Indian markets are the most volatile among emerging and developed markets, up 2% one day and down 2% the next May be the Algo trading has made the markets more volatile than ever.
Volatility is the inherent behavior of the markets that’s the reason trader makes and loses money.
The markets are volatile so does the life. It’s important to curb the volatility and see the things from the long-term horizon. The high tides do not last forever so does the calm sea-shore.
The nastiest thing I’ve ever told anyone (a finance fellow angry with me): “When you have absolute intellectual and more disrespect for someone, the only real compliment you can possible get from his in making him angry”
“In economic life and history more generally, just about everything of consequence comes from black swans; ordinary events have paltry effects in the long-term.” -Nassim Nicholas Taleb View full article »
The technology may have advanced to HFT Trading, algorithmic trading but the rogue inside the human will always overpower the technology.
Let’s try to understand the case of Navinder Singh Sarao , Has he became the scapegoat ?
According to the justice department Mr Sarao and his firm is guilty of Nav Sarao Futures, made £26m ($40m) illegally over five years.
He has been accused of using an “automated trading program” to manipulate markets, and contributing to the flash crash of 6 May 2010. On that day, the Dow Jones index lost 700 points in a matter of minutes – wiping about $800bn off the value of US shares – before recovering just as quickly. View full article »
What the wise man does in the beginning, the fool does in the end – Shares in the Berkshire Hathaway Textile Company could be had for around $7.50 when Mr. Buffett first started buying the stock for himself and his partners. It closed at $214,400 April 29th 2015. That’s an increase in excess of 2,850,000%. What a man and his vision:
Here are seven interesting things I learned about Warren Buffett from The Snowball, and some ideas on how they can help you’re investing:
- Buffett set goals young. (He really started, really young)
Buffet began obsessing over numbers as a child. He raced marbles with a stopwatch and calculated the lifespan of hymn composers when six-years old. He sold chewing gum at seven and Coca Cola when he was eight: the same year he began wearing a money-changer on his belt.
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Had an interesting conversation – “what is the feeling on Markets? I think further selling will be there. Everything is going against the economy Crude, Rupee, Earnings, Monsoon. Global issues not cooling down, Greece planning to exit Euro, China Production is slow, Saudi might again attack Yemen. Yaa but we had a spectacular run up this year as well as all in anticipation. Macro was improving and micro we were discounting and were giving time, but now Macro is against us and micro will take time to improve. People are booking profits big time I think ….”
To be honest no one knows how market will react, if you are keeping these points in check probably you might do well :-
- Saying “I’ll be greedy when others are fearful” is much easier than actually doing it. View full article »
The Indian markets has taken a deep correction in the last 6 sessions, Some says the Bears are back , some blaming the Euro Crisis, some blaming the tax implications of MAT on the FII’s , the postmaster analysis is on and it will continue..
Well these events are not in your control but there are few things in market that you can control
- You can control how much money you put behind the idea.
- You can control which markets you trade in.
- You can control how much you are willing to risk per trade barring any gap downs, or halt situations that might impact you negatively. View full article »