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Wednesday, 9 September 2015

MARKETS SEE A CRASH....!!! WARNING....

PAUL B. FARRELL 

Opinion: 100% risk of a 50% stock crash if Donald Trump wins nomination

Published: Sept 5, 2015 8:43 a.m. ET
By

PAUL 

 COLUMNIST
“Who will get the Dreary Recovery Going?” taunts Mort Zuckerman in a Wall Street Journal op-ed. The head of U.S. News & World Report warns America that a recession is coming: “They occur about every eight years and America is ill-prepared to weather the one on the horizon.” Ill-equipped.
Yes, the clock is ticking, every 8 years. 2000. 2008. Next 2016, even with a President Trump.
Another great newsman, Bill O’Neill, publisher of Investors Business Daily, author of perennial best-seller “How To Make Money in Stocks,” agrees: Markets have peaked and crashed roughly every four years for the last century, with bigger crashes, long recessions, every eight years. And still most investors will be ill-prepared.
Sounds like a double-teamed confirmation of Jeremy Grantham’s famous BusinessInsider prediction for 2016: “Around the presidential election or soon after, the market bubble will burst, as bubbles always do, and will revert to its trend value, around half of its peak or worse.”
Get it? A mega crash is coming, dropping half off its peak, down below Dow 5,000. Not just another 1,000-point correction like last month. But a heart-stopping collapse coinciding with the 2016 elections ... then a long systemic recession ... probably lasting till the 2020 presidential election, maybe longer ... no matter who’s in the White House, Doanld Trump, Jeb Bush or Hillary Clinton.
Yes, recessions hit every eight years. The last was just about 8 years ago, warned Zuckerman with these facts: “The period since the Great Recession ended in 2009 has seen the weakest U.S. recovery since World War II,” Our aging bull is actually warning us ... recession dead ahead.
Why no “urgency from the White House,” no push to strengthen the U.S economy, avoid the coming recession? asks Zuckerman. Why? GOP candidates are worse, immature teenagers offering a “handful of Band-Aids.” Any leaders? Trump the egomaniac? God help us.
Next another disturbing Journal op-ed gets tossed into the mix: Dick Cheney is on the attack, sounding like fellow Republican Trump’s motto, “Make America Great Again.” Build a bigger Pentagon war machine, says the architect of the $5 trillion Iraq War fiasco. His latest rally cry: “Restoring American Exceptionalism.” Sorry folks, but the GOP’s relentless efforts to sabotage the White House the last six years (like 50 repetitive and futile House votes to repeal Obamacare) was the exact opposite, an “exceptional” failure of leadership.
The former vice president also quoted conservative columnist Charles Krauthammer: We’re at a “hinge point in history.” And former New York Times war correspondent Chris Hedges one-upped Cheney in Salon.com: The “world is at a crisis point the likes of which we’ve never really seen.” Like the 1848 European revolutions. Hedges even warns liberals, “climate change is the least” of the world’s problems, don’t even think that “voting for Hillary will make any difference.”
Tell Trump the ISIS War will increase taxes, add trillions of new debt
Yes, folks, the GOP neo-con hawks are back at it again, want new wars ... liken Obama to Hitler ... fueling Cheney’s latest bout of extreme hubris ... arming another Bush effort to take over America a third time ... Cheney claims America is weaker today than at the start of his costly ill-fated Iraq War. He should endorse Trump, they both want a new superpower military ready to start new wars, fight revolutionaries, add big debt, run up casualties.
So here we go again. Be exceptional. By fighting bigger wars? Show China we’re more macho? All as the Chairman of the Joint Chiefs Gen. Martin Dempsey is over in Iraq admitting this won’t be a short war, in contrast to Cheney’s claim we’d be in and out of Iraq fast after the shock-and-awe wave, even “greeted as liberators.”
Another $10 trillion loss, long recession dead ahead
Meanwhile, Dempsey admits the current ISIS war could take decades, with multiple deployments, bigger Pentagon budgets. On top of that, retired Navy Rear Admiral Len Hering warns that the risk to America’s national security is growing fast due to global climate change and rising resource conflicts, a product of the endless droughts and food shortages that intensify regional wars.
Yes, bigger wars, more costs. But unfortunately that’s “not a message the White House or Congress wants to hear,” says Foreign Policy’s Dan de Luce. Why? Politicians are lost without a moral compass, playing endless myopic political games, blind, in denial, threatening costly new wars that pile up more and more debt on top of the debt we were forced to borrow from China to finance Cheney’s Iraq War.
Perfect Storm: New president, Dow 5,000, recession, growth drops
All the recent turmoil is but a prelude to a “Perfect Storm” dead ahead: The recent 1,000 point drop ... slowing global economic growth... China’s market crash ... a Fed rate hike ... worst Dow volatility in 100 years ... the slow death of the oil era ... a long costly ISIS War ... droughts ... forest fires ... irrational climate science denialism ... and more.
And history tells us it doesn’t matter who’s elected president. Trump? Sanders? Hillary? Jeb? Doesn’t matter. Markets don’t care. Remember, McCain? Big crashes, recessions happen, about every eight years. Nobody really cares. Why? Once again we’re playing the game of musical chairs, gambling on the race for the 2016 White House.
And everyone’s playing: Everybody. We instinctively know the market’s headed for another fall. Again. Part of the game, right. In fact, knowing a big crash is coming makes the game more exciting, right! So we all just keep playing for another point, praying we can time our exit just before the coming collapse.
If 250% isn’t enough ... keep playing the game ... but play defense
Yes, the market is up over 250% since 2009. Time to get out? Yes, except the Wall Street casinos keep stirring the pot, there’s more life in this bull. So we keep playing for more gains, more thrills, in the race to the 2016 peak.
How big a crash? Twenty percent? Grantham’s 50%? Lose $8 trillion like 2000? Lose another $10 trillion like 2008? Seems nobody really cares anymore. Today’s game of musical chairs reminds us of that fabulous upbeat bank CEO in our favorite Robert Mankoff New Yorker cartoon who is sounding like Trump:
The CEO is at a podium motivating shareholders: “While the end-of-the-world scenario will be rife with unimaginable horrors, we believe that the pre-end period will be filled with unprecedented opportunities for profit.”
And that is the answer to Zuckerman’s question: “Who will get this Dreary Recovery going?” Answer: Nobody. Why? The question was rhetorical, he gave us the answer: “Recessions occur about every eight years. And America is ill-prepared to weather the one on the horizon.”
Yes, another recession is “on the horizon.” Also another $10 trillion crash. And another painful GOP loss in the 2016 elections.
http://www.marketwatch.com/story/100-risk-of-a-50-stock-crash-if-donald-trump-wins-nomination-2015-09-04?link=kiosk

Sunday, 6 September 2015

MONEY MAKING SECRETS...

7 money secrets the rich don't want you to know 

The Motley Fool

Ask most personal finance experts and they'll tell you the secret to becoming rich is no secret at all: Work hard, live below your means and save every dime. The nation's One Percenters, however, might disagree.

There's no shame in a modest lifestyle -- even Warren Buffett lives frugally. But if your goal is to get rich, it's helpful to know these seven secrets the ultra-wealthy aren't likely to share.

1.  Salary isn't the whole story: 

Climbing the corporate ladder will only get you so far; at some point, you reach your earning potential and plateau. The rich know that in order to grow wealth, it's important to make your money work hard for you -- not the other way around. In fact, Robert Kiyosaki, author of the No. 1 best-selling personal finance book "Rich Dad, Poor Dad," built his entire money philosophy around this concept.

Generating income from passive, rather than active, income sources is the best way to do this. Investments that yield passive income include dividend-paying securities, rental properties, profits from a business you do not directly manage on a daily basis -- even royalties on creative work or inventions.

2. Take advantage of time, not timing

If the recent Dow Jones crash proves anything, it's that no one can predict what the market will do tomorrow. The wealthy know this and make no attempt to moonlight as day traders.

"Time is more important to investment success than timing," explained Peter Lazaroff, a certified financial planner who manages portfolios upwards of $10 million for Plancorp, LLC. "Most of the population believes that timing the market's moves is the key to growing rich through the stock market. The wealthy, however, understand that time and compound returns are the most important factor in growing wealth."

Though it might seem counterintuitive, getting rich requires investors to adopt an unsexy buy-and-hold strategy, ride out market fluctuations and ignore speculation.

3. Put it in writing

The difference between having an idea and putting it on paper is often what separates the uber-successful from average folks. And if you equate success with wealth, it might be time to start writing down your goals, both large and small, in order to become rich.

Thomas Corley, author of "Rich Habits: The Daily Success Habits Of Wealthy Individuals," noted that 67 percent of the wealthy people he surveyed wrote down their goals, while 81 percent kept a to-do list. If your goal is to become a multimillionaire, write it down along with an action plan for making it happen.

4. Understand value over cost

According to Justin J. Kumar, senior portfolio manager at Arlington Capital Management, "The wealthy person has three best friends: her attorney, her accountant and her advisor. The wealthy tend to use the law and tax code to their advantage when figuring out how to maximize their wealth, especially over multiple generations, and they are not afraid to spend money up front for counsel to get these answers."

Kumar explained it's common for middle-income Americans to cut corners in order to save money, yet ultimately find the results lacking. "The wealthy look at value over cost, but they are still prudent in their decisions," he said.

5. Eat out less

People who are concerned with saving money often skip the daily latte. The rich enjoy small splurges such as Starbucks whenever they want and instead look at saving from a bigger picture.

Author Paul Sullivan and colleague Brad Klontz, a clinical psychologist with an academic appointment at Kansas State University, conducted research on the difference in spending habits of the 1 percent and the 5 percent. The 1 percent spent 30 percent less on eating out and saved it for retirement instead. "And that, more than the cost of a Starbuck's latte, is what, over time, separates the wealthy from everyone else on the wrong side of the thin green line," Sullivan wrote in Fortune.

6. Be your own boss

Employees work to make their bosses rich. If you're aiming for true wealth, consider starting your own business. According to Forbes, nearly all of the 1,426 people on its list of billionaires made their fortunes through a business they or a family member had a hand in creating.

"Many middle class workers think that starting a business is too risky," noted Robert Wilson, a financial advisor and frequent contributor to CNN, NBC and CBS. "The wealthy understand that what's risky is allowing your time and earnings to be dictated by a boss who couldn't care less about whether you get what you want for your life."

7. Use other people's money

To the average person, "it takes money to make money" might sound like a tired cliche used to justify irrational spending. For the rich, it's a golden rule of wealth.

The key is leveraging other people's money to increase your own wealth.

"Trading time for dollars is a losers' game, especially as technology destroys many jobs that don't require a highly skilled human being," said Wilson. "Using money from banks/investors and hiring people to work for you is a time-tested formula for building wealth, not to mention the tax laws, which heavily favor businesses."

Whether you're fundraising to start a business or flipping real estate for a profit, relying on other people's money to do the heavy lifting greatly increases the return. Of course, it's also riskier than relying on your own funds. But if you follow the sage words of the great Warren Buffett, consider that "risk comes from not knowing what you're doing."

This article originally appeared on GOBankingRates.com.

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Thursday, 14 May 2015

WINNING TRENDS IN STOCK MARKETS

“PEOPLE ARE NOT DISTURBED BY THINGS RATHER BY THE VIEW OF THINGS” –ALBERT ELLIS, AN AMERICAN PSYCHOLOGIST WHO DEVELOPEDRATIONAL EMOTIVE BEHAVIOUR THERAPY.
THIS PSYCHOLOGICAL APPROACH IS APT TO MANY BUSINESS HOUSE DECISIONS BUT VERY TRUE IN STOCK MARKETS AS VIEWS BECOME PALE & FEARFUL DURING THE TIMES OF DEPRESSIVE NEGATIVE ENVIRONMENTS, JUSTLIKE NIGHTMARES IN  THICK FORESTS OF ABUNDANT DESOLATION.
THE STOCK-MARKETS CLEARLY REPRESENT A FRIGHTENING CLUMSY PICTURE AT TIMES WHEN VOLITITIY AT ITS PEAK & FALL CONTINUES!!, NO MATTER HOW SEASONED SOMEBODY BUT TO OVERCOME THE NERVE WRENCHING FEAR AND FORESEE THE FUTURE BECOMES DREADFUL.
TO AVOID UNCERTAINTIES IN STOCK MARKETS ARE NOT AT ANYBODY'S COMMAND OR CAPACITY BUT EVERY PARTICIPANT'S WISH....
TO MITIGATE THE FEAR AND UNDERSTAND THE EMERGING OPPORTUNITIES IN CHAOS, THE FOLLOWING APPROACHES CAN BE ADOPTED FOR BETTER RESULTS AND TO KEEP PACE WITH THE MARKET TRENDS...!!
A) CONVERGENT PROCESS:
THIS APPROACH IS MORE WIDELY ACCEPTED AND FOLLOWED BY THE FIIs, DIIs AND ESPECIALLY FOR THAT MATTER MORE PRECISELY BY HEDGE FUNDS. THESE HIGH RISK SEASONED CUTTING EDGE SMART PEOPLE PLACE HIGH BETS WITH AN ANTICIPATION OF HIGH RETURNS. THE BLOOM AND GLOOM CO-EXIST MANY A TIMES BUT THEIR SPIRITS ARE VERY HIGH.
HERE, STOCK PURCHASE CONCENTRATION IS SO HIGH THAT HUGE MONEY PUMPED AND LARGE CHUNK ACQUIRED AT A REASONABLE PRICE. THE COMPANY FUNDAMENTALS, ECONOMIC &BUSINESS TRENDS AND OTHER IMPORTANT PARAMETERS ARE LITTLE KNOWN TO OTHER RETAIL PARTICIPANTS BUT GET SURPRISED WHY AND HOW THESE COUNTERS ARE HOLDING ON TO THE TOP. 
LAST BUT NOT LEAST, THE VERY IMPORTANT MARKET MANAGEMENT MECHANISMS ARE PUT IN PLACE TO SEE THE PRICES RISE STEADILY AND GRADUALLY TO A LIMIT AND THEN A FINAL SHOOT UP …?. UNFORTUNATELY THE GREEDY POOR TRADERS AND RETAIL INVESTORS GET TRAPPED WHEN PARTICIPATE HEAVILY AND OFCOURSE THE WELL INFORMED SEEK AN EXIT…???
B) DIVERGENT PROCESS:
MAINLY FOLLOWED BY HNIs AND SMALL FUND HOUSES. THE PHILOSOPHY IS TO PROTECT THE CAPITAL AND INCREASE PROFITS IN BABY STEPS. THESE INVESTORS NEVER KEEP ALL EGGS IN ONE BASKET BUT PREFER DIFFERENT SECTORS. THIS DIVERGENT MEANS OF MAKING MONEY CAN OFFER SOLACE THAN ANY OTHER MODEL AS THE MARKET WAGGERIES ARE WELL TAKEN CARE. 
THESE PLAYERS ARE MODERATE IN RISK TAKING APPROACH, HAVE GOOD CONFIDENCE IN MARKETS BUT FEARFUL IN APPROACH. THEY ADOPT LONG-TERM PLAY WITH AN EYE ON SHORT-TERM GAINS, PLACE THEM IN GOOD POSITION AS THEY OFTEN TAKE-OUT PROFITS AT HIGHER LEVELS AND RE-ENTER AT LOWER LEVELS. SO, SAFE AND SECURE ALL THE TIME.
C) CHANNELLED PROCESS:
THE LADDER LIKE APPROACH IS ADOPTED BY SMART INDIVIDUALS TO ENSURE SUCCESS AT EVERY MOVE  WITH A LIMITED RESOURCE/MONEY. THEY KEEP MAINTAIN A WINNING STEAK ON BOTH THE DIRECTIONAL MOVES, SAIL ALONG WITH BULLS AND BEARS AS THEIR ADAPTABILITY & LIQUIDITY AT HAND ALLOWS SUCH FACILITY. THEY KEEP INCREASE VERY CALCULATED BETS, ALSO MAKE SUCCESS, A COMMON PHENOMENA LIKE CLIMBING A LADDER.
THESE PLAYERS ARE KNOWLEDGEABLE AND QUITE SMART IN CATCHING TRENDS IN THE MARKETS AND PLACE THEIR BETS SAFELY, ALSO MAKE SOME GOOD MONEY. THE PLAYERS SUCK EACH EMERGING OPPORTUNITIES IN STOCK MOVEMENTS BUT THEIR WELL ESTABLISHED APPROACH IS NOT KNOWN IN THE MARKET CIRCLES BUT MAKE DECENT COOL MONEY.
D) ZIG-ZAG JUMPING PROCESS: 
THIS APPROACH IS MOSTLY ADOPTED BY THE DAY TRADERS AND SWING TRADERS, ENJOY BUYING AND SELLING MANY A TIMES DURING THE DAY.THESE ENTHUSIASTIC TRADING PLAYERS ARE BACK-BONE TO MARKET LIQUIDITY AND FOR STOCK-TIPS ADVISORS. THEY KEEP ENGAGED EVERY TIME AND EACH TIME THEY TAKE A CALL AS THEIR GAME IS HIGHLY VOLATILE AND NO-BODY UNDERSTANDS WHY A BUYING IS MADE AND INSTANTLY A SELLING IS INITIATED. MANY A TIMES THEY BUY AT ONE COUNTER AND ALSO SELL ANOTHER SCRIP. ULTIMATELY, THEY ENJOY PARTICIPATION RATHER THAN MAKING MONEY.
THESE SMALL TIME RATHER INSTANT PLAYERS NEVER MAKE HUGE MONEY STORED IN THE MARKETS BUT LOSE MONEY FOR SURE, BECAUSE OF BUNDLE OF CONFUSIONS!. THE MORE THEY PLAY THE MORE THEY PAY. THEY HARDLY MAINTAIN ANY ORDER/METHOD, FIND NO TIME TO STUDY, PREFER EXTERNAL DEPENDENCY, MAINTAIN ADAMANT BEHAVIOUR TO A LOSING DEALS, RELY ON IRRATIONAL MEDIA COVERAGES & LIVE IN RUMORS AND PLACE HUGE BETS, BELIEVE IN CARRY ALONG WITH THE MOB IN THE MARKETS...ETC. ALL THE MORE, TAKE VERY FRAGILE DECISIONS AND UN-MINDFULLY INVITE HIGH-RISKS, UNFORTUNATELY GO INTO DUST...UN-NOTICED!!!!

Sunday, 15 March 2015

The Influence of Psychological factors-
Decision making practices in Capital Markets:

Renowned Investor's great sayings.....“Individuals who cann’t master their emotions are ill-suited to profit from the investment process. Never forget to account for the psychology of the investor”- Benjamin Graham, the Father of fundamental “Value Investing” in Stock markets.
The stock investing in India in recent times is increasing many folds in leaps and bounds through organised Exchanges like BSE (Bombay Stock Exchange) and NSE (National stock Exchange). The stock-investors, be it an individual person or a group/institution who would allocate surplus money from their savings with an anticipation of a better financial returns from their investments to meet the future needs/aspirations. The awareness of stock investment is increasing with the growing economy and more companies are raising capital through markets.  There are various investment options and different investment schemes are made available other than the traditional bank deposits, like Equity Investments, Debt securities, Gold, Commodities, Currency..etc through recognized Stock Exchanges.
There are more than 5000 companies listed and are regularly trading in both the exchanges. The Indian corporate market capitalisation has increased many fold to cross 1 trillion USD and at times, the trading volumes in the bourses are breaking the world records. So far, the Indian capital markets are offering safe and higher returns from blue chip companies that offer regular higher dividend along with price appreciation attracting the Foreign Institutional Investors. The FIIs dollar driven liquidity accelerating the growth of Indian Market Capitalisation, made investments of Rs 6,370 crores in 2000 has increased to an all time high of Rs 1.405 Lakh crores in 2012, even the average is working out  Rs1.0 Lakh cr for last 3 yrs. Apart from the FIIs, the universe of Investors base is increasing day by day and day after day, those can be of individual retail investors, Mutual Funds, Hedge Funds, Venture Capitals, Insurance companies like LIC of India & other private insurance companies and Investment trusts like EPF (Employee Provident Funds).
The Advantage INDIA:
The Indian economy has taken the advantage of attracting the Foreign Direct Investment in India is benefiting the Indian companies at large. The huge geographical spread and rich natural resources attracting multi-billion dollars of investment in mining, oil& gas exploration, highways, ports, pharma and in manufacturing sector etc. The high skilled employees of Software industry and exports from India are bringing dollars to national wealth reserves, are culminating the growth of economy and the Stock markets as well.
The positive side of growth expansion has also opened with new Govt in office. The recent run-up in Indian stock markets opened even more challenges to Retail Investors in choosing the companies for investment, timing the investment and the lack of expertise in en-cashing such Investments are jeopardizing the whole investor fraternity. 
There are many opportunities associated with stock market investing. It can make or break the life of an investor in no time. Most stock Investor blindly believes publicly available suggestions and keep emphasis with over-confidence about the quality advice/credibility of such information received while investing, has been universally accepted and repeated investment mistakes termed as psychological biases. So, individual human psychology determines success or failures in Stock Investing. 
Psychological Issues of Investment models:
The psychological aspects influences to make the difference from the rest, as everybody in the stock market is smart with their investment plans & brilliance offsets each other. To become successful in the stock-market, merely sound knowledge about the market does not suffice. It requires various right decisions that bring the investors to emerge out as successful winners.
The psychological presumption of following the trend is nothing but herd mentality when right time exit does’t take place!. The retail investors participation in purchasing the stocks from the secondary market will be tepid at the bottom where the Indices show little interest to go up, so is the stock uptick. On the other hand, when the markets rise and are close to their yearly highs, the traders and short-term Investors exuberance is high with high level of participation at the tops for quick bucks!
It is often observed that the bubble formation takes place when the retail investor fund inflow increases phenomenal as the money chases the stocks relentlessly without considering the fundamental values of the company and its performance. The volatility levels will be high and the returns are immediate, also huge at the short-term is more often seen as “God sent Opportunity” and shear speculation to make quick bucks as “Want of owning the Stock” for short-term gains leads to disastrous burst.
The “Greed and Fear” of the investor’s psyche that drive the market’s nerve-wrecking volatility that constitutes a deep struggle between the two fundamental emotional forces of BULLs and BEARs. The market’s peaks and bottoms are the mirror images of the irrational emotional swings of investors who are too OPTIMISTIC or PESSIMISTIC of the stock prices and their future performance.
Psychological influences on Investors:
The Indian investors are considered to be with strong value system being maintained with morals and ethics. However, he /she may not be avoided with some influences that come from both internal and external directions. The Fly by Night Operators take the advantage of Bullish periods of stock markets to sell a bunch of multi colored dreams of stocks future valuations by showing irrelevant projections and prospects of thinly traded stocks, mint money by selling those to retail investors.
The most common investing “Psychological Pothole Traps” coupled with external recommendations, group behaviors, irrational relative comparisons with blind confirmations and internal individual views consists of anchoring presumptions, delay due to doubts & suspicion, over enthusiasm & wrong aspirations, lack of confidence, lack of risk taking behavior & knowledge converting to dependency, along with inordinate reliance on existing trend, procrastinating & denial with adamantine nature for a change when needed and horrifying, compelling panic-ness to SELL during fall leading to serious capital erosion, instead of what was thought!. These abnormal behaviors, irrational investment decisions generate huge losses there by lowering Self-confidence and respect in markets which ultimately affecting on decision making abilities of the investors.
Investment cross-check:

The Investor fraternity has to examine the influence external forces on decisions making practices in capital markets, be it the peer group or media, or personalized solicitations via mails/SMS about investment tips. Investors shall focus on the individual cash flows, knowledge about markets& risk taking behaviour, needs & aspirations and most importantly the emotional balance to sudden SHOCKS, also the availability of supportive family environment & mentor group behaviour, if any. So, special emphasis would on stable composure to identify quality stocks and the price relevance apart from analysing other economic and political factors, while considering stock investments!!!....

Tuesday, 3 March 2015

THE ART OF TRADING IN STOCK MARKETS

THE ART OF TRADING IN STOCK MARKETS

 IN EVERY ASPECT OF LIFE, THERE IS SOME ART PART AND SOME SCIENCE PART THAT EXISTS IN OUR UNIVERSE. THE STOCK MARKETS ARE NO DIFFERENT FROM THIS. THE ART OF TRADING IS GENERALLY LESS DISCUSSED AS WE TEND TO FOCUS ON THE SCIENCE PART HEAVILY BY ANALYZING TECHNICAL CHARTS AND OTHER MOMENTUM INDICATORS. DESPITE OF THROUGH UNDERSTANDING & COMMAND OVER THE CHARTS, OTHER TECHNICALS LIKE ELLIOT WAVE, DOW THEORY AND FABINOCCI NUMBERS ETC., STILL TRADERS TEND MISS THE SUCCESS DUE TO LACK OF "THE ART OF TRADING" QUALITIES!. THE ART OF TRADING IS BASICALLY FOCUSES ON THE PSYCHOLOGICAL ASPECTS OF TRADERS/INVESTORS MIND SET.
NOVICE MEMBERS,NEW TO MARKETS FLOCK AROUND WITH A PRE-CONCEIVED NOTIONS, THINK AN EASY OPERATION LIKE SIMPLE “BUYING& SELLING” TO EARN MONEY FROM THE MARKETS. MANY PARTICIPANTS WITH HARD CORE REAL EXPERIENCE MAY DIFFER WITH THESE PRESUMPTIONS. THE ATTRACTION AND EXCITEMENT STORED IN THE POSITION HOLDING DURING THE DAY/COUPLE OF DAYS, ALLOWS MANY TO TAKE PART IN MARKETS, LATER NOTICE THEIR INABILITY TO MAKE MONEY. THE SEASONED PEOPLE WHO RECOGNIZED THESE FAILURES, AND THOSE WHO ARE ADAPTABLE TO CHANGE TEND TO GAIN BY NOT COMMITTING THE AGEOLD MISTAKES!.
THE STOCK MARKET BUSINESS BASIC PRINCIPLES BASED ON WHO OPENS "THE SHOP”,WHO COMMANDS WHOM IS WHAT MATTERS ULTIMATELY.THE OPERATORS OR THE MARKET MAKERS/WELL INFORMED PEOPLE/INSTITUTIONS TEND TO CREATE A SITUATION WHERE BY THE SMALL/RETAIL INVESTOR, TRADERS/POSITIONAL TRADERS GET TRAPPED. THE STOCK MARKET OPERATIONS EXIST ON THE VERY BASIC PRINCIPLES OF “ENTICE & ENCASH- EACH TIME AND EVERY TIME”.
EVERY DAY, MARKETS ACROSS THE GLOBE, "OPEN & CLOSE" AT PARTICULAR TIME AS SCHEDULED AND ARE BEING REGULATED BY THEIR AUTHORITIES. THE UNDERLING SECRET IS WHO MAKES THE OPENING RATES AT A PRICE HIGHER OR LOWER THAN THEIR EARLIER CLOSING PRICES, “DEFINITELY NOT THE RETAIL INVESTORS” FOR SURE. HERE THE CATCH, THE WELL INFORMED/MARKET MAKER WITH HUGE STOCK AND CASH AT DISPOSAL “OPENS THE SHOP”. THEN ONE CAN RECOGNIZE WHO IS THE CUSTOMER AND WHO IS THE OWNER. IN THIS PRINCIPLE, NOW IT IS ANYBODY’S GUESS THAT WHO RULES & MAKE PROFITS.
THEN, HOW TO GET SUCCESS AND PROFITS?!, THE RULE IS-BECOME “THE SHOP-OWNER”, SIMPLY "THINK LIKE AN OPERATOR & OPERATE LIKE OPERATOR". THOUGH IT LOOKS SURPRISINGLY FUNNY BUT THE VERY FACT IS THAT THERE IS NO OPTION BUT TO JOIN THEM.
IN PRINCIPLE, EVERY BUYER, IS AN INVESTOR, HAS THE RIGHT TO BE CALLED AS OWNER OF THE STOCK, THEN WHY INVESTORS SELL FOR A LOSS?, BECAUSE HE OR SHE “TRADES”. IN FACT, THE LOSING TRADES ARE EITHER ASSOCIATED WITH FEAR OF LOSS OR VENGEANCE. MOST OF THE TIMES, TRADING IS ALSO DONE BY THESE TRADERS ON ADVICE OR TIPS OFFERED/PROVIDED,TAKE HUGE POSITIONS WITHOUT PROPER STUDY/INSUFFICIENT STUDY, BOOK LOSS FOR WANT OF MONEY OR FEAR OF FURTHER LOSS, THEN CURSE THEIR FATE RATHER THAN THEIR "IGNORANCE OF OPERATION".
THE LOSERS SELDOM FIND TIME TO REALIZE THE VERY FACT THAT THEY ARE BETTING ON SOMEBODY'S ADVICE AND DREAMING OF SUCCESS NOT ON THEIR MERITS BUT ON RELYING/DEPENDENCY. STOCK TRADING IS DEFINITELY AN ART TO GRAB THE AVAILABLE OPPORTUNITY IN A PARTICULAR STOCK/INDEX, GAIN FROM THE POSITIONS. UNLESS THE TRADERS UNDERSTAND THE GAME PLAN BEHIND THE SCENES, IT IS VERY DIFFICULT TO MAKE MONEY FROM DAY-TRADING/SWING TRADE.
SO, DEVELOPED CERTAIN PRINCIPLES WITH MY EXPERIENCE- AAA (TRIPLE “A”) AND UJWAL-DEEP.
THESE PRINCIPLES ENHANCES THE SUCCESS RATE FOR SURE…. WILL DISCUSS SOONER…!!!


Thursday, 19 February 2015

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