Weekend Thoughts & Burning Desire.

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.

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

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.

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.

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.

Burning Desire

I read this as a ZEN story, but it is referred to as a Greek story in this Inspirational Blog 

Here is what Burning Desire means:

A young man asked Socrates the secret to success. Socrates told the young man to meet him near the river the next morning. They met. Socrates asked the young man to walk with him toward the river. When the water got up to their neck, Socrates took the young man by surprise and ducked him into the water. The boy struggled to get out but Socrates was strong and kept him there until the boy started turning blue. Socrates pulled his head out of the water and the first thing the young man did was to gasp and take a deep breath of air. Socrates asked, ‘What did you want the most when you were there?” The boy replied, “Air.” Socrates said, “That is the secret to success. When you want success as badly as you wanted the air, then you will get it.” There is no other secret.

A burning desire is the starting point of all accomplishment.

Just like a small fire cannot give much heat, a weak desire cannot produce great results…