Wednesday, September 25, 2013

Planning his Portfolio: Notes - 9

'You can give a fool a thousand intellects, but the only one he will want is yours,' says an Arabic proverb. 

When a wise investor starts planning his portfolio, he notices that his neighbor (neighbor = anyone who wouldn't lose anything if you lose your money) is there, spying. He likes to give advice on when to sow actions, when to fertilize thoughts, and review.

If he only listens to what his neighbor is saying, he will end up creating something that is not his; a portfolio he is tending will be his neighbor's idea. But a true warrior knows that every portfolio has its own mysteries, which only he himself can unravel. That is why he prefers to concentrate on his beliefs, his likings, market cycles & the momentum.

He knows that the fool who gives advice about someone else's garden is not tending his own plants.

4 comments:

Avinash Ramanna said...

Hi Sudarshan,

I got a question on trend following systems.

No matter how hard I try I am unable to improve the exit efficiency. Its always ranges between 50 to 55%. If I try to improve the efficiency then the system trades more frequently resulting in a lesser profit factor. Is 50-55% acceptable?

Sameer Sunil Limaye said...

Sudarshanbhai,

Please post some food for thought on your blog. It has been a long time since your readers have heard anything from you.

Ssameeer Sunil Limaye

ramprasad said...

hi sir,
ofter infosys results,just before result day call option at the strike price i.e;3150(in fut) is 167.45.(on 10th of oct)oct series.
now i.e;11th of oct, oct series 3150 strike call optin price is 170. but infosys trading around 3300.
sir, my que is,there is 150 pts up side. but call price just 3pts up why it happens so, wht yhe reason behind it?i am surprised.and i am unable to find the reason.sir or any body fallowers of this blog please explain.
my mail id:ramprasadmajoju@gmail.com
thanku,
ramprasad.m.

Yogesh Agarwal said...

hi ramprasad
if u compare nov & dec call prize of any stock
u find that dec call prizes are very high because there is so much time for expiry (u have so much time to exit from it ( *around 58 day* ))
or when nov call expires dec call prices are decrece because now there is max 27 day for expiry