A drawdown is the amount your investment or account value falls from its highest point (peak) to its lowest point (trough) before it recovers. Drawdowns are a normal part of investing, but they’re also one…
Risk appetite describes how willing you are to take financial risks in pursuit of higher potential returns. It reflects your mindset, preferences, and emotional comfort with uncertainty—especially when investments fluctuate or temporarily lose value. Unlike…
Risk capacity refers to how much financial loss you can realistically afford to take without jeopardizing your lifestyle, obligations, or long-term goals. It’s a core concept in investing and personal finance, yet it’s often confused…
The stock market is not driven by numbers alone. It is driven by people, and people are emotional. Over time, these emotions repeat in recognizable patterns known as the emotional cycles of the stock market.…
