The Essential Rumi

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When I am with you, we stay up all the night.
When you’re not here, I can’t go to sleep.

Praise God for these two insomnias!
And the difference between them.

The minute I heard my first love story.
I started looking for you, not knowing how blind that was.

Lovers don’t finally meet somewhere.
They’re in each other all along.

We are the mirror as well as the face in it.
We are tasting the taste this minute
of eternity.
We are pain and what cures pain both . We are
the sweet cold water and the jar that pours.

I want to hold you close like a lute,
So we can cry out with loving .

You would rather throw stones at a mirror?
I am your mirror, and here are the stones.

The Essential Rumi

'The Intelligent Investor'

Legendary investors benjamin Graham in his book "The intelligent investor" stated that stocks become more risky when prices are high and less risky when prices are low.

This we know and is also true when we buy some house hold goods.However while in trading we sell our stocks when prices are falling and when they are rising we feel safe to invest....? Investing is a strange business. A practical wisdom is more of in help than a book warm..I was a book warm..now i do read less and relax more..while relaxing my mind analyse more..in terms of reality. So be a wise pratical trader&thinker in terms of your investments is concerned.

Pumping Fresh Investment at this point of time in Indian Market is wise?

Dear Friends and Fellow Investors,

The indian market seems to be matured enough at this point of time and it is not wise to invest fresh money at this current level.Instead one can think deeply to exit out by using this opportunity.Many scripts out there are in its year high and many rumours and story have been build by vested interest or frequent 'sms' to your mobile phone to promote the buy and off load the junk stocks on your head.Just ignore all these meassages and story that have been consistently build by brokers/operators.Stay away and > Just adapt the 'Fire-Hen' Approach now. Not to hurry for a buy,the market always give you the best chance, if you would have learned the wisdom from its history.

This is the right time to exit and take out your profits and keep the money on hand to buy the best stock in low price in the coming future.Why i am insisting this, is based on the results.The auto segments shown great weakness and the results of many companies are not good enough and the global cue's are not in good state, any time any bad news may hit the market.The nifty PE Ratio is gone up above 22 and the future return of this index will not be that attractive.Many more things to add but i really do not want to create panic as other does..What all i want to share is 'BE SAFE' and Book profits in your personal portfolio and keep the money reserved..May be you can buy the same scripts again in the best price.I also wish you to avoid IPO's.Even the ipo's adapting innovative advertisement to induce the investors to buy.

EV-Enterprise value

What is Enterprise Value?

Enterprise value is mathematically calculated as below,
Enterprise value = ( Total Market cap + Debt + other liabilities ) - ( Cash & Cash equivalents + Asset Value ).

Now what does this Enterprise Value (EV) mean?
Let me try to explain in layman terms. Assume a company's market cap is 100 Rs with 0 debt and 0 liabilities. Lets say they have 10 Rs cash on their bank account and Asset Value (Property value and so on) is 30 Rs. Mathematically, their enterprise value is 60 Rs (100 - 10 - 30).

Lets say, i buy 100% stake of the company by paying 100 Rs (Market cap). For some reason, 6 months down the lane, i decide to shutdown the company. I will be left with 40 Rs (10 on Cash and 30 on asset) losing 60 Rs (EV) on the 100 Rs investment i made in buying the company.

Based on the above example, you can conclude that Enterprise Value (EV) is the risk you take in buying a company's share. If you buy a share whose EV is 0, your investment is at ZERO risk. This is ofcourse, excluding the fact that, future earnings could go into losses adding on to company's liabilities which will inturn push EV / risk higher. Thats the reason why reputed companies, with consistent revenues command higher EV. Thats the reason why Satyam's shares, dropped from 600 to 6 Rs when they confessed revenue manipulation. The reason why strong buying came back at 6 Rs, is because EV was close to 0 or even negative which made it an attractive buy. The stock rose to 20 even before Indian govt announced merger / acquisition plan. Just stressing the fact that, even when everything is lost, EV comes in to play for investors.

One other popular story is from Warren Buffett's investment in GEICO (Govt Employees Insurance Company). GEICO had somehow miscalculated the premiums on insurances and made heavy losses in financial year 1976. Share prices plummeted from 42 $ to 2 $. The company's core business was still intact. Buffett started buying at 3 $. Over the years, GEICO went from strength to strength, with Buffett always seizing the opportunity to increase the Berkshire shareholding. However, business started to drop off in the 1980s and by 1994, the share price had fallen again. Buffett grabbed his chance and bought out the other shareholders for a total price of 2.3 billion dollars. Today - GEICO's assets have reached $28 billion .

Trading Room Disipline

Discipline in trading is more essential than any other business one may do.

A person who are there in the shop or doing business may need not to have this much diligence as we need in trading.here money and time is directly proportioal.Some time once you miss the oppurtunity you may not get it back the same ever.Here time is money.You have to act fast and that needs higher disipline.

I have observed many things that hurdle/interferes an individual trader and point out the same here for my clients/readers.

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1.Have Pre-plan

• Have pre-plan or mind mapping before entering into the day trade.One can even apply the same for each of his/her trades.
• In advance forsee both the possibilities of Up's/Down's,So that ,when the market open up in> Bear/Bull mode you can very well handle and tackle the situation well and make out fast trading decision.
• "You have to expect the unexpected".

2.The Trading Room/Hall Discipline

• When you enter into the trading room you just maintain pin-drop silence and encourage the other co-traders to follow the same.Avoid talking to anyone when you are there in the trading room.There are some useless 'chatter-box'.chat junks about everthing or moves of the market without knowing the base of the market. Just ignore also make a pull stop for further conversation with them.


• There are many traders (So called) come to trading for fun shake or time pass they may not trade or does less trade ( would have lost money in the past and still stick to market without plan and free to adise others). These people are dangerous just avoid them.They may induce you into the wrong side.


• There are many people in the trading hall > will over-react for everything...like, every 5 points drop/up they exploit/shake others by shouting market is bearish/bullish...blood bath etc. and make a trading hall a whole-mess .The positional holder will face nuisance by them. They may not even having a single holdings in their a/c, but they simply come and go.Be aware about this type of people.if possible, throw them out or you stay away from them and trade in your own home/office.


• All your trades do it on your own willingness.Do not follow other traders/rumors by the brokers /media etc.


• When ever, you are carring positional shorts/longs in future do not disclose or discuss with others they may capable of corrupting your mind and make you to book loss saying you are against the trend.The moment when you book loss/curtail profits the market will jumps.(You may murmur latter on,if i would have hold,i would have made huge profits)So, you decide every buy or sell and just follow your own plan and do trading accordingly.


• Be secretive in all your trades and never mind what other does.Be a conservative trader.We are here for business not nessary to share with every one what we does.


• Stay away from the market fellow as much as you can.The more market friends you have the more confused you are.Do not loose your clarity by just mingling with other market friends.


• Avoid reading so many useless websites...There are few sites out there to spread only rumours.Just stay away.follow only the quality sites. Let your mind be an empty slate and be pro-active& spontaneous in your trading.
  

3.Avoid Phone Conversation

While you are involved in your trading....

• just avoid all phone calls


• Tell your family & friends> 'Not to call you' during trading hours.(Expect to important calls)


• Trading needs lots of observation and timley decision making...So you also stop calling some body during your trading hours.


• The trading needs higher disipline than any other business...A diligent observation pays you well.


• Be punctual and avoid absence..your presence only makes things better.Non-other can do on your behalf.

Have your trading note book and pen write down all your trades...it is easy to calculate pivotal, net avereage etc.You will not forget your positions and the P&L .what rate you have bought & sold and the net positions on hand.

Do not feel shame to carry a note book like a school going children...We , as a traders has to learn things every now and then.This learning never ends.The wisdom pays you a great rewards sooner or latter.

The East India Company

The East India Company which ruled India for more than 200 years is now ruled by an Indian Sanjiv Mehta who took over the company for $150 lac.

He said” at an emotional level as an Indian, when you think with your heart as I do, I had this huge feeling of redemption - this indescribable feeling of owning a company that once owned us”
-Sanjiv Mehta, CEO of The East India Company

Indian Rupee Symbol

Udaya Kumar with his winning design for the Indian rupee symbol. Photograph: Strdel/AFP/Getty Images

India unveils new rupee symbol

I really love this rupees symbol

Government hopes to signal India's growing strength with globally recognised currency symbol

It may look like a melted British Rail sign but it's hoped that a new symbol for the Indian rupee will signal India's growing economic strength ‑ and it will be coming soon to a keyboard near you.

We have an emerging curruncy and the symbol is a must and that will reduce/differntiate our indian ruppes from the srilanka/pakistan rupiah so on.

Will Nifty Touch 6000 Mark?

I have been wondering since the last week....There are so many new face's seen in the market place and they proclaims a Technical Analyst and telling their prediction about nifty.. it will touch 6000 or vice versa as they wish..I do not know where they were!!. when the market was down few weeks ago..Now every TA's Saying they have foreseen this rally well before 6 months!!! But being a full time TA i am unable to predict the next day opening range? Very strange happenings in our market...all rumours are spreads around are vested intrest...DO NOT GET TRAPPED.Fallow your own trading plan and trade accordingly.Nifty will not touch 6000 now.


Last two days the FII's net buy was 2870crs.We can not always says that,the market will go up by this FII's buying. As the motive behind this companies are unique and dont know when they pour the selling to make market weak to buy the best scripts in low price...so let us focus only our trade and keep all rumours out of our ear's reach...i also wish you to stay out from market men,even they are your friends...Be secretive in all about your trade...do not disclose your position status.if, u tell your positions to some one they may intentionally or un-intentionally corrupt your mind. just by telling things against your positions...your trading psychology pattern will change.so inculcate this as one of your trading diciplines.

Ask Life...

‘ Life will pay any price you ask of it ’.

Technical Analysis for Long Term Investors

An investor can benefit from the use of technical analysis for her investment decisions.

Long term charts can identify many patterns.
(a) Stocks in parabolic rallies. You should wait for corrections before entering.

(b) Stocks in trading range. These are stocks you may wish to track on lower time frame charts for breakouts.

(c) Stocks in deep downtrends. These stocks should be avoided till they begin to form bases, or succeed in tests of support.

(d) Stocks in visibly defined uptrend. Such stocks have a pattern of higher highs, higher lows. These are the stocks that you will be investing in.

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If , the index or the particular Script - one may wish to choose to buy for investment,it is important to see the pattern of 'consolidation' (for a longer time) it will bounce up anytime and one need to buy the same when just before it rise up.The Flag&pole also in great help to identify this.

Let's live life

' Tomorrow's life is too late. Live today.'

Most of the people among us are always thinking or dreaming of better life to live ahead of time and postpone the present.Start living right here and now...Let the future bloom out of your living and be spontaneous in everthing.Life has much to give..Do not think too much about life and that hinders your present living.Be like fish in the water and flow.