Many traders buy/sell various assets every day but few of them have an idea of how to estimate correctly the quality of their investments. Professional traders quite often use ROI (Return On Investment) — an index that helps to assess how fully your investments have paid back, which, in the end, will allow the investor to make money in the long run. Also, ROI is used for efficient investments not only in business but in any financial assets. Mathematically, ROI is the relation of the net profit to the investment. What is the ROI needed for? Talking about real business, this index helps to estimate your investments in the long run. And if the trader or investor wants to sell the profit from selling the securities, ROI helps to compare different companies and see which stocks will be more profitable. Thus an investor can compose their portfolio of the most stable companies, regardless of market fluctuations. To estimate investments in stocks, we can take any security and see on its example, what ROI we will get.
Read more at https://blog.roboforex.com/blog/2020/11/13/how-to-calculate-return-on-investment-roi/ | R Blog – RoboForex
The Regular Trader 