Saturday, January 5, 2013

Weekend Thoughts

In Volatile Times, prices of most stocks move together. This is explained in the Chart of the Day.

During periods of high volatility, correlations among stocks increase.  In other words, stocks move up and down together.
My Notes: This should suggest that stock picking works well during periods of low volatility. When markets are in crisis or bubble (High Volatility) then most stocks will go together and stock picking is not a protection from sudden price shocks.
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Mentor Program (Repeat)
I have received many emails on the Mentor Program. I will be responding to all of them. I have reproduced the program for the benefit of people who may not have read the earlier post.

If you have a burning desire to become a trader, live in NCR(National Capital Region, which means in or around Delhi), have spare time in evenings / weekends, read a lot, preferably know some programming, have an interest in automated systems (even if you do not know how to develop them!), and, want to develop yourself, then write to me: sudarshansukhani@gmail.com

To get an idea of Burning Desire, read my post here.
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Peter Brandt in his blog post points out to a gap up by the S&P500.  A similar 2012  New Year gap led to sustained gains through the year.

My Notes: This is analysis. It is not tradeable. We need actionable ideas to trade with.

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 If you are awestruck by managers of large financial institutions, then think again. Zero Hedge says that 88% of hedge funds, 65% of mutual funds underperformed the market in 2012. and, these funds charge large fees for this underperformance.

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What is the meaning of 'Equity Curve Trading'? Most readers should know what it means. Readers may like to do some more study on this subject - do a google search. Please come back with your comments on the subject.
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2 comments:

Ssaameer Sunil Limaye said...

Guess this is the first time in many months you have a different opinion on Peter Brandt's thoughts.

Ssaameer Sunil Limaye

Ashish Sankhla said...

thanks sir for sharing your valuable thoughts !

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