Financial Management – Frank Lawson

The Principles of Disciplined Investing and Risk Management

admin — Fri, 24 Jan 2025 22:13:31 +0000

An investor focuses on long-term value and fundamentals, while a speculator gambles on short-term price movements.

The essence of investment management is the management of risks, not the management of returns

Returns will follow if risks are managed properly. A sound strategy mitigates losses while ensuring sustainable growth.

Don’t focus on making money; focus on protecting what you have

admin — Tue, 04 Jun 2024 22:43:54 +0000

Risk management is paramount. Avoid being reckless with your portfolio. Focus on minimizing losses before chasing profits. Financial markets are ever-changing. Traders and investors must stay informed, adjust strategies, and be flexible to survive and thrive.

Webinar: Financial Management

admin — Thu, 23 May 2024 07:58:02 +0000

A Frank Lawson student , Christian Papworth, ICAEW tutor at Kaplan Financial, gives us an overview of the Financial Management module.

Know what you own, and know why you own it.

admin — Mon, 13 May 2024 22:38:23 +0000

Understanding your investments is crucial. Blindly buying a stock without knowing the business or the factors affecting it is risky. Invest in companies you can analyze and feel confident about.

The key to making money in stocks is not to get scared out of them.

Market volatility is normal. Many investors lose money because they panic during downturns and sell. Staying invested through the ups and downs is often more profitable.

The Psychology of Trading and the Importance of Risk Discipline

admin — Wed, 24 Apr 2024 22:11:30 +0000

Subconscious biases and emotional tendencies often drive traders to self-sabotage, leading them to make decisions that align more with their hidden desires than their financial goals. Some traders subconsciously “win” by losing money, reinforcing their own behavioral patterns. Additionally, the balance between boldness and caution is crucial; while high-risk strategies may lead to short-term gains, long-term success depends on disciplined, risk-aware decision-making. Ultimately, self-awareness and prudent risk management are key to thriving in the financial markets.

Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1

admin — Thu, 04 Apr 2024 22:23:19 +0000

Losing money means you lose your base for compounding returns, which is essential for long-term wealth growth. Avoid unnecessary risks.

The stock market is a device for transferring money from the impatient to the patient.

Successful investing often requires patience. Those who chase quick gains or panic-sell during downturns end up losing to disciplined, patient investors who stay the course.

The Art of Risk-Reward Management and Capitalizing on Market Uncertainty

admin — Thu, 21 Mar 2024 22:20:23 +0000

Even if you’re wrong most of the time, your wins can outweigh your losses if you properly manage your risk and position size.

Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected

Markets often price in common knowledge. Profits lie in predicting unexpected changes or trends others fail to see.

Survival and Risk Management in Dynamic Financial Markets

admin — Wed, 14 Feb 2024 22:16:58 +0000

Financial markets are ever-changing. Traders and investors must stay informed, adjust strategies, and be flexible to survive and thrive

Don’t focus on making money; focus on protecting what you have

Risk management is paramount. Avoid being reckless with your portfolio. Focus on minimizing losses before chasing profits.

The Profit of Patience

admin — Wed, 14 Feb 2024 14:11:27 +0000

If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money

The Power of Patience

admin — Mon, 22 Jan 2024 12:35:13 +0000

If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money