Mind Map Gallery Types of Investment Principles Mind Map

Types of Investment Principles Mind Map

Investment Principles mind mapping is a visual tool used to help investors easily grasp the core principles of investing. The process involves using symbols, colors, and shapes to represent key ideas and relationships between terms, providing a comprehensive overview of various investment theories and practices. By utilizing this tool, investors can quickly understand the basics behind investments, allowing them to make informed decisions regarding their money. When it comes to investments, there are a few key principles to keep in mind. These include risk/return tradeoffs, diversification, the time value of money, cost/benefit analysis, and, lastly, tax considerations. The risk/return tradeoff states that the more risk you take on with investment, the potential for higher returns over time. Diversification involves investing across a range of asset classes, such as stocks, bonds, commodities, and others, in order to reduce individual stock risk. The time value of money is the concept that money can earn more in the future when invested now due to compounding returns. Cost-Benefit Analysis looks at both the costs associated with financial risks and rewards as well as the benefits they provide. Lastly, tax considerations apply when deciding between traditional or Roth IRA accounts and taking into account any taxes applicable to investments made. Use EdrawMind to create similar mind maps.

Edited at 2022-11-06 09:20:37

Satria Pamudji

Types of Investment Principles Mind Map

Satria Pamudji

Recommended to you
Outline

Investment Principles

Sypnosis

Goal

The goal of this is to give newer investors an all-in-one place to learn everything they need to know about Investing and give them a clear and detailed roadmap to becoming a fully fledged investor at the end of this series.

Value Proposition

1. Allow newer people to learn in a structured way 2. Full coverage of everything you need to know about investing and the mindset 3. Case studies to support theories 4. Comes with strategies to implement on the daily

Hook Line

This series will turn you from a potato couch who knows nothing about investing, into a warren buffet competitor

Coverage

Intro Article

Introduction article to prime the users on what they can expect, a short primer to introduction and a hook to get them to read.

Beginner

Goal

The beginner series is for people who have zero knowledge about investing, and are looking to start somewhere. Here, we go through the most important parts of investing terminologies, and more importantly, principles.

Topic Coverage

Introduction to Investing 1. Prequel: The History of Investing 2. Why should we invest anyway? 3. What can we invest in? 4. How do I become a modern day investor? 5. The common mistakes of modern day investors How a business works: The Lemonade Stand 1. The beginning of a lemonade stand 2. Read the Lemonade Stand book for more ... ... Beginner Investor's Guide 1. The modern investing psychology 2. The first rule before anything else: Don't lose money 3. It's all a strategy game: Why are you investing? 4. Why are people talking about risk-appetite? 5. "Should I take that investment advice?" 6. So... when should I buy or sell?

References

Introduction to Investing 1. History of Investing [1] https://www.stockpile.com/theticker/the-fascinating-history-of-investing [2] https://www.ally.com/do-it-right/investing/evolution-and-history-of-investing/ [3] https://bebusinessed.com/history/history-of-investing/ 2. Why people Invest [1] https://www.rbf.gov.fj/wp-content/uploads/2019/06/Why-Do-We-Need-to-Invest_Fiji-Sun-030916.pdf [2] https://www.investopedia.com/ask/answers/why-should-i-invest/ [3] https://www.avaloq.com/knowledge-hub/whitepapers/why-do-people-invest Beginner Investor's Guide [1] https://www.igrad.com/start/start-here-investing [2] https://singjupost.com/everything-need-know-finance-investing-william-ackman-transcript/?singlepage=1

Intermediate

Goal

The intermediate series is for people who have basic knowledge about investing, and are looking to deepen their knowledge. Here, we go through more game theory and the psychology of investing.

Topic Coverage

Investing Strategies 1. Where are you in the market cycle? 2. The modern day portfolio construction 2. Diversify or Concentrate, your pick 3. A look into your time-horizon 4. Investing with the trends 5. Active vs passive Investing Getting the edge (Game Theory) 1. How to be less emotional in investing 2. Why you should start thinking in probabilities 2. What is the expected value of your investments? 3. Time-value of money: What is it? 4. How to bet size properly 5. Learning how to cut your losses 6. You don't have an investment thesis?

Advanced

Goal

The advanced series is for people who are well versed in both technical and mental investing principles. In this advanced series, we go through leverage and the how leveraging can support you or destroy you. We also take a look at all of the perpetual contracts, and the variations.

Topic Coverage

Advanced Trading 1. Leverage: Your best friend or worst enemy 2. Understanding Derivatives 3. Futures 4. Perpetual vs Traditional Contracts 5. Funding Rate 6. Forwards 7. Swaps 8. Options Using Leverage for more profits 1. The Greek Family 2. Hedging your bets: Delta-Neutral 3. Hedging your bets: Black-Scholes

Applying it in real life: Precursor to the trading series

Goal

After all of the series, we go through some basic trading set ups for crypto, some real-life stories into crypto and strategies for both the bear and bull markets. This section will link to (1) Bear market strategies and (2) Trading series.

Topic Coverage

Important Notes

1. Keep this series more catered towards the psychology of investing rather than trading (as the trading series will cover everything else) 2. As much as possible, try to keep minimal crypto coverage unless necessary for the first 3 sections and cover mostly fundamental stuff 3. Make sure to find case studies and link it with references