Sunday, July 29, 2007

Quality - Conciousness

1. Quality and A chain of Positive work -- Reaching a level of Conciousness
2. CAT Preparation as a Quality Focussed Person

How CAT makes sense?

CAT aims at finding people who can take a set of small decisions correctly. The decisions at times may be diffcult, however they should know how to manage such a situation.

It is like a stock market index. The value of the score is representive of the quality/capability of student after considering all the factors. This in fact is the case for all the aptitude exams.

3. Taking up Life challenges without ever feeling Stress
4. Realizing & Managing the Tangibles well -- Temple of soul, Speaking, Dressing, Gestures, Personal Relationships, etc.
5. Changes Needed as a by product of quality Conciousness.

Let my fun be not based on pulling others legs.
Let my satisfaction be not based on blowing my trumpet or Explicity Acknoledgement from people
i can't live without quality now!!! i will live life in a forgettable manner if i don't follow quality.

what goes round come round? -- The same holds very true for quality.

Monday, July 9, 2007

Operating Market -- Not so Capital Intensive!!!

Its 13.43 on 9th july, 2007.

Here is the Jet Airways Futures info...

ymbol Code : Expiry Date : Cost To Carry
F&O-GET QUOTE
CONTRACT : FUT-JETAIR-26-Jul-2007 EXCHANGE : NSE
LAST TRADED DATE : 09-Jul-2007 LAST TRADED TIME : 13:43:52
LAST TRADE PRICE : 782.25 BEST BID PRICE : 781.10
DAY OPEN : 780.00 BEST OFFER PRICE : 782.70
DAY HIGH : 789.50 BEST BID QTY : 400
DAY LOW : 773.10 BEST OFFER QTY : 400
PREVIOUS DAY CLOSE : 778.10 HIGH PRICE RANGE : 933.75
% CHANGE : +0.53 LOW PRICE RANGE : 622.50
QUANTITY TRADED : 148400 Spot Price : 796.25


Total No of Contracts traded = 148400/400 --> 371...

Margin for a Single Contract is 40k Minimum.. average 50k..

So total margin with the brokers for all these 371 Contracts is 371*50k = 1.855 Cr..

Thats it ..1.855 Cr..is the amount needed to trade all the contracts.. now for someone to ensure that the price moves up today.. he would be just required to take a buy position in 50 -60% of the trades.

A question may arise, how did we decide that it has be 50%-60% of the trade?

Now this percentage may depend upon many things, Chiefly among them..

1. The movement of the share price that would have happened, in the absence of any manipulation
2. General Market movement on the day -- it woud be expensive to drive a stock price against both of these factors..

So on this day the global markets were up, the crude was also up.. so the operator had to fight just one factor and hence comes the no 50-60%..
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Now how do traders plan their trade that they don't become a victim of the operator?

The trader should participate only once he finds there is significant room for profit making.. i.e he should keep high margin of safety or not trade at all..

For eg. if the stock price is up the above case earlyin the morning.. then it would be a case of clear mispricing.. as the global oil prices have increased and exchange rate has been pretty stable..

so a trader who trades on Public info.. may resist from jumping to short it.. he may set a significantly higher price target for shorting so as to enhance his margin of safety against the operators. so he can wait untill his destined price target is achieved.

Also he may .. move with the operator on this front and come out and buy himself.. this would then be a classical case of "Greater Fool Theory". This would however be a poor strategy and can result in a loss.

So "Margin of Safety" is the priniciple to be followed.. whether one is trading or Investing.

Tuesday, March 13, 2007

M-Watch Blood Diamond

One of the very good movies i have seen..

The things that happen when everyone wants easy money/Value/Power.

The wrong things that can happen when capitalism is unleashed before time and when it fails.

One can also reach the movie conclusion that Capitalism is not Great as compare to Communism.They are just two ways of doing things. At the end its humans who needs to be responsible & Compassionate.

Also every industry needs labour & it tries to obtain it as cheaply & Easily as possible

How sytems are designed with the intention of benifiting out of them at the cost of others?

Even today there is no significant change in the state of society at certain places. There are barriers all along.

The barriers are due to all kinds of factors like .. physical isolation, Societal isolation, imposed isolation, Self choosen isolation, Technological isolation etc.

Humans/ have this capabiltiy to

Learnings from Movies

Yesterday after watching two good movies at night, i realized the importance of movies in broadening the thinking.

Movies of Various kinds can be used to gather facts as well us understand human emotions. Understanding emotions would help in Managing people better.

Documentaries & Movies based on real life experiences can be good. Also on an average 2-4 movies a month should no be bad.

The thing with movies is that u use less of your brain and try learning all the things the easy way. Also you don't have complete control over the content , so u may learn things that you may not intend to!!! Not to add that its a passive way of learning, u are not executing things you are just experiencing them. So the best things would be to learn as much as possible from the life itself during daily experiences.

M-watch - Wall Street

Watched the movie "wall street" yesterday night with a friend

The Observations..

--Money tends to be a very big factor in people's life than they realize.. also it seems to be the most irrelevant factor once they suffer due to the wrong approach towards it.
Till that time comes everything is great and everyone enjoys.

--Financial services industry is as much about marketing as about finance.

--To create wealth innovation & Hardwork is must..

--There are a lot of people in each field ready to take shortcuts.

--The basic human needs(sex, money, fame etc) will always be used as a motivational tool. The world is relative. So the relatively old people understand the tricks and realities very well than the younger generation. Many of these people use the more of the conventional methods to get to their goal; and they are successful as their methods worK; also there seems to be no apparent reason of why these methods should not work in the near future as well.

--Managing relationships is a must. This is what gives leaverage. The more & better relationship you have the higher leaverage available to you.

--The manipulations on the trading floor and by the takeover firms were also brought into light.

--Also the use of technical analysis as a tool to detect movements was understood better.

--The dreams in the eyes of youth/veterans/old are still the same. The needs are still the same and they are to remain the same. So the tools for motivation will also continue to remain the same. Minor tweaking may be needed at times.

--As the person moves from one age category to another the tools relevant to that particular category should be used.

--TO sum it up, a lot of Gyaan on Motivation people, Stock Markets, Market Manipulators,etc.

Monday, March 12, 2007

The Purpose

Learning is a continious process...

A lot of learning is lost due to the noise.

At the same time a lot what is learned is not implemented..

This blog aims to act as a tool to document obseravations and thereby help in implementing Gyaan.