#Knowledge : Type of market risk.

Warming up to risk

For every rupee of profit made by a trader, there must be a trader losing that rupee. As an extension of this, if there is a group of traders consistently making money, then there must be another group of traders consistently losing money. Usually, this group making money consistently is small, as opposed to the group of traders who lose money consistently.

The difference between these two groups is their understanding of Risk and their techniques of money management. Mark Douglas, in his book ‘The Disciplined Trader’, says successful trading is 80% money management and 20% strategy.

Money management and associated topics largely involve assessment of risk. So in this sense, understanding risk and its many forms become essential at this point. For this reason, let us break down risk to its elementary form to get a better understanding of risk.

The usual layman definition of risk in the context of the stock market is the ‘probability of losing money’. When you transact in the markets, you are exposed to risk, which means you can (possibly) lose money. For example, when you buy the stock of a company, whether you like it or not, you are exposed to risk. Further, at a very high level, risk can be broken down into two types – Systematic Risk and Unsystematic Risk. You are automatically exposed to both these categories of risks when you own a stock.

#Knowledge : 

India leapfrogged into the 100th rank in the World Bank’s Ease of Doing Business rankings, jumping 30 notches from last year, in an endorsement of the string of reforms implemented by the Narendra Modi government.

The report also recognizes India as one of the top 10 improves in this year’s assessment, having implemented reforms in eight out of 10 Doing Business indicators.

India is the only large country this year to have achieved such a significant shift. On the “distance to frontier metric,” one of the key indicators in the survey, India’s score went from 56.05 in Doing Business 2017 to 60.76 in Doing Business 2018.

This means last year India improved its business regulations in absolute terms – indicating that the country is continuing its steady shift towards best practice in business regulation.

 

#Technical Charts : CHENNAI PETRO WEEKLY

#Bookathone : 

You can think of investing as a long-term journey with many starts, stops, changes of scenery and occasional bumps. We believe that you are much more likely to enjoy the journey or at least endure it, and reach your destination safely, if you know what to expect along the way. Your own psychology and ability to handle the emotional ups and downs of investing are likely to be important determinants of your long run investment success.

-Tweedy Browne

#Knowledge : Patience always pays!!


*Professional investors/trader on niftymillionaire platform is Bindul shah. (Sebi Registered) Sebi Registration : INH000003663 (Bindul shah Sebi Registration : INH000003663)

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