"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
Sunday, 30 June 2013
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=
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
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
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/
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/
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
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
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
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=
'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
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
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
- Carl Icahn
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
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 OPPORTUNITY & UNCOMFORTABLE = 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/
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 OPPORTUNITY & UNCOMFORTABLE = 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
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