Author Archives: Uday Nath

Unknown's avatar

About Uday Nath

I'm motivated. I like to out-perform. I only strive for the best.

The Business of Writing

Posted on by
Reply

Many things can happen when one writes. 

What happens depends on why one writes. 

Some write for money. 

Their bread and butter depends on it.

Writing gets them money. They earn a living. 

At times, they have to eke out words. Even when they’re not coming. Quality goes down. 

Money in the equation carries its own side-effects. 

What happens when money is not in the equation?

Yeah, some are so lucky. 

However, luck or no luck, one has to still want to keep money out of the equation.

When money is what one is writing about, you can imagine the temptation. 

One falls back on one’s basic definitions.

Why am I writing?

Am I writing for money?

Do I need any money that my writing might generate?

If the answer here is no, then the question still remains.

Why am I writing?

Am I writing for fame?

Who doesn’t want to be famous?

Am I able to control this impulse?

If the answer here is well-yeah-mostly, the question still remains.

Why am I writing?

What is the answer?

I’m writing…

…because…

…the words are coming. 

I’ll continue to write till they keep coming. 

I’ll stop writing when words stop coming. 

I’ll resume writing when words start to flow again. 

I’m not going to stop their flow.

I’m nobody to stop their flow. 

Has writing ever harmed me?

Never. 

It soothes. 

Balances.

Calms. 

Settles.

Concepts become clearer. 

Spreads goodness. 

Creates vacuum within, because your energy has ventured out. This vacuum will attract fresh energy from the universe. 

Has there been any regret about writing?

Readership? Perhaps?

Flow reaches its destination. Ultimately. If it’s persistent. 

My writing is persistent. 

It will keep coming. 

Its flow will reach its destination. 

So, any regrets then?

None. 

Happy reading!

🙂

Inflammation Anyone? 

Posted on by
Reply

Inflammation… 

… needs a reason to be… 

… and a reason to go. 

Let’s talk about the most common inflammation afflicting mankind. 

Sugar induced obesity. 

Human body recognizes Glucose and metabolizes it. 

However, the same human body treats isolated Fructose as poison. 

HFCS, short for high fructose corn syrup, is therefore full of poison. 

HFCS is much cheaper than table sugar. 

HFCS is used in big volumes by the food industry. It’s replacing normal sugar. Everywhere. It’s sheer… poison. And it’s cheap. Very cheap. 

It’s in cola, it’s in ketchup, it’s in almost all processed foods.

What happens to it in the body? 

Well, what happens to poison?

It goes straight to the liver. This wonderful and magnanimous organ tries to break it down. 

One big side-effect of the breakdown mechanism is the triggering of inflammatory enzymes. Body cells then start to swell up to protect themselves from poison. To and fro is impaired. They don’t want poison coming in. Unfortunately, good stuff, like insulin that throws out excess sugar, is also not allowed to enter.  Mankind is poisoning itself to obesity. 

Cut out the HFCS. 

Exercise to shake out inflammatory mechanism. 

See how your inflammation vanishes. 

Now let’s talk about the most common financial ailment afflicting mankind. 

Debt. 

We are in debt. 

We take more debt. 

We surround ourselves with useless paraphernalia, to ward off reality. 

Inflammation, again, disguised, but inflammation. 

Ultimately,  the mountain of due interest buries us under it. It chokes off our air-supply, just as obese cells produce “bad” lipids that deposit as mountains of plaque in our arteries, and choke off our blood supply. 

Let’s nip the problem in the bud. 

Like no HFCS – no debt. 

Craving for sugar? Fine. Control. To a point. Still craving. Fine. Have. But have normal sugar, along with fibre. Don’t have anything that contains HFCS. Shake off the relatively minor inflammation caused by normal sugar with exercise. You’re good. 

Longing to spend money? Control. To a point. Still longing to possess that something? Fine. Save. Consolidate. Accumulate cashflow. Only use debt when upcoming cashflow nullifies it in very foreseeable future. You’ve gotten your something, and you’re either debt-free already, or are going to be debt-free very soon. 

You’re good. 

🙂 

Happy Sixth Birthday, Magic Bull!

Posted on by
Reply

Phews…

…game’s getting interesting…

…as we turn six. 

We’re thinking of endgame scenarios. 

We don’t consider endgame-discussion to be silly anymore. 

We’re not treating an endgame as far-off. 

We’re financial-health-conscious. 

We’re learning to detest debt. 

We understand that debt is a virus. 

It starts to eat us up from inside. 

The only avenue when we do consider debt as a tool is when cashflow fills up any void soon enough, annihilating whatever debt that’s been incurred. 

Debt-free-ness is our goal. 

Maintenance of debt-free-ness becomes our natural endeavour. 

Why?

Such a condition leads to burgeoning financial health,…

… ultimately culminating in full financial freedom. 

We take “two minutes of freedom” to think about what financial freedom means. 

Not needing to worry about repayment of any bill, whenever, whatever, however much…wow!

That’s where we want to be. 

If we’re not there yet, we’re defining conditions that’ll get us there. 

If we’re there, we’re ultimately starting to realize, that one can’t eat money. 

Money is a force. It’s physical existence is in the form of paper. However, the force nature of money is what we’re in the process of understanding. 

Force can be used to do the highest good, but also its opposite. 

A part of our excess force is diverted towards doing good. 

Charity. 

Upliftment.

Legacy. 

What are we if we don’t leave behind a legacy?

What will we have lived for?

This is our one shot, and it’s a big one. 

We’re making it count.

Slowly, realization is taking over. 

We’re evolving. That’s one side-effect of financial freedom, but one needs to want to evolve too. 

Our evolution is making us divert more and more funds towards the greater good. 

We’ll take that. That’s fantastic. No further discussion required. 

Happy reading!

🙂

Looper

Posted on by
Reply

I know, that Bruce Willis sci-fi movie… 

… is also called Looper. 

Know any other Loopers? 

There’s one in your body. 

In hardware terms, it’s your brain. 

In software terms, it’s your mind. 

Its ability to loop can become a tendency. 

Any problems with that? 

Sure. 

Big ones. 

Imagine a trade. 

Goes wrong. 

You’re drained. 

You get out. 

Loss.

Done? 

No. 

At this point, don’t let your mind loop. 

It will, if you allow it the leeway. 

If it loops, you’ve lost the energy value of two trades or more (fatigue) while losing one trade. 

Don’t delve on the loss. 

Move on in search of your next winning trade. 

Define conditions that stop your mind from looping. 

For example, when entry value is small enough to not be bothered about, its partial or even full loss might not be enough to cause your mind to loop. 

And that’s the position you want to be in. 

No looping.

No overthinking. 

Just trading. 

🙂

Anyone up for a Quereinstieg?

Posted on by
Reply

Yeah, another German word.

And it’s loaded. 

I love the German language for it’s ability to combine words so that they can deliver a fistful!

So, what does it mean?

Quer means at an angle. 

Einstieg means entry. 

If you bang with something head-on, you’re likely to rebound. 

If you chisel into something at an angle with great force, you are likely to enter that something. 

That’s the logic. 

And it works. 

Albert Schweitzer, was it?

The multiply famous nobel-laureate who proposed and demonstrated Quereinstieg into fluency with a foreign language?

The formula was, for weeks in a row, to read texts, delve into media, the whole works, all in the foreign language, without really understanding what’s happening at first, and then getting a hold of the language’s structure through Sprachgefuehl, or feeling for language. 

Within a month or so, one would be speaking the language. One’s skills would be enough to get by on the streets. Works. 

Sprachgefuehl in action is a prime example of Quereinstieg. 

These are fast times. 

Almost the whole day, one is multitasking. 

And then, something new comes along. 

A new problem. 

One has to find a solution fast. 

There is no time to start from scratch. 

All other matters must be pulled along. Many people’s daily lives and routines hang upon you pulling your load. 

So, where does that leave you?

Cut to Quereinstieg.

You delve into the new matter, fast, at an angle, without bothering how you’ll fare.

You keep all your faculties open.

Your senses are on high alert.

You use your common-sense.

You learn from the play.

As you keep playing, on and on, you master technique.

The matter is not a problem anymore.

You incorporate the new asset into your repertoire as you attack your daily routine with renewed vigour and an arsenal boasting your latest Quereinstieg conquest. 

The Pinch of Minuscule Loss

Posted on by
Reply

Did I drop the 200 bucks this morning?

Hmmmm…

…naehhh.

I don’t drop cash.

It was probably nicked from my rucksack.

You know what, this incident is pinching me.

I’m trying to brush it off.

Was I careless?

Yes.

Why?

God knows.

Over-confidence?

Maybe.

Do you see?

Even minuscule loss has it’s thought-process-baggage.

Minuscule loss pinches too.

Where does that leave us?

We’re market-people.

We’re faced with minuscule losses everyday.

Hopefully miniscule.

Meaning, hopefully everyone has by now graduated to putting stops.

Don’t underestimate the business of stops.

The human mind gets used to stops very slowly indeed.

Society teaches us to win at all costs. It doesn’t teach us to take a small loss and get out.

Trading works differently, however.

You can’t will a losing trade to win.

Society teaches us to book a winner and post it on social media immediately.

Again, trading is so different.

A small winner needs to be left alone, so that it can grow into a multibagger.

When we enter into the world of trading, we have to first swear to ourselves that we will start to program our minds from day one.

Otherwise, we’re dead-meat.

We need to teach our minds to let winners win some more.

And, we need to programme our minds to cut many, many small losers while they are still small, simultaneously and slowly getting immune to the pinch of minuscule losses by taking these in stride, one, after another after another…

…, till, the rest, as they say, is recorded as successful trading by History.

Incorporating the Satisfaction Factor 

Posted on by
Reply

How do you wish to leave your portfolio? 

Leave as in… 

… you leave. 

Let’s paraphrase this. 

In what condition do you envision your folio to be at your time of ultimate departure? 

Why is this question necessary? 

Why are we putting together our folios? 

What do we want out of the whole shebang? 

Are we playing the game just because everyone else is doing so, without thinking any further? 

Stop. 

Think. 

Do. 

We want satisfaction. 

Everyone searches for happiness. 

We want to have led full lives. 

We want to leave with smoothly outlined pipelines which won’t be blocked by any surviving party’s antics. 

Auto-pipelines are a reality now. It takes a standing instruction, that’s it. 

We want to have done some CSR work, as in charity. 

We want to leave a legacy. 

We don’t wish to make our surviving family slaves to an inheritance. We want them to be self-sufficient with trouble-shooting acumen. However, funds need to be accessible at times of emergency. 

And blah blah blah blah blah…, list can be endless. However, you get the gist. 

All this requires planning… 

… NOW.

Take out the time to do some basics. 

Nobody’s asking you to do a doctorate on this. 

Just do the basic nitty-gritty. 

The whole with some basics leads to successful and satisfactory implementation. Leave out the nitty-gritty, and you could be left without the success and satisfaction part too. 

Do it properly, come on. 

🙂 

How do you manage your Fiefdoms? 

Posted on by
Reply

Are your subjects happy? 

Is there surplus going around? 

Is dealing smooth and efficient? 

Are you content with your performance? 

Do you have the vision and the energy to enhance your fiefdoms into a kingdom? 

What are we talking about? 

How are these questions relevant for a career in finance? 

We all establish some position or positions of power, in the many areas of our lives. 

These are our fiefdoms. 

Inside these, we rule. 

Inside these, people or objects seem to be temporarily under our control. 

The micro reflects the macro. 

Our behaviour while governing a fiefdom hints at what / how we’ll be like when governing a kingdom. 

Get your acts together, people. 

Good governance is a habit. It starts small. Ultimately, it becomes a way of life. 

Your many fiefdoms multiply as you progress into a kingdom of sorts. 

Applied to finance, your kingdom is then your market footprint at your peak. Good governance thrown in, you’re rocking already. 

How did it happen? 

Baby steps of good governance multiplied into giant ones. 

It’s as simple as that. 

The most coveted things in life are also the simplest ones. 

🙂 

Dealing from a Position of Strength 

Posted on by
Reply

Next move… 

… should make you stronger. 

If it’s not, you’re wasting your position of strength. 

And, if it’s not, it’s not going to be your next move. 

Think up a different one. 

You had the acumen to gravitate to a position of strength. 

What makes you think that you don’t have the acumen to become even stronger? 

Take your time. 

In a position of strength, time becomes your friend. 

Here, you possess the means to double, treble or what have you your time. You hire quality people, to listen to their sound advice. You don’t have to follow them. However, it’s good to look at quality behaviour while finalizing the next move. Specialists provide you with that service. The specialist you want to listen to first wants to make you some money and then thinks about his or her commission. There are some such ones out there. Find them. 

Reject a hundred specialists. Then choose one that fits your specs. You’re in a position to do so. You’re in a position of strength. 

When time becomes your friend, consolidation comes as a matter of course to you. You consolidate before every next move. Consolidation makes your strength potent. 

You might want to consider some charity. Increase the good vibes around you. Make it a better world. Those in a position of weakness can’t afford to do so. You can. Come on. You’ll feel good about it. Yeah, help someone in a position of weakness. You’ll remain grounded. 

Take time off. Leisure will bring you back with all cylinders firing towards your next move. 

Pursue secondary, even tertiary lines. Disconnect from primary at will. Connect back, again at will. 

You see? 

Position of strength opens up a whole new world for you. 

That’s where you want to be… 

… in a position of strength. 

Work towards it. 

From Strength to Strength 

Posted on by
Reply

Baby steps… 

… into freedom. 

What kind of freedom are we talking about? 

Universal freedom? 

If you insist, smarty, but first things first.

Financial freedom. 

That’s the kind of freedom that sparks off every other kind of freedom. 

Our first and foremost goal is to achieve financial freedom. 

What is the one big nemesis of financial freedom? 

Debt. 

Tear off debt. 

Detest it with every cell of your body. 

If it comes towards you, move in the other direction.

Don’t allow it’s tentacles to engulf and then strangle you. 

You do all that by nipping it in the bud. 

A new world order in being defined. 

The debt-free… 

… and the in-debt-ones. 

Where do you wish to belong?

The former category calls the shots. 

That’s where you belong. 

Your every move… 

… takes you from strength to strength… 

… towards debt-free-ness. 

Full financial freedom is a short walk from there. 

Story doesn’t stop there, sure, your strength-momentum sees to that.

However, it’s the first debt-free million that’s always the hardest-fought, and the most-fondly remembered.  

How much is too much? 

Posted on by
Reply

Risk? 

Sure. 

No risk no gain. 

However… 

… I’m sure you’ve also heard… 

… “want gain not pain“.

How do we achieve that? 

It boils down to the level of risk. 

How much risk is too much? 

Do we have a measure? 

Sure. 

Meaning, without getting into any mathematics?

Yes. 

What’s a hands-on everyday TomDickHarry dumdum yet practical cum successful measure for risk without any hype or brouhaha? 

Sleep. 

Sleep? 

Yeah. 

How? 

Are we sleeping well? 

Is our sleep getting disturbed because of the risk we’ve taken? 

No? 

We’re fine. 

The risk we’ve taken is bearable. 

It’s not disturbing us enough to disturb our sleep. 

Yes? Sleep disturbed? Because of risk? 

We’ll, too much then. 

Reduce the risk. 

By how much? 

Till your sleep is not disturbed because of it. 

It’s as simple as that. 

What to do with a racing mind? 

Posted on by
Reply

Harness it. 

Or, it’ll get you. 

How? 

It won’t stop racing till it finds something of interest. 

Then, it’ll hook on… 

… without caring too much… 

… whether that something’s good or bad.

At that stage, you might not be able to control your mind. 

Control it when it’s controllable. 

Before it’s latched on. 

Before the flow has started. 

Define for yourself the area of flow. 

Actively make your mind connect. 

Regulate your flow. 

Enjoy the harnessed potential of your mind. 

Let’s observe a practical example in motion. 

I’ve actively latched on my mind, among other things, to the stock market. 

The market has many aspects.

I need to take into account most of these, if not all, while picking a stock. 

Sure. 

However, some aspects stand out for me. 

To these aspects I latch on my mind very thoroughly. 

I like it to get a feel for honesty. 

While I’m screening a stock, my racing mind either picks honesty or it doesn’t. 

If it hasn’t smelt and felt honesty after two days of studying the stock, I just let the stock go. 

Some are big on numbers. Some are big on charts. Sure, I look at both. Honesty delivers the final decision for me, though, as in, the crucial blow. 

Instead of resorting to all kinds of nonsense, the racing mind can be taught to become one’s greatest asset. 

What about Daddy Cool? 

Posted on by
Reply

Boney M sang this blockbuster hit in the ’70s.

I’m sure you’ve heard it, because it’s still the rage. 

he’s crazy like a fool – what about daddy cool? 

Who’s Daddy Cool? 

You tell me. 

Is it you, in a cool cucumber moment, slow to respond to stimulus, devoid of anger, master of your situation in a kinda non-bossy, non-micro-managing (cool) way? 

And what of Mr. Hyde’s Dr. Jekyll nature? 

We’re talking about your “like a fool” moment.

Just for your information, winning behaviour is often termed foolish by the crowd. 

Contrarian investing is one such example. 

Successful derivative trading is another. 

To cap it, let’s not even talk about private equity in real-estate. 

Did someone mention high-yield structured-debt? 

There are many examples of “foolish” behaviour. 

These same examples earn very well. 

So… 

… how do we do it? 

We maintain our cool. 

We keep all basics going, as they are. 

With a small portion of our surplus, we take calculated risks, in a controlled environment. 

Sure, these risks will appear foolish to someone on the outside. 

However, our controlled environment has installed riders for our safety. 

A balance-sheet might be stressed, but not stressed enough for bankruptcy. 

A lock-in might be ultra-short. 

A stop-loss might be in place. 

Collateral might be up to 4x.

There might be a highly reputed Trustee in between. 

What have you.

Have your Daddy Cool fool-moments. 

Take some calculated risks with small portions of your surplus. 

These should give your portfolios an extra-boost. 

That nagging nagging push towards action 

Posted on by
Reply

Yeah, it’s always lurking… 

… in the background…

…waiting for an opportunity… 

… to catch you unawares… 

… and spring to the forefront. 

Market-play is a mental battle. 

Your mind wins or loses it for you. 

Make your mind understand the value… 

… of action… 

… and of inaction. 

Make your mind pinpoitedly choose… 

… the time for action… 

… and for inaction. 

Make your mind automatically switch from…

… a state of action… 

… to a state of inaction… 

… and vice-versa… 

… and feel perfectly normal doing the switch… 

… again and again and again. 

The above by itself is a winning state of mind for you, which you can build upon. 

🙂 

The Promise of Far 

Posted on by
Reply

I like “far”… 

What promises me far? 

Science fiction films. 

The Interstellar, Gravity, Inception and Contact types. 

Such films relax me. 

What relaxes you? 

Have you identified it? 

Why is this important? 

Many times, we must just sit. 

Action is harmful at such times. 

We are tense. 

We suffer from the fallacy, that action is better than inaction at all times. 

Relaxation-source identification is exactly for such times. 

Go ahead. 

Get your acts together. 

Your full acts. 

Your planning needs to incorporate strategies for inaction too. 

“The Promise of Far”  strategy works well for me.

It’s not my only inaction-strategy. 

However, it’s a successful one. 

When Do You Bet The Farm? 

Posted on by
Reply

Bread and butter. 

Safety-…

…-net.

Basics.

You gather yourself to carve out a comfortable life for your family. 

Build-up. 

Debt-free-ness. 

Yeah, zero-debt. 

Feel the freedom. 

Breathe. 

No bondage. 

No tension. 

You have to feel it. 

Surplus. 

First, small surplus. 

Then, big surplus. 

You’ve made sure that nobody ever will remind you to pay your bills. 

Great! Well done. Now… 

… keeping all basics intact… 

… you play with small surplus. 

Risk. Calculated. Digestible. 

Multiplier. 

Loss. Cut small. 

Win. Allowed to grow. 

Small surplus starts giving regular fruit. 

You put back the principal into your family’s basic corpus. 

Repeat. 

Many of your small surpluses have grown into fruit-bearing trees. 

Your farm is bursting with grain and fruit. 

Have you taken any big, indigestible risks? 

No. 

Have you ever put your family basics at risk? 

No. 

Have you ever thought about betting the farm? 

NO. 

Will you ever bet the farm, no matter how big the lure? 

NEVER. 

It Boils Down to Good Governance 

Posted on by
Reply

India’s at the Olympics and all. 

We’ve had near misses. 

Sure. 

Athletes qualified fair and square. 

Not a word against India’s squad. 

They’re really trying very hard. One of our gymnasts has even risked her life by vaulting a successful Produnova. Rio-presence is achievement-based, not nepotism-based. It’s tough. It’s incorruptibly monitored. Footfall is highest ever. Indians have made the international cut in many events, like never before. Finishes are all decent. A few finishes are very, very decent, missing the podium by decimals. Our athletes deserve some podium finishes. 

However, what are 80 Indian officials doing in Rio, accompanying a squad of 119? Only a few of these 80 are allowed arena access. The rest are what? Long live the exchequer? We build up the exchequer by paying our taxes. We’d like to see its contents used judiciously. 

Let’s cast a glance at how our officials are conducting themselves at Rio. Actually, we’ll leave it at the official warning they’ve just received to behave themselves. SHAME SHAME. 

Is this good governance? 

NO. 

Do our officials deserve a podium finish?  

No. 

We’ll have to spend where it counts, on facilities, proper diets and trained physios. We’ll have to save on useless paraphernalia. Red-tape be damned. We’ll have to embrace good governance. We do want podium finishes, don’t we?

One looks up to one’s peers. If they’re corrupt, out of shape and / or out of whack, even the best athlete suffers a psychological downer. Our officials will need to trim down and get their acts together. All of them will need to behave like exemplary ambassadors of the country. They will need to give their wards that psychological boost. Coaches will themselves need to be in shape, to set good examples. Podium finishes will then be around the corner. 

Cut to stock-selection. 

The biggest and first thing to look for is good governance. 

Just cut all the nonsense out of the way, first up, because where you find good governance, you won’t find nonsense. 

It all boils down to good governance. 

Nath on Equity – make that a hundred

Posted on by
Reply

Long-term equity is 81). brought low.

The idea is to, if required, 82). sell it high.

Otherwise, 83). it is sold when you no longer believe in the stock concerned, for strong fundamental reasons. Or, it is sold when something more interesting comes along, and your magic number is capped. Then you sell the stock you’re least interested in and replace it with the new one.

84). Attitudes of managements can change with changing CEOs. Does a new management still hold your ideology-line?

Is the annual report flashy, wasteful, rhetorical and more of an eyewash? Or, 85). is it to the point with no BS? Same scrutiny is required for company website.

Your winners 86). try to entice you to sell them and book profits. Don’t sell them without an overwhelming reason.

Your mind will 87). try and play tricks on you to hold on to a now-turned-loser that is not giving you a single good reason to hold anymore.

If you’re not able to overcome your mind on 87)., 88). at least don’t average-down to add more of the loser to your folio.

89). High-rating bonds give negative returns in most countries, adjusted for inflation.

The same 90). goes for fixed deposits.

Take the parallel economy out of 91). real estate, and long-term returns are inferior to equity, adjusted for inflation.

92). Gold’s got storage and theft issues.

Apart from that, 93). it’s yielded 1% compounded since inception, adjusted for inflation.

Storage with equity is 94). electronic, time-tested-safe and hassle-free.

Equity’s something for you 95). with little paperwork, and, if you so wish it, no middlemen. In other words, there’s minimal nag-value.

Brokerage and taxes added together 96). make for a small and bearable procurement fees. Procurement is far more highly priced in other asset-classes.

One can delve into the nervous system of a publicly traded company. Equity is 97). transparent, with maximal company-data required to be online.

As a retail player in equity, 98). you are at a considerable advantage to institutions, who are not allowed to trade many, many stocks because of size discrepancies.

All you require to play equity is 99). an internet connection and a trinity account with a financial institution.

If you’re looking to create wealth, 100). there’s no avenue like long-term equity!

🙂

Nath on Equity – almost there

Posted on by
Reply

Market being down 61). should not pinch you. If such condition does pinch you, you might react accordingly, and do something painful. 

You make market-downs not pinch you by being 62). miniscually committed at any given time. 

Also, 63). you continue committing your miniscule quanta during market downs. 

That’s because 64). you’ve made sure you have lots more to commit, by defining such an approach for yourself. 

You are 65). happy that the market is down, because it is giving you an opportunity to enter. 

You 66). switch off market TV. You don’t wanna know from them, because they themselves don’t know what works for you. 

All 67). useless emails and smses are put on block. 

That’s because 68). information overload is your nemesis. 

You 69). learn from everything you experience. 

However, you 70). don’t follow any market-person. 

That’s because 71). you are unique. Only you can benefit yourself, ultimately. 

You are going to 72). teach yourself to become a strong hand. 

Thus, you will 73). not get affected by the behaviour of weak hands, ie. the masses.

Instead, you will teach yourself to 74). take advantage of the behaviour of weak hands. 

Market players 75). commit the same blunders again, and again and again. 

That’s because 76). every few years, a whole new batch of market players starts behaving unreasonably. 

This proves to us 77). that the only real learning comes first hand from market-play, to you and you alone, and only from your market-play.

This also pretty darn well insinuates that 78). theoretical learning from books or universities has zilch value in the markets.

You’re lucky 79). if the market knocks you around during your first seven years of market-play, when the kitty is small. 

That’s because 80). exactly that learning from 79). is going to earn you big as the kitty increases during your meat-years of market-play. 

Nath on Equity : have stuff – will talk

Posted on by
Reply

Behind Equity, there’s 41). human capital. 

It’s human capital that keeps 42). adjusting equity for inflation.

43). No other asset-class quotes on an inflation-adjusted basis. 

That’s good news for you, because 44). equity takes care of the number one wealth-eater (inflation) for you. 

All world equity ever quoted, whether currently existing or not, has 45). returned 6% per annum compounded, adjusted for inflation. 

46). All equity ever quoted that still exists has yielded 11% per annum compounded, adjusted for inflation.

Equity selected with good due diligence, common-sense and adherence to basic rules listed here and in previous articles is 47). well-capable of yielding 15%+ per annum compounded, adjusted for inflation. 

However, equity is 48). a battle of nerves, at times. 

This asset-class is 49). more about creating long-term wealth. 

It can be used, though, to 50). generate income through trading. 

51). Trading, however, is burdened with more taxation, commission-generation and sheer tension. 

Trading equity 52). eats up your day. 

Investing in equity 53). gives you enough room to pursue many other activities during your day. 

Trading strategies are 54). diametrically opposite to investing strategies. 

55). It takes market-players the longest time to digest and fully comprehend 54).

For long-term players, 56). up-side is unlimited. This is a vital fact. 

Also, 57). downside is limited to input. Factor in good DD, and that very probably won’t even go half-way. 

58). Thus, 56). and 57). make for a very lucrative reward : risk ratio. 

Equity needs courage, to 59). enter when there’s blood on the streets. 

It also needs detachment, to 60). either exit when required for monetary reasons, or when everyone else is getting ultra-greedy and bidding the underlying up no-end.