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Showing posts from December, 2024

What is your opinion about the ongoing fiasco between the MAGA crowd and the tech bros?

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  Vivek Ramaswamy - I love this guy! For long, we Indians have borne the brunt of  uninvited foreign lectures . Some white guy will tell us that we are too corrupt, too illiterate, too divided, etc. etc. He will also inform us that the root cause of all our problems is our inferior Indian culture. Now, Vivek Ramaswamy has done the same to Americans. He has written a long note full of sophisticated words. The short and simple version of his note would be:  “You Americans are lazy and stupid. It’s because of your inferior culture.” Ha Ha! Take that! It is not that the criticism (white man’s criticism of India and Vivek’s criticism of Americans) is totally devoid of facts. But there will be push back from the natives. A mother may scold her own child everyday, but she will not tolerate her neighbor scolding the same child. Hence,  the nativist MAGA crowd is pushing back hard  against Vivek and the tech leaders who are supporting his view. They want all ‘foreigners’...

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How can investors consistently achieve 15% CAGR in the Indian market?

  Achieving a  15% CAGR (Compound Annual Growth Rate)  consistently in the  Indian stock market  is challenging but possible with the right strategy, discipline, and long-term focus. Here’s a roadmap: 🚀 1. Invest in High-Quality Stocks (Blue-Chip & Growth Stocks) Focus on  large-cap and fundamentally strong mid-cap stocks  with consistent earnings growth. Look for companies with: Strong  managementCompetitive advantage  (moat)Sustainable  debt levels  Growing  revenue and profit margins 📈 2. Diversify Your Portfolio Don’t put all eggs in one basket. Diversify across  sectors (IT, Pharma, FMCG, Banking, Infra)  and  asset classes (Equity, Debt, Gold, REITs) . Avoid over-diversification—it can dilute returns. 💼 3. Invest in Equity Mutual Funds & Index Funds Choose mutual funds with a  proven track record . Opt for  SIP (Systematic Investment Plan)  to benefit from  rupee cost averagin...

What would have happened to India's economy if Manmohan Singh had remained prime minister after the 2014 election?

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  A. No Demonetisation I estimate India Inc would have saved an approximate ₹ 8 Lakh Crore that was gone due to Demonetization which would have become roughly  ₹13 Lakh Crore  today in value growth B. INR to USD The INR to USD would be nearer to 91 than 85 because Manmohan Singh wasn't for Central Bank Intervention. This would save us nearly ₹16 Lakh Crore of Debt. C. Lower Debt Estimating 50% of the Infrastructure spending under Modi, Debt based on Dr Singhs judicious spending, the Total Debt would be ₹ 137 Lakh Crore instead of nearly ₹185 Lakh Crore , Interest on debt would be ₹8.8 Lakh Crore instead of ₹14.35 Lakh Crore D. Similar Deficit I doubt Dr Singh had any revolutionary way to reduce deficit. So deficit would hover between 5.5% to 6% GDP E. Larger Trade Deficit Assuming same Ukrainian war and same Oil related bumpers, our Deficit would still be 30% more because I doubt Dr Singh would have risked burning up debt to roll over MSMEs just for show off So instead of...

What are some good businesses that can be started with a very small capital?

  Starting a successful business doesn’t always require a large initial investment. In fact, there are several low-capital ideas that can help you tap into growing markets while keeping overhead costs in check. For instance, a home-based bakery or catering service can be a great way to turn your culinary passion into profit. By starting small—preparing baked goods or simple meals in your own kitchen—you can gradually scale operations as you gain a loyal customer base. Online reselling is another popular route: you can source products at discounted rates and sell them through e-commerce platforms without significant upfront expenses. If you’re skilled in a particular subject or have a talent for communication, online tutoring can be a solid choice. With just a stable internet connection and a laptop, you can coach students worldwide. Similarly, freelancing in areas like content writing, graphic design, or digital marketing is in high demand, especially since many businesses want to ...

What position sizing strategies do you use in technical analysis trading?

  Position sizing is a critical aspect of risk management in trading. Here's how I approach it based on my experience: Fixed Percentage Risk: I allocate a fixed percentage of my total capital to each trade, typically around 1-2%. This means I calculate my position size based on the distance between my entry point and stop-loss level, ensuring that even a losing trade won’t wipe out my account. For example: Trading Capital: ₹10,00,000Risk per trade: 1% = ₹10,000 If stop-loss is ₹50 per share, I would buy 200 shares (₹10,000 ÷ ₹50). Volatility-Based Sizing: I adjust my position size based on the stock’s volatility, often measured by indicators like ATR (Average True Range). For more volatile stocks, I reduce the position size since they have larger price swings. For less volatile stocks, I can afford a slightly larger position. Kelly Criterion (with caution): While not used for every trade, the Kelly Criterion gives an idea of the optimal position size based on past winning probabili...

How do I produce consistent gains when trading intraday?

  Hello, 1. Set Realistic Expectations Intraday trading requires patience, not quick profits. Focus on quality trades and set achievable ROI targets. 2. Manage Capital Carefully Limit risk to 2-5% per trade. Always use stop-loss orders to protect your capital. 3. Risk-Reward Ratio Aim for a 1:4 risk-reward ratio. Ensure higher rewards compensate for occasional losses. 4. Pick the Right Stocks Choose stocks with volatility and volume. Focus on active, news-driven, and high-volume stocks. 5. Master Technical Analysis Use indicators and chart patterns for decisions. Always buy at lower points and sell at higher ones. 6. Stick to a Trading Plan Follow a consistent, proven strategy. Keep it simple to avoid mistakes. 7. Be Consistent Stick to your strategy and avoid frequent changes. Consistency builds discipline and improves results. 8. Control Emotions Stay calm and stick to your plan. Don’t let profits or losses affect your decisions. 9. Use Stop-Loss and Take-Profit Set clear exit po...

What is WordPress hosting?

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  What is WordPress? Over 60 million websites or 35% of the web (to be more specific) uses WordPress to create websites. It started its days in 2003, as a blogging platform but now managed to grow into the largest CMS in the world. Currently, WordPress is one of the easiest and most powerful content management systems. The software is free for download and use; however, to use WordPress on the web, you will need  WordPress hosting . What is WordPress hosting? In short, it is a web hosting that supports WordPress. To function, CMS has to be installed on a web server. WP stores content and enables users to create and publish websites, requiring nothing beyond a domain and a  hosting service . There are different types of web hosting: Shared, VPS, Dedicated, Managed, Free, and in all of these, you can install WordPress. It became so popular that most of the hosts now have a 1-click install option and meets at least minimum WP requirements. What is the best WordPress hosting ...

I am new to the stock market, but I want to start investing. How can I do that?

  Starting your journey in the stock market is exciting but requires some preparation and planning. Here’s a step-by-step guide to help you begin: 1. Learn the Basics Before investing, familiarize yourself with fundamental concepts like: Stocks, mutual funds, and ETFs (Exchange-Traded Funds). Stock exchanges (e.g., NSE, BSE). Terms like market cap, dividends, and PE ratio. Tip:  Use online courses, books like  The Intelligent Investor  by Benjamin Graham, or apps to build your knowledge. 2. Define Your Investment Goals Determine what you’re investing for: Short-term gains (1–3 years). Long-term wealth creation (5–10+ years). Your goals will influence the types of investments you choose. 3. Set a Budget Decide how much you can invest without affecting your essential expenses. For beginners, it’s wise to start small and gradually increase as you gain confidence. 4. Open a Demat and Trading Account To buy and sell stocks in India, you’ll need a  Demat account ...

What happens if I do not sell an index option on expiry?

  So, you’ve held onto your index option until expiry and are wondering, "What now?" Let’s walk through what happens in a clear and straightforward way, so you know what to expect. 1. It Depends on the Option’s Status: ITM, ATM, or OTM When your option reaches expiry, the outcome depends on where the underlying index closes in relation to your strike price. In-the-Money (ITM) Options If your  call option  strike price is lower than the index's closing value, or your  put option  strike price is higher, your option is considered ITM. Most brokers  automatically exercise ITM options  for you, so you don’t have to worry about missing out on potential gains. You’ll receive a  cash settlement  equal to the difference between the strike price and the final settlement value (multiplied by the lot size). Example: You hold a Nifty 50 call option with a strike price of ₹18,000. If Nifty closes at ₹18,500, the intrinsic value of your option is ₹500. You...

Why is the Indian economy not booming as expected?

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  Thanks for A2A. Let’s leave Modi, Rahul, BJP, Congress, etc. out of this discussion. I will keep it boring. Slightly modified question:  Why is the Indian economy not booming  as much as we would like it to ? We would like to grow at 8–10%. But we are stuck at 6%. We have been stuck at this level of growth for the last three decades except for brief periods. Before liberalization, India failed to prepare itself. Japan, and then China, grabbed the opportunities that were available during the Cold War period, while we kept missing the bus, and walked at a pedestrian pace of 2–4% annual growth, barely keeping up with population growth. Liberalization was a rare revolution that India pulled off  (but only under extreme pressure of impending bankruptcy, it must be mentioned). The fundamentals of the Indian economy have been improving incrementally ever since. Quality of governance, education levels and efficiency of capital formation - these have seen steady improvement...