The Mayonnaise Jar
When things in your life seem, almost too much to handle,
When 24 Hours in a day is not enough,
Remember the mayonnaise jar and 2 cups of coffee.
A professor stood before his philosophy class
and had some items in front of him.
When the class began, wordlessly,
He picked up a very large and empty mayonnaise jar
And proceeded to fill it with golf balls.
He then asked the students, if the jar was full.
They agreed that it was.
The professor then picked up a box of pebbles and poured
them into the jar. He shook the jar lightly.
The pebbles rolled into the open Areas between the golf balls.
He then asked the students again if the jar was full. They agreed it was.
The professor next picked up a box of sand and poured it into the jar.
Of course, the sand filled up everything else.
He asked once more if the jar was full. The students responded with a unanimous 'yes.'
The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, effectively
filling the empty space between the sand. The students laughed.
'Now,' said the professor, as the laughter subsided,
'I want you to recognize that this jar represents your life.
The golf balls are the important things - family,
children, health, Friends, and Favorite passions –
Things that if everything else was lost and only they remained, Your life would still be full.
The pebbles are the other things that matter like your job, house, and car.
The sand is everything else --The small stuff.
'If you put the sand into the jar first,' He continued,
there is no room for the pebbles or the golf balls.
The same goes for life.
If you spend all your time and energy on the small stuff,
You will never have room for the things that are important to you.
So...
Pay attention to the things that are critical to your happiness.
Play With your children.
Take time to get medical checkups.
Take your partner out to dinner.
There will always be time to clean the house and fix the disposal.
'Take care of the golf balls first --
The things that really matter.
Set your priorities. The rest is just sand.'
One of the students raised her hand and inquired what the coffee represented.
The professor smiled.
'I'm glad you asked'.
It just goes to show you that no matter how full your life may seem,
there's always room for a couple of cups of coffee with a friend.'
Please share this with other "Golf Balls"
I just did......
Thursday, May 13, 2010
It is better being profitable than being right, in the stock markets or your trading.
Ultimately, what demonstrates or determines your success in stock markets is how much money did your trading put in your bank account. Some of you might even be wondering, how can one be profitable if he/she is not right. You have to be right to make money, isn’t it? Yes, that’s correct as well.
Let me explain this. Most of the traders that I have met, do not use STOP LOSS for one reason or the other. I have seen, when they take a trade, and it goes against them (i.e. trade turns out in a loss), most people generally keep holding the position in the ‘hope’ that it would come back. They suddenly turn ‘investors’ from ‘traders’. You would have come across many of them since January or October 2008. The reason they keep holding is that they do not accept the fact that they were WRONG. It is against their ego to accept it. Instead of accepting that they were wrong in that particular trade and close the position, they keep praying and hoping for that trade to become profitable. How? No one knows.
I have been in such situations many times before and still do. And then, I remind myself “It is better being profitable than being right”. I have to be alive first, and then make a move forward. So what, if I am wrong in this trade? If I get rid of it quickly, I can cut my losses quickly and make money in another trade on next opportunity. If I keep holding on to the wrong position and do not correct, I will keep incurring further losses. Stock markets don’t show any mercy on any one. They will take all your money and leave you gasping, IF YOU DO NOT USE A SAFETY NET which is STOP LOSS for such situations.
One can not be correct all the time. Even GANN was wrong 7% times (they say he had over 92% success rate) but then he used STOP LOSSes to keep himself alive in the market.
Anytime that you are wrong in predicting the move of the stock or index, just remind yourself “It is better being profitable than being right” and ALWAYS, use STOP LOSS, ALWAYS.
Ultimately, what demonstrates or determines your success in stock markets is how much money did your trading put in your bank account. Some of you might even be wondering, how can one be profitable if he/she is not right. You have to be right to make money, isn’t it? Yes, that’s correct as well.
Let me explain this. Most of the traders that I have met, do not use STOP LOSS for one reason or the other. I have seen, when they take a trade, and it goes against them (i.e. trade turns out in a loss), most people generally keep holding the position in the ‘hope’ that it would come back. They suddenly turn ‘investors’ from ‘traders’. You would have come across many of them since January or October 2008. The reason they keep holding is that they do not accept the fact that they were WRONG. It is against their ego to accept it. Instead of accepting that they were wrong in that particular trade and close the position, they keep praying and hoping for that trade to become profitable. How? No one knows.
I have been in such situations many times before and still do. And then, I remind myself “It is better being profitable than being right”. I have to be alive first, and then make a move forward. So what, if I am wrong in this trade? If I get rid of it quickly, I can cut my losses quickly and make money in another trade on next opportunity. If I keep holding on to the wrong position and do not correct, I will keep incurring further losses. Stock markets don’t show any mercy on any one. They will take all your money and leave you gasping, IF YOU DO NOT USE A SAFETY NET which is STOP LOSS for such situations.
One can not be correct all the time. Even GANN was wrong 7% times (they say he had over 92% success rate) but then he used STOP LOSSes to keep himself alive in the market.
Anytime that you are wrong in predicting the move of the stock or index, just remind yourself “It is better being profitable than being right” and ALWAYS, use STOP LOSS, ALWAYS.
Tuesday, May 11, 2010
Spot / Cash: This is the normal market, also known as delivery based. In this case, the buy and sell of the Share/stock happens in cash or at spot. Hence, the terms.
Trade : A transaction in which one buys and other sells.
Position : Number of shares or contracts that you hold at a given point of time. For example, if you bought 10 shares of Infosys, you would have a Long position in Infosys stock.
Entry: Price at which you enter the trade, whether Long or Short Trade.
Exit: Price at which you Exit the trade, whether Long or Short Trade.
Stop Loss: a PRE-DETERMINED price below which we would close our position at a loss. The difference between Entry price and Stop Loss price is the maximum RISK that you are willing to take. One MUST ALWAYS USE STOP LOSS. It is your SAFETY NET or LIFE JACKET in Stock markets.
Ask Price: Price which a seller is asking to sell a stock or share or contract.
Bid Price: Price which a buyer is offering to buy a stock or share or contract.
Trade : A transaction in which one buys and other sells.
Position : Number of shares or contracts that you hold at a given point of time. For example, if you bought 10 shares of Infosys, you would have a Long position in Infosys stock.
Entry: Price at which you enter the trade, whether Long or Short Trade.
Exit: Price at which you Exit the trade, whether Long or Short Trade.
Stop Loss: a PRE-DETERMINED price below which we would close our position at a loss. The difference between Entry price and Stop Loss price is the maximum RISK that you are willing to take. One MUST ALWAYS USE STOP LOSS. It is your SAFETY NET or LIFE JACKET in Stock markets.
Ask Price: Price which a seller is asking to sell a stock or share or contract.
Bid Price: Price which a buyer is offering to buy a stock or share or contract.
Sunday, May 9, 2010
Saturday, May 8, 2010
Thursday, April 16, 2009
Ant & Grasshopper
U.S VERSION
Ant & Grasshopper :
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant is a fool and laughs & dances & plays the summer away.
Come winter ,the Ant is warm and well fed. The Grasshopper has no food or shelter so he dies out in the cold.
INDIAN Version:
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant's a fool and laughs & dances & plays the summer away.
Come winter, the shivering Grasshopper calls a press conference and demands to know why the Ant should be allowed to be warm and well fed while others are cold and starving. NDTV, BBC, CNN show up to provide pictures of the shivering Grasshopper next to a video of the Ant in his comfortable home with a table filled with food. The World is stunned by the sharp contrast. How can this be that this poor Grasshopper is allowed to suffer so?
Arundhati Roy stages a demonstration in front of the Ant's house.
Medha Patkar goes on a fast along with other Grasshoppers demanding that Grasshoppers be relocated to warmer climates during winter.
Amnesty International and Koffi Annan criticizes the Indian Government for not upholding the fundamental rights of the Grasshopper.
The Internet is flooded with online petitions seeking support to the Grasshopper (many promising Heaven and Everlasting Peace for prompt support as against the wrath of God for non-compliance) .
Opposition MPs stage a walkout. Left parties call for "Bharat Bandh" in West Bengal and Kerala demanding a Judicial Enquiry.
CPM in Kerala immediately passes a law preventing Ants from working hard in the heat so as to bring about equality of poverty among Ants and Grasshoppers.
BJP wants Sonia Gandhi's apology.
Lalu Prasad allocates one free coach to Grasshoppers on all Indian Railway Trains, aptly named as the 'Grasshopper Rath'.
Finally, the Judicial Committee drafts the 'Prevention of Terrorism Against Grasshoppers Act' [POTAGA], with effect from the beginning of the winter.
Arjun Singh makes 'Special Reservation' for Grasshoppers in Educational Institutions & in Government Services.
The Ant is fined for failing to comply with POTAGA and having nothing left to pay his retroactive taxes,it's home is confiscated by the Government and handed over to the Grasshopper in a ceremony covered by NDTV.
Arundhati Roy calls it 'A Triumph of Justice'.
Lalu calls it 'Socialistic Justice'.
CPM calls it the 'Revolutionary Resurgence of the Downtrodden' .
Koffi Annan invites the Grasshopper to address the UN General Assembly. . . .
Many years later...
The Ant has since migrated to the US and set up a multi-billion dollar company in Silicon Valley ..
100s of Grasshoppers still die of starvation despite reservation somewhere in India ...
As a result of loosing lot of hard working Ants and feeding the Grasshoppers, India is still a developing country!!!
Ant & Grasshopper :
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant is a fool and laughs & dances & plays the summer away.
Come winter ,the Ant is warm and well fed. The Grasshopper has no food or shelter so he dies out in the cold.
INDIAN Version:
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant's a fool and laughs & dances & plays the summer away.
Come winter, the shivering Grasshopper calls a press conference and demands to know why the Ant should be allowed to be warm and well fed while others are cold and starving. NDTV, BBC, CNN show up to provide pictures of the shivering Grasshopper next to a video of the Ant in his comfortable home with a table filled with food. The World is stunned by the sharp contrast. How can this be that this poor Grasshopper is allowed to suffer so?
Arundhati Roy stages a demonstration in front of the Ant's house.
Medha Patkar goes on a fast along with other Grasshoppers demanding that Grasshoppers be relocated to warmer climates during winter.
Amnesty International and Koffi Annan criticizes the Indian Government for not upholding the fundamental rights of the Grasshopper.
The Internet is flooded with online petitions seeking support to the Grasshopper (many promising Heaven and Everlasting Peace for prompt support as against the wrath of God for non-compliance) .
Opposition MPs stage a walkout. Left parties call for "Bharat Bandh" in West Bengal and Kerala demanding a Judicial Enquiry.
CPM in Kerala immediately passes a law preventing Ants from working hard in the heat so as to bring about equality of poverty among Ants and Grasshoppers.
BJP wants Sonia Gandhi's apology.
Lalu Prasad allocates one free coach to Grasshoppers on all Indian Railway Trains, aptly named as the 'Grasshopper Rath'.
Finally, the Judicial Committee drafts the 'Prevention of Terrorism Against Grasshoppers Act' [POTAGA], with effect from the beginning of the winter.
Arjun Singh makes 'Special Reservation' for Grasshoppers in Educational Institutions & in Government Services.
The Ant is fined for failing to comply with POTAGA and having nothing left to pay his retroactive taxes,it's home is confiscated by the Government and handed over to the Grasshopper in a ceremony covered by NDTV.
Arundhati Roy calls it 'A Triumph of Justice'.
Lalu calls it 'Socialistic Justice'.
CPM calls it the 'Revolutionary Resurgence of the Downtrodden' .
Koffi Annan invites the Grasshopper to address the UN General Assembly. . . .
Many years later...
The Ant has since migrated to the US and set up a multi-billion dollar company in Silicon Valley ..
100s of Grasshoppers still die of starvation despite reservation somewhere in India ...
As a result of loosing lot of hard working Ants and feeding the Grasshoppers, India is still a developing country!!!
Subscribe to:
Posts (Atom)
