Sunday, 30 June 2013

Quote for the day

"Most amateurs feel like geniuses after a few wins. Traders gain some knowledge, they win. Then the emotions kick in, and they self destruct. Most traders then give up their wins back to the market. The market is full of rags to riches to rags story. The mark of a successful trader is the ability to accumulate." - Alexander Elder

Your Greatest Enemy is Yourself

“Your greatest enemy is yourself” is an ancient Chinese piece of wisdom. The only person you need to beat and conquer is yourself. How many entrepreneurs have proclaimed that they plan on creating the next Wal-Mart, only to work a few hours a week on their “epic” business idea? How many times have you said that you won’t give up, but in reality, run away at the first sign of trouble?

Investing is no different. Without discipline (let me say this as harsh as possible), you are A NOBODY. You can subscribe to the greatest investment newsletters. You can buy a library full of investment books. You can attend every single investment seminar in town. You can probably even buy a $3 million investment system, but in the end, you’ll find that you’re no better than the average Joe Schmoe if you don’t have the courage to discipline yourself. You may have immense amounts of knowledge about “how to” invest, but without that discipline, good luck with your futile attempts to apply that knowledge into decent investment returns.

Thus, your greatest enemy is yourself. Your greatest enemy is the weakness, laziness, and emotions inside you. In order to instill discipline in yourself and fight the “Satan” in you, here’s what you need to realize.

“Be greedy when others are fearful and fearful when others are greedy” is hard. Most investors are the “do as I say, not as I do” kind of preachers.

You’ve probably heard of this from the Buffett PR machine. In fact, almost every single investor preaches this line. But how many are able to talk the talk and walk the walk? The truth is, being greedy when others are fearful is hard.

Most people that preach “buy when others are fearful” end up selling with the crowd when a stock market crash comes along. It is only normal for one to feel fearful during times of market distress, as you are afterall human. But the successful investor conquers his/her’s fearful emotions, and buys into such a great opportunity.

Many also preach that one should “sell when others are greedy”. This is true, as you don’t want to follow the proverbal herd over the cliff and lose your shirt in the ensuing bursting of the bubble. But how many Americans are actually capable of doing what is preached? 99% of investors who preach the “sell when others are greedy” can’t control their own greed, and buy into the bubble, only to get killed in the ensuing bloodbath. It’s natural to feel extreme optimism and greed when the financial markets are rising day after day. But the successful investor controls his/her’s greedy emotions, and sells into the panic.

So instead of spending time preaching  "buy when others are fearful and sell when others are greedy", make sure you walk the walk.

Fight your “I don’t want to learn new things.’

Humans have a tendency to be lazy. We dislike learning new things, and prefer to use old methods that we already know to tackle new problems. The problem with is, often times we've lost a good chunk of our investment portfolio by the time we've realized that our old investment strategy doesn't work. A good investor always keeps an open mind, and is constantly on the lookout for an investment strategy that better suits the times than the strategy that they're currently using.

Fight your “I’m not wrong” attitude.

Nobody likes to admit that they're wrong. The reason why George Soros is such a successful investor is because he’s 100% willing to accept the fact that his investment judgement was wrong. 99% of people refuse to admit they're wrong. For example, most people refuse to sell after the bubble has burst, hoping that they're not wrong.

A successful investor is always ready to fight his own stubbornness and “I’m not wrong” attitude.

Fight your “This is too hard. I give up.” attitude.

Yes, we've all been taught since kindergarten that perseverance and persistence is the key to success. Far easier said than done.

This list can go on and on and on……. I think you get the point.

Source:http://investorzblog.com

Friday, 28 June 2013

Quote for the day

"Bull markets go to people's heads. If you're a duck on a pond, and it's rising due to a downpour, you start going up in the world. But you think it's you, not the pond." - Charlie Munger

28-Jun-2013 CSE Trade Summary


Crossing - 28/06/2013 and Top 10 Contributors to Change ASPI
Following Stocks Reached New High / Low on 28/06/2013
 

Thursday, 27 June 2013

Quote for the day

"I am not better than the next trader, just quicker at admitting my mistakes and moving on to the next opportunity." - George Soros

27-Jun-2013 CSE Trade Summary

Crossings - 27/06/2013 and Top 10 Contributors to Change ASPI


Following Stocks Reached New High / Low on 27/06/2013

Wednesday, 26 June 2013

Quote for the day

“The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, nor for the get-rich-quick adventurer. They will die poor.”- Jesse Livermore

26-Jun-2013 CSE Trade Summary


 Crossings - 26/06/2013 and Top 10 Contributors to Change ASPI


Following Stocks Reached New High / Low on 26/06/2013
 

Tuesday, 25 June 2013

Sri Lankan rupee recovers on state bank dlr sales; stocks down

COLOMBO, June 25 (Reuters) - Sri Lanka's rupee recovered from a near seven-month low on Tuesday, after a state-controlled bank intervened to stabilise the currency, dealers said, but depreciation pressure remained due to dollar demand from foreign investors who were selling long tenure bonds before exiting.

The lowest trade was at 129.00 per dollar, but one of the two state-run banks, through which the central bank usually directs the market, sold dollars to selected banks to ease depreciation pressure, dealers said.

The currency closed at 128.70/80, edging up from Monday's close of 128.90/129.00.

'Foreign investors are basically booking their profits in treasury bonds and locking in short term T-bills,' a currency dealer said on condition of anonymity.

'Going forward, we expect the depreciation pressure to remain until the market sees inflows from scheduled foreign borrowings by some banks.'

Foreign investors have been shifting to treasury bills while selling longer tenure T-bonds, the latest central bank data showed on Friday, as a rise in U.S. treasury yields has prompted many offshore investors to rush to the exits.

Three local banks have planned to borrow up to $1.5 billion by tapping global capital markets.

The rupee fell 0.33 percent last week, after losing 1.6 percent in the week previous to that, which currency dealers attributed to foreign investors selling debt as part of a broader selloff in emerging markets.

Sri Lanka's main stock index fell 1.03 percent or 63.16 points to 6,086.22, its lowest since May 3 on concerns over a possible pullout by more foreign funds.

The market witnessed net foreign outflows of 38.7 million rupees on Tuesday in thin foreign trading. The bourse has seen a net foreign inflow of 16.21 billion rupees so far this year.

The day's turnover was at 455.4 million rupees ($3.53 million), less than the half of this year's daily average of around 1 billion rupees.

($1 = 128.9000 Sri Lanka rupees)
http://www.xe.com/news/2013/06/25/3412093.htm?c=1&t=

 

Quote for the day

“Remember the two benefits of failure. First, if you do fail, you learn what doesn't work; and second, the failure gives you the opportunity to try a new approach.” -  Roger Von Oech

25-Jun-2013 CSE Trade Summary


 Crossing - 25/06/2013 and Top 10 Contributors to Change ASPI


Following Stocks Reached New High / Low on 25/06/2013

Monday, 24 June 2013

Sri Lankan rupee falls to near 7-mth low; depreciation pressure persists

COLOMBO, June 24 (Reuters) - Sri Lanka's rupee hit a near seven-month low on Monday, before a state-controlled bank intervened to stabilise the currency, dealers said, amid continuous depreciation pressure due to dollar demand from importers and foreign investors who are exiting in the wake of rising U.S. treasury yields.

The lowest trade was at 129.00 per dollar, dealers said, before the currency closed at 128.90/129.00, edging down slightly from Friday's close of 128.90/95.

Two dealers said one of the two state-run banks, through which the central bank usually directs the market, sold dollars to ease depreciation pressure.

Dealers said some foreign investors also booked forwards to hedge their exposure, tracking foreign outflows in other Asian peers.

'The rupee is going to remain under pressure until the U.S. treasuries settle. Until such time we are going to see a highly volatile rupee,' a currency dealer said on condition of anonymity.

The rupee fell 0.33 percent last week, after losing 1.6 percent in the week previous to that, which currency dealers attributed to foreign investors selling debt as part of a broader selloff in emerging markets.

Foreign investors have been shifting to treasury bills while selling longer tenure T-bonds, the latest central bank data showed on Friday, as a rise in U.S. treasury yields has prompted many offshore investors to rush to the exits.

The local currency has weakened 1.1 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

The central bank on Monday shrugged off the likelihood of fresh pressure on the rupee, despite the widening of the trade deficit in April.

Sri Lanka's main stock index edged down to a seven-week low with turnover slumping to a six-month low with some retail investors taking profits.

The bourse ended 0.1 percent, or 5.89 points, weaker at 6,149.38, its lowest since May 6 on concerns of a possible pullout by more foreign funds.

The market witnessed net foreign inflows of 47 million rupees ($364,800) on Monday in low foreign activity, extending net foreign buying in shares to 16.25 billion rupees so far this year.

The day's turnover was at 201 million rupees, its lowest since Dec. 24, a fifth of this year's daily average of 1.02 billion rupees.

($1 = 128.8500 Sri Lanka rupees)
http://www.xe.com/news/2013/06/24/3409941.htm

Quote for the day

“The market, like the Lord, helps those who help themselves. But like the Lord, the market does not forgive those who know not what they are doing.” - Warren Buffett

24-Jun-2013 CSE Trade Summary


24/06/2013Top 10 Contributors to Change ASPI

Following Stocks Reached New Low on 24/06/2013

Sunday, 23 June 2013

Quote for the day

“A guru or analyst might have to stick to his opinion, but a trader should not have an opinion at all. The stronger your opinion is, the more problems one has when it’s time to close a losing position.”- Paul Rotter

Investment wisdom and intelligent investor

There is no doubt that some people simply are better at playing the role of a stock market investor than others. When talking about somebody who has successfully worked his way through investing in the stock market, it is never a matter of luck but rather certain personal characteristics that decide how successful they are. While the best investors seem born with all the right characteristics, it is possible to discover and implement them yourself. Believe it or not, much of what you need to know is just stock market investing basics.

These timeless bits of investment wisdom are as true today as they were 100 or 1000 years ago and we think they will still be true 100 years from now. People who follow these simple common sense ideas will be far ahead of those who do not. Most people who get into trouble financially have broken one or more of these rules. It is amazing how often smart people continue to make the same financial mistakes.

* Don’t buy anything you don’t understand. Keep it simple. Be wary of expensive, illiquid, non-transparent and complicated investments. Complex investments are almost certainly designed in favour of the seller, not the investor

A big part of the success of your investment depends on you knowing exactly what you’re investing in. It sounds obvious, but many people make the mistake of investing in something they don’t understand

* Minimize your investment costs and taxes.

* You should never invest in a company without knowing where it’s coming from, where it’s going, how their products stack up against competitors. It is also important to know how that particular market is doing in general. Ultimately, you are putting your faith in a company that will make you money over some period of time, but it does not have to be based on complete blind faith. Do your research and make an informed investment.

* If it sounds too good to be true, it probably isn’t true.

* Invest for the long-term, and keep your portfolio turnover low. Those who get greedy and try to “get rich quick” usually “get poor quick.” Investing isn’t supposed to be exciting. The stock market is not a place to get rich quickly. Sometimes, it’s a “three steps forward, two steps back” kind of environment.

In the long-term, the best value investments show the most promising returns. Essentially, Warren Buffet-style deep-value investing does very well over the course of years and perhaps decades. However, in the short-term, the market is highly emotional and psychological. The price of a share of stock is just as influenced by how popular the stock is among traders, margin calls and the like.

You don’t want to be too overleveraged and find yourself whipped out because the market becomes irrational for a week. This all goes back to managing risk. You have to remember that the price of a given stock on any given day can be influenced by just about anything, so you don’t want to hurt yourself due to the short-term irrationality of others.

* The key is to always have a plan when you invest. Before you do anything, you need to know when you will purchase stock and when you want to sell. Equally important is knowing what you will do should things go wrong. And most importantly, you always need to know what your ultimate goals are and be sure that all your investment roads lead to that end.

* Pay as much attention to risk as you do to potential return. Be sure you can handle the risk of your portfolio in a downturn.

A major part of investing is managing risk. In general, more risk equals more return, but more risk also means more variance. Understanding how much risk you are taking when you invest and understanding your own personal risk tolerance are very important. First, you need to understand how much risk you are taking. If you are buying stocks on margin, you need to understand that you are significantly taking on considerable risk. This may or may not be for you, depending on your risk profile. In general, the younger you are, the more risk tolerant you should be.

* If you don’t know what the market is doing right now, you have no business investing in it. Everybody pretty much has the same information, but everybody interprets that information a little different, which is where some investors succeed where others fail. The key is to find information that is as unbiased as possible and milk it for everything it is worth.

* Save more, spend less. Save at least 10%-15% of your income each year. Live below your means. Build a financial safety cushion.

* Own a diversified portfolio with many different asset classes and investments.

Diversification is often touted as the only “free lunch” in stock investing. This is because you can mitigate sector risks by investing in a variety of companies. You don’t have to worry about a collapse of one sector because your portfolio is diversified among a few sectors.

Proper diversification is important for most individual investors. But there is such a thing as becoming too diversified. There is no need to invest in all 20 Business Sectors for example.

* Invest with people you know and trust. Look for independent, objective, experienced advice.

* Avoid the most popular investments, as they are likely fully priced. Past performance is not a guarantee of future investment returns. Don’t simply buy the investments that have done the best recently. Invest where no one else is waiting in line to buy.

* Don’t invest money you will need in 3-5 years or less in volatile investments.

* Don’t let your emotions affect your portfolio. With investing your worst enemy is likely to be you and your emotions. Studies have shown that the average investor earns about half the returns of the overall market over time due to poorly timed trading. Have an investment strategy and plan and stick to it.

* Don’t try to “time the market.” It’s “time in the market” that counts.

* Rebalance your portfolio by buying low and selling high. This is easy to say, but very difficult for most people to do in real life. Most investors actually do the opposite.

* Avoid debt and leverage.

* Using unbiased information is useless unless you are going to be equally unbiased. Do not allow past exploits and failures get you down or hold you back. And, you cannot allow success to sway you either. Just because you made a decent bank on a particular investment from ten years ago, is no reason to continue putting up your money for them. It is also no reason to be getting headstrong and overly confident about your investment practices.

* You must also be realistic. No investor is going to strike it rich right away and no investor is going to have a perfectly flawless track record. Understand that sooner or later, you’re going to lose a little money. But if you follow the first four steps of this guide, combined with a little common sense, you can minimize how much that loss is and go on to reap greater rewards.

A good investor
* A good investor takes (and is able to take) advantage of the hidden opportunities for portfolio growth uniquely available in a difficult/down/risk-off market.

* A good investor makes investment decisions that are aligned with the methodical, objective and long-term strategic plan designed specifically for the investor’s unique goals and expectations — regardless of any intermittent or unexpected external forces introduced into the market equation.

* A good investor takes the time to identify financial objectives, risk tolerance and time horizon factors in order to devise a comprehensive investment plan. This information, along with academically validated principles and diversified asset class weightings, is integrated into a well-designed, thoughtfully engineered long-term portfolio strategy.

* A good investor is able to maintain investment discipline in the face of difficult times and worrisome short-term performance returns. The good investor does not allow emotion to override reason as that could prompt reactions that are counter-intuitive to long-term investment success.

* A good investor understands and accepts that realizing measurable return over time requires investing in the stock market. And that part and parcel with the stock market come volatility and risk. The good investor is also cognizant of the fact that, while stock market performance will wax and wane periodically, its overall historical performance has continued to progress ever upward.

* A good investor reaches established long-term financial goals through a solid understanding of how the market works, the role that calculated risk plays in incremental return, the reasons for maintaining a long-term buy-and-hold investment strategy and the life-long importance of ‘planning the work and then working the plan.

(Sources: Securities and Exchange Commission of SriLanka, http://EzineArticles.com; http://www.finweb.com; http://blog.merceradvisors.com; http://www.the-stock-investor.com)
http://dailymirror.lk/business/features/19493-investment-wisdom-and-intelligent-investor.html

Saturday, 22 June 2013

Country Stock Market Performance

FRIDAY, JUNE 21, 2013 AT 01:32PM
Below is an updated look at the year-to-date performance of 77 country stock markets around the world. After the pullback we've seen over the past few weeks, the average country is now up just 3.55% in 2013. A total of 49 countries remain in the green for the year, while 28 are in the red. As shown, Dubai and Abu Dhabi lead the way with gains of 45.49% and 38.07%, respectively.


Japan is still up the most of the G7 countries at 27.27%, but keep in mind that this doesn't take into account the fall in the Yen. In dollar terms, Japan is up 13%. The US is up the second most of the G7 countries with a gain of 11%, and then there is a big drop-off. The UK is up the 3rd most at 3.7%, followed by Germany (+2.32%) and France (0.47%). Canada and Italy are now down on the year.

Obviously some of the emerging markets have been getting crushed lately, especially the BRICs. As shown, Russia is now down 18%, while Brazil is down 22%. Let's see if they finally get a bounce next week.
http://www.bespokeinvest.com/

13 Things I Learned About Humans and the Financial Markets

01. Predictions do not work as tomorrow is uncertain. We will only boast about things we have predicted right and talk nothing about the other half we got wrong.

02. Skills can bring us moderate success. However, luck is needed to be a big success. (credit to Jon)

03. We tend to credit our successes to good skills and blame our failures on poor luck.

04. Some of us rely on luck (most unknowingly) by investing for high returns (and losses). A few of us will make big money but most of us will end up much poorer.

05. Some of us deliberately limit the luck factor by choosing investment products with capital guarantee and guaranteed returns. None of us will make big money but none of us will be very much poorer.

06. We need to know how much we can afford to lose (financially and emotionally) before deciding to be No. 4 or No. 5, or somewhere in between.

07. We have many biases. The degree of success in investing or trading depends on how much we can keep our biases in check. No, we cannot remove our biases totally.

08. Confirmation bias – we see what we want to see. We seek out evidence to validate our investment decision and ignore those that suggest otherwise.

09. Availability bias – we are influenced by the things we observe. If people we knew made a lot of money through property investment, we will think that properties are the best investments in the world and develop a preference for it.

10. Loss aversion bias – we want to be compensated for high returns before we decide to take the risk to invest. We often wait for markets move and show high returns before we want to invest. We are not interested if markets are not moving.

11. Hindsight bias – we tend to say “I knew it” after an event has happened.

12. Survivor-ship bias – we only get to hear stories of successes but many stories of failures were untold. See No 2 and No 3.

13. Most us do not know what we want in life. We think we will be happier with more money.
By Alvin
http://www.bigfatpurse.com/

Friday, 21 June 2013

Financial planning and liquidity


Sri Lankan rupee drops to near six-month low on equity outflows

COLOMBO, June 21 (Reuters) - Sri Lanka's rupee hit a more than six-month low in early trade on Friday on dollar demand for equity-related transactions, but late exporter selling of the greenback helped the currency to hold ground, dealers said.

The rupee hit 129.00/10 per dollar, its lowest since Dec. 4, but recovered to end at 128.90/95, falling 0.4 percent from Thursday's close of 128.43/47.

Some foreign investors also booked forwards to hedge their exposure, amid a trend of foreign outflows in other Asian peers in the wake of a rise in U.S. Treasury yields.

'Some investors made forward booking for equity-related outflows before exporters sold dollars, which prevented further depreciation,' a currency dealer said on condition of anonymity.

'There is still depreciation pressure on the rupee.'

The rupee fell 0.33 percent this week, after losing 1.6 percent last week, which currency dealers attributed to foreign investors selling debt as part of a broader selloff in emerging markets.

The local currency has weakened 1.1 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

Sri Lanka's main stock index fell to a near seven-week low as some foreign investors cashed in their risky Sri Lankan assets while retail investors took profits.

The bourse ended 0.9 percent, or 56.17 points, weaker at 6,155.27, its lowest since May 6 on concerns of a possible pullout by more foreign funds.

The market witnessed net foreign inflows of 167.5 million rupees ($1.31 million) on Friday, extending net foreign buying in shares to 16.2 billion rupees so far this year.

The day's turnover was at 565 million rupees, around half of this year's daily average of 1.02 billion rupees.

($1 = 128.3500 Sri Lanka rupees)
http://www.xe.com/news/2013/06/21/3407541.htm

Quote for the day

” Perfection is not attainable, but if we chase perfection we can catch excellence.” - Vince Lombardi

21-Jun-2013 CSE Trade Summary


Crossings - 21/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New Low on 21/06/2013


Thursday, 20 June 2013

Sri Lanka rupee down on dollar buying by foreigners

COLOMBO, June 20 (Reuters) - Sri Lanka's rupee fell on Thursday as foreign investors booked forwards to hedge their exposure, currency dealers said, amid a trend of foreign outflows in other Asian peers in the wake of rise in U.S. Treasury yields.

Emerging markets, many of which have been primed by the cheap Fed cash, saw some of the biggest selling as investors rushed to the exits on Thursday, after the U.S. Federal Reserve laid out a timetable for turning off the taps on its $85 billion-a-month bond-buying programme.

'Some foreign investors sold their long-term bonds and shifted to shorter tenure securities to hedge their exposure,' a currency dealer said on condition of anonymity. 'We still see a weaker rupee, with foreign investors selling their bonds.'

The rupee closed at 128.43/47 to the dollar, 0.2 percent weaker from Wednesday's close of 128.10/20.

The rupee lost 1.6 percent last week. It fell to 129.00/129.10 per dollar in early trades on Friday, its lowest in more than six months, as foreign investors sold debt as part of a broader selloff in emerging markets.

The local currency has weakened 0.7 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

Sri Lanka's main stock index closed flat, but the turnover hit a more than six-week high due to a block deal in market heavyweight John Keells Holdings between two foreign funds, said stockbrokers.

The bourse ended 0.04 percent, or 2.21 points, firmer at 6,211.44. It hit a near a five-week low on Tuesday on concerns of a possible pullout by foreign funds, following regional peers.

On Wednesday, sources told Reuters that top conglomerate Keells will sign a $640 million deal to establish an integrated hotel complex. Shares in Keells closed 1.7 percent up at 269.50 rupees per share. The market witnessed net foreign outflows of 183 million rupees ($1.42 million) on Thursday, but foreigners have been net buyers of 16.04 billion rupees in shares.

The day's turnover was at 3.48 billion rupees, more than thrice of this year's daily average of 1.01 billion rupees.

($1 = 128.4750 Sri Lanka rupees) (Reporting by Shihar Aneez; Editing by Prateek Chatterjee)
 

(shihar.aneez@thomsonreuters.com)(+94-11-232-5540)

(Reuters Messaging:shihar.aneez.thomsonreuters.com@reuters.net)(twitter.com/shihara neez)
http://www.xe.com/news/2013/06/20/3405173.htm

Quote for the day

"Trader, before he feeds his family, has to feed his broker´s family." - Alexander Elder

20-Jun-2013 CSE Trade Summary


Crossings - 20/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New High / Low on 20/06/2013


Wednesday, 19 June 2013

Quote for the day

“It is difficult to develop a method that works. It then takes experience to believe what your method is telling you. But the toughest task of all is turning analysis into money. If you don’t believe it, try it.” -  Robert Prechter Jr.

Sri Lanka rupee up on exporter dlr sales; depreciation pressure remains

COLOMBO, June 19 (Reuters) - Sri Lanka's rupee edged up on Wednesday due to late dollar sales by exporters on thin volume, with the central bank not intervening in the currency market, but depreciation pressure on the rupee still remains a concern, said dealers.

'The rupee ended firmer due to last-minute dollar sales by exporters and foreign banks,' a currency dealer said on condition of anonymity.

The rupee closed at 128.10/20 to the dollar, firmer from Tuesday's close of 128.50/60.

The rupee lost 1.6 percent last week. It fell to 129.00/129.10 per dollar in early trades on Friday, its lowest in more than six months, as foreign investors sold debt as part of a broader selloff in emerging markets on fears that loose global monetary conditions were about to end.

The rupee has weakened 0.5 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

Sri Lanka's main stock index edged up from a five-week closing low in the previous session, on thin turnover as investors picked up select blue chips such as Ceylon Tobacco PLC and John Keells Holdings PLC.

The bourse ended 0.26 percent, or 16.23 points, firmer at 6,209.23, edging up from its lowest close since May 6.

It hit a five-week low on Tuesday on concerns over a possible pullout by foreign funds, following regional peers.

After the market closed, sources told Reuters that top conglomerate and market heavyweight John Keells Holdings will sign a $640 million deal to establish an integrated hotel complex.

Shares in Keells closed up 0.38 percent at 265 rupees per share.

Analysts, however, said the deal may not boost Keells' share prices as it has already been factored in.

'There was a rumour on this deal and we believe Keells' share price is bloated on speculation,' one analyst said on condition of anonymity.

Shares in Keells hit a record high of 299.80 rupees on May 21, but have fallen since then.

The market witnessed net foreign inflows of 64.25 million rupees ($499,800) on Wednesday, extending foreign inflows so far this year to 16.22 billion rupees.

The day's turnover was at 343.8 million rupees, well below this year's daily average of 1.01 billion rupees.

($1 = 128.5500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

(ranga.sirilal@thomsonreuters.com)(+94-11-232-5540)(Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net)(twitter.com/rangab a)
http://www.xe.com/news/2013/06/19/3402949.htm?c=1&t=

19-Jun-2013 CSE Trade Summary


Crossing - 19/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New High / Low on 19/06/2013



Tuesday, 18 June 2013

Sri Lanka rupee steady, cbank stops intervention; bourse slips

COLOMBO, June 18 (Reuters) - Sri Lanka's rupee ended steady for a second session on Tuesday as dollar sales by exporters offset importer demand for the greenback in the absence of central bank intervention in the currency market.

The central bank stayed away from the market for the first time in three trading sessions after selling dollars through a state bank to stabilise the local currency after it hit a more than six-month low on Friday.

The rupee closed flat at 128.50/60 to the dollar on Tuesday.

'The rupee ended flat on exporter forward-selling amid importer demand for dollars,' a dealer said on condition of anonymity.

The rupee lost 1.6 percent last week. It fell to 129.00/129.10 per dollar in early trades on Friday, its lowest in six months, as foreign investors sold debt as part of broader selloff in emerging markets on fears that loose global monetary conditions were about to end.

Central Bank Governor Ajith Nivard Cabraal said after market hours on Friday that the fall in the rupee was no cause for concern as foreign investors have been changing their positions rather than pulling out of the island nation's bond market.

The rupee has weakened 0.8 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

Sri Lanka's main stock index fell to five-week closing low on concern over possible pullout by foreign funds, following regional peers.

It ended 0.42 percent, or 26.11 points, weaker at 6,193, its lowest close since May 6, with daily turnover slumping to a more than two-month low.

The market witnessed net foreign inflows of 32.69 million rupees ($254,200) on Tuesday, extending foreign inflows so far this year to 16.16 billion rupees.

The day's turnover was at 291.7 million rupees, the lowest since April 12 and well below this year's daily average of 1.01 billion rupees.

($1 = 128.6000 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

(ranga.sirilal@thomsonreuters.com)(+94-11-232-5540)

(Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net)(twitter.com/rangab a)
http://www.xe.com/news/2013/06/18/3400789.htm

18-Jun-2013 CSE Trade Summary


Crossing - 18/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New High / Low on 18/06/2013


Quote for the day

"Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected."- George Soros

6 Steps To Becoming A Master Investor

Here's the formula for success.

1. A growth mindset
Is intelligence fixed from birth? Some would say yes, but psychology professor Carol Dweck argues that intelligence can be developed if we have a growth mindset about it. 

Dweck ran an experiment on elementary students whom school personnel had identified as helpless. Through a series of exercises, the experimenters trained half the students to see insufficient effort as the cause of their struggles and encouraged them to keep going. Those children learned to persist in the face of failure and to succeed, while the control group showed no improvement at all. If we want to improve, we have to believe that we can improve. 


2. Effortful study
Doing things you're comfortable with and already good at allows your abilities to reach a plateau. Effortful study, in contrast, includes taking on challenges just beyond your competence. 

In my case in ADP, this means studying the master investors and reverse-engineering their successes and failures. In addition, master investor Charlie Munger has said that learning the key points in all the major academic disciplines is of great benefit to investors. We need to partake in effortful study on a regular basis, and I try to devote at least two hours per day to my studies.


3. Deliberate practice
It's not enough to sit back and read the Financial Times or watch CNBC and think you're improving as an investor. You actually have to study and value businesses. 

You also have to talk about your ideas and receive feedback so you can adjust and improve your process. This approach is a key part of ADP, and we regularly pitch stocks to other advisors. But remember, study your successes and your failures so you learn not to repeat your mistakes.


4. Self-awareness
To become a master, you must be honest and humble enough to identify your own weaknesses, strengths, and natural tendencies. Improve on your weaknesses so they don't destroy you, and then focus on developing your strengths. After all, your strengths are your competitive advantage -- they're what give you your edge. It's vital to identify them early on and spend as much time as possible strengthening them. 


5. Motivation
Without motivation, everything I've just talked about is worthless. Even the most talented people will fail if they don't have the motivation, desire, and work ethic required to succeed. I've seen amazingly talented No. 1 overall draft picks fail miserably in the National Football League while undrafted and less physically gifted players have earned their way into the Hall of Fame.


6. Time
You don't become an expert overnight. Research has shown that it takes 10 years or 10,000 hours of disciplined practice to become a master -- and performance is often proportional to time spent practicing.
In a study of 20-year-old violinists by psychology professor K. Anders Ericsson, the best group (as judged by conservatory teachers) averaged 10,000 hours of practice over their lives; the next-best averaged 7,500 hours; and the next after that, 5,000. We value experience when evaluating a company's management team.

My challenge to you
Where would you like to be in 10 years? If you're willing to do all of the things I've written about here, I believe you'll be successful as you work toward mastery. So why not start today? A decade-long effort may seem daunting, but remember, the journey of a thousand miles begins with a single step.
Extract from www.fool.co.uk

Monday, 17 June 2013

17-Jun-2013 CSE Trade Summary


Crossings - 17/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New Low on 17/06/2013


Quote for the day

"When most investors, including the pros, all agree on something, they're usually wrong."
- Carl Icahn

5 Most Powerful Financial Advice for Beginners in Stock Trading

Beginners in stock investment are often in need of effective advice. These advices are collective wisdom of the top gurus in stock trading investment. I will not be able to named it all because the source is just too many. For details, you can easily Google this up to find out more about the following advice.

If you asked whether its effective or not, yes its effective. But in reality an effective technique is not enough to reap profits. You still need financial education, talent, right attitudes and complete understanding of the stock market to succeed. Take this advice as only a tip of an iceberg, the real hard work still needs to be done in your part.

Advice #1: Aiming for Quick Money is the fastest way to lose BIG amounts of money.

Why? Getting rich quick in stocks is like shooting yourself in your own foot. Why? Its a matter of luck. And this “luck” factor is never been an effective strategy in stocks. Too often you read stories of getting rich quick in stocks, think twice before you believe in them. They are often marketing methods just tempting you to buy their systems.

The best investors in the world which is Warren Buffet takes his entire life to accumulate wealth. And only a very few investors in the world that can match his experience and skills. Why would you want to be rich quick when only a handful of financial experts succeed from their young until the old age?

This is where patience in stock trading is very important. If you read stories about holding to stocks for a very long time to reap profits is a sound advice. Assuming you pick-up a good stock because it will surely appreciate over time. Effective techniques such as cost averaging and long term stock investment needs years to reap its effective financial rewards.

Advice #2: Do not buy stocks with products you do not use

Its simply because if you are buying those products that you really need, it simply proves the company is indeed producing valuable products. This “need” by its customers can cause the stocks company value to increase. For example, I am a marathon runner and all the time, I used to love Nike Shoes because of durability, performance and quality. So when I invest some of my savings in stocks, I would definitely try to invest Nike shoes first, because its the products that I use and love.

Advice #3: Do not buy stocks for businesses you do not understand

Again, all too often you get stock reports from brokers and other financial services tempting you to buy that stock because its the next BIG thing. Simple say NO. Its because that would be a nice trap of investing into a business that you do not understand.

You should only invest in stocks of companies that you know how their business and money making really works. For example, supposing I am a webmaster and knows Google very well. I know that Google makes a lots of money from advertising online and is their main source of revenue. I even use Google products on my site and even make money from Google ads.

So it make sense that if I have an opportunity to invest in stocks, I would definitely pick Google on top of my list. Its the business that I understand.

Advice #4: Always assume you lose all your money in stocks tomorrow

This does not mean you should think negatively. In fact this advice helps you to re-consider risk and money management as a very important tool in stock trading. In financial risk management, it will teach you NOT TO INVEST ALL YOUR MONEY in stocks. The primary reason is security. Stock trading is a random game, you will never know what will happen tomorrow. So this means only invest a percent of your savings in stocks. Investing your entire savings is a big mistake. Typically how much percent depends on how risky you are. You might want to read this tutorial on how much to risk when trading stocks.

A lot of beginning investors in stocks would become bankrupt very soon because they let their entire savings invested in such a high risk environment.

Advice #5: Always Test everything on paper FIRST

You might have read about “paper trading”. Its a very effective tool that will let you test your techniques and trading methods and strategies without using real money. Other types of paper trading online are stock trading games that you could join for free. Most stock brokers have this kind for service. Of course, do not fool yourself. If it seems effective on paper does not mean its “100%” effective on real trading. Why? Its because if you are trading real money-> “greed”, “emotions” and “fear” will be joining your game. Your goal in paper trading is that you should invest in stocks confidently without the emotions, greed or fear being a factor in the decision making.

Source:http://www.stock-trading.me

Sunday, 16 June 2013

Quote for the day

"If you believe you or anyone else has a system that can predict the future of the stock market, the joke is on you."- Ralph Wanger

How To Sell Like Buffett


When you buy to hold, make sure you have a plan to sell.

The most successful investors go into an investment with an exit strategy in mind. We see evidence of that all over, from names like Warren Buffett, Anthony Bolton and Neil Woodford, through to private investors posting on The Motley Fool discussion boards.

Yet, Warren Buffett once said, "Our favourite holding period is forever," which, at first glance, appears at odds with his actions, because Buffett sells, as in 2007 when he disposed of his shares in PetroChina. Private investors could easily misinterpret that quote and hold grimly onto shares through all events. Doing that is not such a good idea.

What Buffett really meant
I can understand Buffett's desire to hold investments forever; it must be hard finding new homes for the billions he's managing and more convenient if the original investment kept on performing. But the truth is a number of criteria can trigger a Buffett sale.

Perhaps a fuller statement could be "our favourite holding period is forever... but, in practice, we will sell if any of a number of conditions is met".

To draw on a trading maxim, we should 'plan our trades and trade our plans', which means defining the exit criteria before investing and acting on that by selling when conditions call for it.

Beware 'buy and hold'
The buy-and-hold argument is compelling. Most great investors have advised us to take a long view with investments, to sit on our hands, to let winners run, and that the greatest returns come not from buying or selling, but from holding on.

In essence, I think it is good advice. But I think it can be misinterpreted to mean 'buy and hold... and never sell'. The results of such interpretational error can be calamitous for investors. Imagine how buy-and-hold-forever investors might have fared holding the likes of Royal Bank of Scotland, Lloyds Banking Group, HMV Group and Dixons Retail  through the last decade.

Buy to sell
The reason for any investment is to get back more than what you put in. So it makes sense to have selling at a profit in mind from the beginning. It also makes sense to aim for achieving as much return as possible, which suggests that it's a good idea to run your winners.

So if anything threatens that outcome, it might be time to sell. For example, you don't want to be holding grimly on to cyclical companies as they roller-coaster up and down economic cycles, or clinging to once-bright investments that have gone ex-growth, or collecting a steady dividend stream as the share price steadily declines, thus annulling your gains. There's no point in any of that.

From the moment of buying shares in a company, I reckon it's a good idea to start looking for an opportunity to lock in gains and that, ultimately, means selling at some point.

When to sell
Warren Buffett sold his investment in PetroChina because of valuation. In other words, he thought the share price overstated the intrinsic value of the company. He didn't cling to any idealistic notion of being a buy-and-hold-forever investor. No, he saw overvaluation as being a threat to his seven-fold gain on the shares, so he sold them and took the money without a second thought.

Here are some reasons that I'd consider selling a share:
* Overvaluation.
* The business goes ex-growth.
* A favourable earnings multiple re-rating occurs.
* The business model changes.
* Deteriorating cash flow.
* Rising debt.
* Director share sales.
* Something happens to cast doubt on the directors' integrity.
* The investment shows a large profit.
* A macro view of current economic cycles.

Last word
As well as selling out altogether based on pre-determined exit criteria, many investors reduce their holding, or top-slice, as share prices rise. That locks in some of the profit thus reducing the risk of reversals wiping it out. Running the remainder for further gains at reduced risk is then an option.

Overall, it's important to focus on when to sell shares as much as it is on when to buy them. Having an exit policy in place beforehand puts you in control of that. Perhaps you have other criteria for selling shares. If so, why not post your ideas in the box below.
By Kevin Godbold
Published in Investing on 16 March 2012
http://www.fool.co.uk/news/investing/2012/03/16/how-to-sell-like-buffett.aspx

Friday, 14 June 2013

Quote for the day

"Psychology is probably the most important factor in the market – and one that is least understood." - David Dreman

14-Jun-2013 CSE Trade Summary


Crossings - 14/06/2013 and Top 10 Contributors to Change ASPI


Following Stocks Reached New Low on 14/06/2013



Thursday, 13 June 2013

Quote for the day

"Most leading brokers cannot spare the time and money to research smaller stocks. You are therefore more likely to find a bargain in this relatively under-exploited area of the stock market."-James D. Slater

13-Jun-2013 CSE Trade Summary

Crossing - 13/06/2013 and Top 10 Contributors to Change ASPI



Following Stocks Reached New Low on 13/06/2013

The C=L U=M Principle

Most people like to stay within a range of relative comfort; a range that is self imposed. This is known as your comfort zone. For most of us, the grand majority of our experiences and daily life’s routines are within the limits of what we already know; the boundaries that we set, the fence that we build around us to feel safe.

We tend to ignore the outer limits of this circle of comfort almost all of the time. The unknown is a scary proposition for most. The CLUM principle simply states that COMFORTABLE = LESS OPPORTUNITYUNCOMFORTABLE = MORE OPPORTUNITY; C=L U=M

The simple fact is: opportunity is in the areas that few are willing to venture. In the circle of humanity, you’re part of the circle. And, in order for you to take advantage of inefficiencies in the so-called system, you must go outside the system. You must, at some point, be a lone wolf. This requires you to be a little different than the “norm.”

You will need to go beyond what you know the outcome is going to be. That’s right; you need take some risks and go outside your comfort zone. It won’t be easy, because most people will tell you you’re crazy or it can’t be done. However, you will likely notice that most of the people who try to discourage you are usually not very successful and the ones that encourage you are generally the more successful people.

Now if you want to be successful and achieve your dreams, this will require a new way of thinking that entertains the idea that we have a much greater capacity for living, for accomplishment and enjoyment; that we can enjoy things that may seem unenjoyable at first glance. And, that we have the capacity to stretch our comfort zone to new limits and dimensions.

When you stretch your comfort zone to a new limit, it never returns back to its old dimension; it becomes your new comfort zone, ready to challenge you to go beyond its limits or walls once again.

Like a game of golf; you’ll never shoot a perfect game of eighteen holes in one. However, you keep trying to improve and stretch your game to new limits and the game is always challenging.

Whenever you hit a limit, whenever you hit a wall or you feel nervous or scared in the face of a challenge or a new idea, view these situations or experiences in life as the chances that you’re given to succeed and reach your true potential. These are the times that you could look back on and say “that was my big break” or “that was when I should have done x”. It’s your choice.

These moments happen all through your life and give you a multitude of great opportunities to accomplish and to achieve your desires if you’re willing to take the risk of going beyond what you already know and try new things. It’s at those specific moments that you are asked to go beyond your limits and stretch your thinking that will, in the long run, define your success.

So, next time you’re faced with a tough decision or a challenge, look at it from a new perspective; tell yourself that this is one of those great moments that life is offering me; a chance to be all that I can be. This is one of the great gifts of life; the natural call to arms. It may not always work out, but these are the moments that offer you the opportunity to be different than most; to be a winner.

Mark Minervini
http://www.minervini.com/

Wednesday, 12 June 2013

Quote for the day

"But the bottom line is that more needs to be done to educate and help individual investors. It should become common knowledge that investing in an individual stock and trading may be fun, but it may also be dangerous to their wealth.”- Steven M. Davidoff

12-Jun-2013 CSE Trade Summary


Crossings - 12/06/2013 and Top 10 Contributors to Change ASPI
Following Stocks Reached New High / Low on 12/06/2013