by Stoffel | Mar 27, 2025 | Biases, Decision Making, Investing, Leverage
Why Most Retail Investors Lose Money Most retail investors – everyday individuals trading stocks and other assets – end up losing money or underperforming the market. Various analyses worldwide confirm this trend. For example, regulators in Europe found that 74–89% of...
by Stoffel | Mar 6, 2025 | Investing, Risk Premia
Should you worry about the volatility of asset returns as a long-term investor? Yes, you should, because it will cost you money over time. People tend to only look at arithmetic returns of an investment, meaning the return in a specific period. Instead, investors...
by Stoffel | Sep 23, 2024 | Investing, Leverage
Leverage is a powerful tool in both investing and trading, allowing individuals and institutions to amplify their potential returns by borrowing money or using other financial instruments. When used wisely, leverage can significantly enhance profits. However, it also...
by Stoffel | Sep 20, 2024 | Decision Making, Investing
Investing in the stock market can be an exciting and daunting task. One of the most debated strategies within the world of investing is market timing – an approach where investors try to predict future market movements in order to buy before prices rise and sell...
by Stoffel | Sep 11, 2024 | ETF, Investing, Risk Premia
If Investors want to earn expected returns higher than the riskless rate, the most reliable way is to bear risks that markets reward with a premium. A less reliable way is to pursue active management, in which successful investors (skillful or lucky) reap gains at the...
by Stoffel | Sep 10, 2024 | Investing
I was lucky! Very lucky! The first chapter of my investment journey ended with a portfolio loss of 70%. Why was I lucky? Because that was the moment I learned my most important lesson in investing. But let me start at the beginning. I became interested in stock...
