“I believe when using leverage, the following four conditions must be met. 1. Leverage must be in the general direction of a secular trend. 2. Leverage should never expire. 3. Leveraged positions should not be subject to forced sell. 4. The maximum possible loss should not be more than the invested capital.” MoneyInvestingTradingMarketsPortfolio ManagementFinancial RiskLeverageLeveragingFinancial RisksRisks Management Author:Naved Abdali
“Be realistic about potential market returns, and be aware of possible risks.” RiskInvestingTradingMarketsInvestment PsychologyTrading PsychologyPortfolio ManagementFinancial Risks Author:Naved Abdali
“There is an excellent characteristic of stock investment that it can only go to zero.” RiskStocksPortfolio ManagementSharesWealth ManagementFinancial Risks Author:Naved Abdali
“Cash and bank deposits are not risk-free investments. They suffer substantial hidden risks like inflation, credit, and foreign exchange.” RiskInvestmentInvestingCreditInflationPortfolio ManagementPortfolioFinancial Risks Author:Naved Abdali
“In concentrated portfolios, market fluctuations are magnified. All market noises look like real events.” MarketsStock MarketDiversificationPortfolio ManagementStockSharesWealth ManagementFinancial RisksConcentrated Portfolio Author:Naved Abdali