SPENDTIMEPROFITABLY

VIEWS ON THE MARKET AND STOCKS

2021-04-20T00:08:00.022-07:00

MY VIEWS

for viewing stock watch list go to https://spendtimeprofitably.blogspot.com/p/stocks-to-watch-for-buying.html and click on QR code in the leaflet

MACD leading indicator and how to use it

2019-01-19T20:50:00.001-08:00

MACD.
MOVING AVERAGE CONVERGENCE AND DIVERGENCE is one of the many indicators which can be used for trading effectively.
Macd line, Macd signal and HISTOGRAM are the 3 parts of the MACD
the following video can give a insight into these.
one of the method is given below:

See the following charts and study the above concept

a wonderful experience

2014-08-15T23:12:00.001-07:00

PLEASE DO READ TILL END

I am sharing this wonderful experience, I recently had in Singapore.

I was invited to one Friday evening event by one of MNC Vendor organization who had organized the event to raise funds for the visually handicapped people in a center for blind people.
As usual, since it was a Friday evening, I first thought to skip the event considering it could be a bit boring and rather spend the evening relaxing by some other means.
But being alone and sometimes finding it difficult to kill time, I thought to accept the invitation and registered on line for booking.

Moreover it was free :) which was another motivation to go to the event.

I was looking at the event to pass some time, meet few people and nothing else.

When I went there, there were approx 40 people from various industries invited for that event. I found some Indians and naturally talked to them about how life is in Singapore etc etc. Initially we were shown a video about the visually handicapped center. What are their activities, how are they helping blind people in Singapore to lead a more fulfilling life, etc . It was a short 15 minute video and quite inspiring that how people from different walks of life spend time in helping these blind people without expecting anything in return.

They shared the satisfaction and fulfilment they get by helping them.

After the video, we all were gathered in a hall and were briefed about next event. The theme of the next event was "Dining in the Dark".

And this is the event which turned out to be inspiring and worth sharing.

What is meant was that we all 40+ people were going to have Dinner in a pitch Dark room !!!! The next 2 hours were completely planned, organized , directed and executed by three blind youths.

One was a girl ( Leader ) and other two boys were assistant to her forming a team of three blind volunteers.

The blind leader first gave us tips for dining (These were ACTUAL STANDARDS THE BLIND PEOPLE FOLLOW IN ORDER TO MAKE THEIR LIFE EASIER)1. When you sit at your table the things will be placed as follows :
at 3 o clock of your dish : You will find a spoon.
at 9 o clock : Fork; 12 o clock : spoon. 2 o clock : Empty Glass Dish at the center with Paper napkin tucked at 6 o clock. 2. There will be two large Jugs circulated to you. The Jug with plain walls will have water and the Jug with curved wall will have orange juice.

3. When you get your Jug based on your choice you have to pour it in your glass. You have to dip your forefinger in the glass so that when you fill it and the liquid touches your finger, you have to stop pouring.

She asked whether everyone has understood.

All said yes but everyone was confused and trying to remember what she said and confirming with each other. Next 1 1/2 hours we spent were full of fun and learning. In completely pitch dark room where we could not see ANYTHING we were enjoying various delicious food without seeing it.

We all 40 people were taken in groups in the dark hall.

Each one was directed by blind person till he/she sits on a chair (We were finding it awkward because actually we are supposed to guide blind people to their destination and help them).

We were Served full five course dinner by this team of three blind people-Welcome drinks, appetizers, starters , main course and desserts.

The amazing thing was that the team of three blind people were serving exactly vegetarian dishes to vegetarian people who were sitting randomly in the room!

While registering on line we were asked question to choose from "Vegetarian" or "Non vegetarian". I obviously chose Vegetarian, being one. We were so nicely hosted that we did not have to wait in between serves . As we were ending finishing one dish, we were served with next without any delays.

After approx 1 and half hours of Dining in the dark , the leader asked whether everyone has finished eating. After confirmation she switched on the lights of the dining room.

We left the Dining room with tears in our eyes.

We realized how lucky we are and how we have been gifted with beautiful eyes to see the beautiful world. We realized how difficult lives of blind people are ( and other handicapped) without being able to see.

We realized how uncomfortable we were for just two hours without being able to see anything and how they must be living their lives.

We realized how unfortunate we are , that we do not value such simple things in life we have and cry (sometime louder, sometime within ourselves) and run after what we don't have... for whole of our lives without having time to adore for the things we have.Be cheerful.
Adore whatever you have in life.
You may try for whatever you don’t have but never feel sad about it.

You need to experience it, something like I had experienced, to believe this philosophy of life.

technology based risk in financial markets

2014-08-15T22:42:00.001-07:00

Technology Based Risk in Financial Market’s by Lokesh Madan.

Posted: 15 Aug 2014 11:52 AM PDT

When I meet India’s & International Top Prop Desk MD or CEO.Their main concern is Not about Returns.But its Risk Which occurs due to Technology.So we short listed some important points to highlight the Risk occurs due to High Tech Technology used in financial Markets.In our conclusion we provide solution to this problem.
It goes without saying that the reliance on technology in today’s financial markets is so great that technology risk is a massive issue for organizations& we all know the benefits that technology has brought to the industry have been very significant, shaping today’s globalized business of raising capital, trading and investment. Without doubt the capacity that technology has generated has led to the large growth in volumes and the introduction of new and sophisticated products. As we know, it has also transformed the way in which operations perform their tasks, giving a wide range of benefits from dematerialized settlement to added-value client services. However, this radical transformation of the industry has been accompanied by the introduction of technology risk. This risk is, perhaps not surprisingly, a significant element in operational risk but how and why does technology risk arise?
Technology risk can arise in many ways. Take, for instance, an organization that invests in new technology, either new to the business or new to the marketplace. The risk here is that the technology may be untried and subsequently proves difficult to work with, fails to meet requirements or is unreliable in operation.
Alternatively, a firm may create technology risk by under investing in technology so that the operational processes become increasingly affected by the inadequate and failing systems.
There is also the risk of technology-based projects taking longer to complete or being over-budget and, in some cases, there may be inadequate training of the teams supporting and using the technology. Elsewhere in the article we have commented on the dangers of projects being mismanaged and over-running and, of course, in extreme cases the projects may be shelved because the funding and/or time runs out – costly mistakes in monetary as well as competitive and risk terms.
Implementation itself can, of course, be a risk with everything from inadequate training to underestimation of converting data from the old to the new system and adequate controls to reconcile this process.

Risk issues due to Technology :

1) Errors in the development of software ( OMS,Risk Management System or Trading Software). The complex nature of the investment banking industry means that any support system would require complex algorithms or business rules to be developed. Unless there is comprehensive testing, there is a risk that the algorithms may be incorrectly programmed. 2) Errors in formulae or mathematical models.( Quant or Algo Strategies): The nature of some products like derivatives requires development of complex models for revaluation or margin purposes. New products are constantly being introduced and new models need developing or existing ones updated.
3) The quality and availability of systems support ( Colocation,Various venders) can be a major issue and cause severe problems in the operations environment.
4) Problems with static data input( Algo Variable Inputs) and maintenance affecting key processes like revaluations, expiry of products, corporate actions,etc.
5) Failure in Network / Hardware or communication channels.
6) Inadequate security over the system and its output.
Let us discuss in detail:::

1) Core Risk by Technology :: System risk

A core technology risk is system risk. The failure of a system to perform or to be reliable can have far-reaching implications for an organization. Recommendation 2 – 2000 of The International Securities Services Association Recommendations 2000 illustrates the importance of systems in allowing the efficient and risk-managed environment for securities clearing and settlement by considering technology risk from the point of view of core processing. In commenting on securities systems in the clearing house/custodian/Central Securities Depository fields it states: ISSA 2000 Recommendation 2
Securities systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.
The considerations in formulating this recommendation were the market infrastructure and the impact from the technology perspective.
Their findings were that market infrastructure will need to accommodate:
1) Increasing volumes of traffic and volatility in markets
2) Globalization of investment
3) Emergence of electronic communication networks (ECNs) as virtual exchanges
4) Demand for real-time settlement of stock and cash with a move to real time or rapid multiple batch intra-day settlement
5) Demand for flexible processes allowing delivery versus delivery of stock both internally and across depositiories
6) Longer hours of operation for trading and need to support 24-hour, 7-day week operations.
7) Circuit breaker execution on time.
8) Control on HFT speed.
This is a major issue for the industry as initiatives like STP rely on the ability of the key market organizations to put in place the above. From a technology perspective, this gives rise to:
• Utilities that serve multiple trading markets or platforms
• Systems that can accommodate surges in activity (in transaction processing and information transmission) without any degradation of service and response time
• Real-time process enabling interactive communication to facilitate intra-day traffic
• Linkage to the appropriate real-time cash settlement processes
• Adequate contingency and back-up, minimizing the risk of outages that could prevent the timely completion of settlements on the contracted date
Each of the above issues is significant to both the suppliers of the systems and the users. The risk of defaults and financial losses increases when settlement is delayed and clearing houses, CSDs and custodians cannot afford to have or interact with unreliable core systems.
As ISSA points out, this implies that the technology infrastructure must have:
• Open access to on- and off-exchange markets
• Scaleable systems covering the maximum forecast daily volumes
• Resilient and fault-tolerant processes
• Continuous processing capability with interactive user communication links
• Adequate stand-by allowing for recovery of operations, without any loss of data in a reasonably short period within the working day
Operations managers will be familiar with the problems created by system downtime. It is a source of concern to risk managers as well, not least because the dealing activity cannot realistically be suspended every time the operations systems are down, even though it is not possible during this time to verify totally the exposure of the business. When we talk about system risk we need to differentiate between the internal system risk and the external risk as described in the ISSA Recommendations, and yet both are very significant issues in different ways.
Internal system risk
This is a risk that to some extent at least is under the control of the firm. The system is either in-house or supplied and may be supported internally or externally or both. It is chosen to meet the business requirement of the firm and developed accordingly. The risk associated with it would be:
• Capability to meet current and future levels of business
• Ability to handle products
• Age of system and reliability
• Poor maintenance capability
• Understanding of the scope of the system by operations managers and teams
• Comparison to other systems
When considering the degree of system risk it has, a firm must pay particular attention to these risk situations and be satisfied that the business is not being compromised as a result. If any are evident then the operational risk level is going to be increased, if the impact of any is compromising the clearing and settlement processes then the risk level is likely to be, or will become, critical. As a result, systems will need to be reviewed then redeveloped or replaced.
External system risk
The principal problem with external risk is that the firm is not very often in control, i.e. they have to utilize the system or services in any case. It is this impact of systems in the counterparty that worries ISSA and led to their recommendations.
The failure of systems within counterparties, whether they be prolonged failures or just inadequate functionality has a profound impact on the performance of the operations team within the user.
For instance, the inability to provide timely and accurate data from a custodian has an impact on the client, likewise the inability of a CSD to receive and process correctly instructions. However, the problem is not just with the organizations within the clearing and settlement infrastructure, it also lies with the suppliers of systems to the banks, brokers and institutional clients.
Late delivery of system releases, errors in newly released functionality and failure to rectify errors with software in a timely fashion can all have a drastic affect on the operations team’s ability to carry out the function efficiently. This in turn increases the risk. Monitoring of the system and support performance is therefore essential and while service level agreements may give some comfort they do not remove or negate all the risk.

2) System security

With systems and technology at the heart of the industry and the businesses it is not surprising that system security is considered a major operational risk. Fraud, money laundering, manipulation of data, technology criminals, Strategies leakage, terrorism and ‘for fun’ hackers all present a very real danger to businesses. In many cases the business is vulnerable because of poor security over access and/or availability of data output from the system.
Operations managers have a responsibility to ensure that the data input and output to and from the systems is in a controlled environment. This may seem very simple but in reality can actually be very difficult as the need to be able to carry out the processing functions can create areas where there is a conflict of interest with risk control. For example, it is late in the day and a new product has been traded that needs to be set up on the system. The natural control to prevent fraud would be to have an independent person from deal input/processing set up the product on the system. This would incorporate an independent check that the product was duly authorized etc. However, if this person (and any support) is not available or they are not competent to set up the product on the system there will be problems. As a result of not being set up or set up incorrectly the trade may not be processed, affecting records and reporting, and could affect clients and generate both operational and possibly regulatory risk.
However, if the processing team are permitted to set up products in the system there is a different, but just as dangerous, weakness.
Organizations overcome this by sometimes having static data teams and manage the situation through ensuring availability of trained staff and setting deadlines for the time to set up a new product in the system. By instituting adequate procedures and controls the situation can be managed but incorporating this into headcount, operational hours and ensuring adequate competency is not easy, particularly in smaller firms.
On a more simplistic but nevertheless important note, password control into systems can be, and often is, woeful. Not only are passwords often freely shared, but they can take an age to be disabled after a person leaves the organization. Slack access rules open up an
organization to all manner of dangers that, to be fair, the operations team member may not recognize. We have probably all used someone else’s access code to expedite a quick solution to an inquiry, particularly when dealing with a client inquiry and they are waiting on the telephone for the reply. However, this cannot, in risk terms, be justified. The situation where the access code of a departed employee takes days, sometimes weeks, to be disabled is a totally unacceptable risk.
Problems also exist today with so many organizations offering and taking services via the Internet. Without question this is a quick and very attractive medium to communicate and get information, for instance from exchanges. However, unless there are adequate controls and protection to the systems a disaster is waiting to happen. It may be unsavoury that employees might access and download pornography, but the real danger is the vulnerability to viruses and hackers. Activists for various anti-capitalist groups, criminals and terrorists can bring a company quickly to its knees if they can access the core systems. With people often on the inside, i.e. employed in the firm, any weakness that can be discovered and then conveyed to compatriots on the outside presents a massive risk.

3) Business-continuation risk

With the exception of a regulatory suspension or ban, nowhere is there more risk to the continuation of the business than technology.If we look back at some of the risks we have already mentioned, most of them could manifest themselves into a very significant problem, some quite quickly. A virus, for instance, or a major problem with the implementation of a new system would be examples. Yet it is the loss or severe disruption of a system that perhaps creates the greatest concern in many people’s minds. Even in London businesses have faced the threat of terrorism for many years and the Irish Republican Army (IRA) has, while never stopping the financial markets, or indeed firms operating in the markets, from continuing their business, given insight into the consequences of losing infrastructure like buildings. Although the threat from the IRA has to some extent been reduced by the Northern Ireland peace process, dissidents still harbour ideas about attacks on Britain and crave the publicity that a ‘big one’, i.e. bomb, brings. This was highlighted in the USA and indeed the world by the terror attacks of 11 September 2001. In both cases despite appalling destruction, deaths and damage, most businesses defiantly survived and continue in operation today. They did so because of disaster recovery and business-continuation policies that enabled them to re-establish the business, including systems, in an alternative location.
These types of massive disruption are a risk, there can be no question about that, and yet other potentially equally dangerous situations to the business exist.
As technology advances so the industry moves forward. Many key players in the infrastructure of the capital markets are coming together in mergers and alliances, changing the whole way in which business, including clearing and settlement, is carried out. As the systems move forward in the drivers we talked about earlier in this article take effect, some firms are caught in a very difficult situation.
Redeveloping or replacing systems is neither cheap nor particularly easy to implement and yet a failure to modernize the systems can have massive implications for the business. On the one hand, there is the possibility of being unable to meet exchange or clearing house interface capabilities and therefore being unable to continue as a member of that organization. On the other, operations teams faced with increasing demands from clients for ever more sophisticated technology-based services cannot compete with other firms because of outdated systems.
These both pose significant threats to the firm and need to be addressed by a long-term commitment simply because the pace of change is unlikely to slow and ‘temporary patches’ are no solution.
Operations managers must therefore be very aware of their role in helping to plan and develop the system capabilities for the firm, as wrong decisions on the choice of system and the future requirements are not just simply an embarrassment and a financial loss, they may be terminal and prompt the firm to consider outsourcing the operations function. Given the threat to the business of the failure of systems to be adequate from a business and regulatory aspect, one can see why the directors may decide that the risk to the continuation of the business is too great, not to mention the investment, to maintain an Operations function.
There are, of course, many sound arguments for investing in systems and utilizing the Operations function as a revenue generator and support service to the business and its clients. So providing the Operations managers can show their ability to manage systems, both in usage and development capacity, there is no reason to believe that business-continuation risk cannot be adequately managed.

Finally the —- Technology is power. It is also a risk. So re test 10 times on all above mention points before goes into Production line.
One of the Solution for Technology Risk :
There is a General insurance provided by three insurance company by which you can protect your pro desk under Technology risk occurs. Flash crash can also be insured using this policy.

BEST POSITION TO SLEEP

2012-09-24T04:10:00.001-07:00

Best Sleep Position ~
Generally speaking, side or back sleeping is the best. I say this because true stomach sleepers must wrench their necks to either side. When you are a small child, it works because you can turn your head 90 degrees to either side. As you get older, this becomes more difficult and you can end up with a strained neck. Back and side sleeping will keep your spine in its best alignment.
Sometimes, snorers, sleep apnea sufferers, or people with heartburn/acid reflux may have some difficulty with these sleep positions.
However, with a good neck pillow that opens up the sinuses and restores the neck curve, apnea and snoring are much improved. With a slight incline, reflux disease can be improved also.
A neck pillow also keeps your head level when youre on your side. Put a pillow between your knees and you keep your legs and pelvis level too.
Whichs ur sleeping position??

HOW TRADERS FAIL

2011-08-03T23:20:00.000-07:00

How Traders Fail????

1. Lack of motivation. A talent is irrelevant if a person is not motivated to use it. Motivation may be external (for example, social approval) or internal (satisfaction from a job well-done, for instance). External sources tend to be transient, while internal sources tend to produce more consistent performance.

2. Lack of impulse control. Habitual impulsiveness gets in the way of optimal performance. Some people do not bring their full intellectual resources to bear on a problem but go with the first solution that pops into their heads.

3. Lack of perseverance and perseveration. Some people give up too easily, while others are unable to stop even when the quest will clearly be fruitless.

4. Using the wrong abilities. People may not be using the right abilities for the tasks in which they are engaged.

5. Inability to translate thought into action. Some people seem buried in thought. They have good ideas but rarely seem able to do anything about them.

6. Lack of product orientation. Some people seem more concerned about the process than the result of activity.

7. Inability to complete tasks. For some people nothing ever draws to a close. Perhaps it’s fear of what they would do next or fear of becoming hopelessly enmeshed in detail.

8. Failure to initiate. Still others are unwilling or unable to initiate a project. It may be indecision or fear of commitment.

9. Fear of failure. People may not reach peak performance because they avoid the really important challenges in life.

10. Procrastination. Some people are unable to act without pressure. They may also look for little things to do in order to put off the big ones.

11. Misattribution of blame. Some people always blame themselves for even the slightest mishap. Some always blame others.

12. Excessive self-pity. Some people spend more time feeling sorry for themselves than expending the effort necessary to overcome the problem.

13. Excessive dependency. Some people expect others to do for them what they ought to be doing themselves.

14. Wallowing in personal difficulties. Some people let their personal difficulties interfere grossly with their work. During the course of life, one can expect some real joys and some real sorrows. Maintaining a proper perspective is often difficult.

15. Distractibility and lack of concentration. Even some very intelligent people have very short attention spans.

16. Spreading oneself too thin or too thick. Undertaking too many activities may result in none being completed on time. Undertaking too few can also result in missed opportunities and reduced levels of accomplishment.

17. Inability to delay gratification. Some people reward themselves and are rewarded by others for finishing small tasks, while avoiding bigger tasks that would earn them larger rewards.

18. Inability to see the forest for the trees. Some people become obsessed with details and are either unwilling or unable to see or deal with the larger picture in the projects they undertake.

19. Lack of balance between critical, analytical thinking and creative, synthetic thinking. It is important for people to learn what kind of thinking is expected of them in each situation.

20. Too little or too much self-confidence. Lack of self-confidence can gnaw away at a person’s ability to get things done and become a self-fulfilling prophecy. Conversely, individuals with too much self-confidence may not know when to admit they are wrong or in need of self-improvement.

austerity and infrastructure spending

2011-03-18T21:18:00.000-07:00

Last week I discussed the austerity trap, warning that cuts in government spending can tip the economy back into recession (as in 1937) if compensatory steps are not taken. I would like to expand on this — and clear up any misconception that I may be advocating fiscal profligacy.

The Savings-Investment mismatch

First a quick re-cap of the Savings-Investment mismatch. In a normal economic environment, national savings are recycled through the financial sector into new capital investment, with new stock issues and bank loans used to fund corporate expansion. That means that every dollar earned is eventually spent: either by the consumer or through investment in new capital equipment. Every 50 years or so, however, a banking panic occurs and the normal rules no longer apply. Consumers lose faith in the ability of the banking sector to protect their savings; and the banking sector loses faith in the ability of borrowers to repay loans. Consumers increase savings and pay off debt, while banks are reluctant to lend because of the elevated default risk — and a strong need for liquidity.
The increased savings and reduced lending causes a mismatch that has disastrous consequences if left unattended. The mismatch may only amount to a small percentage of GDP but, similar to a puncture in a automobile tire, the small leakage will cause a far greater fall in GDP. Economists refer to this as the multiplier effect: the effect is amplified through continuous feedback — a similar result to the howl of a sound system if you place the microphone in front of a speaker.
The chart below illustrates the shortfall between Private Savings and Private Investment since 2008. Only when Private Investment recovers can government stimulus be withdrawn.

Fiscal deficits

Governments should only run deficits in times of national emergency: either during a major war or a banking crisis. The US has experienced three such banking crises since 1900:

the Panic of 1907 that led to creation of the Federal Reserve system;
the Crash of 1929 that led to the Great Depression; and
the Global Financial Crisis (GFC) of 2008.

During a banking crisis it is imperative that government step in — borrowing and investing to make up the savings-investment shortfall — and prevent the economy from plunging into depression. The chart below shows how the fiscal deficit was increased to compensate for the excess of Private Savings over Private Investment (when Net Private Investment is negative) from 2008 to 2010.

It is important that government borrow and invest to make up the shortfall, but some politicians interpret this as a license to waste taxpayer money on any crackpot scheme they can think of. That is extremely short-sighted: they are spending borrowed money that will later have to be repaid. If not invested wisely, the result is a crippling debt load and a bunch of worthless (or non-existent) assets.

What Constitutes Investment?

There appears to be some confusion as to what constitutes investment, so let me start with an important definition:
An investment is the purchase (or construction) of an asset that either:

earns the investor an income; or
saves him/her from a recurring expenditure.

Here are some examples that many of you may relate to. Land is not an investment if it does not earn you an income. You are merely speculating that land prices will rise over time. Real estate is an investment if you rent it out. If you occupy it, it is an investment only so far as it saves an equivalent amount of rent. A boat or yacht is not an investment; they require ongoing expenditure without earning an income. There are still some gray areas, however. My son argues that a new 3D television would be an investment as it would save expenditure on movie tickets, but my view is that expenditure must be on essentials (food, power, gas, etc.) rather than discretionary items (movie tickets).

Government Stimulus Programs

Sending taxpayers bonus checks through the mail is as profligate as sending them movie tickets. There is no investment to offset the debt incurred, especially if the money is spent on a wide-screen TV from Taiwan or an overseas holiday.
Infrastructure spending by contrast is an investment. That does not include a bridge to nowhere, a new school hall, or a fountain in the town square. Projects should be carefully selected according to the investment criteria stressed earlier: they must either generate an income or save a recurring expenditure — and at market-related rates of return.
Ideally, investment should create saleable assets such as toll-roads, power stations, electricity grids, rail networks, satellite systems and broadband networks — that can later be sold to pay off the debt incurred. Not all infrastructure investments may be saleable, but they should still be evaluated against the same criteria: will the country benefit from the new investment through an identifiable increase in national income — or drop in national expenditures?
Political favorites like health care and defense spending are harder to evaluate and should only qualify if there is a clearly quantifiable benefit. Early detection or prevention programs such as bowel/breast cancer screening or vaccination programs are not hard assets but there may be clear benefits in terms of reducing future health care costs.

Austerity

Austerity is still important. Governments should be as frugal as possible in their normal day-to-day operating expenditure, to maximize funds available for capital investment — and create real assets on the fiscal balance sheet that can be offset against the burgeoning fiscal debt.

Early Preparation, Evaluation & Selection

Infrastructure projects require years of planning and evaluation. Attempts to fast-track this process court disaster. A current example is the $40 billion national broadband network planned for Australia. Without thorough evaluation there is a serious risk that large parts of the network will be unable to compete in the open market — and $40 billion spent to create a $5 billion asset.

Why China Recovered Quicker

China recovered quicker from the GFC than anyone else because of its centrally planned economy. The government already had plans to expand infrastructure (dams, power stations, bridges, roads, etc.) on a massive scale; and was able to accelerate existing programs far more effectively than capitalist economies who were starting from a low base. That does not justify a centrally planned economy, but there are some advantages during times of national crisis.

Early Preparation

What is evident is that all governments need some measure of central planning. Infrastructure projects should be prepared well in advance, for just such an eventuality. And continually updated and re-evaluated in terms of new technologies and demographic changes. One of the administrators who best understood this was Herbert Hoover — the last engineer to occupy the White House and president during the 1929 crash. Hoover prepared plans for major infrastructure programs to be implemented during an economic down-turn — to offset the decline in private sector investment. Unfortunately, he did not anticipate the dramatic fall in government revenues when the economy went into a downward spiral. The sharp fall in revenues prevented Hoover from fully implementing his plans within the constraint of a balanced budget. FDR had no such qualms and ran continuous budget deficits to fund major infrastructure programs. In 1937, however, when the economy appeared to be well on its way to recovery, FDR attempted to reduce the budget deficit. Private sector investment had not sufficiently recovered and, to his consternation, the economy tipped back into recession.

To Sum Up

Austerity is still important during a banking crisis: to minimize wastage and free up as many resources as possible for infrastructure spending. But austerity is only part of the solution. On its own it would pitch the US economy back into recession — or worse.
Government needs to implement infrastructure programs to compensate for the ongoing shortfall in private sector investment. A mismatch between private savings and investment can send the economy into a downward spiral. Emphasis should be on government investment, not government spending. Market-related investment criteria must be used to evaluate all expenditure. Ideally, infrastructure projects should create saleable assets that can later be sold to offset the massive debt incurred. Profligate spending would lead us to financial ruin, with crippling government debt and no assets to offset this.

TRADING RULES

2011-01-28T03:08:00.000-08:00

Never cancel a stop loss order after you have placed it!

Place the stop at the time you make your trade.

Never get into the market because you are anxious because of waiting.

Avoid getting in or out of the market too often

Losses make the trader studious – not profits. Take advantage of every loss to improve your knowledge of market action.

The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.

Always discipline yourself by following a pre-determined set of rules

Remember that a bear market will give back in one month what a bull market has taken three months to build.

GOOD TRADERS HABITS

2011-01-20T05:14:00.000-08:00

1. Plan your trades.

2. Trade your plan.

3. Keep records of your trading results.

4. Keep a positive attitude, no matter how much you lose.

5. Don’t take the market home. Continually set higher trading goals.

6. Successful traders buy into bad news and sell into good news.

7. Successful traders are not afraid to buy high and sell low.

8. Successful traders have a well-scheduled planned time for studying the markets.

10. Continually strive for patience, perseverance, determination, and rational action.

11 Limit your losses – use stops!

12 Never cancel a stop loss order after you have placed it!

13 Place the stop at the time you make your trade.

14 Never get into the market because you are anxious because of waiting.

15 Losses make the trader studious – not profits. Take advantage of every loss to improve your knowledge of market action.

16 The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.

17 Always discipline yourself by following a pre-determined set of rules

US DOLLAR INDEX

2011-01-13T03:41:00.000-08:00

US Dollar Index

The US Dollar Index is consolidating between 79 and 81.50. Upward breakout is more likely, especially considering that Twiggs Momentum(21-day) is holding above zero. Breakout would signal a primary advance with a medium-term target of 84*, while reversal below 79 would test primary support at 76.

* Target calculation: 79 + ( 81 - 76 ) = 84

MONEY AND TIME

2010-12-20T23:28:00.000-08:00

In the previous post we talked briefly about TIME and its importance. The next important thing is MONEY.

In the olden days people give what they have and take what others have in exchange. The concept of money was discovered so that people can exchange anything they want with money. This resulted in the pursuit of money and motivation to get more money so that one can buy what he WANTS.

Money is needed to all. But there are certain things money could not get. Money cannot be ignored; money could not / should not be worshiped--lest one will become a slave and it will control one's life. In adequate quantity, money is your slave; But can one stop at that point? greed takes over until one realizes that he has already into the web of money and has become a slave to it.

Money needs pampering to be with you and grow. It is to be taken care like a rose. It gives good fragrance then. But it is very sensitive. It can go out / decay very fast without even your knowledge.

MONEY and TIME are two prime factors which propels life on the earth; be it individual, country, household , education...in short in all spheres of life.

Money and time are inversely proportional. When you keep gaining money you have less time for other pursuits. When you have lot of time in your hands (perceived) you have less money in your hands.

You spend time to get money. You spend money to get time, by purchasing the time of others.

Time is NOT repeat NOT possible to save like A.C current. You can never hold on it. It is SPENT whether you spend it or not.

AVAILABILITY OF TIME
There are many people who have the time at their disposal for different reasons; like e.g retired personnels, housewives with grown up children, students etc.

They do spend or while away their time in occupations which though boring or perceived to bring happiness but DEFINITELY not tangible returns.

what to do then? ...............continued in next post

Inflation-beating bonds: all you wanted to know ...Though not for Sr Ctz

2010-12-17T22:44:00.000-08:00

The Reserve Bank of India on Thursday came out with a technical paper on issuing inflation-indexed bonds (IIB) that aim to provide a cover to the debt investment against inflation. A look at what it is, what it means and who should invest.
What is an inflation-indexed bond? When inflation hits double-digit figure, it is often reported that the real return on fixed deposits have turned negative. The IIBs are bonds that offer to provide protection from inflation to both the interest payment and the principal by linking them to the wholesale price index and are thus designed to cut out the inflation risk of an investment.

How does it work?

If you are issued an IIB at a face value of Rs 100 with a real coupon rate of 8% and the inflation index goes up by 10%, then the principal for calculating the coupon payout will become R110 and the coupon payment will stand at Rs 8.80.

What benefits does it offer?
Investors can safeguard their risk of inflation and use it as a risk diversification tool. It will also offer cost savings for the government on account of reduction in coupon payments with lowering inflation rate, elimination of uncertainty risk premium.

Who should buy?
Experts say that this product was needed and long-term fixed deposit investors should have some exposure into these bonds as it is risk free debt asset post inflation. However, considering the fact that the product may have a lock-in of a longer period, experts’ say that senior citizens may not get into it. Also only part of the investible debt asset that can be locked should be invested.

How will it be issued and what will be the tenure of the bond?
The technical paper has proposed that IIBs may be issued through auction method, a practice similar to the fixed rate bond issues and has proposed to issue IIBs of 10/12 years as the instrument will have more demand in this bucket.

http://www.hindustantimes.com/business-news/businessbankinginsurance/Inflation-beating-bonds-all-you-wanted-to-know/Article1-637984.aspx

ABOUT THIS BLOG

2010-12-10T00:05:00.000-08:00

This blog tries to help those who want to spend their time at their disposal in a manner that will not only be interesting, exciting, thrilling, but also profitable.

All of us know, that "TIME" is irrecoverable. Once lost, lost for ever. But all of us talk about, think about it, and do not know how to make use of it. Due to compulsions of living, people do their chores of life both in domestic and official life to eke out a living. We also spend the spare time in entertainment, fulfilling social obligation.

There are times also when we introspect and think why we are wasting out time. How do we spend the time in some manner which would be not only enjoyable but also paying. This feelings is common among students, employed youngsters, housewives, retired personnel and the restless lot of people who always want to do something..

Next post we will see what are the ways / activities people look for in spending the time.

until then......