Greatest Trader

Seventy one years ago, on Thursday, November 28, 1940, Jesse Lauriston Livermore, entered the Sherry Netherland Hotel where he took a seat near the bar and enjoyed a couple of old-fashioned. After an hour Jesse Livermore got up and went in the cloakroom, seated himself on a stool, and then shot himself in the head with a .32 Colt automatic. How could the man who is still regarded by many as the greatest trader who ever lived go out this way by taking his own life? It just doesn’t match the rest of his life.

In his youth Jesse was know as the “Boy Plunger” because he looked younger than his years and he would take big positions when he traded against the bucket shops of his day. The bucket shops let traders bet on a stock price, but no trade was executed, the house covered if you were right. How good was he? He was banned from the bucket shops one by one, it was like getting kicked out of a casino because you beat the house so badly with outsized gains. He went on to trade in stocks and commodities and did very well becoming a millionaire many times. Unfortunately he also went bust many times. He made his biggest money in the market crashes of 1907 and 1929,  it is said that J.P. Morgan himself sent word asking for Jesse to please quit shorting stocks. In 1929 the day of one of the biggest market meltdowns he returned home and his wife was scared that he had lost everything, he surprised her by making the biggest money of his trading career. He ended up with the nickname “The Great Bear of Wall Street” because of his shorting activity.

Here are some of his most insightful quotes from his book  “How to Trade in Stocks”

“All through time, people have basically acted and re-acted the same way in the market as a result of: greed, fear, ignorance, and hope – that is why the numerical formations and patterns recur on a constant basis”

“Successful traders always follow the line of least resistance – follow the trend – the trend is your friend”

“Wall Street never changes, the pockets change, the stocks change, but Wall Street never changes, because human nature never changes”

“Just because a stock is selling at a high price does not mean it won’t go higher”

“But careful timing is essential…impatience is costly”

“Markets are never wrong – opinions often are”

“Remember too that it is dangerous to start spreading out all over the market. By this I mean, do not have an “Interest in too many stocks at one time. It is much easier to watch a few than many. I made that mistake years ago and I cost me money”

In the book , Jesse Livermore: World’s Greatest Stock Trader it is said that he loved women and that this lead to the eventual divorce form his first wife. His second marriage was to a women with a very bad history with men. Did this cause his eventual depression and suicide? He rode a roller coaster of extreme wealth and being broke many times in his life, did this wear him out? It is said that he was in a draw drown at the time he killed himself, did he have a hard time living up to his own legend? We will never know but I do know the mental anguish and pain that comes from riding a wild equity curve and I strongly suggest that all traders respect the risk of ruin, when those ten losing trades in a row hit your trading it is much easier to come back from a 10% draw down when you are risking 1% of capital per trade than blowing up when you are just going all in on ever trade. A 10% risk per trade has a 100% risk of ruin in the long term for just about every trading system. I think that was Jesse’s problem he did not manage the risk of ruin, that is how a trader of his caliber and brilliance was ruined financially so many times.

“The only area I may have differed from most speculators, was when I felt I was truly right, dead right, for-damn-sure right-then I would go all the way, shoot the works.” -Jesse Livermore

source:http://www.anirudhsethireport.com/

Inspiring man behind Amul

10 rules for success in business:

§        Don’t wait for a revolutionary idea. It will never happen. Just focus on a simple, exciting, empty space and execute as fast as possible

§        Share your idea. The more you share, the more you get advice and the more you learn. Meet and talk to your competitors.

§       Build a community. Use blogging and social software to make sure people hear about you.

§         Listen to your community. Answer questions and build your product with their feedback.

§        Gather a great team. Select those with very different skills from you. Look for people who are better than you.

§        Be the first to recognise a problem. Everyone makes mistakes. Address the issue in public, learn about and correct it.

§        Don’t spend time on market research. Launch test versions as early as possible. Keep improving the product in the open.

§       Don’t obsess over spreadsheet business plans. They are not going to turn out as you predict, in any case.

§       Don’t plan a big marketing effort. It’s much more important and powerful that your community loves the product.

§       Don’t focus on getting rich. Focus on your users. Money is a consequence of success, not a goal.

Source: http://goo.gl/MRbgj

Is this the most sought after job for Next Gen Indians?

Jobs in consultancies and investment banks are still amongst the most sought-after in India, even after the financial crisis of 2008. Rewind to a decade back and it were the software coders that every teenage Indian looked up to and aspired to be. However, it seems that the next generation of Indians would prefer to toil under the burning sun rather than sit in plush air conditioned offices. At least that is what an article in leading business daily claims. It cites the examples of professionals working with MNCs quitting their jobs to become farmers. Yes, you read that right! Given the steady rise in prices of food products in recent months, farming is the next obsession for a small group of young and educated Indians.

Why do the farmers then commit suicide you may ask! Honestly, we ourselves do not see the young and ambitious agricultural entrepreneurs doing too well in the long run. That is unless the government policies change dramatically in their favour.

Despite years of subsidies and minimum pricing offered for agri produce, the small and marginal farmers continue to remain at the mercy of rainfall. True the educated lot can use research and technology to their advantage. But at the end of the day, inability to sell the produce at profitable rates could make the sophisticated farmers as debt burdened as their illiterate peers.

Hence farming could certainly be a good option for a nation of young and largely unskilled population. Literacy and better technology could also help minimize risks. The certainty about rise in commodity particularly food prices makes the option that much more lucrative. However, in the absence of adequate government policies to secure farmlands and make farming a profitable venture, the scope remains limited. We keep our fingers crossed.

source: equitymaster

Success in finance doesn't require extraordinary talents.

What you need instead is a deep seated belief in the school of value investing and the discipline to stick to it come what may. Ruane has laid out four rules that guided his investment career. These are 
1) buy good businesses, 
2) buy businesses with pricing flexibility, 
3) buy net cash generators and 
4) buy stock at modest prices. 
Clearly, not much different from what Buffett follows. And certainly very easy for others to follow as well.

Investing in Silver

India imports more than 4000 tonnes of silver annually which shows the rising demand silver.





Now you can invest in silver through NSEL e-silver easily it is similar to ETF.

Father of Atomic Bomb says about vedas

Access to the Vedas is the greatest privilege this century may claim over all previous centuries.

Intersting 10000

Warren Buffett... Bill Gates... Sachin Tendulkar... The sheer mention of these larger-than-life demigods fills us with awe and reverence. They seem like glorious stars; so many light years away that we are content just gazing at them.

Most of us have grown up believing that all great people have some inborn talent. As if they were just meant to be that way. Have you ever thought if it would be possible to be like them? If you haven't, you may want to reconsider after reading this. Okay, let's consider what it takes to become a super-achiever.

Achievement= Innate talent+ Opportunity+ Preparation.

There is not much to debate about this equation. These three ingredients pretty much make up the recipe for success. The interesting part is this... Research on super-achievers has led psychologists to this conclusion: Preparation plays a much bigger role in determining an individual's success than innate talent. Wow! This means that even if you're not a born genius, you haven't lost the battle. All you need is a willingness to prepare well.

Now the next question is quite obvious. How much preparation to become a world-class expert? Through extensive research in the 1990s, psychologist Anders Ericsson arrived at a precise number: 10,000 hours. Various studies strongly pointed that 10,000 hours of practice was required to achieve world-class expertise in anything. It seems that it takes the brain this long to assimilate all that it needs to know to achieve true mastery.

Warren Buffet, for instance, is famed for his discipline and the hours he spends studying financial statements of potential investment targets. But his informal schooling in business and investment started much early when he was just 5. As a kid, Buffett displayed a keen interest in making and saving money. He would go door to door selling chewing gum, Coca-Cola, or weekly magazines. While still in high school, he carried out several successful money-making ideas. By age 11 he made his first investment buying a stock. And by age 13, he had filed his first income tax return.

Take our own little master-blaster Sachin Tendulkar. He is known for spending long hours at the nets, always perfecting his cricketing reflexes. Take Microsoft's founder Bill Gates. He met the 10,000-hour rule when he gained access to a high school computer at the age of 13, and spent 10,000 hours programming on it. Practice isn't the thing you do once you're good. It's the thing you do that makes you good.


source: equity master.

Compound Interest

Formulae to calculate compound interest:

A=(1+i)ⁿ

A- amount
i- interest
n-number of years.

Quote I Like

Karmanye vadhikaras te
Ma phalesu kadacana
Ma karma-phala-hetur-bhur
Ma te sango ‘stv akarmani
-The Bhagvadgita, Chapter 2, Verse 47

"A man’s karma is to forever turn the wheel of life towards a better future for all."

Ravanan as a teacher to Ram

"Remember, it is the nature of the ignorant mind to be drawn towards things that will cause harm and to avoid things that are good.We must remember that what tempts us will in all probability be the cause of our downfall. What we shy away from, what we procrastinate about, probably is what will help us evolve." - words said by Ravana to Lord Ram.

Dressing

Eat to please thyself, but dress to please others.
-Benjamin Franklin

An Executive Interaction

When I came to know that EIP is going to be conducted by Mr.Pamod Sardar Joshi at first I didn’t know what he’s going to speak about with the topic From “Purani” Jeans to “Armani” suits. As soon as he came he displayed that the topic going to be presented is “SUSTAINABLE ,HIGH-IMPACT LEADERSHIP” I was attracted towards the topic. He started up with a story and gave a note that “When the Sun comes up you had better be running”, I learnt that every person should work harder towards their goals else the competitor would lead you in any way. This is similar to corporate. He gave it with good examples of corporate like how Oracle takes over 23 companies in 30 months.

A Brand is built on the basis of Trust, Value and Consistency in providing service similar to corporate a management student has to build his own Brand. He pointed out that a person shouldn’t have the chalthae attitude in any work he does, meet the deadlines and manage time efficiently. The market in which we are now is at high speed either a person should be able to cope up with it else wind up his work.
“You only learn who has been swimming naked, when the tide goes out” – Warren Buffet
The above quote gave me an insight that student should be prepared to face adversities in corporate.
Every MBA student should have a Quintessential Differentiation; he should have his own way or style of delivering anything which many people call it as USP. He gave more emphasis on knowing the basic concepts of management which is essential for any management student entering corporate.
He came out with what are the 8 future challenge, they are:

1. Development to retain best talent.
2. Anticipate changes.
3. Management of talents.
4. Improving Leadership development.
5. Managing work life balance.
6. Analytic/Demographics/Science.
7. Managing change and Transformation.
8. Managing Globalization.

Also he said about the three worlds of corporate

• Small is beautiful
• Corporate Social Responsibility
• Corporate is king

“We cannot choose our parents or choose the corporate in which we are going to work”.
Some of the blockages which prevent a management student from getting ahead are:

• Fear or insecurity.
• Not seeing that there is a problem.
• Unwillingness to take risks.
• Poor communication skills.
• Public speaking fear.
• Unclear Personal goals.
• Low creativity.
• Inadequate problem solving skills and
• Low influence.

A Leader should have the following qualities

• Conviction
• Character
• Courage
• Composure
• Competence

“Only Person who always likes change is Wet Baby” - Leslie J. Flanders

At some point I came up with a question that “Why Foreign companies alone set standards, when does an Indian company set standards on its own?” which rang up in my mind. When I asked this he gave an explanation with Indian corporate example like Infy, Wipro and Future group. He also asked a question that “what way do you say that Indian companies are following the foreign companies?” I was unable to answer to this question, this he related to how a MBA should be while interview he should be assertive able to answer any questions with right sense. I also learnt about my weakness. At some point he said that “It is all how we react to situations matters”. Body Language is another key for success in an Interview; a person’s walk determines who he is. “If you are done well here you will do well out” which was said that give more importance in what ever you do in your college, it would some way help you in corporate. For Entrepreneurs he pointed out that they should target the bottom of the pyramid in order to have a good future.

For a person to be successful in corporate he should understand himself and understand the company. He gave a formula:

PQ= fn (IQ+EQ)*SQ

Where,
PQ- Personnel quotient
IQ- Intelligence quotient
EQ-Emotional quotient
SQ-Spiritual quotient

It can be understood that Spiritual Quotient is the important thing on which a person should give more importance along with Intelligence quotient and Emotional quotient. He pointed out its essentiality with examples of Lehman Brothers. Inner Mastery is needed for any person to grow in life. A persons mind, body, heart and soul should be focused on achieving the goals of his life. He concluded with the statement “BE HAPPY”.
“Test fast, Fail fast and adjust fast”

Reguirement of an MBA

Three things are required for an MBA:
1.Discipline (in what to do and what not to)
2.Industry Knowledge and
3.Self Analysis (knowing thyself)

These were said by Bosch Regional GM Mr.Venugopal.

Power Talk: Dr Devdutt Pattanaik

Know About Your Cheque

Many of us frequently use chequebooks to pay for all kinds of things. But do you know how to read a cheque beyond those first six digits, known as the cheque number? What do other numbers on the cheque say and how do they help the banking industry facilitate the processing of cheques? Here is a lowdown on chequebook and some banking jargon:

First six-digit block: It is common wisdom that the first six digits on your cheque are your cheque number. It is important to note the number because if your cheque gets lost or the money has not been credited, you can know the status of the cheque by providing the cheque number.

Magnetic ink character recognition

Magnetic ink character recognition or MICR comprises nine digits, which are further sub-divided as city, bank and branch code. It works the same way as your home or office address, enabling your snail mail to reach you from far-flung places. But unlike your addresses, the banking address is all numerical, where:

1.City code:The first three digits specify the city in which you have a bank account.

2.Bank code:The next three digits of MICR specify your bank in thatparticular city.

3.Branch code: The last three digits of MICR help in figuring out the specific branch of the specific bank.

The nine-digit code is called MICR because it is printed with magnetic ink, which is usually made of iron oxide. Magnetic ink is used so that numbers are readable even if it is stamped over.

4.A/c with RBI: The third numeral block represents your account number maintained by the Reserve Bank of India (RBI). The number helps in cheque processing when it goes to RBI for clearance.

5.Transaction code: The last two digits at the bottom of the cheque help in decoding whether the cheque is current or a saving account cheque. MICR also tells whether the cheque is at par. It helps in processing an intra-city cheque as a local one with a faster turnaround time.

6.Drawee/paying bank: A bank making the payment.

7.Payee: The beneficiary to whom the drawer issues the cheque.

8.Drawer:A person writing the cheque.

Inward clearing:It is important to be aware of the concept because the type of clearing affects the speed of transaction. Inward clearing is for the bank that issues the cheque.

Outward clearing:Outward clearing is for the bank in whose name the cheque has been issued. The inward and outward clearing bank can be same if the bank that issues and the bank in whose name the cheque has been issued are the same.

Indian Rupee

Finally Indian Rupee has got a symbol
Proud to be an Indian....
Jai Hind!

Hedge Definition

An investment position taken in order to protect oneself from the risk of an unfavorable price move in a security. This can be accomplished by taking an offsetting position in a security that is already owned. For example if an investor owned stock in XYZ, the investor might sell short the same number of shares in XYZ in order to hedge his position. This technique is often used when an investor is unsure of which way the market price of a stock will go.

Tancet counceling

last date for application is 29th june 2010
click here for more details

when there is a trouble...

The ability to laugh at adversity,which is the best of all strategies ultimately to overcome it.
by
Tamil Saint Tiruvalluvar.