In probability theory a normal distribution is a kind of probability distribution with a set value of random variables. The normal distribution formula is: Normal distributions are valuable... Read more
The Sortino ratio is a way to measure the risk adjusted return of an asset, investment portfolio, or trading strategy. The Sortino ratio is an adjustment to the Sharpe Ratio that filters vol... Read more
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 interest can... 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 dividing... 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 it relates... Read more
Standard deviations are used to measure current price action in relation to the average price of a chosen time frame. The assumption in the use of a standard deviation is that over the long... Read more
Opportunity cost expresses the expense of a chosen option among other alternatives in contrast to enjoying the benefit of the other possible choices. The ‘cost’ is the difference... Read more
A cost benefit analysis is a systematic process for trying to measure the pros and cons of different options to determine the best path to achieving goals with the maximum return and at the... Read more
The ROI (return on investment) is the ratio between net profit and the cost of an investment. This is measured over a specific period of time by the results of investment returns on money o... Read more
Profitable trading is not about opinions, not about a prediction, or even great stock tips or picks. Profitable trading is all about math, making more money on profitable trades than you los... Read more
