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Trading Psychology
 The Equity Desk Forum :Market Strategies :Trading Psychology
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kulman
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Quote kulman Replybullet Posted: 30/Nov/2007 at 9:42am
The two fast friends had a meeting over this weekend....but their friendly chat turned into a fight because of heavy losses in Commodities trading. This is why.....
 
MungeriLal: "Hmmm...You too look to be in trouble?"
 
SambhadhLal: "Arey yaar....woh saala Crude ne waat laga diya!"
 
MungeriLal: "Oye.....what happenend? Last time you said it was trending nicely, wasn't it?"
 
SambhadhLal: "Bh#$%#.....I knew it was topping out so went short bigtime around US$94. And then that flash news came of pipeline blast in USA! I covered my shorts with some losses & went LONG with borrowed money as that event was supposed to cut supplies by 20% & there were gora experts talking about target of US$115! And now you know what has happened yesterday. My stop loss levels were breached on the downside!"
 
MungeriLal: "Yaar...matlab wahan pipeline phat gayi aur yahan aap ki ####. You could have bought a nice brand new car with that money lost!"
 
SambhadhLal: "Dekho....mere jale pe namak mat chhidko!! Did I say anything when you lost big fortune in Gold Futures trading? Tab main bhi bol sakta tha ke....itna paisa sona waayda mein faaltu kho diya....utne paise mein kitni baar sonagacchi jaa sakte the!!"
 
MungeriLal: "Angry Bh#$%#.....""
 
SambhadhLal: Ma#$%#.....Angry""
 
 
 
Life can only be understood backwards—but it must be lived forwards
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kulman
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Quote kulman Replybullet Posted: 01/Dec/2007 at 9:47am
Excerpts from HBL article....
 

How do you know for sure that you are in the midst of a raging bull market? Probably by the eagerness with which investors lap up every shred of positive information about a company or stock, while ignoring everything that is negative!

Investors, especially those on the retail side, routinely believe that the “inside” information floating around in the markets contains the key to stock market riches. Poring through a company’s financials, or going by “buy” calls based on projected earnings is hardly as exciting as the prospect of a quick windfall on a stock, as it spirals upwards after a “stake sale” or “land sale” that is whispered about in the markets.

However, selecting stocks for your portfolio based purely on such speculation is fraught with risk for two reasons.

One, where the stock prices have been drummed up purely on the strength of speculative news, a denial of such news can lead to an equally sharp meltdown. Exiting a stock which is on a rapid downward spiral can be quite a nightmare, especially if it is in the small-cap league. Second, even if the windfall gain through a stake sale or land sale does materialise for the company, there are still negative scenarios that can play out.

For every rumour that proves right, there are probably several that don’t pan out at all, leaving investors with huge chunks of a company that they neither desire nor understand.

Remember, in the present day scenario, ‘news’ can be disseminated within minutes through blogs, chats and SMS’, by any investor keen to offload a dud stock from his portfolio. This should make investors all the more cautious about acting on news from unverified sources.

 

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kulman
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Quote kulman Replybullet Posted: 10/Dec/2007 at 9:40pm

Companies change name to add stock market lustre

In the eighties, adding the word “Leasing” to your company’s name usually assured good stock market valuations. In the mid-nineties, it was “.com” that worked and, for a while, “Biotech”.
 
In 2007, the magic words are “Infra”, “Power” and “Realty”. Or so a host of companies have discovered.
 
Companies that have added these suffixes to their names have seen their share prices move up between 50 and 200 per cent in the past six months. 
 
Small wonder, then, that Pan Packaging Industries became Alchemist Realty, Anna Finance metamorphosed to Anna Infrastructures, Prerna Finsafe to Prerna Infrabuild and Simplex Mills is now Simplex Realty
 
To take advantage of the energy business, XL Telecom has changed its name to XL Telecom & Energy, Genus Overseas Electronic has changed to Genus Power Infrastructure, Jhantla Investments is now Veer Energy & Infrastructure and Osian LPG Bottling is Nova Gold Petro Resources.
 
The other in-vogue suffix is “Industries”, which brokers said might have something to do with Reliance Industries’ valuations. 
 
The name change or the so-called restructuring in business model has triggered a surge in shares of some of these companies. 

 
Link: here
 
 
 
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xbox
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Quote xbox Replybullet Posted: 10/Dec/2007 at 4:17am

Looks like infra is now what tech was in 2000.

Don't bet on pig after all bull & bear in circle.
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Quote tigershark Replybullet Posted: 10/Dec/2007 at 6:51am
eiffel tower infrance   if listed on the bse should have a lot of buyersWink
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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kulman
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Quote kulman Replybullet Posted: 17/Dec/2007 at 11:09pm
 
 
 
 
 
CLICK : here for interesting picture.
 
 
 
 
 
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Quote kulman Replybullet Posted: 18/Dec/2007 at 5:23pm

National Stock Exchange on Tuesday asked investors to tread carefully before investing in equities and keep away from rumours and advertisements promising large returns.

"Do not be attracted to stocks promoted by internet websites, research reports, tips etc unless you have done adequate study of the company," NSE said on Tuesday.

In an advertisement published in leading newspapers on Tuesday, NSE asked investors to 'do a thorough evaluation before trading in any security'.

...the exchange asked them to be cautious of stocks that show a sudden spurt in price or trading activity without a change in the fundamentals of the company.

Source: here

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omshivaya
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Quote omshivaya Replybullet Posted: 18/Dec/2007 at 5:56pm
Why can't NSE simply say, "Please make sure you search TED for your stock first before going anywhere else".
 
A simple one line would have been better than all this hulla bullo!
The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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