Investing Facts – Part II

A person was arguing with me that he do not want to start the SIP as the markets are at all-time high. He feels it there is too blogmuch risk involved. Later on I explained him the logic of SIP that he is not investing only once or when the markets are high, it’s a long term commitment not a month’s affair. Some of us are so taboo that they still think investing in market is gambling, buying a lottery ticket or a horse race.

Please understand the power of compounding; equities have outperformed every asset class in the long run if done with dedications and discipline.

You have to burn your fingers to learn the skill, the same way when children don’t understand and they touch the hot stove unless they realise it’s hot  and skills needed to operate it. Continue reading “Investing Facts – Part II”

Derivatives Statements made and Translations

I am a big fan of Traders Guns and Money the book written by Satyajit Das, the definitions Knowns and Unknowns revealed by him is the classic work.  The reality is always to make sure that you have a sheat when the music in this game of musical chairs for high stakes stops ( referring to the examples for the  crisis happened in the past). As a result of it some interesting statements the management of the firms make but the intensity is something to thought about :-

Statement: As a Leading dealer with a global platform, we are the major player in the market.

  • Translation: We have spent a fortune to build this business and are now prepared to spend millions more subsidizing your requirements.

Statement: We have one of the most talented teams in this space.

  • Translation: Our staff are vastly overpaid and on huge guaranteed bonuses.

Continue reading “Derivatives Statements made and Translations”

Markets & The Emotions :-

Greed is good !! well that’s the tag line on the wall street but how much that is more dependent on your emotion.In the past I did some stories on it and here is great work by Edward zones on the human emotions  and market cycle..