When ever a stock is bought it is the temptation and hope but not the fear.Many times the trade is made without much of analysis no 
matter what the stock did in the past its assumes a new life once an investor owns its, and he looks forward to a rosy future. But these simple expectations become complicated by what actually happens, its is greed which raises new doubts, new concerns, and conflicts and we wait for more profits and this waiting turns a profitable trade in to losses.So a psychic dilemma with ego, id, superego turn the situation in a state of constant battle.
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Tag Archive: EQUITIES
Sometimes watching Discovery/National geographic channel provokes to you create your own ideas which could easily 
be implemented in your life. Presenting you the collection of rules could be implemented in your profession :-
The Power Nine: Rules to successful trading
1. Move: Always be flexible. The beauty of the stock market is polygamy is perfectly acceptable. Never get married to a particular position or a particular strategy. The market is complex, View full article »
Was thought of sharing this a long back but skipped from my mind . Markets provides lot of learning opportunities and if it is presented in the form of a movie it is more easy to learn . I am sharing some of the best movies that I saw and some quotes :
- Most Corrupt Movie About Finance: Enron, The Smartest Guys In The Room
- Best Line: ’I would like to know if you are on crack, if so that would explain a lot. If not, you may want to start because it’s going to be a long time before we trust you again.’
- Most under-rated Vin Diesl Movie About The Stock Market: Boiler Room View full article »
Was thought of sharing this a long back but skipped from my mind . Markets provides lot of learning opportunities and if 
it is presented in the form of a movie it is more easy to learn . I am sharing some of the best movies that I saw and some quotes :
- Most Corrupt Movie About Finance: Enron, The Smartest Guys In The Room
- Best Line: ’I would like to know if you are on crack, if so that would explain a lot. If not, you may want to start because it’s going to be a long time before we trust you again.’ View full article »
Takings from my last post A Prop Trader or Rogue Trader and my past posts on the same topic The Rogue Trader or The 
Rogue Banks and TO BE A ROGUE TRADER would like to share few more views over them. As I reveled in the past that prop trader don’t trade on behalf of clients but they use institution own money to trade.They speculate and their focus are is emerging markets.
The two principles on which they work :
- You need to be dispassionate about your trade, to control your internal hurdles that may attach you to it emotionally.
- You need to have specific knowledge of the asset you’re trading. You must have contacts in the asset’s country that can supply you with information that is open to anyone else (otherwise it’s insider trading) but that is still extremely valuable.
Was going through Zerohedge and find some interesting facts the (TBTF) Too Big To Fail get Too Bigger To Fail. The top 5 
banks of the world holds 97% approx $221 trillion derivative outstanding.
$220 trillion is more than enough for the world to collapse in a daisy chained failure of bilateral netting (which not even all the central banks in the world can offset).
Time and again history has repeated itself unregulated derivatives are prone to catastrophic failure. And yet, nearly four years after the crash, and nearly two years since the passage of the Dodd-Frank law, the multitrillion-dollars derivatives market is still dominated by a handful of big banks, and regulation is a slow work in progress. Unregulated derivatives are still an economic threat. That’s because derivatives have become deeply embedded in the global economy. ( an article from Ny times quoted) View full article »
As MCX hit the roof top in the IPO market and subscribed 54 times on robust demand, was wondering how many of the investor bother to see that it was graded 5 star from the CRISIL. Here is a research proposal that could be worked upon on the IPO grading :-
On the 30th April 2007 SEBI decided to make grading of all IPOs mandatory. Grading makes additional information available for the investors, in the sense that it is supposedly an objective opinion of a credit rating agency arrived at after analyzing business and financial prospects, management quality and corporate governance practices etc of the issuer. Grades represent relative assessment of the fundamentals of the issue compared to other listed equity securities. Now that the IPO grading is about to complete one year, we seek to assess its impact on the primary market of equity shares.
Intuitively, we feel that grading should have direct effect on subscription statistics. Issues with grading of 3 or below should attract less subscription and issues of grading 4 or 5 should attract more subscription. It means that by and large the variability in subscriptions of different issues (i.e. if an issue gets p times subscribed, the variability in p) should rise after introduction of grading. If investors are risk avers, and if they trust grading, more monies should go to better graded issues. View full article »
GALLEON one of the America’s leading hedge fund’s co founder Raj Rajaratnam found guilty of insider trading. Raj is one of the wealthiest men at Wall Street. More than $25 million profit generated through insider trading by Galleon.
There is a series of people from leading business houses including an IT firm, rating agency and Investment banks who were involved with Raj Rajaratnam.
The Hedge fund size is more than $7million dollar and it did insider trading in a list of IT firms including Google, Intel etc, before the IT bubble burst in 2001.
There are several questions raised out of this case. Do hedge funds need to be regulated? If yes! than they will come under constraints. The case should cause financial professionals considering insider trades in the future to wonder whether law enforcement is listening.
But the laws in our country are enforceable to handle cases like this ?
The story of Satyam computers limited has now taken a new turn and it has been hit hard this time. The WORLD BANK on November 23rd barred Satyam from performing its business with them for a period of 8 years, one of the biggest punishments given by the World Bank after 2004. This is a direct question mark on the credibility of Satyam Computers Limited.
In the matter of 15 days Satyam computer again put on the task and the share prices has plunged down. Earlier the company was in the news because of the insane decision taken by the management to buy Maytas properties private limited and Maytas Infrastructure limited, both promoted by the Raju Son’s.
This was one of the unprecedented moves under the current circumstances where the real estate sector is toppling. The offer made by Satyam to buy these infrastructure companies was much more above the real estate sector giant Unitech, no chocolates for guessing the bid it was the personal interest of the management which came above the shareholders common interest.
The move was unethical and reverted back by the management, a software company diversifying into real estate is itself a question mark, because Software Company didn’t have a debt or very less debt into their balance sheet vice versa to a real-estate company.
In the process Mr Ramalingam Raju lost almost Rs 9630 crores value of the company, when the corporate governance is beginning to show its positive signs in India with quite good regulations the move has dampened the spirit and the shadow of India in the world.
Shouldn’t Mr Ramalingam Raju take the responsibility of what had happened and resign from his position, by showing his placidness. Other wise the institutional investor could exercise their rights.
Wealth creation over the years has changed its avenues and area of interest for the investors in India. The prototype investment where the post offices and typically the scheduled banks through savings and fixed deposits have changed and with the awareness of finance, Mutual fund has became an excellent route to create wealth for the public at large.
“Mutual fund is a pool of money is invested in accordance with the common objective stated before the investment to the investors.”
Here is the concept of mutual fund which is a suitable for the common man as it offers an opportunity to invest and diversified, professionally managed basket of securities comparatively at low cost. The investors pool there money to the fund manager and the fund manager invest the money in the securities and after generating returns passed back to the investors.
The mutual fund has a structure which is regulated by SEBI and the Association of mutual funds of India (AMFI) plays an advisory role for the mutual funds. There are lot of entities involved in between Unit Holders and SEBI which includes Sponsors, Trustees, Asset Management Company (AMC), mutual fund, Transfer agent and custodian.
Basically there are only two types of mutual fund in the industry:
• Open Ended
• Close Ended
Open ended funds are those where investors sell and repurchases units at all times, commonly known as Unit trusts in UK and mutual fund in USA.
Close ended funds are generally fixed as it makes a one-time sale of fixed no. of units, known as Investment trusts in UK and Investment Company in USA.
There on mutual funds have been divided into more subcategories Load and No-load funds, Tax –exempt and Non –tax- exempt, money market/liquid funds, Gilt funds, diversified debt funds, focused debt funds, High Yield debt funds, Assured return funds, fixed term plan series, equity funds and so on.
The diversification has been broadened with the revolution and mutual fund has become a major investment destination by yielding more returns. I would like to conclude the article with a note that mutual fund as a investment destination is gaining momentum and in future mutual fund must emerge as a strong capital appreciation tool for the purpose of financial planning.
