Monday, 7 June 2021
Quote for the day
"A failure is not always a mistake. It may simply be the best one can do under the circumstances. The real mistake is to stop trying." - B.F. Skinner
Sunday, 6 June 2021
Mourinho’s simple seven-point plan for winning big games (Applied to trading)
Football’s 7 point plan can be applied to trading.
1) The game is won by the team who commits fewer errors. (Trader who commits few error wins)
2) Football favours whoever provokes more errors in the opposition.
(Longer the trend higher is the chance of a fade of new highs/lows)
3) Away from home, instead of trying to be superior to the opposition, it’s better to encourage their mistakes.
(When capitalizing opportunities outside one’s expertise/skill set its usually a good call to follow superior risk management controls)
4) Whoever has the ball is more likely to make a mistake.
(More trades one makes ,more mistakes one can make by over trading)
5) Whoever renounces possession reduces the possibility of making a mistake.
(Anticipating trends rather than following trends aka contrarians have lower risk/higher reward)
6) Whoever has the ball has fear.
(After putting on a trade emotions are evoked)
7) Whoever does not have it is thereby stronger.
(Be selective in trades, avoid lower probability trades)
1) The game is won by the team who commits fewer errors. (Trader who commits few error wins)
2) Football favours whoever provokes more errors in the opposition.
(Longer the trend higher is the chance of a fade of new highs/lows)
3) Away from home, instead of trying to be superior to the opposition, it’s better to encourage their mistakes.
(When capitalizing opportunities outside one’s expertise/skill set its usually a good call to follow superior risk management controls)
4) Whoever has the ball is more likely to make a mistake.
(More trades one makes ,more mistakes one can make by over trading)
5) Whoever renounces possession reduces the possibility of making a mistake.
(Anticipating trends rather than following trends aka contrarians have lower risk/higher reward)
6) Whoever has the ball has fear.
(After putting on a trade emotions are evoked)
7) Whoever does not have it is thereby stronger.
(Be selective in trades, avoid lower probability trades)
Source: www.newtraderu.com
Quote for the day
"Your rewards in life will be determined by what you do, how well you do it, and the difficulty of replacing you." - Brian Tracy
Saturday, 5 June 2021
8 Signs You're Investing Like Buffett
Value investing is an approach, a style of investing. It is not a set of formulas that allows you to beat the market. Value investors, like Warren Buffett, are prudent in their approach looking for good investments at a reduced price.
Value investors believe they are buying a business. If you went into business for yourself, you would look at many options and select the one that had the best prospects at a reasonable price. No sense committing your hard earned money to something that costs too much.
How do you know you would be a good value investor? Ask yourself if any of these characteristics describe you.
I'm business oriented. Do you like to understand how a business works? Can you describe to your better half why this company is the best one to place you money, and do you believe yourself when you explain it?
I love hunting for bargains. Do you check out the price at several stores before making a purchase? When shopping for a hotel, do you look for what kind of deals you can get before making a reservation? If you compare the price on anything you buy, you might be value investor.
I like crunching numbers. You like the simple maths that explains the fundamentals of the business. You want to compare the numbers of the companies you like to see the ones that offer the best opportunity. This does not mean you are mathematician, just someone who recognizes that the numbers tell the story.
I prefer to factor in a margin of safety. When you received your first credit card, you avoided carrying it for more than a year. The car you buy is rated the safest around. When you buy a stock you want to be sure it is at a low point.
I trust myself. While analyst reports are nice and can help to identify opportunities, you prefer to make up your own mind because you know analysts can have their own agenda. You like to gain a level of comfort that whatever you buy is the best possible option out there. The same applies to the companies you consider for investment.
I don't mind going against the grain. From experience, you find it is better not to follow the latest popular thing. Being a contrarian means you look for what is not in vogue now, but offers significant value. You know that it's unlikely the popular stocks are bargains.
I like to put together checklists. You find yourself making lists to be sure you get all that needs to be done accomplished. Checklists make your life easier. Value investors like to follow a checklist when they review a company. While a company may not match up perfectly on each item, you go through the process to help make the best decision with the available information.
I can patiently wait for the best opportunity. You don't mind waiting for the best opportunity to show itself. That doesn't mean you sit around watching TV, hoping a great investment falls into your lap. You are out actively looking for what you want. You just do not jump at the first potential opportunity that comes along. Value investors work hard while they wait for the right company to arrive at the right price. Once it does, they pounce. Then they are patient for the opportunity to bear fruit. However, if the market and the company proves their analysis wrong, they implement their pre-existing exit strategy and get out of the deal.
Good value investors tend to have most, if not all of these traits. If several of these characteristics fit you then you are ready to be a value investor. Source: http://www.investinganswers.com/
Value investors believe they are buying a business. If you went into business for yourself, you would look at many options and select the one that had the best prospects at a reasonable price. No sense committing your hard earned money to something that costs too much.
How do you know you would be a good value investor? Ask yourself if any of these characteristics describe you.
I'm business oriented. Do you like to understand how a business works? Can you describe to your better half why this company is the best one to place you money, and do you believe yourself when you explain it?
I love hunting for bargains. Do you check out the price at several stores before making a purchase? When shopping for a hotel, do you look for what kind of deals you can get before making a reservation? If you compare the price on anything you buy, you might be value investor.
I like crunching numbers. You like the simple maths that explains the fundamentals of the business. You want to compare the numbers of the companies you like to see the ones that offer the best opportunity. This does not mean you are mathematician, just someone who recognizes that the numbers tell the story.
I prefer to factor in a margin of safety. When you received your first credit card, you avoided carrying it for more than a year. The car you buy is rated the safest around. When you buy a stock you want to be sure it is at a low point.
I trust myself. While analyst reports are nice and can help to identify opportunities, you prefer to make up your own mind because you know analysts can have their own agenda. You like to gain a level of comfort that whatever you buy is the best possible option out there. The same applies to the companies you consider for investment.
I don't mind going against the grain. From experience, you find it is better not to follow the latest popular thing. Being a contrarian means you look for what is not in vogue now, but offers significant value. You know that it's unlikely the popular stocks are bargains.
I like to put together checklists. You find yourself making lists to be sure you get all that needs to be done accomplished. Checklists make your life easier. Value investors like to follow a checklist when they review a company. While a company may not match up perfectly on each item, you go through the process to help make the best decision with the available information.
I can patiently wait for the best opportunity. You don't mind waiting for the best opportunity to show itself. That doesn't mean you sit around watching TV, hoping a great investment falls into your lap. You are out actively looking for what you want. You just do not jump at the first potential opportunity that comes along. Value investors work hard while they wait for the right company to arrive at the right price. Once it does, they pounce. Then they are patient for the opportunity to bear fruit. However, if the market and the company proves their analysis wrong, they implement their pre-existing exit strategy and get out of the deal.
Good value investors tend to have most, if not all of these traits. If several of these characteristics fit you then you are ready to be a value investor. Source: http://www.investinganswers.com/
Quote for the day
"The honors and rewards fall to those who show their good qualities in action." - Aristotle
Friday, 4 June 2021
Quote for the day
"Most people struggle financially because they take advice from sales people, not rich people." - Robert Kiyosaki
Thursday, 3 June 2021
Quote for the day
"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." - Sun Tzu
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