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22.1 – Beta Over the last few chapters, we discussed various attributes of a mutual fund. We will continue the same in this chapter and focus on key risk measures of a mutual fund. Risk measures inc ..

Jim has lost a bundle in the last six weeks. He was riding high at the end of 2004, but when the New Year started, he couldn’t get his act together. He hasn’t been trading very long, but h ..

Traders face setback after setback, but they never feel beaten down. They recover from a setback quickly and are ready to tackle their next challenge with enthusiasm. Not all traders can take setbacks ..

Humans have basic instincts for survival. They need to protect themselves at all costs. Technically, an instinct is inborn, such as the drives for hunger and sex. But humans are complex creatures in t ..

Fear and greed drive market action. We enthusiastically put on trades when we think a huge profit is assured, but when we see the market shift dramatically, we get out as quickly as possible. We fear ..

Consider a tale of two brothers, Allen and Jason, who decided to go long on Home Depot last January.  Although they both made the same decision, they did so for very different reasons.  Allen bought ..

Jim is mulling over a bad trade he made yesterday. He thinks, “I wish I didn’t make it. I’ve lost so much of my capital that I’ll have to work extra hard to recover.” As ..

Jason has been holding a position in Dell Computer for the past month.  It’s been doing well so far, and earnings forecasts suggest profits, in part due to sales in new markets.  On the other ..

Market action is powerfully influenced by fear and greed. But fear and greed aren’t the only emotions that influence market decisions. Other emotions, such as disappointment and regret, can also ..

For many, New Year’s Day is a time of psychological rebirth. It is time to forget our past defeats and get ready to focus on new challenges. But for some people, it’s hard to put aside the ..