Simple interest is only calculated on the original amount of capital inside a set time period. It does not include the compounding effect of returns on new money accrued. Simple in... Read more
A Monte Carlo simulation is a process used to show all the potential outcomes of a trading system, business model, supply chain, scientific theory, insurance, research and developm... Read more
The rule of 72 is a process for quickly projecting how long it will take for a rate of investment return to make capital double. The number 72 is used in figuring out the answer by... Read more
The Sharpe Ratio was developed it in 1966 by William F. Sharpe as a way to quantify potential risk in an individual investment or an investing method or trading strategy. The Shar... Read more
Inside probability theory, conditional probability is a way to calculate and measure the probability of some event happening if another event has already occurred. The Bayes’ Theor... Read more
The definition of a ‘brand’ is when the name and/or logo of a company is so recognizable that people associate it with a specific feeling and experience which can be bo... Read more
In stock investing and trading your watch list can be set up by not only the value of a stocks earnings and sales trend but also the intrinsic brand value. The greater the brand eq... Read more
For publicly traded companies and in investment terms the return on equity (Also abbreviated as ‘ROE’) is a way to measure the amount of net profits from a business as... Read more
The time value of money is the measurement of the benefit of getting money in the present instead of the same amount at a later time in the future. It is based on the preference of... Read more
This is a Guest Post by Liam from PriceActioNinja.com. A professional Forex trader is not identified by having multiple trading screens or highly complex trading strategies. Instea... Read more
