What does learning the basic principles of investment consist of and what principles does it cover?


Learning the basics of investing includes a wide range of topics and concepts that help investors understand basic investment principles and strategies. Here are some of the main aspects that are usually covered when studying the basics of investing:


1. financial literacy:
Understanding basic financial concepts such as assets, liabilities, income, expenses, profits, losses, dividends, interest rates, etc. Fundamentals of accounting and financial reporting to analyse the financial performance of companies and make investment decisions.

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2. basic investment principles:
Portfolio diversity (diversification) to reduce risk. Understanding risk and return, their relationship and how they affect investment decisions. Long-term perspective and patience as key elements of a successful investment. The need for continuous learning and analysing the market in order to make informed decisions.

3. Types of investments:
Understanding the different types of assets, such as shares, bonds, property, commodities, etc., and their characteristics. Evaluate the risks and potential returns of different investment classes.

4. basic investment strategies:
Investing for the long term, considering passive portfolio management and the long-term perspective. Trading and active portfolio management using technical and fundamental analysis. Income and growth investment strategies depending on the investor's objectives and market conditions.

5. Methods for analysing risk and profitability:
Fundamental analysis, which involves assessing the financial performance of companies and economic conditions. Technical analysis, which uses graphs and technical indicators to predict market movements. Macroeconomic analysis, which includes assessing global economic trends and their impact on investment decisions.

6. Investment psychology:
Understanding the impact of emotions and psychological factors on the investment decision-making process.

Develop a disciplined approach to investment and risk management. The study of investment fundamentals helps investors develop the knowledge, skills and understanding needed to make informed and effective investment decisions and to achieve their long-term financial goals.

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