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Muhurat Trading

November 14, 2012 6 Comments

The festival of Diwali is associated with Laxmi, the goddess of wealth; it is considered an auspicious time for spending and earning money. The customary trading tradition on the day of Diwali is unique to India where markets open for a short duration in the evening to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. This Muhurat Trading is a centuries old tradition. The day holds significance as it marks the beginning of the New Year, as per the Marwari tradition.Also the Gujarati new year begins a day after Diwali.

More often than not, the benchmark indices have ended higher, albeit by a small margin. The time for trading is specified by the exchanges and usually takes place for about an hour.This year,the Muhurat trading happened on 13 November between 3:30pm and 5:15pm.

Muhurat trading happens not only in stock markets but also commodity exchanges. Major commodity exchanges like MCX, NCDEX and others were open for trade from 5:30 pm to 8pm. Read more of this post

Filed under Paper Assets Tagged with Diwali, Goddess Lakshmi, Muhurat Trading, postaday, shares, stocks

Safer Bets

September 21, 2012 2 Comments

The return of capital is more important than the return on capital.So it is important to avoid the pump and dump operations of promoters and market operators. Here is a list of safer promoters compiled by jigs of BSE India Market View

Indian promoter groups:

Birla(founded in 1861),

TATA (founded in 1868),

Dabur(1884),

Kirloskar(1888),

Godrej (1897),

Murugappa (1900),

TVS(1911),

Singhania(1918),

Bajaj(1926),

Ramco(1938),

Mahindra(1945),

Hero (1956),

Kalyani(1964),

HDFC(1977),

Jubilant (1978). Read more of this post

Filed under Paper Assets, Tool Kit Tagged with market operators, postaday, promoter groups, pump and dump, share investing, shares, stocks

Strategies To Make Money In The Stock Market

May 20, 2012 Leave a comment

First, remember Benjamin Graham’s mantra “The essence of portfolio management is the management of RISKS, not the management of RETURNS. Well-managed portfolios start with this precept.”

Second,remember what Baron Rothschild said – “I never buy at the bottom and I always sell too soon.” Trying to squeeze the last drop of profit from every deal might not be such a great idea.

Third,consider doing what Bernard Baruch used to do. Some 70 years ago, he would research a stock, buy it, and then each time the stock rose 10% from his purchase price, buy an additional amount equal to his first purchase. If the stock began declining he would sell everything he had bought when the drop equaled 10% of its top price.

Filed under Paper Assets, Theory, Tool Kit Tagged with Baron Rothschild, Benjamin Graham, Bernard Baruch, investing in shares, investing in stocks, investing in the share bazzar, postaday, share, stocks

Edward Zajac – 94 year old investor

June 25, 2011 1 Comment

This is a story I came across in the Economic Times.It seems to be a reprint from Bloomberg.I have this story pinned to my notice board just to remind me how Dumb Money can become Smart Money.Here is a person who seems to have made good money without trying to become an expert at investing.He has accepted his lack of expertise and found a way to benefit from the expertise of the “smart money”.His method involves just looking at some basic facts before putting his money in a company.The skills required are really basic.The rest of his magic merely seems to be a result of compounding due to his Time in the Market and the wisdom that comes from experience.To follow him we don’t need to understand financial statements or master technical analysis.

Buy & hold strategy not dead yet for 94-year-old investor

NEW YORK: Stick with stocks, says investor Edward Zajac. He should know. The 94-year-old has been trading for 72 years and said he’s made about $2.5 million.

“I am a live, open-hearted investor,” said Zajac. “I’m willing to hold that stock 5, 10 years, if I have to.” Zajac, who lives with his daughter in Henderson, Nevada, bought his first stock, Petroleum & Resources, in 1937 while attending the University of Illinois. He’s invested full-time since 1968, after retiring from installing computer systems to travel the US in a recreational vehicle with his wife. Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with 52 week high and low, analysts, Bloomberg, bond funds, broker, Buy and Hold Strategy, calls, Caterpillar, compounding, corporate bonds, credit rating, dividend yield, dividends, Dow Chemical, Dumb Money, earnings per share, Economic Times, Edward Zajac, EPS, EZ Investment Method, EZ Method, futures, interest, International Paper, investing strategy, Investment Company Institute, Investor, margin, Microsoft, odds, P/E, Petroleum & Resources, portfolio, postaday2011, price to earnings ratio, puts, RandomBlog2011, share price, shares, Smart Money, Standard & Poor's 500 Index, stocks, Time in the Market, Wells Fargo, Wells Fargo Advisors

The Ascent of Money

June 19, 2011 1 Comment

wealthymatters.com The Ascent of Money by Niall Ferguson is a fantastic book.I was drawn to read it after watching the TV series based on the book and I have no regrets.It’s time and money well spent.

The book describes how banks, joint stock stock companies, bond markets, insurance companies, etc. originated at different places, at different points in time, in response to specific needs .While I was reading the book I had many aha moments and I heartily recommend the book to anyone who wishes to understand our modern financial world better.

Prof.Ferguson also tells the fascinating stories of how time and again with every financial innovation there have been abuses and excesses.These stories are great to remind us that neither good nor bad times last forever,that frauds and scams are par for the course and that no financial crisis is the end of the world though it might end the world as we know it. Read more of this post