History may rhyme it doesn’t repeat itself

The single greatest mistake investors make is to extrapolate recent history out into the future. They take the financial blogreturns of the past 5 days or 5 years or even 50 years and assume the next few days or years will look just the same without any consideration for the historical context or conditions that provided for those returns.

They forget that, while ‘history may rhyme, it doesn’t repeat itself’ (Twain). Or that, “the only thing that is constant is change” (Heraclitus). These two famous quotes apply to the financial markets as much as anything.

Ignoring these truths and instead simply extrapolating is why investors are suckered into pouring money into the stock market only after a run of great performance. They believe that the recent gains are about to repeat to their great benefit when they should be thinking about what conditions allowed for those gains to take place and analyzing whether they are still relevant or not. Continue reading “History may rhyme it doesn’t repeat itself”

10 Trading Tips

imagesWhen ever I felt like that I have tried to input maximum rules for trading something always come up as a part of new learning‘s.

Have done a series of posts mainly Mistakes Great Trader Never make , Price is what you pay – Value is what you get , Derivatives Known Unknowns and Regulators , ROGUE TRADER Charisma , Best Financial market learning some collection and many more –

Here are Dynamic Hedge whittle it down to 10. found them very interesting basic and very important. Every one of these points has a story behind it Continue reading “10 Trading Tips”

Sweat Equity Shares :

Guest Post :   Sweat Equity Shares: Sweat Equity Shares are a perquisite or a perk that an employee enjoys. The valuation of these shares is based upon the following conditions.

Sweat Equity Shares are those shares which are issued to the employees or directors of a company. The company provides these shares to its employees in lieu of cash, in lieu of information exchange, or as an exchange for either intellectual property rights or any Continue reading “Sweat Equity Shares :”