Stockstars- A tribute to chupa rustams of the stockmarket

sh50

Active Member
#1
The well known psychiatrist-trader, Alexander Elder has said in his book on trading “ If you are good at trading, you can be free” You are not answerable to any boss, you can do what you like and things like that. I read in an investment book that a well researched study indicated that the chances of private investors doing well and making a full time living out of the market was extremely remote. This implies that those who achieved it can be deemed stockstars(for want of a better expression). Like our friend who initiated the stocktrading company post, I think some of these chupa rustams of the stockmarket should be highlighted.

I will deviate a little and explain the context-

Wipro's chairman Mr Azim Premji is the world’s first or second richest Indian today. He wrote a wonderful article in the Times of India “ As a parent “ on Education and goes on to say that the same policies followed in his company has produced immense wealth as a bi product. He says that the primary purpose of a school is to guide the child’s discovery of herself and her world and to identify and mature the child’s talents. Just as each seed contains the future tree, each child is born with infinite potential. In the article he suggests that many teachers and parents try to be potters instead of Gardners in moulding their children’s future.” Imagine a school in which sees children as seeds to be nurtured-here the teacher is a gardner who tries to bring out the potential already present in the child. This is very different from the current view which sees the child as clay to be moulded where the teachers and parents are potters deciding what shape the clay should take.The word education is derived from the two latin terms “ek” and ‘ducere’. Ek means ‘out’ and ducere means to draw. Therefore, the word education means to draw out from within, not to stuff in. “Education is the manifestation of perfection already present in a man”, said Swami Vivekanand.

This is an interesting variation of trading psychology about discovering where you fit in the marketplace that has been discussed in previous posts.

We are living in times where what Mr Premji has said has come to fruition with TV programs like Nachbaliye, Boogie woogie and Indian idols. So much so that music composer Anu Malik recently explained how so much talent was giving the established singers a run for their money.

Maybe CNBC can take a leaf out their book and highlight some of these stockstars. It would be an inspiration to millions of people who would love to be in their shoes. Who does not like to be rich and free? This is a tribute to such people that I have come across in my life:-

When I began trading a year and a half ago, I bumped into one Mr SB(They may prefer to remain anonymous) who for all practical purposes was my first trading guru and only 27 years of age. Though he is a very good investor also, I spent two- three weeks watching how he would do one day trade to earn Rs 4000-5000 per day. He did it consistently and without fail which brought to mind the obvious question ,” Why just Rs 5000? Why not more and why one transaction? He would reply ,”Zyaada laalach nahin karma chaahiye. Only one transaction works with me” . It sounded like some superstition. I found it very difficult to do what he was doing and then one week later when the market turned very bullish , he again earned Rs 8000-10000 per day for about 7-8 days. (I left him after that) . I asked him several times how he did it and he would reply ,”Instinct”

For a while I thought that he did not want to reveal his trade secret but remembered my father’s ( a very good investor). Words “Many times I make buy decisions intuitively that are very difficult to explain logically but later on they come out correct.” which corroborated with Management guru Peter Drucker’s “ Those who excel at something are rarely able to explain it. “ The hockey wizard Dhyan chand also said ,” I can demonstrate it. I can’t explain it” . I could not stare at the screen of numbers like him and thought that blindly depending upon him would be short term gain, long term pain.;what would I do if something were to happen to him? So I left at which time he had around 18 clients.

A chance conversation with my broker revealed that currently he had more than 50 clients which is not bad going at all. My broker has no reason to lie to me as I am already his client. There maybe doubting thomases who would say that this is so because it’s a bullish market but even then its very good in my view. Today he is a full fledged day trader cum scalper but at the end of the day money counts. His observations on Technical analysis are cute “ Sara time supports or resistances ke liye wait karte rahte hain. Beech main kamaane ki opportunity hai. Uska kya.? Graph main dimag kharchi zyaada hai return utna nahin hain” . When I left him, I was to go on an odyssey of various TA gurus. He is right. Unless a professional trader works full time with you to explore your niche, doing it all by yourself is very tough. I am returning to my first guru with an intention to run with the hare and hunt with the hounds.

Even otherwise SB is a star- A handsome, very well built, six footer Punjabi, very much an eligible bachelor with a very balanced head on his broad shoulders.

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The second star is one Mr SC. Though a telecom engineer by profession he has this amazing knack of identifying mid caps by studying their balance sheets and making a killing. He too works full time on this which is extremely creditable. I know very experienced traders who steer clear of mid caps saying that unless you know the management its safer to stay away to avoid burning your fingers. Its impossible for him to do factory visits all the time. The future is not always an extention of the present or past and balance sheets apart, it is extremely difficult for an individual investor to do qualitative analysis( Management-WHo, where, what, when, why, Business model-products and services and how it makes money,Industry-Growth potential, company's stage of growth, competition,Market Share,Barriers to entry, key factor for success in a particular industry etc). It would not be out of place to mention here that well known investor Shri Ramesh Dhamani who said at the investors camp that it is best to stick to industries you know best. A doctor would know pharma, houswife FNCG etc. To succeed in different midcaps is fantastic considering all this.

A few months ago me, an MBA(Fiinance) and my broker’s brother-in-law who is a chartered accountant were rapt attention when he explained the intricacies of analyzing balance sheets. An engineer explaining this to finance people is very much like tail wagging the dog and speaks volumes of his expertise. Having the guts to leave his job to do this reveals his confidence. He even said once that who wants to do a job/business and get into conflicts with bosses, subordinates and customers.

The icing on the cake is that my broker who has more than two decades of experience in this field started a portfolio management service in association with him. He is good at options trading too. Though not my direct guru, he will remain an inspiration.
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The third person is a former merchant navy engineer who joined his father’s business brokerage. He is one of the finest human beings I have met in my life and from the way he answers questions, probably a brilliant technical analyst(an expert can judge better). He helped me clear many of the basics of TA and taught me a robust position trading system without charging a penny or expecting any business in return. If only he had a similar swing trading system, I would have made him my broker straightaway. He is too much of a gentleman to misguide anybody. On repeated goading by me and the other clients, he did contemplate portfolio management but later abandoned the idea saying that he was not ready yet even after 10 years experience. I think his is a case of “ The good is the enemy of the best’ . He has trained another person who trades full time so that he can be free to attend to his broking activities. Anybody would be proud to have a guru like him . In my view, he is a stock superstar-an officer and a gentleman.

In Mr Gujral’s chatroom too there is one Mr Bk who is good at both trading(stockpicking) and administration and deemed the best. A new entrant, one Mr MA seems to be some kind of prodigy. Both have been duly honored by Mr Gujral with handsome, well deserved compliments.

My father can also effortlessly qualify as one of them but I don't want to indulge in nepotism. How I dearly wish that I was a chip off the old block.

Having plenty of marketing experience, I have always belived that ability must be supported by visibility. It is said that all that glitters is not gold which would probably be true for many analysts. What is presented above is the reverse category- all that is gold does not glitter. Hope they get their due and become an inspiration to others. They are the real Sharekhans

I recall reading an article some years ago where MBAs from London were sent to study Nirma's management. It maybe recalled that Karsanbhai Patel's Nirma gave multinational Hindustan Lever a run for its money. Dhirubhai Ambani was honored by Wharton. I feel that success in the stock mkt also deserves recognition. If it were so easy to earn from the stock market, why would anybody do jobs and run factories or other businesses which are operationally much more difficult?

Many of you must have come across similar stockstars. It would be a pleasure to know about them. There are many on this forum probably but the prerogative of honoring them belongs to traderji.
 
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sh50

Active Member
#3
Thanks for the compliment, Jaideep but I wish I could write with dexterity on stock recommendations like some of the others instead of beating about the bush. I just dont have the spontaneous enthusiasm of some traders who love to see stocks go up and down. Its seems a trifle mundane though it may pay. Yesterday, A doctor by day and writer by night said in some magazine, " Medical profession may pay but it does not enrich my life or satisfy my soul". I had also read in a trading book that some people enjoy programming more than trading. I have tried to love the stocks many times but forced enthusiasm does not work with me. I would rather fool around with a new way of analysis- a ratio or an indicator. Learning something new is more satisfying than earning by plain buying and selling.

My father eats, drinks and sleeps shares and can watch CNBC all day as if it were a movie. How I wish, shares were my passion. If I watched all day, I would only end up writing poetry on the CNBC beauties but your classy poetry would do more justice to them and the Merchant navy person mentioed above. Many times when I am with him, I can't help remembering you since you have been in the Navy.
 
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#5
sh50 said:
Thanks for the compliment, Jaideep but I wish I could write with dexterity on stock recommendations like some of the others instead of beating about the bush. I just dont have the spontaneous enthusiasm of some traders who love to see stocks go up and down. Its seems a trifle mundane though it may pay. Yesterday, A doctor by day and writer by night said in some magazine, " Medical profession may pay but it does not enrich my life or satisfy my soul". I had also read in a trading book that some people enjoy programming more than trading. I have tried to love the stocks many times but forced enthusiasm does not work with me. I would rather fool around with a new way of analysis- a ratio or an indicator. Learning something new is more satisfying than earning by plain buying and selling.


My father eats, drinks and sleeps shares and can watch CNBC all day as if it were a movie. How I wish, shares were my passion. If I watched all day, I would only end up writing poetry on the CNBC beauties but your classy poetry would do more justice to them and the Merchant navy person mentioed above. Many times when I am with him, I can't help remembering you since you have been in the Navy.
....."One man's meat is another man's poison" is the saying as it goes but I'd like to believe that plumbing the grey areas in between one's likes & dislikes also could give a whole lot of satisfaction. Don't for a moment think that all here are gung-ho about the rise & fall of stock prices. Maybe the majority are for the sheer reason of monetary benefit. There are others like you who confess to being otherwise, and kudos to you for being so honest. I don't belong to either group because I am in it for a little of everything....money, thrill, challenge, nothing-else-to-do, etc., etc. Maybe some here fall in the same league as mine.:)

.....Thanks for remembering my background pal. Who's this salty friend of your's? A light-hearted question friend, no offence implied in my vocabulary. Perhaps all of us could benefit from this kind of rare benevolence these days. REALLY RARE I may add.

Season's Greetings to you & your family sh50.
 
#6
Hello sh50,
Its really a wonderful writeup---Yes --its true ---that ---depending on instincts can pay rich dividend---but its the cup of tea of a selected few---maybe as the case as that of ur Hounorable father---Maybe for a few others --too--
Hope u had a wonderful Christmas Party---today-----We had a good day out----

Season's Greetings to you & your family -----
Regards,
joy_mitali
 
#7
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The second star is one Mr SC. Though a telecom engineer by profession he has this amazing knack of identifying mid caps by studying their balance sheets and making a killing. He too works full time on this which is extremely creditable. I know very experienced traders who steer clear of mid caps saying that unless you know the management its safer to stay away to avoid burning your fingers. Its impossible for him to do factory visits all the time. The future is not always an extention of the present or past and balance sheets apart, it is extremely difficult for an individual investor to do qualitative analysis( Management-WHo, where, what, when, why, Business model-products and services and how it makes money,Industry-Growth potential, company's stage of growth, competition,Market Share,Barriers to entry, key factor for success in a particular industry etc). It would not be out of place to mention here that well known investor Shri Ramesh Dhamani who said at the investors camp that it is best to stick to industries you know best. A doctor would know pharma, houswife FNCG etc. To succeed in different midcaps is fantastic considering all this.

A few months ago me, an MBA(Fiinance) and my brokers brother-in-law who is a chartered accountant were rapt attention when he explained the intricacies of analyzing balance sheets. An engineer explaining this to finance people is very much like tail wagging the dog and speaks volumes of his expertise. Having the guts to leave his job to do this reveals his confidence. He even said once that who wants to do a job/business and get into conflicts with bosses, subordinates and customers.

The icing on the cake is that my broker who has more than two decades of experience in this field started a portfolio management service in association with him. He is good at options trading too. Though not my direct guru, he will remain an inspiration.
-------------------------------------------------------------------------------------------
The third person is a former merchant navy engineer who joined his fathers business brokerage. He is one of the finest human beings I have met in my life and from the way he answers questions, probably a brilliant technical analyst(an expert can judge better). He helped me clear many of the basics of TA and taught me a robust position trading system without charging a penny or expecting any business in return. If only he had a similar swing trading system, I would have made him my broker straightaway. He is too much of a gentleman to misguide anybody. On repeated goading by me and the other clients, he did contemplate portfolio management but later abandoned the idea saying that he was not ready yet even after 10 years experience. I think his is a case of The good is the enemy of the best . He has trained another person who trades full time so that he can be free to attend to his broking activities. Anybody would be proud to have a guru like him . In my view, he is a stock superstar-an officer and a gentleman.

In Mr Gujrals chatroom too there is one Mr Bk who is good at both trading(stockpicking) and administration and deemed the best. A new entrant, one Mr MA seems to be some kind of prodigy. Both have been duly honored by Mr Gujral with handsome, well deserved compliments.

My father can also effortlessly qualify as one of them but I don't want to indulge in nepotism. How I dearly wish that I was a chip off the old block.

Having plenty of marketing experience, I have always belived that ability must be supported by visibility. It is said that all that glitters is not gold which would probably be true for many analysts. What is presented above is the reverse category- all that is gold does not glitter. Hope they get their due and become an inspiration to others. They are the real Sharekhans

I recall reading an article some years ago where MBAs from London were sent to study Nirma's management. It maybe recalled that Karsanbhai Patel's Nirma gave multinational Hindustan Lever a run for its money. Dhirubhai Ambani was honored by Wharton. I feel that success in the stock mkt also deserves recognition. If it were so easy to earn from the stock market, why would anybody do jobs and run factories or other businesses which are operationally much more difficult?

Many of you must have come across similar stockstars. It would be a pleasure to know about them. There are many on this forum probably but the prerogative of honoring them belongs to traderji.[/QUOTE]


fully agree. chupa rustums be honored! panel of nse bse top honcho sebi damodaran and brokers[discounting biz recommended by thebrokers]
 
#8
fully agree. reward chupa rustums hugely moreso if they are not professionally trained finance/mathematics-statistics persons..panel of brokerhouses bse,nse sebi top honchos. godspeed[ps money bhaitype winners too?]
 
#9
As always your writings are a pleasure to read.Clear, concise and as smooth as glenlivet.Please update us on your reunion with the first trading superstar on your list,Mr.SB.Has the return been fruitful, does his magic hold and if so I would gladly be his client no.51.Awaiting your reply.
 
#10
bipin61 said:
As always your writings are a pleasure to read.Clear, concise and as smooth as glenlivet.Please update us on your reunion with the first trading superstar on your list,Mr.SB.Has the return been fruitful, does his magic hold and if so I would gladly be his client no.51.Awaiting your reply.
Hey sh50,

Great write up man..so true..

Have Fun
Gaurav
 

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