Notebook of a Share Trader

111 Learnings from the Stock Market

Pakubhai — Mon, 14 Mar 2011 17:42:50 +0000

Inspirations, to be a successful trader / investor. Control what you can, Manage – what you cannot control. Take the action, what you have decided. Don’t change your mind. Be disciplined. Trade what you see, not what you want to see. The market will do what it will do. Just follow price and don’t [...]

Personal Finance and Investment Tips

Pakubhai — Sun, 19 Sep 2010 18:52:36 +0000

There is no magical things that anyone can make lots of money over-night. Definitely, one can lose all of his money over-night, because climbing hill is only possible through step-by-step, but can be tumble down real quick. Making money in one stroke in stock market or by any other means is nothing else but imaginary [...]

Emotional Side of Investments

Pakubhai — Sat, 11 Sep 2010 11:41:35 +0000

Emotions are key factors to success or failure in our lives. Through emotion of hope to make some money, we invest. The money, stocks, properties are well connected with emotions of owner. If you look at most of the decisions we make in our lives, emotions are key to success and failure. 1. There is no such thing as a good stock 2. Know your risk tolerance 3. Don't miss the train to save a dime .......& More

Learn How to Value the Stock Market

Pakubhai — Wed, 08 Sep 2010 08:23:54 +0000

Remember that price matters most and Market timing is terrible, unless you time is right. Anyone who tells you that it's always sensible to buy stocks is dotty. No one said this during slack period of 2000 -2001, which was wonderful time to buy stocks. Also during the recent slack, when Dow hit the low of 6600 and sensex hit the low of 8700 in Jan. 2010, everybody was exiting the stock market or ignoring it. If you buy stocks during that period, more than 80% can be made within 8 months.

The Investing Method -Warren Buffett Style

Pakubhai — Sat, 04 Sep 2010 03:01:18 +0000

If you want to emulate a classic value style, Warren Buffett is a great role model. Early in his career, Buffett said, "I'm 85% Benjamin Graham." Graham is the godfather of value investing, and introduced the idea of -the underlying fair value of a stock based on its future earnings power. He netted over $42 billion personally with an investment partnership he started with only $100. But there are a few things important to know worth noting about Buffett's interpretation of value investing that may surprise you. 1. Don't be the patsy (easily cheated or blamed)

“Short-Term Trading” -A Loser’s Game

Pakubhai — Thu, 02 Sep 2010 08:04:27 +0000

Over 90% of non-professional short term traders will end up losers, if they stay in the game. Even those with winning two trades out of three trades will mostly end up losers since losses on losing trades are usually at least twice as large as the average gains realized. In either case if the market fall sharply or jump sharply, short-term trader find himself stuck. Mostly as a short-term trader, trader books the profit immediately and miss the real creamy portion of the profit.

Know the Difference Between Gambling and Investing

Pakubhai — Sun, 29 Aug 2010 09:41:01 +0000

If you were to walk into a casino and put a quarter in a slot machine, it is obvious that you are gambling. The same things hold true with other casino game and many more bets on sports and cards. With the gambling immediate results come out, either lose or gain. The simple fact that gambling games are frivolous (lack of seriousness) to a certain degree is precisely what makes them enjoyable to a gambler.

Life-Time Rules for Investments

Pakubhai — Thu, 26 Aug 2010 07:25:34 +0000

1. Learn the Basics of Long-Term Investing Begin with setting aside cash at least two to six months’ living expenses and an emergency fund that will be available in the event of illness or a period of unemployment. Then commit yourself to regular investing, so that you and your family will have enough later. 2. [...]

How to Lose Money in Stock Market? -Thinking Contrary.

Pakubhai — Mon, 23 Aug 2010 06:57:31 +0000

This a contrary thought. Whenever most of the people attempt to make the money in stocks, they lose. What will be the consequences if we try to lose money and actually act to lose money? In fact, the trick is to make money by understanding what a loser do to lose his money and how we can walk in opposite direction to make money in stock markets.

Financial Planning for Retirement and Live in Style

Pakubhai — Tue, 17 Aug 2010 07:27:30 +0000

We human beings, need to think and plan ahead. While that may be true, most of us also have great trouble thinking ahead for the long term in the middle of our daily busy tasks. It's difficult enough to plan something just six months ahead,like a summer vacation. How are we supposed to be able to think about something in the distant future like retirement? However, thinking in advance, and acting on those thoughts, are keys to being ready when the future becomes the present. The younger you are, the more distant your retirement and the greater your ability to compound your returns over time.