tag:blogger.com,1999:blog-3770431517114838824.post527390569701981068..comments2023-11-29T06:23:27.090+05:30Comments on tryin2trade: Rule Of 72! It Doesnt Get Easier Than This!!!Tryin2Tradehttp://www.blogger.com/profile/14868584193073538396noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-3770431517114838824.post-84744400748309364582015-07-07T13:24:01.428+05:302015-07-07T13:24:01.428+05:30I find doing KLSE stock analysis is much more like...I find doing <a href="http://www.epicresearch.my/klse-positional-stock-signals" rel="nofollow">KLSE stock analysis</a> is much more like following certain rules to get the result.Anonymoushttps://www.blogger.com/profile/18223718077339030418noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-84637248221351508892009-06-14T21:17:51.257+05:302009-06-14T21:17:51.257+05:30@Manoj
Thanks , The main reason behind doing the...@Manoj <br /><br />Thanks , The main reason behind doing the maths was to let people know that even a general person can do same kind of stuff and its not a big deal , It can motivate them to try out stuff on there own .<br /><br />Now people can come up with Rule of X for tripling there money ;)<br /><br />Manish<br />http://www.jagoinvestor.comManish Chauhanhttps://www.blogger.com/profile/02521133110428729048noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-28914454331795864822009-06-14T18:26:35.064+05:302009-06-14T18:26:35.064+05:30MAnish HI,
Lets keep Rule OF 72 simple and the wa...MAnish HI,<br /><br />Lets keep Rule OF 72 simple and the way it should be at least for zero math tolerance ppl like me.<br /><br />The calculations you did are what occurs behind the scenes of this simple rule!<br /><br />I thank you for your comments because your comments complete the post. What I wrote was a simple interpretation and what you wrote was what really goes behind this so called SIMPLE Rule. <br /><br />I guess that makes it a complete picture!<br /><br />Once again thanks and do keep on visiting!<br /><br />CheersTryin2Tradehttps://www.blogger.com/profile/14868584193073538396noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-1965862803879812232009-06-14T17:25:05.542+05:302009-06-14T17:25:05.542+05:30@Manoj
Nice stuff .. I tried to go deep and inves...@Manoj<br /><br />Nice stuff .. I tried to go deep and investigate why this rule of 72 works . <br /><br />I did this . <br /><br />(1+r)^N = 2 , should be the equiation which tells how much N will be given some r to making our money 2 times . <br /><br />If you do some high school algebra , (1+r)^N can be expanded as 1+rN + (N^2)*r(r-1)/2 + Some other smaller terms which can be ignored .<br /><br />So (1+r)^N = 2 can be written as<br /><br />1 + Nr + (N^2) * r*(r-1)/2 = 2 <br /><br />This gives a very nice quadratic equation as <br /><br />r(r-1)/2 * N^2 + r*N -1 = 0<br /><br />If this is compared with aN^2 + bN + c =0 and we solve this equation with Shridharacharya method which we learned in High school <br /><br />you can get <br /><br />N = [ -r +- Sqrt(3r^2 -2r) ]/(r^2 -r) <br /><br />Making it more neat and to simplyfy it ... I removed (-2r) under sqrt and make (r^2 - r) and (r^2) .<br /><br />That gives a better and neat equation as <br /><br />N = [-r + sqrt(3 * r^2)]/r^2 <br /><br />which actually is <br /><br />N = [-1 + sqrt(3)]/r<br /><br />so N = [sqrt(3) - 1 ]/r<br /><br />now sqrt(3) - 1 = .731 approx <br /><br />Which gives N = .731/r , as r is taken as actualy rate of interest (in decimal form) <br /><br />We can say for N = 73.1/R (where R is like 12% or something like that) ..<br /><br />To Make is appear better and something magical , that number is 72 ..<br /><br />Hence it explains the reason why its 72 , atleast I am convinced :)<br /><br />Manish<br />http://www.jagoinvestor.comManish Chauhanhttps://www.blogger.com/profile/02521133110428729048noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-80623697788239760092009-06-14T00:06:09.771+05:302009-06-14T00:06:09.771+05:30simply brilliantsimply brilliantAnonymoushttps://www.blogger.com/profile/17356706299679095301noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-60770947505638015632009-06-13T12:34:51.280+05:302009-06-13T12:34:51.280+05:30Deepak Hi'
Its a pleasure to have you comment...Deepak Hi'<br /><br />Its a pleasure to have you commenting here. Well considering the fact you writing from Calgary I can boast of international connections.<br /><br />Yes the calculator is available on the site you mentioned. Let me add to this this work itself was inspired by reading Phil Town's book Rule #1 which I feel should be on every novices table!!!<br /><br />Cheers!Tryin2Tradehttps://www.blogger.com/profile/14868584193073538396noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-13355603327859741892009-06-13T12:32:17.235+05:302009-06-13T12:32:17.235+05:30Manish Hi
Thnks you found this interesting!!!
Ch...Manish Hi<br /><br />Thnks you found this interesting!!!<br /><br />CheersTryin2Tradehttps://www.blogger.com/profile/14868584193073538396noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-72161335892759746252009-06-13T12:29:07.575+05:302009-06-13T12:29:07.575+05:30Bhoomitrader Hi,
Love to see you here...thnks for...Bhoomitrader Hi,<br /><br />Love to see you here...thnks for appreciating the work!!!<br /><br />CheersTryin2Tradehttps://www.blogger.com/profile/14868584193073538396noreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-30606399859366054772009-06-13T12:26:46.678+05:302009-06-13T12:26:46.678+05:30As another friend was telling that 69 is more accu...As another friend was telling that 69 is more accurate. Whole idea is, to understand power of compounding and knowing that spending time on the technical indicators should not be the excuse to ignore researching fundamentals. Rich dad says I call the person as illiterate who cannot read a balance sheet. In a way, by writing this, I’m convincing myself to learn to interpret the balance sheet, even when I'm so called CA by education. We got to do it buddy as the saying goes. All said, Rule of 72 so brilliantly explained in the article and applied to EPS growth. Still if you find it difficult to compute then there is a calculator at Ruleoneinvestor.com.After all we need to live with our positive points.Have a wonderful weekend.deepaknoreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-51311975547468641272009-06-13T12:22:59.881+05:302009-06-13T12:22:59.881+05:30this is interesting...great!this is interesting...great!Manishnoreply@blogger.comtag:blogger.com,1999:blog-3770431517114838824.post-70106547047530326782009-06-13T11:54:18.018+05:302009-06-13T11:54:18.018+05:30Brilliant.Brilliant.Bhoomitraderhttp://bhoomitrader.blogspot.comnoreply@blogger.com