Investment Academy — free, structured investor education
Progressive learning paths for first-time investors, from risk literacy to reading SEC filings and evaluating forecasting tools — including this one. Lessons link into the glossary for precise term definitions.
The first-paycheck path: why starting early matters, what to sort out before your first dollar goes in, and how to make a first purchase without jargon.
Risk literacy first: volatility vs. permanent loss, diversification in plain terms, sizing a position, and why “guaranteed returns” is always a red flag.
Why diversification reduces risk — How spreading capital across holdings cancels out company-specific risk, with an illustrative example and the “how many holdings” question answered.
Primary sources over hot takes: what a 10-K actually is, which sections matter, and how to spot red flags in the company's own words.
Where to find a 10-K (and what it actually is) — What a 10-K is — the audited annual filing every U.S.-listed company must submit — and how to pull the real document free on SEC EDGAR instead of trusting a summary.
The anatomy of a 10-K (the five sections that matter) — A 10-K is built from numbered Items in a fixed order. The five that matter most — Business, Risk Factors, MD&A, the financial statements, and the notes — and the order to read them in.
Reading the income statement (revenue to EPS) — The income statement as a funnel: revenue at the top, costs subtracted in stages, EPS at the bottom — walked line by line with one illustrative company.
Reading the cash-flow statement (why profit isn’t cash) — Why profit isn't cash: the operating, investing, and financing sections, free cash flow, and how the cash-flow statement catches a company whose bank account lags its income statement.
Red flags in a 10-K (what to watch for) — The warning signs hiding in plain sight: going-concern language, restatements, customer concentration, and related-party deals — and why the marketing never mentions them.
Data over instinct: what market timing really is, what the published evidence shows, and how calibrated forecast bands express honest uncertainty.
Time in the market vs. timing the market — The core distinction: staying invested and compounding vs. trying to trade the tops and bottoms, and why patience usually wins.
The cost of missing the best days — Why the best and worst days cluster together, so dodging crashes usually forfeits the rebounds — and why a few missed days matter.
Why nobody reliably calls tops and bottoms — The three walls that make timing fail: being right twice, a genuinely probabilistic future, and emotions that pull you the wrong way.
What a probabilistic forecast is actually for — The capstone: a calibrated forecast shifts the odds across many decisions — it is not a market-timing crystal ball, shown with our own committed coverage figures.
The product itself, decoded: what each verdict word means, how eight signals roll into one conviction score, the full trade plan, and how to read the tool’s own calibration — including where it’s weakest.
Reading the calibration badge and the live track record — The honesty check: what the CI90 calibration badge measures (and what it doesn’t), where the model is weakest, and how to read the live track record that shows hits and misses both.
Where you hold an investment and how long you hold it can matter as much as what you buy: account types, the employer match, Traditional vs. Roth, capital-gains holding periods, the wash-sale rule, and dividend tax — in plain English.
Taxable vs. tax-advantaged accounts — the big picture — Two choices, not one: what to buy and which account to buy it in. Why a tax-advantaged wrapper can keep more of your gain than a plain taxable account — and how the idea shows up under different names worldwide.
The 401(k) and the employer match — Why the employer match matters more than almost anything else a new investor does: a full match doubles the money you put in before it’s invested in anything — plus the tax break on top, and the local equivalents worldwide.
Traditional vs. Roth IRA — pay tax now or later? — The choice that confuses beginners most, reduced to one question: when do you pay the tax? Traditional breaks now and taxes later; Roth taxes now and is tax-free later — and why the “right” answer depends on a future nobody knows.
Capital gains: short-term vs. long-term — Two ideas that answer “do I owe tax on a stock that went up?”: you’re usually not taxed until you sell (realised vs. unrealised), and in the US how long you held it splits gains into higher-taxed short-term and lower-taxed long-term.
The wash-sale rule (and tax-loss harvesting) — Two ideas that travel together: using a realised loss to cut your tax (tax-loss harvesting), and the US rule that disallows the loss if you rebuy the same security within 30 days before or after (wash sale) — plus its foreign cousins.
How dividends are taxed — Dividends are usually taxable the year you get them — even reinvested ones. The US qualified-vs-ordinary split, why holding period changes the rate, and the record-keeping (cost basis) that ties this whole path together.
The how, not just the why: turning a pile of cash into a deliberate mix — asset allocation, the roles of stocks, bonds and cash, index funds and ETFs as building blocks, diversifying in practice, and rebalancing to stay on target.
What a portfolio is, and asset allocation — A portfolio is everything you hold, together — and asset allocation (how you split across stocks, bonds and cash) is the decision that shapes your ups and downs more than any single pick.
Stocks, bonds and cash — what each one does — Three building blocks, three jobs: stocks for long-term growth (and bumps), bonds for ballast, cash for safety and instant access. You mix them the way a recipe uses different ingredients.
Index funds and ETFs as building blocks — One purchase, many holdings: how a single index fund or ETF gives instant diversification, why low fees quietly matter, and how funds fill each slice of your allocation.
Diversification in practice — Ten holdings that all move together is really one bet. How to spread for real — across asset classes, sectors and regions — and why more tickers isn't the same as more diversification.
Rebalancing — keeping your mix on target — Prices move, so your mix drifts — and a drifted 60/40 quietly becomes riskier than you chose. How to nudge it back with calendar or threshold rebalancing, and the cheapest way: new contributions.
Most beginner losses are self-inflicted: the mind’s own shortcuts — loss aversion, FOMO, anchoring, confirmation bias, overtrading, and holding losers while selling winners — and the simple, pre-committed rules that defuse each one.
Loss aversion: why losses hurt more than gains — Losses feel about twice as painful as equal gains feel good (Kahneman & Tversky) — so beginners freeze on losers and clip winners. The fix: decide your exit before emotion is in the room.
Recency bias and the fear of missing out — Recency bias makes a stock that just doubled feel like a sure thing — fuelling FOMO right at peak price. Read hype spikes as caution flags, and let a schedule, not a feeling, decide when you buy.
Anchoring: when a number sticks in your head — The first number you see — usually the price you paid — sticks and bends every later judgement (Tversky & Kahneman). Judge a position on a forward-looking thesis, not a backward-looking anchor.
Confirmation bias: only seeing what you want to see — Once you own a stock, the bullish article feels smart and the bearish one feels clueless. Counter it by actively hunting the reasons you’re wrong — and demanding several independent signals agree before you commit.
Overtrading: why more trades usually means less money — More trades usually means less money: Barber & Odean found the most active traders earned the least. Counter it with a high bar for action — strong-case-only trades and dollar-cost averaging for the rest.
The disposition effect: selling winners, holding losers — Selling winners too early and holding losers too long (Shefrin & Statman) — loss aversion and anchoring combined. Counter it by putting the sell decision on rules: a trailing stop and a pre-set exit plan.
What is a company actually worth? The share price is only what people pay today. This path builds valuation from the ground up — market cap, earnings and the P/E ratio, revenue and growth, margins and moats, and intrinsic value vs. price — then shows how the same ideas feed our model’s value and quality signals.
What makes a company worth something — A share is a slice of a real business, and market cap (price × share count) is what the market pays for the whole thing — which is why the share price alone can never tell you if a stock is cheap. Price is what you pay; value is what the business is worth.
Earnings and the P/E ratio — The most common valuation yardstick: earnings are profit, EPS splits it per share, and the P/E ratio (price ÷ EPS) is roughly how many years of earnings you pay for — letting you compare companies of very different sizes.
Revenue and growth — Revenue is the “top line” (sales before costs); earnings are the “bottom line.” Because a business is a claim on future profits, how fast it grows changes what it is worth — and price-to-sales values companies that aren’t profitable yet.
Margins and moats (competitive advantage) — Margins show how much of each sales dollar a company keeps as profit; return on equity measures profit against invested capital; and an economic moat (Buffett’s term) is the durable advantage that lets a business keep high margins instead of having competitors compete them away.
Intrinsic value vs. market price (a beginner’s DCF) — The big idea behind serious valuation: a company is worth the future cash it will generate, discounted back to today (a DCF, from John Burr Williams). The gap between that intrinsic value and the market price is Benjamin Graham’s margin of safety.
How valuation feeds our model’s value & quality signals — The same valuation ideas become model signals: a value signal rewarding a lower P/E, a quality signal rewarding high ROE and healthy margins, and a growth signal — inputs among many, reported with calibrated confidence rather than false certainty.
The same stock is a different bet in a calm bull market than in a panicked sell-off. This path teaches the dashboard’s “market weather” indicators in plain English — the VIX fear gauge, credit spreads, the yield curve, and Fear & Greed — and how they add up to a risk-on or risk-off backdrop.
What market conditions are, and why they change your odds — Markets have weather. Learn what “market conditions” means, why the same forecast is a different bet in a calm market than a fearful one, and the four gauges the rest of this path teaches.
The VIX: the market’s fear gauge — What the VIX measures (30-day expected S&P 500 volatility from option prices), how to turn the number into an everyday swing, the rough calm/normal/stress bands, and what a high reading means for your risk.
Credit spreads: what the bond market knows — The extra yield risky companies pay to borrow — the high-yield OAS — is the bond market’s stress reading. Learn what it measures, why widening spreads warn early, and the rough calm-vs-stress bands, all from public FRED data.
The yield curve: the recession signal everyone watches — Short-term vs. long-term Treasury rates: normally long pays more, and when that flips (an inverted 10y–2y curve) it has preceded past recessions. Learn what it means and its honest limits as a warning, not a timing tool.
Fear & Greed and market sentiment — A Fear & Greed gauge is a 0–100 read on the crowd’s mood. Learn how it’s built, the contrarian idea that extremes can mark turning points, and the honest limit that a mood ring is not a crystal ball.
Putting it together: risk-on vs. risk-off — The synthesis lesson: how the four gauges combine into a risk-on or risk-off read, why disagreement between them warns early, and how a market-conditions read should change how much you risk on any single trade.
Investor education only — not investment advice, and never a promise of profit. Every investment can lose value.