in and the timeframe of the investment.

A mutual fund is a group investment managed by a professional fund manager.