Self Help & Misc. Instresting Stuff.

maneverfix

Well-Known Member
3000 crores to engineer 50% crash? :):)

FIIs have net sold ~Rs.5000 cr YTD..and the market has barely moved 5%

I think the opposition is still in the 20th century :)
May be they are talking about 3000crore dollars not rupees;)
 
Snake Island

No humans are allowed on Snake Island and with good reason. There's about one deadly snake per square foot on it.

About 25 miles off the coast of Brazil, there is an island where no local would ever dare tread. Legend has it that the last fisherman who strayed too close to its shores was found days later adrift in his own boat, lifeless in a pool of blood.

The mysterious island is known as Ilha da Queimada Grande, and it is in fact so dangerous to set foot there that Brazil has made it illegal for anyone to visit. The danger on the island comes in the form of the golden lancehead snakes – a species of pit viper and one of the deadliest serpents in the world.

The lanceheads can grow to be over a foot-and-a-half long and it’s estimated that there are between 2,000 and 4,000 snakes on the island, which unsurprisingly is known as Snake Island. The lanceheads are so venomous that a human bitten by one could be dead within an hour.

Snake Island is uninhabited now, but people used to live there for a short period up to until the late 1920s when, according to legend, the local lighthouse keeper and his family were killed by vipers that slithered in through the windows. Today, the navy periodically visits the lighthouse for upkeep and makes sure no adventurers are wandering too close to the island.

Another local legend claims that the snakes were originally introduced by pirates seeking to protect buried treasure on the island.

In reality, the vipers’ presence is the result of rising sea levels – a less exciting origin story than paranoid pirates to be sure, but still interesting. Snake Island used to be part of Brazil’s mainland, but when sea levels rose over 10,000 years ago, it separated the landmass and turned it into an island.

The animals that wound up isolated on Queimada Grande evolved differently from those on the mainland over the course of millennia, the golden lanceheads in particular. Since the island vipers had no prey but birds, they evolved to have extra-potent venom so that they could almost immediately kill any bird. Local birds are too savvy to be caught by the many predators that inhabit the island and the snakes instead rely on birds who visit the island to rest as food.

Lancehead snakes, which are the golden lanceheads’ mainland cousins, are responsible for 90 percent of all snake bites in Brazil. A bite from their golden relatives, whose venom is up to five times more potent, is less likely to actually happen due to their island isolation. However, such an encounter is far more likely to be lethal if it does happen.

There are no fatality statistics of the golden lanceheads (since the only area they inhabit is cut off from the public), however someone bitten by a regular lancehead faces a seven percent chance of death if untreated. Treatment does not even guarantee a lancehead bite victim will be saved: there is still a 3 percent mortality rate.

It’s hard to imagine why anyone would want to visit a place where a painful death lurks every few feet.

However, the vipers’ deadly venom has shown potential in helping to combat heart problems, leading to something of a black market demand for the venom. For some lawbreakers, the lure of the money is incentive enough to risk almost certain death on Ilha da Queimada Grande
 

DSM

Well-Known Member
Trading Quotes :

You can't become a great trader or an investor overnight, because it's most important lessons can’t be taught, they have to be experienced.

Bear markets in stocks begin when a small portion of stocks prop up general market while majority of stocks have begun decline. Advance Decline Line gives you the key.

It is easier to lose money when trading poorly than it is to make money when trading well.

Experience taught me that smaller positions are often more profitable in long run than pyramided positions which can easily you out.

*****

Life Quotes :

Our mind is like this water. When it gets agitated, it becomes difficult to see. But if we allow it to settle, the answer becomes clear.

Attitude and behavior is always greater than knowledge. Because in life there are many situations where knowledge fails, but behavior can handle everything.

If you develop a habit of praying for the good of others, you will never have to pray for the good of yourself.

Walking with time is not necessary if you walk with the truth. If you walk with the truth, even time will walk with you.

Health is the greatest gift, contentment the greatest wealth, and faithfulness the best relationship.

It’s what’s under the ground that creates what’s above the ground. It’s what’s invisible that creates what’s visible. So what does that mean? It means that if you want to change the fruits, you will first have to change the roots.

*****

World cup 2018 amazing Quarter final facts :

FRANCE has 6 letter & URUGUAY has 7 letter

BRAZIL had 6 letter & BELGIUM has 7 letter

SWEDEN has 6 letter & ENGLAND has 7 letter

RUSSIA has 6 letter & CROATIA has 7 letter..

So it’s 6 vs 7 on 6&7th July

********

Something to think about

No Helmet.. fine 500/-
Parking at No Parking...fine 300/-
Vehicle in no entry... Fine 500/-
No PUC... FINE 1000/-
Triple seat driving... Fine 2000/-
Plastic use.... Fine 5000/-

Potholes on roads... No one responsible
Non working signal lights.. No one responsible
Dug up road no repairs... No one responsible
Falling bridges... No one responsible
Political Flex banners on road... No one responsible
Encroached footpath.. No one Responsible
Overflowing Garbage bins on road... No one responsible.....
No proper street lights.. no one responsible..

Looks like public are the only culprit and liable to be fined. Administration, Corporation and government is no way responsible. No rules and regulations apply to them. They are never responsible for any lapses. They are not to be blamed. They have ‘larger’ n ‘important ‘ things to take care

Citizens only will work... will suffer the pain and will pay tax... and will pay fines... Public apathy should change.

Elect people who are honest and accountable. Not on basis of party.

*****

Something to smile....

Once, a Bengali Babu went to Ghalib to learn Shayari.

Ghalib Sahib asked the Bengali babu to repeat after him:

"Na Gila Karte hai
Na Shikwa Karte hai...
Tum Salaamat Raho is duniya me ,
Yahi Dua Karte hai"

The Bengali Babu repeated:

"Na Geela Korta hai,
Na Sukha Korta hai....
Tum Saala, Mat Raho is Duniya me ,
Yehi Dua Korta hai"

Ghalib fainted! :):):)

*****

The wife’s gone on a long vacation and calls home…….

She asks her husband, "How’s my cat doing?"

The husband says, "The cat’s dead."

The wife is very upset at her husband and starts sobbing. She says, "I’m so upset. You could have been more sensitive and broken the news to me gently when I got home.” For now you could’ve just said a little white lie, like “The cat’s on the roof and you can’t get her down.”

"Okay, I’m so sorry," says the husband, "I’ll remember to be more gentle next time."

The woman says, "Anyway, how’s my mother doing?"

The husband says, "Your mother’s on the roof and we can’t get her down."
 

DSM

Well-Known Member
Film actor Rajesh Khanna bought a bungalow in iconic Carter Road in Mumbai for Rs.3.5 lakhs in 1970. His heirs sold it recently for Rs.85 crores. The property has multiplied by 2,428 times or an annualized return of 19.38% over 44 years.

Samudhra Mahal in Mumbai is another expensive property. A flat purchased in 1970 at Rs.700 per sq.ft was sold at Rs.1,18,000 per sq.ft in 2013. Money multiplied by 168 times in 43 years. This works out to an annualized return of 12.66%

In 1963, Godrej paid Rs.1 lakh to buy his first house, a 2916 sq.feet apartment at Usha Kiran, Carmicheal road, in tony South Mumbai. In 2011 he sold it for Rs.25 crore. Money multiplied by 2500 times over 48 years or an annualized return of 17.70%

In Dalal Street, Mumbai a sq.feet was Rs.100 in 1980. After 34 years, it sells at Rs.27,000 per sq.ft. Money multiplied by 270 times in 33 years. This works out to an annualized return of 17.90%.

The first three properties can be bought and owned by cream or elite of the society who are worth at least tens of crores, mostly hundreds of crores.

The last property in Dalal street; your father could have bought with whatever money available at his disposal. You can buy it even now. Your son or daughter would be able to buy it even 20 years down the line. The last property is Sensex. A sq.feet is a metaphor for one unit. If dividend yield is also included (assuming 2% CAGR), Sensex would have delivered 20% annualized returns over last 34 years, higher than the most expensive prime properties in the country.

Good mutual funds and many stocks have delivered returns far superior to Sensex itself.

Power of equity is least understood in our country. If you can withstand notional loss (if you don’t book) in portfolio during bear markets, not worry about daily price movements, it is possible to make much better money than what can be made out of best of real estate.

Give at least the same importance to equity as you give to real estate.

You don’t mind holding real estate for 20 or 30 years. Please do the same for equity ignoring bull and bear markets, notional profits and losses.

Many of you have been investing for last couple of years. Stay the course for at least another 15 to 20 years completely ignoring market fluctuations. You would be amazed at the fortune created for your retirement or to pass on to your children.

Must read....for those who love equity and for those who hate equity.....

Caveats:

• Invest regularly (Monthly) via SIP (Systematic Investing Plan) in large cap and mid cap mutual funds if you do not have knowledge of investing in individual stocks.

• If investing in individual stocks – Avoid stocks that are cheap or low priced i.e penny stocks. They are low priced for a reason. Avoid stocks of companies that are high in debt or heavily leveraged. Avoid stocks of companies that have dubious management. Avoid investing in stocks on basis of rumors or “sure shot” get rich schemes.


• Avoid frequent buying and selling of stocks, as brokers will recommend. That helps only the brokers to get rich via commission on trades at your cost.


• Finally, be financially literate. Remember, even ‘financial advisors’ have conflict of interest as recommendations will be made on basis of commissions paid and not what is necessarily in your interest.

*****

Trading quotes

Long term fundamental investor must remember this : Prices fluctuate more than values—so therein lies opportunity .

A trader's mindset : A strong opinion/bias on a market + A broad trading range + FOMO (Fear Of Missing Out) = An eroding account value.

The goal of a successful trader is to make the best trades. Money is secondary.

I have endured approx. 4,300 losing trades in my career. Learning from and surviving losses (and often the mistakes behind the losses) is part of growth as a trader. I accept losing trades as part of the journey - Peter Brandt

To win in the markets, we need to master three essential components of trading: sound psychology, a logical trading system, and an effective risk management plan.

I always take my losses quickly. That is probably the key to my success. You can always put the trade back on, but if you go flat, you see things differently. The pressure you feel when you are in a position that is not working puts you in a catatonic state.

*****

Life quotes

Belief is the death of intelligence. As soon as one believes a doctrine of any sort, or assumes certitude, one stops thinking about that aspect of existence.

If you want to enjoy life or find a purpose, have something to do. An idle mind will wander and take the route of least resistance to comfort.

An optimistic mind-set finds dozens of possible solutions for every problem that the pessimist regards as incurable

We all see only that which we are trained to see.

In order to eat, you have to be hungry. In order to learn, you have to be ignorant. Ignorance is a condition of learning. Pain is a condition of health. Passion is a condition of thought. Death is a condition of life.

Every fact of science was once damned. Every invention was considered impossible. Every discovery was a nervous shock to some orthodoxy. Every artistic innovation was denounced as fraud and folly. The entire web of culture and ‘progress,’ everything on earth that is man-made and not given to us by nature, is the concrete manifestation of some man’s refusal to bow to Authority. We would own no more, know no more, and be no more than the first apelike hominids if it were not for the rebellious, the recalcitrant, and the intransigent. As Oscar Wilde truly said, ‘Disobedience was man’s Original Virtue.


*****


Something to smile....


A skinny young man dies and goes to heaven. Reaching the Pearly Gates, he sees Saint Peter, who stops him immediately. Saint Peter then says :

"Hey you, where do you think you're going ?"

"Inside", says the guy.

"Inside?" The Saint Peter wonders. "Let me check my books for a while."

So, a couple minutes pass and he finally finds his record.

"Hmm, I see. It appears that you are an ok guy, never done anything good nor really bad. So, to let you inside heaven, you have to tell me a really nice thing you did that I might not know."

The guy thinks for a moment and says :

"Ok Saint Peter, I'll tell you a story then. I was walking down a dark alley, when all of a sudden I saw about a gang of 5-6 tough guys trying to rob an old woman. I walked all the way upto them and challenged their leader, and shouted "Come on, you guys!!! You let this woman go or you get it from me"

So they laughed, and then BLAM, I threw a punch on the head of the gang leader.

Saint Peter amazed, his mouth open, says :

"Hey! You managed to take on 5-6 tough guys all by yourself? How did we miss that, as it is not in our record? When did it happen?

The skinny man replied : "Oh well. It was about a minute back. :)

******

Admin : Adding Vidya to the group.

Anil : Hi Vidya. Welcome to the group.

Vidya : Hi guys am new to the city.

Satish : Hi Vidya dont worry, am there...any problems I will be the solution.

Sanjay : Hi Vidya.... Tell me if you have any problem, will arrange a solution for you.

Vijay : Hi Vidya, if you need anything tell me, it will be arranged.

Sunil : Hi Vidya. Mein bhi hai, koi bhi problem ho I will manage it for you..

Vidya : Thanx guys for your support.

Ravi : Vidya what's your full name..

Vidya : Vidyadhar Patil.

Ravi left

Satish left

Vijay left

Anil left

Sunil left

Sanjay left

Admin left...

Vidya is admin now.
 

DSM

Well-Known Member
Life wisdom :

When Lord Krishna returned home after the battle of Mahabharata, his wife Rukmani confronted him “How could you be party to the killing of Guru Drona and Bheeshma, who were such righteous people and had a lifetime of righteousness behind them.”

Initially Lord Krishna avoided her questions but when she did not relent, he replied “No doubt they had a lifetime of rightousness behind them but they both had committed one single sin that destroyed all their lifetime of righteousness”

Rukmani asked “And what was that sin?”

Lord Krishna replied “They were both present in the court when a lady (Draupadi) was being disrobed and being elders they had the authority to stop it but they did not. This single crime is enough to destroy all righteousness of this world”

Rukmani asked “But what about Karna?

He was known for his charity. No one went emptyhanded from his doorstep. Why did you have him killed?”

Lord Krishna said “No doubt Karna was known for his charity. He never said ‘No’ to anyone who asked him for anything. But when Abhimanyu fell after successfully fighting an army of the greatest warriors and he lay dying, he asked for water from Karna who stood nearby. There was a puddle of clean water where Karna stood but not wanting to annoy his friend Duryodhan, Karna did not give water to a dying man. In doing so his charity of a lifetime was destroyed. Later in battle, it was the same puddle of water in which the wheel of his chariot got stuck and he was killed.”

Understand that your one act of injustice can destroy your whole life of honesty.

This story is great example of Karma Theory in Path To Good Life. So Lets sow the seeds of good Karma with Awareness what is right.


*****

Life quotes :

It’s what’s under the ground that creates what’s above the ground. It’s what’s invisible that creates what’s visible. So what does that mean? It means that if you want to change the fruits, you will first have to change the roots.

When things aren't adding up in your life, start subtracting things from you life.

Too often.... We enjoy the comfort of opinion without the discomfort of thought.

What is hell that religion speaks of? It is the suffering of being unable to love. - Fyodor Dostoyevsky

The purpose of a storyteller is not to tell you how to think , but to give you questions to think upon.

******


Trading quotes :

Limiting losses is by far the most important trading component. Capital is the inventory of a trader. Lose the inventory, business is over.

Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard - Warren Buffet

Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little. - Fred Schwed Jr.

If you can follow only one bit of data, follow the earnings. - Peter Lynch


Not money, Not skills, but Time is the biggest lever for massive wealth creation - Manoj Arora


****

Something to smile :

The biggest beer producers in the world meet for a conference, and at the end of the day, the presidents of all the beer companies decide to have a drink together at a bar.

The president of Budweiser naturally orders a Bud, the president of Miller orders a Miller, Adolph Coors orders a Coors, and so on down the list.

Then the bartender asks Arthur Guinness what he wants to drink, and to everybody's amazement, he orders tea!

"Why don't you order a Guinness?" his colleagues ask suspiciously, wondering if they've stumbled on an embarrassing secret.

"Naaaah," replies Guinness. "If you guys aren't going to drink beer, then neither will I."


*****

Yesterday there was an offer. So I ordered Buy 1 get 1 free Pizza on zomato. I thought 1 for me and 1 for the delivery guy who came in the heavy rain to deliver. The look on his face was priceless when I gave it to him and said "Ek tumhare liye"

He gave that pizza back to me saying "Yeh kachra aap hi khao, main toghar ka khana khata hoon"

The look on my face was priceless.... :):):)
 

VJAY

Well-Known Member
Weekend Reading:
Let me tell you the story of two investors, neither of whom knew each other, but whose paths crossed in an interesting way.

Grace Groner was orphaned at age 12. She never married. She never had kids. She never drove a car. She lived most of her life alone in a one-bedroom house and worked her whole career as a secretary. She was, by all accounts, a lovely lady. But she lived a humble and quiet life. That made the $7 million she left to charity after her death in 2010 at age 100 all the more confusing. People who knew her asked: Where did Grace get all that money?

But there was no secret. There was no inheritance. Grace took humble savings from a meager salary and enjoyed eighty years of hands-off compounding in the stock market. That was it.

Weeks after Grace died, an unrelated investing story hit the news.

Richard Fuscone, former vice chairman of Merrill Lynch’s Latin America division, declared personal bankruptcy, fighting off foreclosure on two homes, one of which was nearly 20,000 square feet and had a $66,000 a month mortgage. Fuscone was the opposite of Grace Groner; educated at Harvard and University of Chicago, he became so successful in the investment industry that he retired in his 40s to “pursue personal and charitable interests.” But heavy borrowing and illiquid investments did him in. The same year Grace Goner left a veritable fortune to charity, Richard stood before a bankruptcy judge and declared: “I have been devastated by the financial crisis … The only source of liquidity is whatever my wife is able to sell in terms of personal furnishings.”

The purpose of these stories is not to say you should be like Grace and avoid being like Richard. It’s to point out that there is no other field where these stories are even possible.

In what other field does someone with no education, no relevant experience, no resources, and no connections vastly outperform someone with the best education, the most relevant experiences, the best resources and the best connections? There will never be a story of a Grace Groner performing heart surgery better than a Harvard-trained cardiologist. Or building a faster chip than Apple’s engineers. Unthinkable.

But these stories happen in investing.

That’s because investing is not the study of finance. It’s the study of how people behave with money. And behavior is hard to teach, even to really smart people. You can’t sum up behavior with formulas to memorize or spreadsheet models to follow. Behavior is inborn, varies by person, is hard to measure, changes over time, and people are prone to deny its existence, especially when describing themselves.
 

DSM

Well-Known Member
President Xi Jing Peng of China:

As a small child , I was very selfish, always grabbing the best for myself. Slowly, everyone left me and I had few friends. I didn’t think it was my fault and I criticized others. But my father thaught me a life lesson in 3 sentences.

One day, my father cooked 2 bowls of noodles and put them on the table.

One had an egg on top while the other bowl had none on top.

Then he asked me to choose a bowl of noodles.

Because eggs were hard to come by those days.... I chose the bowl with egg!

I was happt with myself on my wise choice/decision and decided to wallop the egg....to my surprise as my father's bowl of noodles had two eggs at the bottom of his bowl beneath the noodles!

With much regret, I scolded myself for being too hasty in my decision.

My father smiled and taught me to remember that what your eyes see may not be true.

He added that If you make a habit of taking advantage of people, you will end up losing.

The next day, my father again cooked 2 bowls of noodles: one bowl with an egg on top and the other bowl with no egg on top.

Again, he asked to choose the bowl I wanted.

This time I felt smarter so I chose the bowl without any egg on top.

Hmmmmmm. To my surprise, there was not even a single egg at the bottom of the bowl!

Again, my father smiled and said to me, my child, you must not always rely on experiences because sometimes, life can cheat you or play tricks on you.

Never be too annoyed or sad, with situations, just treat experience as learning lesson, and as experience that cannot be gotten from any textbooks.

The third day, my father again cooked 2 bowls of noodles, one bowl with an egg on top and the other with no egg on top.

He asked me to choose the bowl I wanted.

But this time, I told my father, Dad, you choose first, you are the head of the family and you contribute the most to the family.

My father was happy to and choose for me.

He chose the bowl with one egg on top, but as I ate my bowl of noodles, to my surprise! There were two eggs at the bottom of the bowl.

My father smiled at me with love in his eyes, he said my child, you must remember that when you think for the good of others, good things will always naturally happen to you.

******

The tragedy of today's India :

The richest i.e the industrialists and the poorest i.e the farmers of India want loan waivers.

The middle class are born just to support the above two classes and pay for their loans for a lifetime.!

*****

Something to think about....

Prayer is not a SPARE WHEEL that you pull out when in trouble. But it is a STEERING WHEEL that directs the right path throughout life.

A Clay Pot Having Honey Will Be Ranked Higher Than A Golden Pot Having Poison. It's Not OUR Outer Glamour. But, OUR Inner Virtues which really count.

Start and end the day praying for the good of ALL humanity. When we wish good for others, good things come back to US. This is the Law of Nature. So pray for the poor that they may be blessed financially, the sick, that they may have good health, the foolish that they may have wisdom, the evil, that they may seek the truth and divine. Basically, what you wish for yourself and loved ones, pray that others may be blessed with it too.

******
 

DSM

Well-Known Member
Option trading lessons from the man who sold his trading system to JPMorgan.

Market folklore says that 95% of option buyers lose money. On the contrary, Subhadip Nandy consistently makes money taking directional trades using option strategies.

Many envy a person who takes five holidays a year, but few would put in laborious efforts needed to ensure well-timed and worry-free breaks. Quantitative derivatives trader Subhadip Nandy is one such person to be jealous of.

The Kolkata-based options trader quit a comfortable job in Life Insurance Corporation to dabble in the markets in the 90s. At the turn of the century he doesn’t have to look back, for the markets give him relief — mentally and monetarily.

Nandy headed a team of 200 traders in a proprietary trading firm, helped build a software company that was involved in systematic trading and sold the trading system he developed to JP Morgan.

Market folklore says that 95% of option buyers lose money. On the contrary, Nandy consistently makes money taking directional trades using option strategies. He has lessons to impart to market participants and traders alike. "Trading patterns will need years of practice, there is no shortcut. The amount of time you spend and see the patterns working out will add to your experience," he says in a tweet.

In Nandy, one’s search for a successful trader who is an option buyer ends. He picks his trades using his proprietary indicators just before the stocks spurt thus making option buying a successful strategy. His life demonstrates how grit, hard work, knowledge and discipline can help a trader achieve financial freedom. The man battled depression after his mother’s demise and came up trumps from an over-trading-induced financial ruin.

Between playing the markets and long breaks, Nandy pursues many things. He is a voracious reader, a movie lover and a trainer. He says he seeks ways to improve his trading and is learning data science and software languages like Python to better his approach to the markets.

In an interview to Moneycontrol, Nandy speaks passionately about his journey and approach to trading. Excerpts:

Q: Could you walk us through your journey to the market?

A: I was always an average student during my school days in Kolkata… not too bad, but also not that good. I was interested in reading things beyond the subjects taught in school. I took up economics as main subject, math and statistics in part during graduation. I did not understand the applications of the subjects taught to us then, but after joining the market, I bought and studied from the books on statistics and finally understood what was being taught.

My entry in to markets was rather accidental. My father died when I was 11 years old. When I was 18, my mother said suggested buying a flat for which she took a loan from LIC. Also, we sold a parcel of land and managed to raise enough money for the flat.

When my mother looked at paying off the Rs 50,000 loan, Sushil Periwal, a student of hers and a sub-broker, told her invest the sum in the market instead. Periwal bought us some good shares like Brooke Bond, ITC, Shaw Wallace – all dividend-paying companies that announced regular bonuses.

This was 1991 when the Sensex was 1200. I know this because when I became an analyst I checked on the market level at which we entered.

The year 1991 was also when I completed my higher secondary. In those days in Bengal, the trend was that a young person would learn typing and shorthand the moment they passed higher secondary so that they can at least secure a sarkari job as a stenographer. A job in markets in a Bengali household was akin to gambling. I was not interested in going the traditional way.

One day, I accidentally bumped into the broker who bought us the shares. He asked me if I had interest elsewhere. I told him that I had no interest in being a steno and he asked me to come with him to the Kolkata Stock Exchange the next day. Those were the days of open outcry and I was hooked the moment I stepped in.

I read up on a few books on fundamental analysis and started dabbling in the markets. This was the Harshad Mehta boom period and I was buying shares at around Rs 16 and selling them at around Rs 80. I bought Master Shares in their issue at Rs 10 and sold it at Rs 80 in the curb market. I was in my first year of economics honours and felt like a god. The Rs 50,000 that was first invested touched around Rs 3.5-4 lakh.

What happened next was pure luck, though that is not how I saw it then. The flat that we bought was not in a good locality and my mother was insisting that we buy a house. She asked me to sell all the shares and buy the house. I cried telling her not to do so. As providence would have it we got an offer for a house. I sold the shares reluctantly and bought the house. I did not speak to my mother for a few days after that.

The best part is that within 15 days of buying the house the market collapsed and I was back studying economics.

Q: What did you do after the crash, in terms of career and market experience?

A: I used the market crash to read a lot of books on markets. I came across Benjamin Graham and heard about Warren Buffett during this time. Most of my studies were related to fundamentals rather than technical analysis.

After my graduation, I worked at various companies, used the time to complete a part-time MBA course in marketing. I took a break in my career to study for government jobs and managed to crack the LIC Development Officer exam.

But all throughout, markets were always a part of the daily chore. While working for LIC, I used to place my orders with the broker and then head to an office.

Before 1999, I used to trade the markets based on news, market information and similar stuff. Post-1999, I learned technical analysis and managed my trades based on it.

I was doing well in those days. My job was paying me Rs 11,000 a month while my average earning from the market for a period of 8-9 months was around Rs 32,000 per month. At this point, I felt that I could become a trader. I had moved from fundamentals to technical post the 2000 crash.

I then decided to take a sabbatical from my job and give trading a shot for a year. My trades were good, I was trading in futures contract and by the end of the year I quit my job and traded fulltime.

Life was good and then 2003 happened.

Circa April 2003, I was trading futures contract and made decent money. On April 10, 2003, Infosys announced a lower than expected guidance and its price fell from Rs 4,200 a share to Rs 3,060 a share in a day.

I knew that with this kind of selloff the Relative Strength Index (RSI) would be in the extremely oversold range. Now I had done these kinds of trades earlier where I went long on an oversold position and did well the next day. My line of thinking was that the company had only lowered its guidance but there is nothing wrong with this great company and the price would bounce back.

I went long four contracts by the close of the market at around Rs 3,060. Next morning as the market opened I was standing right behind the dealer eager to book my profit.

The first tick on the market was a rate of Rs 2,880. I did not freeze when I saw the price. I knew I was wrong in my analysis and asked the dealer to sell 8 contracts which would mean I would cover my 4 long contracts and would be short on four contracts.

The next quote on the screen was Rs 2,740 I moved my order to this level but did not get a fill. Next tick 2,600 and then 2,580 then 2,400 and 2,240 all without my order getting executed. At this point, I told my dealer to sell 8 contracts on the market rather than a price point which would ensure a fill.

I managed to book the loss on my long position of around Rs 3,060 at around 2,240 and go short at the same level.

Infosys closed the day at around Rs 2,880. I was a wreck. Not only did I blow my account but now I owed the broker Rs 50,000 and I did not have any source of earning to repay this money.

It was not the money that was playing on my mind, it was the burden of going back to my sales job pleading people to buy stuff and watch my boss throw tantrums. I was too used to the freedom I enjoyed over the last three years and dreaded the thought of losing it.

Article truncated due to TJ's limit on size of post. Full interview here : https://www.moneycontrol.com/news/b...d-his-trading-system-to-jpmorgan-3093941.html
 

DSM

Well-Known Member

A trader has posted this publicly. Not checked for authenticity or verified. But seems interesting. Publishing as is with current prediction highlighted:


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DSM

Well-Known Member
What is more important than success? – Rohit Kahyap

True story :

There was a very brilliant student.

He always scored 100% in Maths and Science.

Got selected for IIT Madras and did well.

Went to the University of California for MBA.

Got a high paying job in America and settled there.

Married a Beautiful Tamil Girl.

Bought a 5 room big house and luxury car.

He had everything that makes him successful but a few years later it was reported that he committed suicide – but after shooting his wife and children first.

So, what went wrong? California Institute of Clinical Psychology Studied this case of the brilliant Indian techie and found “what went wrong?”

The researcher met the man’s friends and family. They learnt that he had lost his job due to economic crisis and he was out of work for a very long time. After even after reducing his salary expectations, he did not get any job in his field. Due to this, he was unable to pay his mortgage, and lost his home. The family survived a few months with little money but the situation seemed bleak. So he and his wife together decided to commit suicide. He first shot and killed his wife and children before killing himself.

The case study concluded that : The man was programmed for successes, but he was not trained to handle failures

So what do we learn from this? There are many people who will speak about success. But in today’s world, even if you have achieved everything, there is a possibility to lose everything. Nobody knows when the next economic, social, personal or environmental crisis will hit. The most important thing about life, as much as learning about being successful is to learn to handle failures and rejection.

For parents of young children, it is important to teach these two important aspect of life. i.e learning how to succeed, and learning how to handle failures. Learning high-level science and maths will help children to clear competitive exams, but knowledge about how to persevere in life will help them to face every problem they will encounter, which is unexpected and does not have a text book answer.

It is necessary to teach the children life skills just as much about how money works, instead of only teaching them to work for money!

*****


The Dunning-Kruger effect

Humans are not very good at analyzing raw information. We confuse ourselves with data. We have biases and we tend to overestimate our ability to understand complex ideas. This is known as the Dunning-Kruger effect.

The Dunning-Kruger effect states that people who know very little about something, are the most likely to feel like they know a lot, because their lack of knowledge on a subject leaves them unable to recognize how much they do not understand and believe that their understanding is "above average."

Some real life example: Climate change deniers. They only know a little of the science, which allows them to be oh so confident that they are completely right that there is not global climate change, or that global warming is a hoax. Because the data to understand climate change is extensive and esoteric, and they don't know all that stuff, it is easy for them to speak with great authoritative voices, when winter is cold, to say "see, the earth is not warming."

The amount of science they do not know, is so much, they cannot begin to imagine that they have missed that much, because they don't know enough to be able to recognize the missing bits of the paradigm.

And the Dunning-Kruger effect plays out in real life when you see people arguing loudly and become ‘experts’ after watching 9:00 PM TV “debates” :):):)

*****

100% true prediction from Bejan Daruwala:

That this month your wife will speak less.....
I
I
I
I
I
I
I
Nothing related to astrology ...it is just that this month has only 28 days!! :):):)


*****

 

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