I am personally inclined towards behavioral finance, as it has continuously challenged the conventional financial 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”
Guest post by : Green
The ability to understand and manipulate economic markets for financial gain is a skill that has been watered down over
the years. It seems these days that almost everyone thinks they are an expert in stock and shares, Forex or commodities. The big crash of 2008 and the ensuing volatility in a number of key markets have been refreshing in so much as it really separated the masters from the mice in market trading.
Those who have managed to continue to make money during these hard times are the quintessential trend spotters. However in this case they are not so much spotting an individual trend, more the changing methods of how to invest in the stock market. Continue reading “A Recession Doesn’t Put Everything in Decline”
Two monks argue about a flag.
One says, “The flag is moving.”
The other says, “The wind is moving.”
The Sixth Patriarch happens to walk by and remarks, “Not the wind, not the flag; mind is moving.”
Markets exist as where capital, investors and investments intersect in the form of securities. It is where the buying and selling of debt and equity occurs. Continue reading “Media and Market !!”
I was going through some of the latest Economic Commentary done by Merrill Lynch some extract of rules I found them interesting to share across.
1. In order for an economic forecast to be relevant, it must be combined with a market call.
2. Never be a slave to the date – they are no substitute for astute Continue reading “Merrill Lynch’s Economic commentary”
Before I start the discussion, I would like to open the discussion How many people do you know that are as successful as they want to be do not take responsibility for their actions?
They always have excuses to succeed not fail.You know if something is not working do not go down with the sinking ship. Have a reason for everything you do so you can learn from it. Trading is hard because what is written in stone one day is thrown out the next.
Here is just one of the conversation with trader, which you never want youto be, sharing as its interesting too, here is how it went.