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  • 🧭 Getting started
  • 📚 Finance Basics
    • What is Finance?
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    • Inflation Explained
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      • Debt Payoff Strategies
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  • 💳 Personal Finance
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      • How to Create a Budget
      • The 50/30/20 Rule
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  • 📈 Investing
    • Portfolio Management
      • Asset Allocation
      • Portfolio Rebalancing
    • Investing Basics
      • Getting Started with Investing
      • Diversification
      • Dollar-Cost Averaging
      • Risk vs Reward
    • Investment Strategies
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      • ESG Investing
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      • Value Investing
  • 💰 Asset Classes
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    • Stocks
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      • What is a Stock?
  • 💹 Trading
    • Fundamental Analysis
      • Financial Ratios
        • Current Ratio
        • Debt-to-Equity Ratio
        • Dividend Yield
        • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
        • Price-to-Book Ratio (P/B Ratio)
        • Price-to-Earnings Ratio (P/E Ratio)
        • Price/Earnings-to-Growth Ratio (PEG Ratio)
        • Profit Margin
        • Quick Ratio (Acid-Test Ratio)
        • Return on Assets (ROA)
        • Return on Equity (ROE)
      • Financial Statements
      • Valuation Methods
    • Market Mechanics
      • Market Microstructure
        • Bid-Ask Spread
        • Market Liquidity
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        • Order Book
        • Slippage
      • Order Execution
        • Order Types
          • Limit Order
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          • Stop-Limit Order
          • Take-Profit Order
          • Trailing Stop Order
        • Time-in-Force Instructions
      • Trading Venues
        • Dark Pools
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        • Stock Exchanges
    • Technical Analysis
      • Indicators
        • Bollinger Bands
        • Exponential Moving Average (EMA)
        • Moving Average Convergence Divergence (MACD)
        • Relative Strength Index (RSI)
        • Simple Moving Average (SMA)
        • Stochastic Oscillator
      • Chart Patterns
    • Trading Strategies
      • Day Trading
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      • Swing Trading
  • 📁 Investment Products
    • Derivatives
      • Futures Contracts
      • Options Contracts
      • Swaps
    • Fund Types
      • Exchange-Traded Funds (ETFs)
      • Index Funds
      • Mutual Funds
  • 🛡️ Risk Management
    • Hedging Strategies
    • Portfolio Risk Models
    • Types of Investment Risk
    • Volatility
  • 🏢 Corporate Finance
    • Corporate Financial Statements
    • Corporate Valuation
    • Cost of Capital
  • 🧠 Behavioral Finance
    • Behavioral Biases
    • Herd Behavior
    • Investor Psychology
    • Loss Aversion
    • Market Sentiment
    • Overconfidence Bias
DocsInvestingInvesting Basics

Investing Basics

Investing basics cover fundamental principles including risk-return tradeoffs, diversification, time horizons, and core strategies for building wealth over time.

Diversification

Diversification spreads investments across different assets, sectors, and geographies to reduce risk by minimizing the impact of any single investment's poor performance.

Dollar-Cost Averaging

Dollar-cost averaging invests fixed amounts at regular intervals regardless of price, reducing the impact of volatility by buying more shares when prices are low and fewer when high.

Getting Started with Investing

Investing basics cover fundamental concepts, financial goal setting, risk tolerance assessment, and selection of appropriate investment vehicles for building long-term wealth.

Risk vs Reward

The risk-reward relationship states that higher potential returns typically come with higher risk, a fundamental principle guiding all investment decisions.

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