iCharts Discussions

[peace69]

[rk_a2003]

Double Standard!!!

Why loans written off for industries were never treated as unfair? Why tax holidays and exemptions offered to business groups through SEZ’s are not considered as a hole to the exchequer?. Why huge lands offered to the industries at a throw away price is not considered as contributors to fiscal deficit?.

Why bail outs offered to huge corporations not considered as deterrent to the development? Why Air India and Indian airlines continued to run on huge losses? Why and what for Govt. bearing these losses?

Why agricultural loan write offs are considered as a great mistake? Why subsidies offered to poor are considered as fiscal deficit contributors? Why an offering of a small amount to old and poor citizens is considered as a waste? Why social security offerings to poor are considered as non-productive expenditure?.

Why any effort by the system to meet the needs of the poorest of the poor are considered as ridiculous and recapitalizing the large Financial Institutes (which went in to huge losses due to the greed for more profits and put themselves in such a situation by operating in Financial derivative markets) by printing more money thus looting citizens officially are considered as the need of the hour???!!!.

What a double standard?!!!

[ajayhkaul]

I missed this thread RK ...just saw it !

Great stuff to get back to essentials of trading.

[rk_a2003]

Thanks Ajay! For your kind words.

[rk_a2003]

“The Real Economy versus The Phantom Economy

Economists often talk about the “real economy”—where something is real made and sold and services are provided—as opposed to the “financial economy” where paper changes hands for other paper (or these exchanges occur electronically).The real economy is the one in which we dwell as we go about our daily lives, working at a job, buying groceries and paying electric bills.

The phantom economy of finance became so large and to a significant extent, divorced from the real economy that it took on a life of its own. However, the financial system is still linked, sometimes in only indirect and difficult-to-discover ways, to the “real economy”. Thus when the financial system begins to falter, it does affect the real economy. When the toxic assets on bank balance sheets proved nearly worthless, the banks could no longer lend out money to consumers and businesses that needed loans to purchase real goods and services, like cars, houses, refrigerators, tool, equipment, and buildings.”
( Courtesy: The ABCs of the Economic Crisis by Fred Magdoff & Michael D.Yates)

Well this is what happened during subprime crisis the banks and corporations bankrupted for the same reason, and were re financed by FED...But at what cost?…at the cost of the world citizens, who are using $ as a medium of exchange for international transactions. .If we keep on treating the symptoms without bothering about root cause what will happen? The symptoms will reappear again and again in various forms.Dot com bubble burst …Recovery ….In the process sub prime bubble formation and burst….Now recovery appears to be happening to form another bubble….May be the liquidity bubble…or something else. From the 1930’s Great depression on wards these crisis’s are getting created and managed and again getting created (Recollect K-cycles) .

Then what is the root cause… it is because of decoupling of economic instruments from the core economic activity which is the foundation, and overpowering the very basis and destroying the very foundation, and doing it again and again. This very foundation itself might be calling on for such repetition, in such case may be we need to change that very foundation too. Well… that will be the sphere of political economy.
For now we may think that perhaps another bubble is in creation .

[vinst]

[ajayhkaul]

Whatever has to keep growing to survive , must die -- law of nature.

So if it doesn't grow ,its dead anyway .

And if it grows , it is unable to sustain that growth and withers and dies. ( it bubbles and collapses in this case)

the only constant is change

[vinst]

[ajayhkaul]

[ajayhkaul]

[vinst]

[vinay28]

I have gone past these thoughts and now in thoughtless world.

when and how did this change happen vinst? All well I hope.

[vinst]

[vinay28]

good for you. seasoned player eh?

[rk_a2003]

"I put Money Management first. The reason is that far too many traders focus on the rules and techniques, and not the framework in which they're applied. Yet, among all the traders I have ever talked to who've experienced consistent and enduring success, Money Management is the very foundation of their success."

"If there really is a Holy Grail, Money Management is it."

"Your number one goal should always be to Minimize Losses. When you understand risk and the permanent damage that large losses can cause to you trading account, you'll realize that Consistency is the Key. To become consistent in your trading, you have to do more than just learn mechanical rules, techniques, or purchase trading systems. Understanding the Markets is Much More Important Than Methodology."

"Once you've laid the foundation of risk control and understanding, you will automatically see the importance of the right money management techniques. Some of these you've heard before, but you may have not fully comprehended their importance until now. Now it should be clear to you why it's important to Always use Open Protective Stops (OPS) and to Always Use Trailing OPS's to Lock in Profits as a Trade Moves in Your Favor. If you don't, you will inevitably suffer a devastating loss that you cannot recover from without adding money to your account."

"In addition, too many people place stops haphazardly. Instead you should Always Let the Market's Own Price Action Determine Where An OPS is Placed.There will be areas of support and resistance that provide ideal levels at which to place stops."

"Be careful how you interpret what you read in the paper or watch on CNBC. Price Makes News, News Does not Make Price.So once news comes out through any public venue it is likely to already have been discounted by the markets. In fact, news often means the opposite of how it appears on the surface so Scrutinize How Markets React to Good and Bad News."

"Remember that Trading is an Odds Game and concentrating on market selection is one of the things that will tilt the odds in your favor. In addition, don't just look at trading through a microscope.Expand your view and Constantly Devote Time and Effort to the Study of Market, Trading Techniques, and Economic History."

"You may have heard that the Trend is Your Friend. But traders think of this as being mainly for long term "buy and hold" investors. In reality, everyone I know who's successful, even day-traders, are looking for the strongest trends and entering them in the midst of small pullbacks or breakouts. When you do this, you will naturally Buy Strength and Sell Weakness. Do what J. Paul Getty did in order to accumulate his fortune: Go Where the Oil is. That is, trade where the strongest runaway trends are. When all is said and done and all the technicals are in place, you should still pay attention to the fundamentals. By doing this you'll be Trading With Fuel on Your Side."

"Finally, invest in yourself. Create order in your inner world and it'll be manifested in the outer. Put the Value-Added Wealth Equation on Your Side."

"Reading about these things is good, but only actually using them in the real world will lead to mastery."