Here is a brief summary of some of the interesting things discussed in SLACK in the last week.
“Good Morning Friends, I am reading a Book called ” 13 STEPS TO BLOODY GOOD LUCK “
ONE INTERESTING STORY I READ IS ENCLOSED HERE” In 1894, a young Parsi lawyer, fresh out of law school, went to Zanzibar to argue a case on a client’s behalf. Unfortunately, the case required him to twist facts to suit his client’s story and the young man was unwilling to do so. He returned to India and gave up practicing law.
While working at a pharmacy as the chemist’s assistant in India, he noticed that all surgical tools were sourced from England through a long and tedious import route.
Taking a loan of 5 thousand rupees from a family friend, he began manufacturing scalpels, forceps, pincers, scissors and other surgical implements.
Unfortunately, the market only wanted ‘Made in England’ branded products, not Indian goods. He was forced to shut down the operation. However, by then he had understood the intricacies of working with metals and machines.
He went back to his benefactor for another loan. This time, it was for making locks.
His name was Ardeshir Godrej; the company he founded would eventually be known as Godrej & Boyce, which subsequently went on to manufacture safes, furniture, typewriters as well as a whole range of other consumer goods. – Atool
“Investing is often described as the process of laying out money now in the expectation of receiving more money in the future. At Berkshire (NYSE:BRK.A)(BRKB) we take a more demanding approach, defining investing as the transfer to others of purchasing power now with the reasoned expectation of receiving more purchasing power – after taxes have been paid on nominal gains – in the future. More succinctly, investing is forgoing consumption now in order to have the ability to consume more at a later date.”
Jesse livermores trading rules from 1940 https://goo.gl/hzN56H
1. Nothing new ever occurs in the business of speculating or investing in securities and commodities.
2. Money cannot consistently be made trading every day or every week during the year.
3. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
4. Markets are never wrong – opinions often are.
FIRST TIME LONG TERM SUPPORTING CHANNEL FROM DEC LOW OF 7893 HAS BROKEN. IF NIFTY IS UNABLE TO MOVE AHEAD 9025 BULLS WILL BE IN TROUBLE. WHEN THE TOP IS IN PLACE WE ARE UNSURE IF IT HAS REACHED SHORT TIME TOP. PRICE HAS TO REFLECT THE SENTIMENT. FOR CONFIRMATION ONE NEED TO BE CAUTIOUS FOR LONG AS WELL AS SHORT. WISENESS HAS TO PREVAIL UPON WHILE ASCERTAINING POTENTIAL RISK. – Vivek
Closing Basis Stop loss :
Most of our calls are positional ones. So stop loss are on closing basis. Closing price are considered important to come to an conclusion however in intraday the price could go below the stop loss level but its the closing price at the end which matters and the stop loss are intact if closing price is above that. I understand its a risky affair as no one knows how much a stock could fall & it could really collapse or fall sharply so one can avoid any long position below the mentioned stop loss level, remain tension free & trade accordingly at there comfort level.
Stop loss on closing basis is used to avoid intraday noise and mostly genuine weakness comes only if the stock is not able to recover during intraday and still closes below the stop loss level.
The harsh reality of trading is to be always expecting the UN expected to happen.
Our trades are never successful until we realize the gains in our account. Every trade we take has a dream and hope component attached to it as we have some profit aspiration. Nothing wrong in having it , as we all work for gains.
But the game of trading is so uncertain that at times we may get a different end result.
The time to take profit should be based on market conditions and market conditions are difficult to predict.
Big profits are wiped out and we just remain a mute spectator trying to figure what happened
Markets most times may not act fair, things turn topsy turvy and fortunes are reduced to smoke.
Accept this reality in trading. Don’t seek a fair and supportive environment from trading. Be flexible and keep moving. The rewards are decided by markets.
Why do people always compare gambling with stock trading?
I’ll give You the same answer I gave two CIOs of Fidelity. The common point between star poker players, star fund managers and street hookers is that they go to work: it is not meant to be fun.
Gambler’s serenity prayer: grant me the serenity to accept folding a losing hand, the courage to take calculated risk and the wisdom to know the difference
Cut losses and run winners: in poker, money is made by folding a lot and be aggressive a few times. Successful fund managers spend their time cutting losses. The paradox is that the way to win the war is to accept losing small battles
Position sizing: Black jack is a game where You play against the house. It is manufactured to have You lose.
Position sizing algorithms: Gambling is a far more mature industry than investing in the sense that a lot of position sizing algorithms used in finance come from game theory.
Gambling is boring: hookers, poker players and star managers go to work. It is not meant to be fun. They leave their emotions at the door.
Gamblers have a system: gamblers are not smarter, they have smarter gambling habits. Adherence to a system takes discipline.
Quantified risk: the notion of calculated risk has unfortunately been perverted by those who do not understand it. Risk is not an abstract dissertation at the end of an investment thesis. Risk is a hard cold probabilistic number.
We have been working on how to make retail investor life more disciplined so he can make money over a time. We will be starting Beta project on personalized portfolio management (Risk & money management auto calculated) We will be taking only 25 members on beta project. Its worlds first personalized portfolio management system for retail investors.
Discipline is only thing that stopping retail investors to grow their money. This initiative is to make ur trading professional , risk/reward will automatically work in YOUR favor if you are discipline. you will have discipline investing/trading. so over a long period you will have profitability. We have remove all decision making process from your investment & trading ! You just need to execute timely.