Archives of “Education” category
rss392 Weeks?-Must Look This Chart
Stop being who you are and start being who you should be
Lessons from Lehman: ‘Don’t Panic’
Warren Buffett is not called the ‘Oracle of Omaha’ for nothing.
‘Be fearful when others are greedy, and be greedy when others are fearful’ is good investment advice looking back at the turmoil of September 2008.
The demise of Lehman Brothers five years ago marked the start of a truly fearful six months for investors. Only in March 2009 had risky asset prices fallen far enough for bargain-hunting buyers to begin picking up equities and lower-quality bonds.
On the anniversary this weekend of Lehman’s collapse, those investors who stayed the course in equities and junk bonds can afford a smile. The S&P 500 index has gained 50 per cent.
They have done well, though alternative bets made in 2008, such as buying a New York City taxicab medallion, have done even better. (more…)
Learning to trade is a process
REMOVE THE EMOTION
I’m sure most of you have heard this before. This one sounds easy too, until you start losing money. Then fear creeps in and you begin altering your plan, assuming you had one in the first place. All of a sudden, you begin to alter your stop loss lower in order to allow your position to “recover”. It usually results in good money wasting away in a weakening stock. This is a serious trading crime as you violate the theory of keeping losses to a minimum. But that’s not the only emotional disorder we suffer. Greed can be even more powerful and disastrous. Greed results in many problems, but there are two problems that immediately come to mind – position sizing and failing to execute and take profits when your original plan works perfectly. Incorrect position sizing can occur for a number of reasons. One is trying to “catch up” after a loss. You figure if you play twice as many shares as appropriate, then you can recover prior losses quicker. This type of thinking may work on occasion, but many of us have felt the despair as losses only deepen. Another example of incorrect position sizing occurs after a trader has correctly called several trades in a row. Overconfidence breeds greed. It’s not easy, but we must remain grounded. Those who can develop and execute a plan with little interference from fear and greed will produce better results over the long-term.
As A Trader -You Should Flirt with Stocks -No need to have Love Affair or To Marry
Simply Put
Even if you make a lot of mistakes in your trading business, you’ll still be net profitable at the end of the year if you simply do two things right; cut your losing trades as soon as they hit their stops and let your winners ride until there is a technical reason to sell. The challenging part, of course, is applying this in actuality, not only understanding it theoretically.
Lauren Templeton shares investing lessons from Sir John Templeton
By way of background, John Templeton was a pioneer of global share investing who founded the Templeton Growth fund in 1954. As his wealth increased, he also became known for his philanthropic efforts and writings. In the 1960s, he renounced his U.S. citizenship (an increasingly popular move among the rich of late) and continued to live in the Bahamas as a Bahamian citizen.
In her talk at the Ben Graham Centre for Value Investing, Lauren Templeton shares some insights on Sir John’s investment philosophy and his life. A few notable lessons and quotes:
1. Born in Tennessee, Templeton was an excellent student who attended Yale and Oxford. While at Yale, young John found he had to work to pay for a part of his schooling. His skill with probabilities helped him earn a good part of the money playing poker.
2. After studying at Oxford, Templeton took a 40-nation tour of the world. He was gone so long that his mother thought he had passed away! His travels provided a “bedrock of geopolitical knowledge” to guide his investing.
3. Lauren relates the story of his first trade in “maximum pessimism”, the famous deal in which Templeton borrowed $10,000 and purchased shares of all the U.S. companies trading below $1 a share. Even though many of the companies were facing bankruptcy at the time of his purchase (on the eve of World War II), most turned a profit and he sold his shares for a $40,000 profit a few years later. (more…)
But 95% Don't Understand This…..
Read ,Study………………Read Study ,Do Homework before Market Starts.
Forget Economy ,Growth ,Company Fundamentals……………All Bogus in India
Just Look at Dollar flow & USDINR Chart………………Nothing else. (We are Born Puppets -Remember this )