Monday, 31 December 2018

Colombo Stock Exchange Trade Summary 31-Dec-2018

Quote for the day

“While end of the year is approaching you, let you start cleaning your heart & soul beginning from deterging your own dirty & filthy attitudes, behaviors, habits & meaningless lifestyle. Let you scrub out all the accumulated stains of your regrets, selfishness, annoyances & resentments from your soul. Let you wipe away all the leftover parts of the past that are unwanted & may restrict you from moving into the next year with confidence. Let you completely remove all the clutter from your schedule & your mind to create more space to focus on what is truly important. Let you do all you can to live at peace not only with your world but with yourself also & resolve all your conflicts quickly to lead a happy & blessed life. Stay Beautiful & Successful!” - Rajesh Goyal

Sunday, 30 December 2018

There Is No Santa Claus For Traders

By Steve Burns

I have good news and bad news for new traders and new investors.

First the bad news:

1. There is no Santa Claus for traders.

2. There is no kid with a fancy sports cars that can show you an easy way to trade penny stocks or crypto for millions.

3. There is no Holy Grail trading system that wins every time.

4. There is no best way to trade only the best way for you to trade or invest.

5. About 90% of active traders lose money.

6. You can’t trade for a living with a few thousand dollars.

7. 20% annual returns is near the best for most traders and investors.

8. You have drawdowns in capital as well as returns.

9. You can have losing days ,weeks, months, and even losing years. 

10. You can’t expect to start trading and instantly make money it is usually a big learning curve.

Now the good news:

1. There are trading systems that are profitable over the long term.

2. There are many successful traders you can learn from on social media for free.

3. There are many ways to make money in the markets.

4. Your search is for the best way for you to make money in the market.

5. About 10% of traders make life changing money, eventually.

6. You can reach financial independence from trading if you have enough capital and/or keep your living expenses low enough.

7. Compounding 20% returns doubles your money every 3.6 years.

8. You can minimize your drawdowns through proper position sizing and risk management.

9. You can have a losing day but a profitable week, You can having a losing week but a profitable month, You can have a losing month but a profitable year. Long term results are what are most important.

10. You can overcome the learning curve of trading by doing the right homework and creating a trading system with an edge that fits your personality and beliefs and then trade it with discipline and perseverance over the long term for life changing success.

There is no Santa Claus that will give you huge success with little effort but there are financial markets that contain huge opportunities for those willing to do the work.


Quote for the day

“Your dignity can be mocked, abused, compromised, toyed with, lowered and even badmouthed, but it can never be taken from you. You have the power today to reset your boundaries, restore your image, start fresh with renewed values and rebuild what has happened to you in the past.” - Shannon L. Alder

Saturday, 29 December 2018

20 simple, but obvious, reminders about sound investing

By Jake DeKinder

With so much uncertainty flying around I thought it might help to remind ourselves of some fairly simple, and some would say obvious, advice on investing.

Sometimes as investors we need to be reminded of the simple and obvious stuff as it is often forgotten amongst all the noise, opinions, and predictions that are out there!

P.S. I’m no different…I still need to remind myself!

1. If you need to spend your money in a relatively short period of time it doesn’t belong in an investment portfolio linked to the stock market.

2. If you want to earn higher returns, you’re going to have to take more risk.

3. If you want more stability, you’re going to have to accept lower returns.

4. Any investment strategy with high expected returns should come with the expectation of ups and downs. The more risk the bigger the ups and downs.

5. A good investment strategy will always have periods when it falls in value. During these times it doesn’t become a bad strategy.

6. Risk can change shape or form, but it never really goes away.

7. There’s no such thing as a perfect portfolio, asset allocation or investment strategy.

8. No investor is right all the time.

9. No investment strategy can outperform at all times.

10. “I don’t know” is almost always the correct answer when someone asks you what’s going to happen in the markets.

11. If you invest in index funds you cannot outperform the market.

12.If you invest in active funds there’s a high probability you will underperform index funds.

13.If you are a buy and hold investor (as we are) you will take part in all of the gains but you also take part in all of the losses.

14. For buy and hold to truly work you have to do both when markets are falling (i.e. rebalancing your portfolio)

15. Proper diversification means always having to say you’re sorry about part of your portfolio.

16. There is no signal known to man that can consistently get you out right before the market falls and get you back in right before it rises again.

17. Compound interest is amazing but it takes a really long time to work.

18. Sound investment advice doesn’t really change all that much but most of the time people don’t want to hear sound investment advice.

19. Successful investing is more about your behaviour and temperament than your IQ or education.

20. Don’t be surprised when we have bear markets or recessions.

Quote for the day

“One of the hardest and truest things a grown-up learns is that sometimes it's not okay.”
- Christopher Buehlman

Friday, 28 December 2018

Thursday, 27 December 2018

Wednesday, 26 December 2018

Colombo Stock Exchange Trade Summary 26-Dec-2018

Quote for the day

“The only way that we can live, is if we grow. The only way that we can grow is if we change. The only way that we can change is if we learn. The only way we can learn is if we are exposed. And the only way that we can become exposed is if we throw ourselves out into the open. Do it. Throw yourself.” - C. JoyBell C.

Tuesday, 25 December 2018

Quote for the day

"Grit is that ‘extra something’ that separates the most successful people from the rest. It’s the passion, perseverance, and stamina that we must channel in order to stick with our dreams until they become a reality." - Travis Bradberry

Monday, 24 December 2018

Colombo Stock Exchange Trade Summary 24-Dec-2018

Quote for the day

"Working hard for something we don't care about is called stressed; working hard for something we love is called passion." -Simon Sinek

Sunday, 23 December 2018

Quote for the day

"Be patient with yourself. Self-growth is tender; it’s holy ground. There’s no greater investment." - Stephen Covey

Saturday, 22 December 2018

Quote for the day

“An arrow can only be shot by pulling it backward. When life is dragging your back with difficulties, it means it’s going to launch you into something great. So just focus, and keep aiming” - Paulo Cohelo

Friday, 21 December 2018

Colombo Stock Exchange Trade Summary 21-Dec-2018

Quote for the day

"Excellence is a great starting point for any new organisation but also an unending journey."  - Azim Premji

Thursday, 20 December 2018

Colombo Stock Exchange Trade Summary 20-Dec-2018

Quote for the day

"The best leaders are those most interested in surrounding themselves with assistants and associates smarter than they are. They are frank in admitting this and are willing to pay for such talents." - Antos Parrish

Wednesday, 19 December 2018

Colombo Stock Exchange Trade Summary 19-Dec-2018

Quote for the day

"Develop success from failures. Discouragement and failure are two of the surest stepping stones to success." - Dale Carnegie

Tuesday, 18 December 2018

Colombo Stock Exchange Trade Summary 18-Dec-2018

Quote for the day

“When you realize there is something you don't understand, then you're generally on the right path to understanding all kinds of things.” - Jostein Gaarder

Monday, 17 December 2018

Colombo Stock Exchange Trade Summary 17-Dec-2018

Quote for the day

“It is better to remain silent at the risk of being thought a fool, than to talk and remove all doubt of it.” - Maurice Switzer

Sunday, 16 December 2018

The Greatest Mistake Losing Traders Make

By Brett Steenbarger, Ph.D.

One of the greatest mistakes traders make is to allow their thought processes to get noisier as they lose money. They double down in their thinking about the market; they scan even harder for winning trades; they vent emotions about their losses. In short, they turn up the volume on their cognitive processes.

The core issue here is whether your trading is a performance skill like golf or a knowledge skill like mathematics. If I'm encountering difficulty with a math problem, I want to think harder and more creatively about finding the solution. Math requires explicit knowledge and problem solving. Golf, on the other hand, is more of an implicit learning skill where thinking more and harder frequently interferes with what the body knows. That creates the "yips".

If my trading is completely rule-governed and mathematical, a period of bad trading results probably means that market regimes have changed. In that case, I want to double down on my market analysis and see where patterns of trend, volatility, correlation, etc. have shifted. Analysis in that situation facilitates adaptation.

If my trading is intuitive and based upon pattern recognition, a period of bad trading results also could mean that market regimes have changed. Doubling down on analysis, however, facilitates paralysis; explicit processing interferes with implicit performance skill. Thinking harder about why your audience is not responding to the speech you're delivering will only interfere with your delivery and make the situation much worse.

My theory is that investment is an explicit performance domain. Trading is based on implicit learning and performance.

When traders encounter problems and shift into the cognitive mode of investors, they lose touch with their implicit, pattern-recognition skills. It's not simply that they overthink. They shift to the wrong information processing mode. In a literal, cognitive sense, they are out of their right minds.

Here's a great article for you: 

It's about teaching golf through implicit learning. The article cites a study in which two groups were taught putting skills. One group was given detailed instruction; the other group was given ample practice and left to figure out what to do on their own. When tested, the first group displayed greater knowledge of putting, but in subsequent performance, the first group did not outperform the second group. Indeed, in pressure situations, the group that was taught how to putt was more likely to choke than the group that learned through experience.

Why was that?

Under stress, the explicit learning group went back to their instruction and focused on what they should be doing. That shift to explicit thinking interfered with the performance skill and led to the choking. Amplifying the volume on their cognitive processes provided interference, not inspiration. The implicit learning group had no lessons to focus on and were more likely to rely on muscle memory, reducing the likelihood of choking.

The big takeaway from all this is that, if your trading is based on pattern recognition and a feel for markets, you want to become quieter when you encounter problems, not noisier. In finding the quiet beneath our 50,000 daily thoughts, we can apprehend the new patterns being displayed by markets and pick up a feel for them.

The worse you perform, the quieter you want to become. If you're a trader, not an investor, never let your thinking interfere with your information processing.

Quote for the day

“The most incomprehensible thing about the world is that it is at all comprehensible.”
- Albert Einstein

Saturday, 15 December 2018

Benjamin Graham’s Seven Criteria for Picking Value Stocks

Benjamin Graham Value Stock Criteria List:


Look for a quality rating that is average or better. You don’t need to find the best quality companies–average or better is fine. Benjamin Graham recommended using Standard & Poor’s rating system and required companies to have an S&P Earnings and Dividend Rating of B or better. The S&P rating system ranges from D to A+. Stick to stocks with ratings of B+ or better, just to be on the safe side.


Benjamin Graham advised buying companies with Total Debt to Current Asset ratios of less than 1.10. In value investing it is important at all times to invest in companies with a low debt load. Total Debt to Current Asset ratios can be found in data supplied by Standard & Poor’s, Value Line, and many other services.


Check the Current Ratio (current assets divided by current liabilities) to find companies with ratios over 1.50. This is a common ratio provided by many investment services.

Criteria four is simple: Find companies with positive earnings per share growth during the past five years with no earnings deficits. Earnings need to be higher in the most recent year than five years ago. Avoiding companies with earnings deficits during the past five years will help you stay clear of high-risk companies.


Invest in companies with price to earnings per share (P/E) ratios of 9.0 or less. Look for companies that are selling at bargain prices. Finding companies with low P/Es usually eliminates high growth companies, which should be evaluated using growth investing techniques.


Find companies with price to book value (P/BV) ratios less than 1.20. P/E ratios, mentioned in rule 5, can sometimes be misleading. P/BV ratios are calculated by dividing the current price by the most recent book value per share for a company. Book value provides a good indication of the underlying value of a company. Investing in stocks selling near or below their book value makes sense.


Invest in companies that are currently paying dividends. Investing in undervalued companies requires waiting for other investors to discover the bargains you have already found. Sometimes your wait period will be long and tedious, but if the company pays a decent dividend, you can sit back and collect dividends while you wait patiently for your stock to go from undervalued to overvalued.

One last thought. We like to find out why a stock is selling at a bargain price. Is the company competing in an industry that is dying? Is the company suffering from a setback caused by an unforeseen problem? The most important question, though, is whether the company’s problem is short-term or long-term and whether management is aware of the problem and taking action to correct it. You can put your business acumen to work to determine if management has an adequate plan to solve the company’s current problems.

Follow these seven value investing principles, and you’ll invest like Benjamin Graham. With luck, perhaps you’ll have the same kind of success he enjoyed!

Quote for the day

“Our great democracies still tend to think that a stupid man is more likely to be honest than a clever man, and our politicians take advantage of this prejudice by pretending to be even more stupid than nature made them.” - Bertrand Russell,

Friday, 14 December 2018

Colombo Stock Exchange Trade Summary 14-Dec-2018

Quote for the day

“If you give up what you want most for what you think you should want more, you'll end up miserable.” - Brandon Sanderson,

Thursday, 13 December 2018

Wednesday, 12 December 2018

Tuesday, 11 December 2018

Colombo Stock Exchange Trade Summary 11-Dec-2018

Quote for the day

“Courage is the most important of all the virtues because without courage, you can't practice any other virtue consistently.” - Maya Angelou

Monday, 10 December 2018

Sunday, 9 December 2018

10 Things That Doom New Traders

Here are 10 things that new traders can do that doom them to be unprofitable. The quicker a new trader can change these behaviors the quicker they can get on the right path to be profitable when the market is conducive to their trading method.

1. Not doing any homework before putting real money at risk is a mistake.

2. A new trader needs to have their own goals for returns and understand their own risk tolerance.

3. Not having realistic return goals can lead to risking too much and lead to big losses.

4. Trading with no plan leads to pure randomness in results. It does not matter if a new trader is profitable if their process is not repeatable.

5. Not fully understanding how options, Forex, or futures markets work before trading them.

6. Trading in illiquid markets that cause big losses between the bid/ask spreads can erode trading capital.

7. Not having a way to backtest trading theories before implementing strategies.

8. Changing a trading strategy each time the market changes leads to chaos in results.

9. Looking endlessly for a trading system that never loses or makes money every day, week, or month. They do not exist, there is no Holy Grail of trading, the markets are always changing. The right question is what trading system with an edge can you trade over the long term?

10. New traders that are always learning and never trading. After you have done your homework, backtested, and created your trading system. There is a day that you have to start putting real money at risk if you really want to continue to learn about yourself.

Quote for the day

“Understanding is the first step to acceptance, and only with acceptance can there be recovery.” - J.K. Rowling,

Saturday, 8 December 2018

Quote for the day

“It’s only after you’ve stepped outside your comfort zone that you begin to change, grow, and transform.” - Roy T. Bennett

Thursday, 6 December 2018

Colombo Stock Exchange Trade Summary 06-Dec-2018

Quote for the day

"The difference between greed and ambition is a greedy person desires things he isn't prepared to work for." - Habeeb Akande

Tuesday, 4 December 2018

Colombo Stock Exchange Trade Summary 04-Dec-2018

Quote for the day

“Bodily exercise, when compulsory, does no harm to the body; but knowledge which is acquired under compulsion obtains no hold on the mind.” - Plato

Sunday, 2 December 2018

Quote for the day

"Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence." -  Helen Keller

Saturday, 1 December 2018

Quote for the day

"The foundation stones for a balanced success are honesty, character, integrity, faith, love and loyalty." -  Zig Ziglar