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manish_okhade
Senior Member
Joined: 20/Oct/2008
Location: India
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Posts: 1997
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![Reply](forum_images/reply.gif) Posted: 16/Jan/2010 at 6:46am |
Control your temperament, when one has the cash then instead of putting it in mediocre type opportunity better to wait for outstanding opportunity to come at your doorsteps.
Outstanding opportunity occurs occassionaly so one should be ready with enough cash to take a plunge.
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Vrishali
Senior Member
Joined: 12/Apr/2008
Location: India
Online Status: Offline
Posts: 190
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![Reply](forum_images/reply.gif) Posted: 16/Jan/2010 at 7:17am |
Superior investment returns are not gained without PAIN, TIME, INTROSPECTION and DOUBT.
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"Diversification is a protection against ignorance. It makes little sense for those who know what they're doing."
- Warren Buffet
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subu76
Senior Member
Joined: 25/Feb/2008
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Posts: 5709
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![Reply](forum_images/reply.gif) Posted: 16/Jan/2010 at 10:52am |
Originally posted by rapidriser
Cash is king. It gives you a chance to buy cheap when everyone else is selling in panic. |
Rapidriser, Could you kindly elaborate around your plan to preserve cash for crashes?
Smartcat has outlined a plan around this.
Personally, I am also reserving a fraction of new money to buy broad market indices at PE of 13, 12, 11, 10, 9.....right now doing FDs which i'll break if such an eventuallity arises.........
Edited by subu76 - 16/Jan/2010 at 10:53am
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Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
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Posts: 1284
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![Reply](forum_images/reply.gif) Posted: 04/Mar/2010 at 2:01pm |
http://blogs.wsj.com/financial-adviser/2010/02/25/ten-things-i-learned-while-trading-for-victor-niederhoffer/ I could have pasted the above article but not sure if that would be approved by equitydesk administrators. Some of the points match my recent insights. I was just a casual chess player. I took it seriously 6 months back and am studying the deep theoretical aspects as well as playing high level tournaments. I think it has helped my decision making in stocks immensely.I am comparing the 2 activities and learning a lot on what to focus on in investments.After all pattern recognition is the needed skill in both. Also,I am studying deliberate practice as applied to chess and investments.
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Ajith
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manish_okhade
Senior Member
Joined: 20/Oct/2008
Location: India
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Posts: 1997
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![Reply](forum_images/reply.gif) Posted: 04/Mar/2010 at 2:26pm |
Ajith,
It benefits all if you share your chess parallalism to investing with some your successful investment story.
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Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
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Posts: 1284
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![Reply](forum_images/reply.gif) Posted: 04/Mar/2010 at 4:26pm |
manish_okhade, Personally,I think I have become sharper(and calmer because high level chess is very stressful) and started to think in new ways.For instance,I instinctively felt Trent was being manipulated just before warrant delisting and exited completely at peak price much against my logical thinking. More about the parallels later.
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Ajith
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SORUB
Senior Member
Joined: 01/Dec/2006
Location: India
Online Status: Offline
Posts: 155
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![Reply](forum_images/reply.gif) Posted: 04/Mar/2010 at 7:00pm |
keep things simple. take your time and plan well
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K.I.S.S(keep it simple silly) is the most easy management formula i ever came across!!! but it is very hard to follow!!!
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Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
Online Status: Offline
Posts: 1284
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![Reply](forum_images/reply.gif) Posted: 04/Mar/2010 at 8:43pm |
manish_okhade, In chess pattern recognition is the key.Higher level players are simply more familiar with more patterns.So they know what to do.In stocks also its the same.Jim Rogers knows stock market and economic history like few others and so understands and takes advantage of current situation. Also,there is a saying-Stock market is an expensive place to find out who you are.Chess is far cheaper to learn those lessons.As Kasparov says weakness of character is reflected in your chess.I learnt that I am often impulsive.That I must rely more on my powerful subconscious.While playing important tournaments,I move away from the scene every now and then even in complex situations.When I come back often I notice something new and important instantly.Therefore,Its more than a month since I visited the broker as the trading screen just confuses me and supresses my subconscious.So no more decisions in front of the screen.Earlier,I used to go to the broker at least twice a week and take important decisions sitting in front of the screen.
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Ajith
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