Karthik, a good friend, forwarded an article from ColloborativeFund.com titled “The Reasonable Formation of Unreasonable Things”. The article talks about how market bubbles and crashes are inevitable. And that bubbles are a result of shortening investment horizons. And that volatility is needed if you need big returns. The article made a lot of sense to me. By the way, the … [Read more...] about How Traders and Investors have different expectations and how it affects markets?
Gaurav works in the treasury department of a leading private bank. He believes that the interest rates are headed downwards and there will be huge gains in the bond portfolio of banks. He expects that these gains to reflect in the prices of banking stocks in the medium term but he is not sure which banking stock to invest in. He starts a systematic investment plan (SIP) to … [Read more...] about Should you invest in Sector Funds?
This is our second blog post on trading discipline. In our previous post on trading discipline, we had discussed the importance of adequate risk reward in trading. In this post, we shall write about the trade sizing. You recently landed up a hefty annual bonus and want to park these funds for quick returns. Mutual funds are too conservative for you. You want quick returns; … [Read more...] about Trading Discipline: How much to trade
Ever felt you are getting enough trading calls right, but aren’t still making significant profits? An unfavourable risk-reward ratio could be the answer. At the outset, we want to mention that trading is inherently risky and requires, in addition to deep understanding of chart patterns, a lot of discipline. Be advised that trading is not a quick way to make money. A trader must … [Read more...] about Trading Discipline: Risk and Reward
Growing up, we had always heard that the rising crude prices are not good for India. The rationale was quite simple. Higher the fuel prices, higher the inflationary pressures. Unlike developed nations, India struggles more with high inflation rather than with low inflation. Additionally, India relies heavy on imports to meet its fuel requirements. Higher the price of crude, … [Read more...] about Fall in crude price: What to buy?