General Trading Chat

[Smart_trade]

Meeting point of visual uptrend and visual downtrend are major highs and meeting point of visual downtrend and visual uptrend are major lows .......shown on chart.

Smart_trade

 

[cinderblock]

Anyone here applied for LT Fin NCD?

Bank are miserable with FD rates! Carrying over +9% FD with 7.5% doesn't seem very appealing

Especially a 8-yr 9.95% BOI FD maturing later this month

 

[travi]

Anyone here applied for LT Fin NCD?

Bank are miserable with FD rates! Carrying over +9% FD with 7.5% doesn't seem very appealing

Under what slab do you see 7.5? i see mine all below 7. Anyway, i rolled some with Mah Fin and Baj Fin, they are a bit higher.

 

[cinderblock]

No not LTFin. I mean my current bank FD rate ~7.5 (for FIL - senior cit) seems unappelaing against a maturing +9% FD

Hence considering LTFin NCD @~9%

 

[travi]

No not LTFin. I mean my current bank FD rate ~7.5 seems unappelaing against a maturing +9% FD

Hence considering LTFin NCD

Yes, I interpreted that way, but wondering which bank. The leading banks aren't even giving that much. (All are less than 7% in my case)
But the way to go seems to spread it over a few of these guys like Mah Fin, BajFin etc and rest in NCD. Even GSec is an option.

LTFin NCD specifically is also a good option, only thing one will say is not to concentrate all the funds with one entity. rest all is gr8.

 

[cinderblock]

ICICI highest for 2 years is 7.5

+0.5 for SC

 

[travi]

ICICI highest for 2 years is 7.5

+0.5 for SC

oh ok, i think they've upped them by .25 to 0.5 in last few months after the two rate decreases.

Anyway, the NBFCs will offer better, I'd rolled some when the rates were at lowest but that's mkt cycle anyway.

SBI even now is 6.8 (under 5yrs) lesser than pvt banks, icici 7.5, hdfcb 7.4 peaking at roughly 2yrs.

 

[Smart_trade]

Senior citizen also should invest 20-25 % of their funds in growth stocks like HDFC bank,Asian Paints etc to earn better average return and beat the inflation comfortably.....investing in equity at later age is risky but not investing is more risky...it is a sure way of losing value in inflationary environment.

Seniors can buy when there is a serious correction in the market presenting good investment opportunity. They should not chase momentum.

ST

 

[Simple.Trader]

The entire trading is based on two very important concepts.....1) Reward/Risk ratio or R/R and 2) Money Management ( MM )or Position sizing. Both these concepts are more important than which of our trade is successful and which is not.

I read a book called " Mathematics of Money Management " by Ralph Vince. This is one of the three finest books on MM by the author and some of the concepts in that book opened my eyes to what trading really is... I am giving below a small excercise from this book to stress a point that in final results, which of your trade made money and which lost money makes NO difference at all.....

THE POSITION SIZING AND MM GAME

Make 40 small pieces of paper,on 20 write SUCCESS and on 20 write "FAIL" and fold them and put them in a glass bowl. Then ask a small child in the family to pick up each slip from the bowl and you read whether success or fail.

The sttarting capital is Rs 1,00,000/- and At each trade you will risk 25 % of the capital. If the trade is success,you make double the amount of money risked on a trade and if it is failure,you loose the amount risked on that trade. So for first trade your cum equity balance is Rs 1,00,000/- and the amount risked is 25000/- so if the slip says success,you make 25000*2 =50,000/- and your cum equity is 1,50,000/- now and on next trade you bet 25 % of 1,50,000/-. so go on like this till 40 trades are over.

The final amount you will have is not dependent on the sequence of your winning/loosing trades,consecutuve looses,wins etc and final amount is over Rs 10,50,000/- Dont believe me ? Try it out. I have spent 3 hrs on this game early in my career and tried coin toss,various sequence of alternate win/loss,10 losses and 10 wins in sequence etc…But the final wealth is same not even a rupee more or rupee less.

What does this prove ? Have a competent system,backtest,have a good mm and trade with confidence. Your sequence of losses and gains make no difference in ultimate results of building your wealth as long as your method has a positive expectancy and edge. Hope you enjoyed the game and learnt something from it…..About expectancy, we will discuss later...

I am no way advocating risking 25% on every trade. This is just illustration because optimal f for this system is 25 %. But 25 % is way tooo high. Start with 1-2 % and put your profits to work for you….


Smart_trade


Great Post. Posted again as its very useful. Thanks ST sir for guiding and sharing ideas in such a wonderful words.

Regards

Edit- Forgot to mention that its from 2011 thread approx.

 

[Happy_Singh]

The entire trading is based on two very important concepts.....1) Reward/Risk ratio or R/R and 2) Money Management ( MM )or Position sizing. Both these concepts are more important than which of our trade is successful and which is not.

I read a book called " Mathematics of Money Management " by Ralph Vince. This is one of the three finest books on MM by the author and some of the concepts in that book opened my eyes to what trading really is... I am giving below a small excercise from this book to stress a point that in final results, which of your trade made money and which lost money makes NO difference at all.....

THE POSITION SIZING AND MM GAME

Make 40 small pieces of paper,on 20 write SUCCESS and on 20 write "FAIL" and fold them and put them in a glass bowl. Then ask a small child in the family to pick up each slip from the bowl and you read whether success or fail.

The sttarting capital is Rs 1,00,000/- and At each trade you will risk 25 % of the capital. If the trade is success,you make double the amount of money risked on a trade and if it is failure,you loose the amount risked on that trade. So for first trade your cum equity balance is Rs 1,00,000/- and the amount risked is 25000/- so if the slip says success,you make 25000*2 =50,000/- and your cum equity is 1,50,000/- now and on next trade you bet 25 % of 1,50,000/-. so go on like this till 40 trades are over.

The final amount you will have is not dependent on the sequence of your winning/loosing trades,consecutuve looses,wins etc and final amount is over Rs 10,50,000/- Dont believe me ? Try it out. I have spent 3 hrs on this game early in my career and tried coin toss,various sequence of alternate win/loss,10 losses and 10 wins in sequence etc…But the final wealth is same not even a rupee more or rupee less.

What does this prove ? Have a competent system,backtest,have a good mm and trade with confidence. Your sequence of losses and gains make no difference in ultimate results of building your wealth as long as your method has a positive expectancy and edge. Hope you enjoyed the game and learnt something from it…..About expectancy, we will discuss later...

I am no way advocating risking 25% on every trade. This is just illustration because optimal f for this system is 25 %. But 25 % is way tooo high. Start with 1-2 % and put your profits to work for you….


Smart_trade


Great Post. Posted again as its very useful. Thanks ST sir for guiding and sharing ideas in such a wonderful words.

Regards

Edit- Forgot to mention that its from 2011 thread approx.

Anyone wants to try it
Just change the sequence of win/loss in the excel

Happy