M6 - Man, Mind, Money, Markets, Method & Madness

[DSM]

Brazilian govt. is estimated to have spent approx. US$ 15 billion to host the Football World Cup, and another US$ 9.7 billion (minimum) to host the Rio Olympics.

Meanwhile, Brazil will have 16,000 cases of microcephaly, a birth defect where a baby is born with an abnormally small head... The budget for fighting Zika virus is less than 1/10th comparatively.... Is this money spent on Olympics justified? The stadiums become white elephants after the games and expensive to maintain.... Who benefits from the expensive games?

 

[DSM]

Headline from ZeroHedge, who have been providing doomsday scenario over the last 5 years, while the market has continued to move higher and make a new top this week. So how can this be now explained other than having another scary headline - which eventually one day will happen. And then they will say 'We told you so'

"The Final Melt Up", "A Blow Off Top": Money Floods In As Investors Turn Euphoric At Triple Record High

http://www.zerohedge.com/news/2016-...ds-investors-turn-euphoric-triple-record-high

 

[vijayanscbe]

Brazilian govt. is estimated to have spent approx. US$ 15 billion to host the Football World Cup, and another US$ 9.7 billion (minimum) to host the Rio Olympics.

Meanwhile, Brazil will have 16,000 cases of microcephaly, a birth defect where a baby is born with an abnormally small head... The budget for fighting Zika virus is less than 1/10th comparatively.... Is this money spent on Olympics justified? The stadiums become white elephants after the games and expensive to maintain.... Who benefits from the expensive games?

Before this smart phone, IT age, the countries which conducts olympic believes, It may boost their economic growth. Olympic bridges new visitors(touristers,businessmen).

Its like an ice-breaker for new touristers and businessmen.
Its like big festival (like our Dewali), which triggers money flow.

Even if Brasil suffered from Zika , still the olympic attracts many touristers (i dont know the numbers) . If there is no olympic, even the regular visitors wont go for Brazil coz of zika

 

[DSM]

Raghuram Rajan, has been criticized for not reducing interest rates as demanded by the government as well as business houses. Some people went to the extent of calling him anti-national for doing his job as a professional and not giving into pressure.

If only the critics had deeper understanding of economics... Fight against inflation is important, as has been proven in history. The US Federal reserve makes note of it in it objectives while stating its goals of maximum employment, stable prices and moderate long-term interest rates.

The benefits of faster economic growth at the risk of higher inflation is questionable in in the longer run, as higher prices undo the benefits derived from growth, especially on our large middle class and weaker section of the population. So a balanced approach is required between growth and inflation. Just as a car cannot have wheels running at different speeds, so too, economic growth and inflation has to be balanced, as one impacts the other. Well depicted in this cartoon....

 

[DSM]

Case arguing for further upmove in Indian stocks.

Note : This is a social media post, and data is not verified.

 

[Snake.Head]

 

[DSM]

Truth about Trading : Trading is the hardest easy money you will ever make. Bramesh


http://www.brameshtechanalysis.com/2016/08/bitter-truth-about-trading-2/?fb_ref=Default


1. Expect the Unexpected


On 24 Aug 2015 just 1 year before, Nifty saw the highest fall closing down by 491 point and well below 8000. And Now we are trading close to 52 week high and around 6% down from Life high of 9119 . This August 2015 we have not even moved 1% from last 21 trading sessions. 24 June we made low of 7927 and now we are trading near 8600. Expect it No matter how much effort you put in your analysis, you still won’t have a hundred percent accurate idea of where the market is headed. There’s always the chance market will surprise you. Thats the reason as trader we should have a strong risk and money management, to pass through such unforeseen events.

My Guru used to tell me Your risk management should be so strong than even market hits a circuit against you, You should be able to trade and should not be out of market. Thats where handling leverage comes in picture.


2. Trading is all about probabilities


Trading is a game of probabilities.So as a trader 2 things should be in my favor while placing the trade.

(1) Risk to Reward should be in my favor

(2) If I get stop out I should not get mad after taking loss and take impulsive trade


Let me exlplain with a small example We gave a positional trade on Engineer India Close above 238 Tgt 246/254. Today Engineer India Opened gap open 238, but my trade portability was highest to enter near 238 with sl at 236, stock did visit the low and made high of 254 meeting the final target.

Whether you win or lose at this point matters very little now, since you have already acknowledged before you even took the trade that you are trading based on probabilities. You may lose, which is okay, because you have already expected it as part of trading plan. In the same manner, you may also win, which you already are expecting too. Nothing can be more heartbreaking than unfulfilled expectations.

By keeping these truths in mind, you ease the pressure on yourself to always be right about what the market will do next or having to take a loss. In doing so, you overcome the fear of losing money, which is inevitable to every trader. So trade probabilities not your EGO.

 

[Rish]

Truth about Trading : Trading is the hardest easy money you will ever make. Bramesh


http://www.brameshtechanalysis.com/2016/08/bitter-truth-about-trading-2/?fb_ref=Default


1. Expect the Unexpected


On 24 Aug 2015 just 1 year before, Nifty saw the highest fall closing down by 491 point and well below 8000. And Now we are trading close to 52 week high and around 6% down from Life high of 9119 . This August 2015 we have not even moved 1% from last 21 trading sessions. 24 June we made low of 7927 and now we are trading near 8600. Expect it No matter how much effort you put in your analysis, you still won’t have a hundred percent accurate idea of where the market is headed. There’s always the chance market will surprise you. Thats the reason as trader we should have a strong risk and money management, to pass through such unforeseen events.

My Guru used to tell me Your risk management should be so strong than even market hits a circuit against you, You should be able to trade and should not be out of market. Thats where handling leverage comes in picture.


2. Trading is all about probabilities


Trading is a game of probabilities.So as a trader 2 things should be in my favor while placing the trade.

(1) Risk to Reward should be in my favor

(2) If I get stop out I should not get mad after taking loss and take impulsive trade


Let me exlplain with a small example We gave a positional trade on Engineer India Close above 238 Tgt 246/254. Today Engineer India Opened gap open 238, but my trade portability was highest to enter near 238 with sl at 236, stock did visit the low and made high of 254 meeting the final target.

Whether you win or lose at this point matters very little now, since you have already acknowledged before you even took the trade that you are trading based on probabilities. You may lose, which is okay, because you have already expected it as part of trading plan. In the same manner, you may also win, which you already are expecting too. Nothing can be more heartbreaking than unfulfilled expectations.

By keeping these truths in mind, you ease the pressure on yourself to always be right about what the market will do next or having to take a loss. In doing so, you overcome the fear of losing money, which is inevitable to every trader. So trade probabilities not your EGO.

:thumb::thumb::thumb::thumb:

 

[Snake.Head]

Why confidence is the most important emotion in trading w/ Nikolai Dimitrov - Podcast

Point from podcast - kindly listen full podcast
The importance of learning to understand the behavioral context behind charts and patterns
The importance of creating scenarios
Understanding that when you’re wrong it’s just feedback – it’s simply adding up to another scenario that is more compelling
How successful traders frame losses in a constructive way and recover quickly
How the bottleneck to performance is sometimes the quality of the focus you bring
Why the only emotion traders should experience is confidence
How confidence is detached curiosity
Learning to love a small loss
How fear and doubt is the result of a lack of anticipation

 

[DSM]

Snake.Head

Confidence as well as self doubt two sides of a coin.... Confidence is good, but it is better to cast aside confidence when in a losing trade and exit when loss is small... Being confident of analysis, prediction, strategy when losing money is just the opposite of one should be doing i.e cutting losses. Similarly, doubt is no good, if when in profit, one books small profits early and consistently. This means one does not have faith in the strategy.... So it's better to have a mix of both in my view.... Theories applied with experience will get us to a good understanding of trading.... Thanks for your post... :thumb:

Why confidence is the most important emotion in trading w/ Nikolai Dimitrov - Podcast

Point from podcast - kindly listen full podcast
The importance of learning to understand the behavioral context behind charts and patterns
The importance of creating scenarios
Understanding that when you’re wrong it’s just feedback – it’s simply adding up to another scenario that is more compelling
How successful traders frame losses in a constructive way and recover quickly
How the bottleneck to performance is sometimes the quality of the focus you bring
Why the only emotion traders should experience is confidence
How confidence is detached curiosity
Learning to love a small loss
How fear and doubt is the result of a lack of anticipation