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"Secrets for Profiting in Bull and Bear Markets" by Stan Weinstein

2023-06-20T18:49:00.000+05:30

"Secrets for Profiting in Bull and Bear Markets" is a book written by Stan Weinstein, a renowned trader and technical analyst. Published in 1988, the book provides valuable insights and strategies for profiting in both bullish and bearish market conditions. While I can't provide you with the entire content of the book, I can give you a brief overview of some key concepts and strategies discussed by Weinstein:

Stage Analysis: Weinstein introduces a concept called "Stage Analysis" which involves identifying four distinct stages in a stock's price cycle: the Accumulation Phase, the Markup Phase, the Distribution Phase, and the Markdown Phase. Investors can make more informed decisions by understanding which stage a stock is in.
Dow Theory: Weinstein emphasizes the importance of Dow Theory, which analyzes the primary and secondary trends in the market. Understanding the overall market trend helps investors align their strategies with the prevailing conditions.
Price and Volume Analysis: Weinstein emphasizes the significance of analyzing both price and volume movements. He suggests that increases in volume during upward price movements indicate accumulation by smart money, while decreases in volume during price declines indicate distribution.
Moving Averages: The book discusses the use of moving averages to identify trends and potential turning points in the market. Weinstein provides insights on the specific moving averages to consider and how to interpret their crossovers.
Stop-loss Orders: Weinstein stresses the importance of setting and following stop-loss orders. By placing stop-loss orders at strategic levels, investors can limit their losses and protect their capital.
Market Timing: Weinstein provides insights into market timing techniques, including the use of technical indicators, such as moving average crossovers and momentum oscillators, to determine optimal entry and exit points.
Sector Rotation: The book highlights the significance of sector rotation during different market conditions. Weinstein explains how to identify the leading sectors and stocks within those sectors to maximize profits.

These are just a few key concepts and strategies discussed in "Secrets for Profiting in Bull and Bear Markets." The book provides a comprehensive framework for understanding market dynamics and making informed investment decisions. For a more detailed understanding, I recommend reading the book itself.

10 important lessons from the book "The Richest Man in Babylon" by George S. Clason

2023-06-16T13:24:00.001+05:30

S. No.	Heading	Lessons
1.	Pay Yourself First	Save at least 10% of your income before spending on other expenses. Build a habit of saving and investing for the future.
2.	Control Your Expenses	Live within your means and avoid excessive spending. Differentiate between needs and wants, and prioritize your financial goals.
3.	Make Your Money Work for You	Invest your savings in income-generating opportunities such as businesses or investments that provide a return on your capital.
4.	Seek Knowledge and Education	Continuously learn and improve your financial literacy. Acquire knowledge about money management, investing, and wealth-building strategies.
5.	Guard Your Investments	Make informed decisions and assess the risks associated with your investments. Diversify your portfolio to protect against potential losses.
6.	Be Patient and Persistent	Wealth accumulation takes time and effort. Stay committed to your financial goals and persevere through challenges and setbacks.
7.	Take Calculated Risks	Assess the risks and rewards of opportunities before making investment decisions. Don't let fear hold you back, but be cautious and strategic.
8.	Build Relationships Based on Trust	Cultivate strong relationships with trustworthy individuals who can provide guidance and support in your financial journey.
9.	Own Your Home	Strive to own your own home and prioritize paying off the mortgage to secure a valuable asset for the future.
10.	Be Charitable and Generous	Give back to society and support worthy causes. Help others in need once you have achieved financial success.

These lessons from "The Richest Man in Babylon" provides timeless wisdom on managing money, investing wisely, and cultivating the right mindset for financial success.

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Personal Finance and Share Market Course

2023-06-14T13:42:00.002+05:30

10 important Lessons from the book "The Intelligent Investor" by Benjamin Graham:

2023-06-10T12:25:00.002+05:30

Investment vs. Speculation: Graham distinguishes between investing and speculation, emphasizing the importance of a long-term, rational approach to investing rather than trying to time the market or chase short-term gains.
Margin of Safety: Graham emphasizes the concept of margin of safety, which involves investing in securities that are priced significantly below their intrinsic value to protect against potential losses.
Value Investing: The book popularizes the concept of value investing, which involves seeking out stocks that are undervalued based on fundamental analysis and long-term prospects.
Importance of Research: Graham emphasizes the importance of thorough research and analysis when selecting investments, including examining financial statements, company fundamentals, and industry trends.
Market Fluctuations: The book emphasizes that investors should expect and be prepared for market fluctuations, and not be swayed by short-term market movements or speculative trends.
Emotional Discipline: Graham stresses the need for emotional discipline in investing, advising investors to maintain a calm and rational approach, avoiding excessive fear or greed.
Diversification: Graham recommends diversifying investment portfolios to spread risk across different asset classes, industries, and geographies.
Long-Term Focus: The book emphasizes the importance of a long-term perspective in investing, focusing on the underlying value of securities rather than short-term market noise.
Investor vs. Speculator Mindset: Graham distinguishes between investors, who approach the market as business owners, and speculators, who are more focused on short-term price movements and speculation.
The Mr. Market Analogy: Graham introduces the concept of "Mr. Market," an allegorical character that represents the stock market's emotional and irrational behavior. He advises investors to take advantage of Mr. Market's mood swings rather than being influenced by them.

These notes highlight key principles from "The Intelligent Investor" that emphasize a rational, disciplined, and long-term approach to investing.

Basic Technical Analysis - Dow Theory........Continued

2023-06-05T11:15:00.002+05:30

In this Section let us see the advantages and disadvantages of the Dow Theory...

Dow Theory is a technical analysis approach developed by Charles H. Dow, the founder of the Dow Jones Industrial Average (DJIA) and co-founder of Dow Jones & Company. The theory provides a framework for analyzing and predicting price movements in the stock market. While it was formulated in the late 19th and early 20th centuries, it still serves as a foundation for many modern technical analysis methods.

Advantages of Dow Theory:

Trend identification: One of the key strengths of Dow Theory is its ability to identify the primary trends in the market. It distinguishes between primary trends (long-term), secondary trends (intermediate-term), and minor trends (short-term), helping investors and traders align their strategies accordingly.
Confirmation of signals: Dow Theory emphasizes the importance of confirming signals from multiple indicators or indexes. It suggests that a bullish or bearish signal should be confirmed by the movement of both the industrial and transportation averages, reducing the likelihood of false signals.
Long-term perspective: The theory focuses on long-term trends rather than short-term fluctuations, which can be beneficial for investors with a long-term investment horizon. It encourages investors to consider the broader market conditions and avoid making hasty decisions based on short-term volatility.

Disadvantages of Dow Theory:

Subjectivity: Dow Theory relies on the interpretation of price patterns and trends, which can be subjective. Different analysts may interpret the same data differently, leading to potential discrepancies in predictions and outcomes.
Limited indicators: Dow Theory primarily relies on the movement of the Dow Jones Industrial Average and the Dow Jones Transportation Average. While these indexes are widely followed, they may not always reflect the entire market accurately. The theory does not incorporate other technical indicators or fundamental analysis, limiting its scope.
Lagging signals: Dow Theory may generate signals that lag behind market movements, leading to delayed responses. By the time a signal is confirmed, the market may have already made a significant move, resulting in missed opportunities or entering trades at less favorable prices.
Lack of quantitative analysis: The theory is based on qualitative analysis and does not provide a quantitative framework for decision-making. It does not offer specific entry or exit points, position sizing, or risk management techniques, which are crucial for effective trading strategies.

While Dow Theory has its advantages, it is important to note that no single approach can guarantee consistent success in the stock market. Traders and investors often combine Dow Theory with other analytical tools and strategies to make more informed decisions.

Learn to Earn

2023-06-05T11:04:00.005+05:30

Offline Classes in Trichy in English, Tamil and Hindi.

Learn & Earn

2023-06-04T11:21:00.000+05:30

Basic Technical Analysis - Dow Theory

2023-06-04T11:19:00.003+05:30

Here is a detailed explanation of Dow Theory in 10 points:

Market Trends: Dow Theory emphasizes that the market moves in three main trends: primary, secondary, and minor. The primary trend is the market's long-term direction, lasting several months to years. Secondary trends are corrective movements against the primary trend, lasting weeks to months. Minor trends are short-term fluctuations that can last hours to weeks.
The Averages: Dow Theory focuses on the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). The theory suggests that the movement of both averages should confirm each other to validate a trend. If both averages make higher highs or lower lows, it is considered a confirmation.
The Three Phases: Dow Theory defines three phases in a primary trend. The accumulation phase occurs when smart money (informed investors) starts buying stocks, often during market bottoms. The public participation phase follows, marked by increasing investor interest and rising prices. The distribution phase occurs when smart money starts selling stocks to the uninformed public.
Volume Confirmation: Dow Theory emphasizes that volume should confirm the price movements. The higher volume should accompany rising prices in an uptrend, indicating increased buying pressure. Conversely, in a downtrend, higher volume should accompany falling prices, indicating increased selling pressure.
Trend Continuation: Dow Theory suggests that trends are more likely to continue than reverse. It advises investors to assume the current trend will persist until there is evidence of a reversal. This helps avoid premature decisions based on minor fluctuations.
Support and Resistance: Dow Theory acknowledges the importance of support and resistance levels. Support is a price level where buying interest is expected to emerge, preventing further declines. Resistance is a price level where selling pressure is expected to increase, preventing further advances. The theory suggests that these levels can help identify potential reversal points.
Trendline Analysis: Dow Theory emphasizes the use of trendlines to identify and confirm trends. An uptrend is confirmed by an ascending trendline connecting higher lows, while a downtrend is confirmed by a descending trendline connecting lower highs. Trendlines help traders visualize the strength and direction of the trend.
Time Confirmation: Dow Theory suggests that trends require time to develop and complete. It discourages making hasty decisions based on short-term fluctuations and advises considering the overall time frame of the primary trend.
Intermarket Analysis: While not explicitly mentioned in the original Dow Theory, Intermarket analysis has become an important extension. It involves analyzing the relationships between different markets, such as stocks, bonds, currencies, and commodities, to gain insights into broader market trends.
Limitations: Dow Theory has some limitations, including subjectivity in interpreting price patterns, lagging signals, limited indicators, and the lack of quantitative analysis. It should be used in conjunction with other tools and strategies to make more informed investment decisions.

Remember that Dow Theory provides a framework for technical analysis, but it is not foolproof. It is essential to combine it with other tools, conduct thorough research, and consider fundamental analysis to make well-rounded investment decisions.

The Psychology of Money - Morgan Housel

2023-06-04T11:15:00.000+05:30

"Beating the Street" by Peter Lynch

2023-06-02T10:28:00.001+05:30

Here are six important notes from the book "Beating the Street" by Peter Lynch, along with a lesson, a relevant quote, and an example for each note in tabular format:

Note	Quote	Example
1. Invest in what you know and understand.	"The simpler it is, the better I like it."	Lynch emphasizes the importance of investing in companies and industries that you have knowledge and understanding of. For example, if you work in the technology sector and understand the industry trends, you may be more equipped to evaluate tech companies for investment.
2. Do your own research and don't rely solely on Wall Street recommendations.	"The person that turns over the most rocks wins the game."	Lynch advises individual investors to conduct their own research and not rely solely on recommendations from financial analysts. For instance, if a Wall Street analyst recommends a stock, it's crucial to conduct thorough research and analysis before making an investment decision.
3. Long-term investing can lead to significant gains.	"In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it."	Lynch emphasizes the power of compounding and the importance of long-term investing. For example, consistently investing a portion of your income over many years can lead to substantial wealth accumulation due to the compounding effect.
4. Understand the company's story and future prospects.	"You have to know what you own, and why you own it."	Lynch suggests that investors should thoroughly understand the business model, competitive advantage, and growth potential of the companies they invest in. For instance, investing in a retail company requires understanding its target market, products, competitive landscape, and potential for future expansion.
5. Be patient and ignore short-term market fluctuations.	"The stock market is filled with individuals who know the price of everything, but the value of nothing."	Lynch advises investors to focus on the long-term prospects of the companies they invest in, rather than being swayed by short-term market volatility. For example, a company's stock price may experience temporary fluctuations due to market sentiment, but its long-term fundamentals may remain strong.
6. Stay rational and control your emotions.	"The key to making money in stocks is not to get scared out of them."	Lynch emphasizes the importance of staying rational and not letting emotions drive investment decisions. For instance, selling stocks during a market downturn out of fear can result in missed opportunities for long-term gains.

These notes from "Beating the Street" provide valuable insights into Peter Lynch's approach to investing and offer guidance for individual investors. It emphasizes the importance of doing your own research, investing for the long term, understanding the companies you invest in, and remaining rational in the face of market fluctuations.

Learn Trading and Earn Wisely

2023-06-02T09:59:00.003+05:30

Risk - Willingness & Unwillingness

2020-06-04T08:01:00.001+05:30

Success involves taking calculated risks. Risk taking does not mean gambling foolishly and behaving irresponsibly. People sometimes mistake irresponsible and rash behavior as risk-taking. They end up with negative results and blame it on bad luck.

Risk-taking is relative. The concept of risk varies from person to person and can be a result of training. To both a trained mountain climber and a novice, mountain climbing is risky, but to the trained person it is not irresponsible risk-taking. Responsible risk-taking is based on knowledge, training, careful study, confidence and competence which give a person the courage to act while facing fear. The person who never does anything makes no mistakes. However, he doesn't realize that not doing anything is his biggest mistake. Many opportunities are lost because of indecision. It is habit-forming and contagious. Take risks but don't gamble. Risk-takers go with their eyes open. Gamblers shoot in the dark.

Once someone asked a farmer if he had planted wheat for the season. The farmer

replied, "No. I was afraid it wouldn't rain." Then the man asked, "Did you plant corn?" The farmer said, "No. I was afraid of insects eating one corn. Then the man asked , " what did you plant ? " The farmer said, "Nothing. I played it safe."

---------from You can Win by Shiv Khera.

One can correlate the above message with the stock market trader, if we can adapt this trading psychology to our trading system, we may realize, are we trading or gambling?

Option trading using Volatility

2020-05-31T22:37:00.001+05:30

Now here are the thumb rules for using options

1. if we expect the market to be in an uptrend in near future, and IV is less than HV, we shall BUY a call

2. if we expect the the market to be in an uptrend and IV is more than HV , we shall SELL a put

3 .if we expect the market to be in a downtrend, and IV is less than HV, we shall BUY a put

4. if we expect the market to be in a downtrend, and IV is more than HV, we shall SELL a call

"SELL HIGH VOLATILITY, BUY LOW VOLATILITY"

................. more on option to continue

Myths about long term Investing

2020-05-31T12:02:00.001+05:30

Successful investing involves two basic area of distance
1).what to buy and sell.
2). When to buy and sell.

It is not how much you make money that counts, it is how much you manage not to lose.

Let's start considering real time example,

Nifty had made a all time high on 20th January 2020 at 12440, then the market started falling, bear market started with the news of spread of Corono Virus, and index down to the low of 7550 on 23rd March 2020 almost a loss of more than 40%. Today the market has risen almost to 9600 from 23 rd March lows that is nearly more than 20% from the lower levels.

Where did the long-term investor (Buy & Hold) stand at this point ?
Very much still nearly 25% down from the January high of 12440.

To make up any loss taken in the stock market you have to achieve greater percentage gains than such losses entail.

For eg.
if you lose 40% of the value of an asset you have to make 50% on the reminder to make it break even.

So capital preservation is by and large more important for successful long term investment than securing an Occasional large profit.

-------------------------ManojKumar @markettoday

WHAT IS THE MARKET?

2020-05-26T08:13:00.000+05:30

WHAT IS THE MARKET?

What is the reality behind market symbols, prices, numbers, and graphs?

When you check prices in your newspaper, watch quotes on your screen, or plot an indicator on your chart, what exactly are you looking at? What is the market that you want to analyze and trade?

Amateurs act as if the market is a giant happening, a ball game in which they can join the professionals and make money. Traders from a scientific or engineering background often treat the market as a physical event. They apply to it the principles of signal processing, noise reduction, and similar ideas. By contrast, all professional traders know full well what the market is - it is a huge mass of people.

Every trader tries to take money away from other traders by outguessing them on the probable direction of the market. The members of the market crowd live on different continents. They are united by modem telecommunications in the pursuit of profit at each other's expense.

"The market is a huge crowd of people. Each member of the crowd tries to take money away from other members by outsmarting them. The market is a uniquely harsh environment because everyone is against you, and you are against everyone."

Stock Market - Journey to be followed for Long term success

2020-05-08T12:42:00.000+05:30

Stock market long term Journey

1. Decide that you are in the market for the long haul- that is, you want to be a trader even 20 years from now.

2. Learn as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything. Ask questions, and do not accept experts at their word.

3. Do not get greedy and rush to trade - take your time to learn. The markets will be there with more good opportunities in the months and years ahead.

4. Develop a method for analyzing the market- that is, "If A happens, then B is likely to happen." Markets have many dimensions -use several analytic methods to confirm trades. Test everything on historical data and then in the markets, using real money. Markets keep changing-you need different tools for trading bull and bear markets and transitional periods as well as a method for telling the difference.

5. Develop a money management plan. Your first goal must be long-term survival; your second goal, a steady growth of capital; and your third goal, making high profits. Most traders put the third goal first and are unaware that goals 1 and 2 exist.

6. Be aware that a trader is the weakest link in any trading system. Go to a meeting of Alcoholics Anonymous to learn how to avoid losses or develop your own method for cutting out impulsive trades.

7. Winners think, feel, and act differently than losers. You must look within yourself, strip away your illusions, and change your old ways of being, thinking, and acting. Change is hard, but if you want to be a professional trader, you have to work on changing your personality.

--- excerpts are form the book "Trading for living" - Alexander Elder

Back again - lot of changes n challenging times ahead

2020-05-06T20:03:00.004+05:30

"Go out and face your fears by taking actions, making a mistake, learning from the mistake and growing mentally, emotionally and physically stronger from the process."😊

Moving Averages

2020-05-06T19:29:00.000+05:30

Moving Average

Weekly chart - 26 WEMA (nearly 6 Month data)

Daily chart - 22 DEMA (nearly 1Month data)

Trading Signals

1). Direction of the slope

Pointing Upwards => Bullish => Go Long

Pointing Downwards => Bearish => Go Short

2). Buy near the EMA,

Place the stop loss below the EMA for long & Vice versa for shorts.

3). Dual EMA to identify trend and enter position.

Longer EMA indicate trend = > 22 DEMA

Shorter EMA indicate to enter position => 11 DEMA.

A). Buy when EMA rises and price closes above it,

Sell when Price closes below EMA.

B). Short when EMA falls and price closes below it,

Cover the shorts when price close above EMA.

Real education.

2012-12-21T18:44:00.000+05:30

A real education will not teach you to be the first. It will tell you to enjoy whatever you are doing, not for the result, but for the act itself. Just like a painter or a dancer or a musician…

You can paint in two ways. You can paint to compete with other painters; you want to be the greatest painter in the world, you want to be a Picasso or a Van Gogh. Then your painting will be second-rate, because your mind is not interested in painting itself; it is interested in being the first, the greatest painter in the world. You are not going deep into the art of painting. You are not enjoying it, you are only using it as a stepping-stone. You are on an ego trip, and the problem is that to really be a painter, you have to drop the ego completely. To really be a painter, the ego has to be put aside. Only then can existence flow through you. Only then can your hands and your fingers and your brush be used as vehicles. Only then can something of superb beauty be born.

Real beauty is never created by you but only through you. Existence flows; you become only a passage. You allow it to happen, that’s all; you don’t hinder it.

But if you are too interested in the result, the ultimate result– that you have to become famous, that you have to be the best painter in the world, that you have to defeat all other painters hitherto– then your interest is not in painting; painting is secondary. And of course, with a secondary interest in painting you can’t paint something original; it will be ordinary.

Ego cannot bring anything extraordinary into the world; the extraordinary comes only through ego-less-ness. And so is the case with the musician and the dancer. So is the case with everybody.

Share trading - 3 Blind men with the Elephants

2011-04-23T15:51:00.001+05:30

A Hindu folktale tells of three blind men encountering an elephant. "It's a tree," says one, stroking a leg. "No, no, it's a snake," says another, feeling the trunk. "No, this must be a house," insists a third, spreading his arms against the bulk of the elephant's body.

All three had a different perception of the elephant based on the part they examined, and all three conclusions were wrong. The elephant was larger and more complex than any of the men realized.

A similar tale is told everyday in the market. Each market participant has different needs, agendas, histories, perceptions, and sees the market completely differently. As with the three blind men examining the elephant:

The Bear saw Friday's drop as a great vindication of his view and recovery of his position.

The Bull saw the action as a short pullback to add to or enter a long position.

The Day Trader saw the morning gap up as a great short set up, and the long saw the gap as a great exit from Wednesday's trade.

This is one of the challenges of our market debates; each one of us has a different perspective from which we are examining the same elephant. Each of us has a reason to interpret what we see and say to influence others or convince ourselves that we are right. No one is right or wrong but human nature is subjective, and thus leads to the creation of the market whereby both buyer and seller feel that they've been enriched

ENTER THE HEART - Ramana Maharishi

2011-04-23T12:02:00.001+05:30

A devotee who had suddenly lost his only son came to Bhagavan in a state of acute grief, seeking relief. He asked a few questions in which his grief was evident. Bhagavan, as usual, asked him to enquire into the Self and find out who is grieving. The devotee was not satisfied. Bhagavan then said, “All right. I will tell you a story from Vichara Sagaram. Listen”.

TWO YOUNGSTERS BY name Rama and Krishna, told their respective parents that they would go to foreign countries to prosecute further studies and then earn a lot of money. After some time, one of them died suddenly. The other studied well, earned a lot and was living happily. Some time later the one that was alive requested a merchant who was going to his native place to tell his father that he was wealthy and happy and that the other boy who had come with him had passed away. Instead of passing on the information correctly, the merchant told the father of the person who was alive, that his son was dead, and the father of the person that was dead, that his son had earned a lot of money and was living happily. The parents of the person that was actually dead, were happy in the thought that their son would come back after some time, while the parents of the person whose son was alive, but was reported to be dead, were in great grief. In fact, neither of them saw their son but they were experiencing happiness or grief according to the reports they received. That is all. We too are similarly situated. We believe all sorts of things that the mind tells us and get deluded into thinking that what exists does not exist and that what does not exist exists. If we do not believe the mind but enter the heart and see the son that is inside, there is no need to see the children outside.

Basic tenets of swing trading - Linda Bradford – Street smarts.

2010-05-06T16:43:00.002+05:30

· Stay in one time frame! Yes, it is important to be aware of the big picture, but it should not affect where you get into or out of a trade or how you manage it. Don't turn short-term scalps into "big picture" trades.

· When in doubt, get out! If the market goes dull and quiet after you enter a trade and makes no progress in the direction of your entry, do not wait until your stop is hit. Just get out! Seek a more active market or better trading opportunity. All of the strategies of swing trading techniques should reward you immediately. If they don't, it is likely your trade will turn into a losing one.

· Don't trade in quiet, dull markets. Dow, Livermore, Rhea, Taylor, Gann-all the greats say this over and over. There must be activity and liquidity in order to trade profitably.

· Don't carry losing positions overnight. Exit and try entering at a more favorable level the next day.

· If the market offers you a windfall profit on a trade, lock it in! (Windfall means a much bigger profit than anticipated.) Take profits on half or all of the position. Trail an extremely tight stop on any balance!

· Finally, remember that both in short-term trading and mechanical systems, the distribution of winners is skewed. Most of a month's profits might come from only two or three big trades. Much of the time the individual profits may seem small, but more importantly the losses should be small, too.

It is vitally important to lock in the best trades. Be defensive and don't give back profits when swing trading!

Some basic rules for successful trading

2010-05-04T12:52:00.002+05:30

Money	:	Never trade with money you cannot afford to lose

Trend	:	Always ride the trend and never try to decide a trend

Selection	:	Always select the stocks, for there are always bullish stocks in a bearish market and bearish stocks in a bullish market.

Timing:	:	Never initiate your trade at the opening bell, wait for a market to make initial high and lows

Quantity		Always while trading keep the amount same in each trade and not the quantity, ex: if have traded 50000/- in one, trade 50000/- in another rather than trading 100 shares in each trade. i.e. keep the trading amount same in each trade rather than the trading quantity.

Learning	:	Blaming market is trying to hide your mistakes from yourselves ,making fool of one’s self, thereby losing an opportunity to learn, markets are never wrong, the blame lies with trader.

Introspection	:	Always introspect at the end of every trading day, next day will work wonders.

Risk/ reward ratio	:	Never ever enter a trade where the risk to reward ratio is less than 1:4

No of Trades	:	Always trade in 2 to 3 stocks at any given point of time, how lucrative the market be, be master of some than being jack of all, keep buffering profits, you’ll find stock markets a wonderful place to be in...

Stop loss	:	Stop loss is essence for trading, never trade without a stop loss, though adequate liverage should be taken while placing stop losses in a volatile market.

Averaging	:	Averaging has no place in day trading, either u get out of the trade with the stop loss getting triggered or get the target

Success	:	Always use trailing stop loss, when the trade initiated, starts bearing results, to get maximum profit.

Greed:	:	Always be ready to take the profits home, if the initial trades have worked for you, be ready to go home , do not trade for the broker

Confience:	:	If the markets are not making you confident do not trade, just for the sake of trading , wait for clear signals

Rumors	:	Never trade on news or rumors, always follow the levels, remember, news does not make levels, it just triggers levels.

Levels	:	Never get panicked or exited by the happenings on the screen, stick to the levels and stop loss, else you’ll always end up loser

Psycology	:	Never follow the mass [the people sitting besides u], for 95% of them do not understand market

Decision	:	Be ready to book loss if the ship starts to sink, do no pray , just jump.

Patience:	:	Patience is the name of the game, always exercise patience and restrain during the course of trading, for if a couple of trades have worked against u, take a gap and try to get the trend.

Speculation:	:	Check on the speculative tendency, every rise or fall has a logic behind it, just do not be speculative, without logic.

Failures	:	Always treat failures [losses] if any, as an learning opportunity, for every failure opens the doors of success, failures should be used as a source of motivation rather than depression.

The 23 Winning Investment Habits of the World’s Masters Investors – Warren Buffet and George Soros!

2010-04-30T09:53:00.000+05:30

Winning Habit Number 1:
• Believes his priority is always preservation of capital.
Winning Habit Number 2:
• Risk Averse.
Winning Habit Number 3:
• Has developed his own investment philosophy (personality,ability, knowledge, tastes and objectives).
Winning Habit Number 4:
• Has developed and tested his own personal system for selecting buying and selling shares.
Winning Habit Number 5:
• Believes diversification is for the birds.
Winning Habit Number 6:
• Hates to pay taxes and other transaction costs and arranges his affairs to legally minimize tax.
Winning Habit Number 7:
• He only invests in what he understands.
Winning Habit Number 8:
• Refuses to make investments that do not meet his criteria.Can effortlessly say “NO” to everything else.

Winning Habit Number 9:
• Is continually searching for new investment opportunities that meet his criteria and actively engages in his own research. Likely to listen only to other investors or analysts who he has profound reasons to respect.
Winning Habit Number 10:
• When he can’t find an investment that meets his criteria, he has the patience to wait indefinitely until he finds one that does.
Winning Habit Number 11:
• Acts instantly when he has made a decision.
Winning Habit Number 12:
• Hold a winning investment until a pre-determined reason to exit arrives.
Winning Habit Number 13:
• Follows his own system RELIGIOUSLY.
Winning Habit Number 14:
• Aware of his own fallibility. Corrects mistakes the moment they become evident. As a result suffers more than small losses.
Winning Habit Number 15:
• Always treats mistakes as LEARNING EXPERIENCE.
Winning Habit Number 16:
• As his experience increases, so do his returns. He now seems to spend less time to make more money. Has “paid his dues”.

Winning Habit Number 17:
• Almost never talks to anyone about what he’s doing. Not interested or concerned with what others think about his investment decisions.
Winning Habit Number 18:
• Has successfully delegated most if not all of his responsibilities to others.
Winning Habit Number 19:
• Lives far below his means.
Winning Habit Number 20:
• Does what he does for stimulation and self-fulfillment and not for money.
Winning Habit Number 21:
• Is emotionally involved with the process of investing and can walk away from any individual investment.
Winning Habit Number 22:
• Lives and breathes investing 24 hours a day.
Winning Habit Number 23:
• Puts his money where his mouth is.

Learn Intelligent Ignorance

2010-04-06T19:19:00.002+05:30

Education teaches us what we can do and also teaches us what we cannot do.

I'm looking for a lot of men with an infinite capacity for not knowing what cannot be done. --Henry Ford

Henry Ford gave this world the V8 engine. He did not have much formal education. In fact, he did not go to school beyond the age of 14. He was intelligent enough to know there had to be a V8 engine but he was ignorant and didn't know how to build it. So he asked all his highly qualified, educated people to build one. But they told him what could be done and what couldn't. According to them, a V8 was an impossibility. But Henry Ford insisted on having his V8. A few months later he asked his people if they had the V8 and they replied, "We know what can be done and we also know what cannot be done and V8 is an impossibility." This went on for many months and still Henry Ford said, "I want my V8." And shortly thereafter the same people produced his V8 engine.

How come? They let their imagination run beyond academic limitation. Education teaches us what can be done and sometimes also teaches us false limitations.