Tag Archives: #pipeline

Chronology

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Pipelines…

…come at a cost.

And, first up, there’s no need to fret about this cost.

I know, it pinches.

Having funds at a 20 second disposal will definitely cost.

Why go this extra, extra mile?

That’s a very befitting question.

We are not mad to create pipelines on call within 20 seconds.

Well, just to give you a heads up about how things can go down, here’s something.

June 4th, India, markets tank in the first hour.

Alerts, GTDs, GTTs, what-have-yous trigger.

I’m busy. Business meeting. Can’t get away.

6 of 7 GTTs in place get hit, and I’m in on these 6 scrips, at my price. 7th gets hit. No entry. No more funds in purchase account reported.

As meeting leader delivers on taxation laws in the country, there’s regret in my mind. Why did I not have enough funds in place?

Idea.

Let’s slimily look busy, and, meanwhile, activate a pipeline, put funds in place, and forcefully enter this particular scrip at CMP.

“Could you please pay attention, Mr. Nath, and put your phone away!”

Yikes.

Meeting ends (phew).

Action stations. Funds in place. Yes.

But what have we here?

Scrip’s showing a huge pin, and live daily candle has become a hammer. Bottomed out and then some, has the scrip. CMP is now 11% above the bottom.

Chickening out.

11% shaved off my margin of safety, in 45 minutes.

Yes people, that’s the window nowadays, for getting dream entries.

45 minutes.

Had it not been for the meeting, I would have been in within a minute or two, after reading the alert that GTT got triggered but no funds were available.

Lost time in this case would have been the interval between reading messages, plus a minute or two to have funds in place and go through with the buy. I’m not very regular about messages, though, perhaps on purpose, and 30 minute plus periods can well elapse. So, window cuts very fine. Idea is, whenever awareness kicks in, one needs to be in within a minute or two, if the GTT option has failed to deliver due to whatever reason.

The case described above was the one time that did not work, despite having everything of the highest quality in place.

What puts salt on the wounds is that the scrip quasi doubled from there within three months, so those lost 11% on margin of safety were peanuts. Yeah, the final fail was my fearful mind.

Painfulllllll….

That’s how it crumbles. One learns from the pain.

No pain, no learning.

My learning from this is that when GTT limit is 5.2% below CMP, we just sheer put funds in place for that GTT…

…now.

Hack

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Farm-land?

Own it?

Yes?

If so, you can avail an overdraft on your fixed deposits, having to pay low interest.

Why?

Government allows farmers to take crop-loans.

If you own farm-land, well, you are a farmer.

Even if you don’t use the facility to buy crops, you can still use it…

… for whatever.

Perk.

Government sops it to farmers and you get roped in as an accidental farmer.

G(ood) f(or) y(ou). Yeah, gfy.

Why overdraft?

So that a fixed deposit doesn’t need to be broken prematurely.

Why the trouble?

Let’s say you need trade money to be in a trade for a few days, but the bulk of your liquidity is working elsewhere. However, in good times, you have created fixed deposits, which add to your liquidity at regular intervals. When your liquidity runs out for a few days, you think of breaking an FD to replenish it, but this incurs a penalty.

Suggested hack keeps everything intact.

You utilize the created liquidity, let’s say for a month.

Meanwhile, your income pipeline generates new income. You use this to keep nullifying parts of the loan. Let’s say in 40 days you have nullified the loan, and your positional trade, for which you took the loan, is still on. You are charged low interest on the loan taken for 40 days. Now the loan is nullified. Position is on and yielding. All equations solved. Net net something created out of …

…s omething that was already utilized elsewhere.

It doesn’t necessarily turn out so good all the time with a position, though.

If it’s losing, you are suffering positional loss and interest payment loss simultaneously. That’s the downside.

This hack is worthy, nevertheless.

Interest charged on 40 days is a small figure, typically less than a percent. A positional trade in profit can well give 15%+ in that period.

So, hack stands.

All you need to do is to see if the hack fits you.

Pipelines

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Replicability of an approach is a pipeline. You can always draw on it for a fresh trade, for example.

Scalability is a pipeline getting broader.

Research sharpens the edges of your pipeline, sustains these well, and founds new paths (pipelines), going forward.

Deep Thought is where one taps the pipelines of the Universe.

Experience builds reflexes, which guard and enhance pipelines. This is intuition in action.

Ability to discern allows judgement to manipulate a pipeline in the correct direction.

Cataloguing provides hindsight, so that the pipeline of foresight is strengthened.

Giving opens up vast positive pipelines for oneself, by creating energy vacuum in one’s immediate environment.

Relaxation allows the pipeline of genius to emerge. Brilliant sparks which have been developing silently, within oneself, burst forward.

Family is a pipeline of joy.

Freedom allows the pipeline of creativity to flow.

Also, detachment allows time for the pipeline of flow to form properly. This is particularly valid in trading. Think of profits being allowed to run, for starters.

If I rack my brains, I’ll come up with more…

…pipelines.

That’s not the point.

The point is to delineate that one’s per saldo self is a net resultant of many pipelines acting in tandem.

These have taken time, effort, fortune, patience, blood, sweat, tears and what have you to create.

I measure my life’s success in seamlessly implemented pipelines on autopilot.

For every long-term, seamless, auto-pipeline functioning optimally and on full, there have probably been fifty discarded efforts.

Whether one is trading, investing or sheerly living a fulfilling life, …

… it’s one ‘s pipelines that provide critical support.

Positioned

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By now…

…, we are positioned.

The persistence of high price-levels…

…has led us to take appropriate action.

One after another, we are washing our market mistakes clean.

What remains, is cost-free-ness, in high-quality holdings.

We’ve then also helped our relatives and friends attain the same state of market-being.

MFs?

Now cost-free.

ULIPs?

Gotten them to money-market.

Debt market holdings?

No more debt market for a while.

Bond-yields are rising.

There’ve been blow-ups. Boys @ FT and Nippon take a bow.

Parking where?

Fixed deposits.

Why?

Not in it for returns.

Just to park, safely.

We’re sticklers for parking safely.

Loss of interest will be made up within days of opportunity, into which funds then flow, and then some.

One can now say…

,…safely…

,…that we’re positioned.

What happens from this point onwards?

How many days has the main sensory index spent at PEs of 35+ within the last 5000 days?

Yeah, right?

Small-cap rally still due?

That’s what everyone feels, right?

That’s the point.

Leave the masses hanging onto something they’re expecting.

If it doesn’t happen, they’re what?

Left hanging. Devil takes the hind-most.

Please do your math, and please position yourself too, appropriately.

What if markets go on rising?

Sure, that’s a possibility, perhaps for a while.

Simple rule.

No level, no entry.

We know how to sit.

On our holdings, and then…

…on our cost-free-ness.

Now, capital will only move…

…upon opportunity.

And the pipe-line’s ample, our positioning has seen to that.

Come something like March ’20, and we’ll blast the flow of our pipeline.

Oh, another thing.

Notice the speed of moves, nowadays?

It’s fast, isn’t it?

As in markets are efficient, till they’re not, and then they’re efficient again, and then they’re not, back and forth, to and fro, all very fast.

Meaning what?

Meaning, that there will be ample opportunities, more sooner than later, and that till there are inefficiencies on the down-side,…

…we sit tight…

…to maximize the impact of our positioning.

Incorporating the Satisfaction Factor 

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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. 

🙂