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The Stock Market is Not a Casino - Lessons From the Gamestock Story

When investing in a stock based on subjective criteria such as someones’ opinion, hunch or expectation of the near future - you are playing the odds very similarly to a gambler in the casino.

Occasionally, you win big. But it is well known that in the end, the house always wins.

As demonstrated by the Gamestop scandal, investing in a single stock is a tricky and treacherous path.

The stock market is not a casino. One major difference - in a casino you are not allowed to analyze past behaviour (such as counting cards to forecast their occurrence) so as to maintain luck as the one major factor in your performance.

Luckily, you have no such limitation when it comes to investing. In fact, when it comes to stocks, analysis of past behaviour can help substantially mitigate the risk.

Another obvious way of mitigating the risk is investing in more than one stock.

But as long as you select all of them in the same subjective manner and as long as you do not examine the relationship (covariance and correlation) between your assets, the mitigation of risk will still be haphazard and luck will still play a much bigger role that is desired.

CHERRIES offers the perfect solution if you wish to mitigate the risk while maximizing your return.

  • Analysis of the Market and Historical Data:

Cherries’ powerful mathematical engine can analyze an entire database of thousands of stocks in a matter of seconds.

Database Import

  • User Preferences :

Cherries scours the market in search of the most optimal composition of stocks, while taking into consideration all of your preferences: Sectors, Investment strategies, Market capitalization, risk appetite and much more.

Desired Risk level

Advanced Filtering Options

Portfolio Constraints

  • An Optimal Composition

Cherries analyzes the covariance and correlation between each pair of stocks to make sure that the composition is robust.

Optimal Portfolio Analysis

*Portfolio built 10/31/2019 results as of 02/28/2021

Asset Allocation

  • Maximal Return for Minimal Risk

Other than your optimal portfolio, complete with the number of shares to be bought and with comprehensive information for every individual stock, Cherries will always also show you the MVP (minimum variance portfolio) - the lowest risk portfolio with the highest expected return.

The Efficient Frontier

So if you wish your investments to be data-based rather than a roll of dice, check out Cherries today, no obligation, no charge.


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