Recently, I was going through the performance sheet of an advisory firm (Lets call it X). Now out of around 50 stocks recommended 46 were profitable. So what matters in markets is: % Amount won * No of times you are right - % Amount Loss * No of times you are wrong Now, lets … Continue reading Fraud or The best investor?
Author: himanshu mahajan
Survival,Survival,Survival
One of the reasons, why people can’t make money in the stock market , is they don’t manage the risk well. In stock market, the very first thing is to survive till the verylong , after that comes the part of adequate return on yourcapital. “ An investment operation is one which uponthorough analysisPromises the … Continue reading Survival,Survival,Survival
Probability Blindness
Me and my friend were having a conversation. He said he has allocated his sip money to three funds belonging to different market-cap categories. I said great, how did you choose them? He used some past track record and some indicators to pick them. After hearing to him, I told him its better he put … Continue reading Probability Blindness
Why it is important to think about consequences of low probability events?
How many times do we really think about consequences of events which have small probabilities? Cliche of “negative thinking” My fiance recently gave a job interview and the boss of that company gave her a lift back home. Now when she told me this, I said her to never do such a thing with a … Continue reading Why it is important to think about consequences of low probability events?
Natural Vs Cultural View
There is a conversation going on between a son and father. The son recently got engaged, but since it was an arrange marriage he had no idea how the girl would be. The marriage is scheduled for next month. Son: Dad I have met this girl 5-7 times and within these few meetings only I … Continue reading Natural Vs Cultural View
Micro View vs Macro View
Mr. A (a Government employee) and Mr. B (who is an avid reader) were having a conversation. They both live in a small town in India. Mr. A: You always say me to keep on investing my money, but I need to know whether is there anything left in this country or not. Because whatever … Continue reading Micro View vs Macro View
Exit Strategy 