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Can you afford not to know this?

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Old 6th February 2005, 06:55 PM
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Default Can you afford not to know this?

I learnt from my father who turned around a sick company that in our company , since 85% of the cost was raw material cost, reducing the cost just by 5% would lead to tremendous upsurge in profits.

This is critical thinking- thinking with the right focus. Its like saying that if you want to reduce weight and diet has a 3:1 ratio in favor of exercise, you will not get far by focusing too much on exercising.

Ashwini Gujral’s latest book on derivatives has highlighted something that did not strike me immediately. He says that since the market is ranging most of the time, one cannot afford not to know ranging strategies(neutral) or writing covered calls. The normal inclination is with the bull market for most people.Since a ranging mkt has low margins, the leverage of derivatives can further tilt the situation to one’s advantage. This is a right way of presenting the neutral strategies- in the right perspective:-

http://www.traderji.com/options/182-neutral-market-option-trading-strategies.html

Last edited by sh50; 7th February 2005 at 07:17 AM.
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