Wall Street Sales Pitches

Sharing  some one liner sales pitches that became famous on Wall Street and people should really avoid them & mostblog of them used by many advisory firms and they have embraced a culture of sales and monthly quotas. If you find these pitches be afraid it’s a caveat…..

  1. “It’s like a CD.”
  2. “Buying on margin will greatly increase your returns.”
  3. “This fund did really well last year.”
  4. “As long as the music is playing, you have to get up and dance.”
  5. “Do you want the confirmation sent to your office or your mansion?” Continue reading “Wall Street Sales Pitches”

Investing facts and Behavioral Finance

I am personally inclined towards behavioral finance, as it has continuously challenged the conventional financialblog theory of rational wealth maximizers.

The irrational financial decisions, emotions and psychology have taken over the field of finance.

The very famous Aswath Damodaran says, the equity risk premium is the key to investing & valuation.

Ben Graham told once Mr. Market is there to serve you, not to guide you.

In the Taleb’s language you buy – sell or you make omelette out of it depends upon your luck, randomness, Probability, Belief, conjecture, Theory, Forecast and Anecdote.

The most crucial investing question that I have noticed is: Do you know your time frame? Continue reading “Investing facts and Behavioral Finance”

Greed is Good ?

“The point is, ladies and gentleman, that greed, for lack of a better word, is good.” – Gordon GekkoSTOCK VOLATILITY

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” – Warren Buffet

Greed may have been good for Gordon Gekko (at least for a while), but in the investment world it rarely is as Warren Buffett is famous for saying.

Investors are unequivocally greedy today, and with some perspective it is hard to blame them. Continue reading “Greed is Good ?”

Buying and selling in the Stock Market: When to sell and when to buy

Whenever a stock is bought it is the temptation and hope but not the fear. Many times the trade is made without much of bloganalysis no matter what the stock did in the past it 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 it 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, and superego turn the situation in a state of constant battle.

Lesser profits are better than no profits or losses. Control greed and take rational decisions about exiting the stock. The execution is more important than reading or writing. Continue reading “Buying and selling in the Stock Market: When to sell and when to buy”

Derivatives the world’s most mis-selling products or misunderstood

Good Morning, am back to Mumbai after some memorable moments with my family and relatives !!  I am a big fan of Traders Guns blogand Money the book written by Satyajit Das, the definitions Knowns and Unknowns revealed by him is the classic work. Probably this is the 3rd time I have read this book during my train journey and I love reading it again and again.  The reality is always to make sure that you have a seat 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:-  Continue reading “Derivatives the world’s most mis-selling products or misunderstood”