The Quantified Fortune – An overview

  • Genre: Finance & Wealth 
  • Author: Arian Adeli Koodehi 

Audio version not available: 

Introduction: 

The Quantified Fortune is a book about the fundamentals of modern finance. 

Who is it for: Anyone that wants to learn about finance or different ways of making money. 

You can buy it for only 3.29 USD on Kindle and 19.99 USD for the paperback book.

About the author: 

At a young age, Arian Adeli founded his first company, Rivo Trading, an award-winning trading company. While doing so, he collected hundreds of awards in many fields. As an advocate for self-learning, Arian conducted extensive research on several financial markets and investment opportunities in the hope to share this knowledge with others.

Arian wishes to develop his vision of being able to provide quality education and share financial knowledge with the general public through this book.

You can visit him online at www.arianadeli.com.

Chapter 1 – The Stock Market 

Key lessons: 

Introduction to investing 

First, you need to identify where you want to invest and how you want to make money. You can either earn money through buying low and selling high, dividends, or passive income through rental properties. 

Also, look out for events that can affect the demand for your investments. For example, once covid hit, it would have been in your best interest to sell retail stock and buy the stock of tech companies like Zoom. 

Investing in the stock market

Investing in the stock market is probably the most well-known method and the safest one, although it might be unstable at certain times. 

Investing in the stock market means you buy shares of certain companies, essentially becoming their shareholder / owner. When the value of that company increases, the value of the shares you hold increases as well and you can then sell them for a profit. 

You can also earn money through companies that pay dividends, basically a portion of their profits. Which are paid yearly or quarterly. Unfortunately, dividends are given out depending on the number of shares you own so it won’t have high rewards for beginners. Unless you want to grow your money slowly. 

How to start investing 

Once you have identified the company you want to invest in, you will need to open an investment account through platforms like Robinhood. After registering, you can put money into the account and start investing! 

Chapter 2 – Cryptocurrencies 

Key lessons: 

What are cryptocurrencies: 

The first cryptocurrency called Bitcoin was created on January 3rd, 2009. After its invention, several other cryptocurrencies like Ethereum were created. What makes cryptocurrencies special is that they are virtual currencies that can not be tracked. They are not issued by governments like the USD or Euro. Crypto also can’t be regulated or controlled by governments. 

A system called “Blockchain” stores the cryptocurrencies in a virtual database. The database usually has basic information like who owns what, what is transferred, and other details. 

When you buy cryptocurrencies, they will get transferred into your  cryptocurrency wallet. 

How to purchase cryptocurrencies: 

Get yourself a cryptocurrency wallet from a platform like Exodus that is safe. Then create an account on cryptocurrency exchange websites like Coinbase and start buying your preferred type of crypto! Most websites accept credit and debit cards, sometimes even Paypal.  

Chapter 3 – Commodities 

Key lessons: 

Commodities are natural materials like Gold or Natural Gas. Since natural resources are limited and the demand can be really high while the supply is the same, they are generally seen as profitable investments. However, before making an investment, you need to do good market analysis to make sure the demand for a commodity won’t decrease like how oil prices dropped during Covid. 

Types of commodities: 

  • Metals (Gold or Silver) 
  • Energy (Natural Gas or Oil) 
  • Agriculture & Livestock (Rice, wheat, etc) 

How to invest in commodities: 

Although there are several ways of investing in commodities, ETFs are one of the best methods. ETFs are basically a collection of assets. It’s kind of like a basket of assets you can invest into. Instead of buying the share of one company, you will be buying the shares of multiple companies all at once. 

There are some ETFs that invest in Gold or Crude oil or own shares of companies that sell / use those commodities. When you purchase a share from the ETF, you’ll indirectly invest in the companies and commodities they have invested into. 

ETFs are usually low-risk and high reward investments. 

Chapter 4 – Trading 

Key lessons: 

As we all know, trading is exchanging something for another thing. You can for example trade currencies, stock, or cryptocurrencies all from the comfort of your own chair. Trading is generally great for quick short-term results. 

Trading in the Foreign Exchange market (Forex) is one of the most popular trading methods. In Forex, you can trade different currencies to make money. You earn money when the currency you chose increases in value. 

Trying to trade without research and a strategy is literally gambling. You need to make sure the decisions you make are analyzed carefully. Unless you want to actually gamble with your money and possibly blow your account. 

How to start trading: 

In order to start trading, you will need to get yourself a trading account. You can use brokers like Fidelity Investment or TD Ameritrade to create an account and start trading currencies, commodities, stock, and more!  

Chapter 5 – Market Analysis 

Key lessons: 

There are two ways to analyze markets, Fundamental Analysis and Technical Analysis. While both of them have their pros and cons, it is smart to use both. 

Fundamental Analysis relies on factors like economic events (recession or pandemic), financial statements, and business decisions (ex: an operational decision a company is making).  

While Technical Analysis tries to find price patterns and predict the future through those price patterns. Which offers insight into the behavior of the market. 

Chapter 6 – Risk Management 

Key lessons: 

Risk management is one of the most important parts of trading. If you want to be successful in the financial markets, you need to be able to handle your losses and recover from them. 

Usually, risk management includes assessing risks, managing the account, calculating trade sizes, and much more. According to statistics, over 80% of all traders are unprofitable. If you want to be in the profitable 20%, you must carefully analyse and plan every trade and know how to deal with losses. 

“A successful trader must learn how to be a good loser before he can start winning” – Arian Adeli

Chapter 7 – Supply and Demand 

Key lessons: 

Supply and Demand is the force that determines the value / price of assets, services, products, and most other economic activities. In fact, stock can also be affected by supply and demand. 

What is supply and demand: 

Demand can be defined by how many people are willing to buy a product and supply is how much of that product there is. During pricing alongside supply and demand, many factors go into the decisions, like the customer’s income and the status of the economy. 

If the supply of a product increases but the demand stays the same, then the product will not be worth as much. Or if the demand increases and the supply stays the same, then the price will go higher. Additionally, if the controller of the supply decides to increase the value of the supply, the demand for it might fall, thus lowering the price. Or vise versa. 

Note: 

The Quantified Fortunate is a 200-page book with a lot of great insight. It is hard for us to include every piece of information in this review. We highly recommend you buy and read the book because it truly is a modern masterpiece. 

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