Tuesday, June 30, 2009
Monday, June 29, 2009
A worker got a pen stuck inside the printer. He started to try and remove the pen, but coz of some urgent work decided to do it later. So he decided to put a note on the printer telling folks not to use it and then report it to the Help Desk. So he grabbed a piece of paper and scribbled on it.
About 20 minutes later, one of the techs comes in laughing and says he was just in the lobby, saw a piece of paper on a printer and went to investigate.
Attached is what he found.
Sometimes things don't always come out the way you want them to........
Now that you've smiled at least once, it's your turn to spread the stupidity and send this to someone you want to bring a smile to (maybe even a chuckle).... We all need to smile every once in a while!
Sunday, June 28, 2009
This list is for traders but also applies to investors as mentioned by Teresa Lo!
1. Recognize mental blocks. If you believe that the financial markets are rigged, stay away. Bias is blinding. If your ego requires constant feeding and vindication, do not trade. If being right is more important than making money, steer clear of the stock market. If you must be dogmatic, direct your energy into following these rules.
2. There is no needle in the haystack. There’s no reliable way of picking a single winner from the thousands of stocks listed on the exchanges. Resist betting it all on the longshot because the outcome is based purely on luck. Dr. Ziemba explains the mathematics of horse racing. The point is that the bettor is better off with horses that finish the race “in the money”. They don’t have to come in first.
3. Diversify. Spread your bets around. It’s the only way to be on board the winner.
4. Trade small. Bet only a small fraction of your equity on each position. You must take risk to get reward, but ruin is certain if you take insane risk. It’s defined in Fortune’s Formula. Think Adventures in Conditional Probability.
5. Press the winners. You must compound a winning streak.
6. Never throw in good money after bad. Never double down. Ever.
7. Do not rationalize. Down is NOT up. Red is NOT the new BLACK. If the account equity is shrinking, your bets are in the wrong direction.
8. Establish a stop loss. Place it in the appropriate location (except just above the swing high or under the swing low where everyone else put theirs), a place where you can be statistically confident that the move in the present direction is over. Don’t use a tight stop for lack of equity. The market doesn’t care about how much is in your account, so trade a smaller position size and put the stop in the proper place.
9. Use the stop loss. Just do it. Immediately. No excuses. Having a “mental” stop loss is the same as lying. There’s no point, because the longer you let it slide, the deeper the doo-doo.
10. Observe Rule Nine. Always. Don’t go to the bathroom without it.
Thursday, June 25, 2009
I couldn’t resist writing about the movie Kung Fu Panda again, actually the kids are so fixated on the movie that they end up watching it once a week at least and I am also kinda hooked to it. Below are the very important scenes from the movie which I am sure would help a traders mind set(well we learn from anywhere if we WISH to learn). In the first scene Panda is more concerned about what others have got and he is lacking! Same way a noob trader is more concerned with software’s and systems others have rather than on keeping things simple and developing his own style of trading that suits his temperament!
Another very important advice given is about letting go the “Illusion of Control”; as traders we need to let go our bias and accepts things as they are. We need to BELIEVE in ourselves and our system. If your charts tell you to sell or buy you just sell or buy. A peach will only grow to be a peach. Keep things simple don’t try to fight or outwit the market! Please do watch the above video and better still go out and buy the movie it would be money well spent!!!
Wednesday, June 24, 2009
Sunday, June 21, 2009
I am back from a well deserved short holiday to Shimla with the kids. Well I got to meet my parents and kids had a gala time getting pampered by their grandparents. Since I am an avid reader and always pack a book or two whenever I travel; this trip consisted of the “The Richest Man in Babylon” and “The Dick Davis Dividend”, the latter I am half way through but it is the former I would like to discuss here. Just the other day I was discussing with a fellow blogger how the fables or short stories are a very strong medium of learning and are more effective in conveying the message.
“The Richest Man in Babylon” by George Clason is one such book with a whole lot of wisdom packed into its roughly 150 pages. The story is set in ancient Babylon where the king calls upon the richest man in Babylon; Akrad to share the secrets of his wealth. Akrad the protagonist of the story had humble beginnings and with some advice from his mentor starts on a journey to amass wealth of huge proportions. He outlines seven principles of wealth building or as he says “Seven Cures for a Lean Purse”.
In the second part he sends his son Nomasir with a bagful of gold and a tablet outlining the five rules of gold (read money) to set out and prove himself to be worthy to inherit his father’s estate. The five rules are;
Ok so whats new in the above post which we haven’t read in many a book? Yeps we have READ but have we ever comprehended it. There is a whole lot of difference between readings and reading comprehension just as there is a whole lot of difference between hearing and listening. We hear a lot of above wisdom oft repeated by likes of Warren Buffets but do we ever listen to it? No we just hear and move on, this lil book has sold more than two million copies worldwide, so has the lives of two million people changed? I doubt because most of us just read and move along and only a few practice it. This brings back the poem by Frost I mentioned in the previous post “Two roads diverged in the wood, and I… I took the one less travelled by, and that has made all the difference”.
Another reason why we often fail to follow the simplest of advice is because of our inherent EGO which makes us Homosapiens Believe that complex is simple and just plain simple is Boring! I will sign off with something I read in Dr Wayne Dyer’s book “You Will See It When You Believe It”, he starts this book with the following sentence “You cannot drink the word water. The formula H2O cannot float a ship. The word Rain cannot get you wet. You must experience water or rain to truly know what the words mean. Words themselves keep you several steps removed from experience” Therefore if you happen to read the book or any book which you think might make THE DIFFERENCE just don’t read it; Practice what you have read!
I am the bird that knocks at your window in the morning,
And your companion whom you cannot know,
The blossoms that light up the blind.
I am the glaciers' crest above the forest,
The dazzling one,
And the brass voices from cathedral towers.
The thought that suddenly comes over you
At midday and fills you with singular
I am the one you loved long ago.
I walk along side you by day and look intently at you,
And put my mouth on your heart but you don't know it.
I am your third arm and your second shadow,
The white one, whom you don't have the heart for,
And who cannot ever forget you.