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.
Sunday, July 29, 2007
Monday, July 9, 2007
Operating Market -- Not so Capital Intensive!!!
Its 13.43 on 9th july, 2007.
Here is the Jet Airways Futures info...
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.
Here is the Jet Airways Futures info...
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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%..
-----------------------------------------------------------------
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.
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