How can you make informed investment decisions in capital markets?

In my experience with capital markets I have found that the best decisions come after thorough due diligence. This stems from realizing that markets are moved principally by information and when market participants take position in the market they do so on the basis of information. Your success in investment or participation in the capital markets is directly correlated with and is in proportion to the quality of information you have at your disposal. I have 2 tools which are indispensable, Bloomberg and Reuters. These 2 service providers are a near endless source of critical data for the savvy investor.

You can make informed investment decisions in capital markets by simply not complicating it. 1. Don't diversify. One dollar divided by 1 in ten investments will not give you the return of the same10 dollars put in two top stocks. 2. Read Reading is the key to understanding the basics. Understanding charts, float, debt, free cashflows, market, brand, pricing power, moats and so on. 3. Critical thinking Never ever get emotional about the stock you own. You own it because of some objective reason. 4. Understanding the business. If you don't understand the business, don't invest in the business. If you understand how Nvidia makes it's money, invest in it. If you don't stay quiet and ride it's journey. Hope this was helpful.

This is what we call technical Analysis. Volumes are a parameter to judge a surge in prices due to increased supply matched by consumerate demand. Price discounts all other factors, therefore, market structure is a pictorial depiction of what the participants are doing at any given time. Markets are not efficient because we are not clones. Every individual querk or belief is reflected in the graph.

Only risk factor you need to consider is your own. Risk reduces with age. As you get older and you are nearing retirement, your income sources and your ability to generate income reduces. Therefore your risk capacity reduces too. Now you want to create income sources rather than investment. At a young age we are more confident. Now you are more experienced.

All plans or strategies need to be customised to an individual. No 2 individuals are the same, therefore there is no "one plan fits all" approach. An investment banker may have a repertoire of various strategies, still he would need to customise it to every individual. A million clients would require a million different approach. An untenable job for a human. Bring in AI?

Financial Goals: Align your investments with your financial goals. Whether it's long-term growth, income, or a specific objective, tailor your investments accordingly. Goals refer to the specific objectives you aim to achieve through your investments and overall financial planning. 1. Short Term Goals 2. Intermediate Term Goals 3. Long Term Goals 4. Risk Tolerance Alignment 5. Prioritization 6. Regular Review and Adjustments

Regarding risk. Many retail investors may not be aware of two things about measuring risk when looking at a standard deviation. 1. Standard deviation for a security can change over time. 2. And standard deviation for a security is a measurement of how the security performs as compared to itself. Not how a securities standard deviation compares to another security. Learning this was an "aha" moment for me!