CONSTRUCTIVE INVESTMENT DECISIONS

 for 

MULTI-BAGGER RETURNS!! 

ACTUALLY, NOBODY EVER LIKES TO TRADE FOR A LOSS BUT SELDOM RECOGNIZE THE INHERENT THREAT INVOLVED & THE DAMAGE THAT MAY OCCUR IN TRADING!

TRADER PSYCHOLOGY & EGO GRATIFICATION: 

MOST TRADERS THINK, MANY VEHEMENTLY CLAIM THAT THEY ARE MORE SMART AND INTELLIGENT THAN THE REST. THIS BEHAVIOURAL ATTITUDE ELEVATES THEIR EGO AND ENCOURAGE TO GO FOR TRADING TO MAKE “HUGE MONEY” – UNEXPLORED!!!.

RETAIL TRADERS AS WEAK HANDS, STAY LOW WITH SPECIFIC INFORMATION GET TRAPPED DUE TO EMOTIONAL TRIGGERS TO GRAB "BUY LOW- AS OPPORTUNITY" SHALL TRY TO UNDERSTAND BROAD MARKET ACTION

ULTIMATELY, MOST GET TRAPPED IN THIS VICIOUS CYCLE OF LOSING PROPOSITION, THOUGH THEY UNDERSTAND ENTANGLED DIFFICULTIES ASSOCIATED BUT PSYCHOLOGICAL COMPULSIONS TO PROVE SMARTNESS TO EXTERNAL WORLD, INCLINE TO HOOK ON TO THE WHEEL! 

WIDESPREAD OPPORTUNITIES & TEMPTATIONS:

TRADERS GET EVERYDAY OPPORTUNITIES TO PARTICIPATE IN DIFFERENT INSTRUMENTS AS TRILLIONS OF DOLLARS WORTH BEING TRADED ON THE EXCHANGES ACROSS THE GLOBE THROUGH VARIETY OF INSTRUMENTS LIKE DEBT, CURRENCIES, EQUITY, GOLD, CRUDE OIL AND OTHER COMMODITIES etc.

THE TEMPTATION TO BUY AT LOW WHEN MARKETS START FALLING WITH AN ANTICIPATION TO BOUNCE AND SELL IN A TRENDING HIGH MARKETS WITH AN ANTICIPATION TO FALL, ADD TO THOSE MISTAKES ADOPT "AVERAGES" AS A STRATEGY SINKS TRADERS CONFIDENCE THERE BY WEALTH EROSION & EXTINGUISH!, EXPLORE & UNDERSTAND HOW DOES EVER MARKETS OFFER PROFITS TO EVERY TRADER?.

ADOPT INVESTMENT STRATEGIES: BUY GROWTH STOCKS

MARKETS FALL NOT BECAUSE TO FALL FOR A REASON BUT ALSO TO DUMP THE LAGGARDS AND SHIFT/CHURN FUND ALLOCATION TO EMERGING SUNRISE SECTORS AND TO CATCH GROWTH STOCKS AT THEIR BEST POSSIBLE LOWER RATES FOR FUTURE THUMPING RETURNS!.

THE FIIs, DIIs & OTHER INSTITUTIONS EMPLOY TAMS TO STUDY, DEVELOP RESEARCH REPORTS FOR A SPECIFIC COMPANY OR A SECTOR IN ADVANCE, TAKE A WELL INFORMED CALL WITH ADEQUATE PREPARATION. THEY “GO FOR A DUMP” OF THE PAST LAGGARDS DURING MARKET SELL OFFS. UNFORTUNATELY, RETAIL INVESTORS WHOSE ROTTEN MEMORY, STUCK WITH OUTDATED IDEAS TEND TO BUY THESE KICKED STOCKS, JUSTIFYING AS YESTER YEAR'S GOOD COMPANIES.

AFTER A PAINSTAKING WAITING OVER A PERIOD OF TIME MAY REALISE THAT THESE SCRIPS WERE SOLD DUE TO POOR FUTURE BUSINESS PROSPECTS TO PERFORM OR A CHANGE IN MACRO ECONOMIC COMPETITION, BUT BECOME TOO LATE AS THE PRICE SINKS TO ITS ABYSS…!!.

CONCLUSION:

HYPOTHETICALLY, ALL INVESTMENTS SHALL YIELD POSITIVE RETURNS BUT NEVER HAPPENS DUE POOR SELECTION!. SO, ALWAYS INVEST IN COMPANIES AS GROWTH STOCKS TO BECOME MULTI BAGGERS OVER NEXT 4-5 Yrs, WHOSE BUSINESS SCOPE IS LARGE, ASSOCIATED & EXPAND WITH BOOM IN ECONOMIC ACTIVITY FOR ASSURED PROFITS TO EXCEL & LEAD IN FUTURE. 

RETAIL INVESTORS WHILE PARTICIPATE SHALL TAKE CONSTRUCTIVE INVESTMENT DECISIONS AND KEEP ON INVESTING AT REGULAR INTERVALS THAT BECOMES A "HAPPY INVESTING" BASED ON THE FUNDAMENTALS RATHER THAN MERE "TIPS OR A CHEAP SCRIP". 

WHEREAS TRADERS SHALL NEVER TRADE WITH FRUSTRATION OR VENGEANCE, ALSO WITH HIGH LEVERAGE, SHALL CONDUCT A SERIOUS STUDY OF SCRIP LEVELS TO PLAN THE TRADE & ADOPT A STRATEGY TO TRADE WITH CAUTION.

TRADERS SHALL NEVER CONVERT TRADE POSITION INTO INVESTMENT DECISIONS, ALSO NO HESITATION TO BOOK LOSS WHEN STOCK FAILED TO PERFORM IN THE ANTICIPATED DIRECTION. TRADERS SHALL DEVELOP SHREWDNESS TO SWITCH POSITIONS AS OPPORTUNITY ARISES IN THE BROAD MARKET DIRECTION...!!! 

STOCKS ...CRASH... SO...!

NAGESWARA RAO BAMMIDI

CFO-MIHIR MOBILE SOLUTIONS, bnr789@gmail.com

HOW TO DEAL STOCK MARKETS- BRIGHT FUTURE AHEAD..!!

ALL MARKET PARTICIPANTS KNOW THAT THE PROFITS FROM STOCK MARKETS ARE THE DEALS MADE FOR A DIFFERENTIAL AMOUNT REALIZED FROMBUY & SELL or SELL & BUY...!!! 

FOR DECENT PROFITS "BUY LOW and SELL HIGH" - GLOBALLY ACCEPTED and WELL ACKNOWLEDGED ADAGE IN STOCK MARKETS ....

MANY EXPECT, GET THEMSELVES PREPARED BUT MOST RETAIL INVESTORS HATE BUT SURPRISES ARE VERY COMMON IN STOCK MARKETS. THE WELL INFORMED FOREIGN INSTITUTIONAL INVESTORS, NETWORK ESTABLISHED INSTITUTIONS, SEASONED HNIs, OF-COURSE BACKED WITH DEEP POCKETS, TEND TO ACT PROMPTLY WITH RIGHT DECISIONS AND MANAGE  GLOBAL STOCK MARKET TRENDS WITH THEIR NETWORKS AND EXPERTISE! TO ENHANCE THE  SPROUTING EUPHORIA OR ENLARGE PANIC SITUATIONS TO CREATE MORE TURBULENCE AS THE CASE MAY BE, AND FINALLY MAKE PROFITS FROM THE MARKETS...!!, BUT HOW MANY RETAIL INVESTORS AND PARTICIPANTS GET THESE ADVANTAGES??..

FEAR & GREED RULES:

THE SERIOUS SELL OFF FROM HIGHS IS A GREAT CONCERN TO MANY RETAIL INVESTORS WHO TEND TO HAVE THE TEMPTATIONS TO CATCH THE SHOOTING STOCKS AT THE HIGHS WITH OUT FUNDAMENTAL VALUE AND PRAY FOR THEIR SUCCESS AS THE RISK IS HIGH. ALTHOUGH, KNOW THAT THE MARKETS WENT UP SUBSTANTIALLY BUT GREED EARN AND TO ACT SMART TEND TO BUY, WAIT FOR THE "OTHER FOOL"

COMMON MISTAKES: WHEN MARKETS TOOK A SERIOUS BEATING, AGAIN RETAIL INVESTORS WITH FEAR OF FURTHER LOSS TEND TO SELL AT THE BOTTOM WITH AN INTENTION TO CATCH THE STOCK AGAIN AT THE LOWER LEVEL, BUT FAIL TO GARNER THE OPPORTUNITY, AGAIN A SIMILAR MISTAKE AS THEY DID AT THE HIGH POINTS.

JUST TECHNICALS:  STUDY THE SCENARIOS DEVELOPED OVER A PERIOD OF TIME...

FROM LOW TO HIGH, MADE A JOURNEY OF 4000 POINTS SINCE AUG-13,NFTY LIKELY TO GET SUPPORT AT 6500-6550 LEVELS. 

NIFTY TOOK A DECENT JOURNEY FROM 5100 LEVELS TO 9100 LEVELS IN TWO YEARS AND EVERY BODY MADE A WISH FOR FURTHER HIGHS WITHOUT CONSOLIDATION AT ANY LEVELS. THE NEW GOVT.  FORMATION TRIGGERED HIGH EXPECTATIONS, WERE SOLD TO RETAIL INVESTORS AND NOW EXPERTS SAY THAT NO MAGIC WAND AVAILABLE TO CHANGE THE ECONOMY IN A DAY OR TWO WHEN GLOBALLY WELL CONNECTED AND INTER DEPENDENT....

CONCLUSION: THE FUNDAMENTAL ANALYSTS/INVESTORS GRAB THESE KINDS OF SELLOFFS TO BUY AND HOLD FOR A REASONABLE TIME  AS THE VALUATIONS MATCH THEIR EARNING.

THOSE WHO STUDY THE FRACTALS, WAVES OR FIBONACCI CAN EASILY CALCULATE THE NEXT MOVE.....

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https://www.linkedin.com/pulse/how-deal-stock-markets-bright-future-ahead-nageswara-rao-bammidi?trk=hp-feed-article-title-publish

$438 bn in railway construction- CHINA

China plans to invest $438 bn in railway construction in 5 yrs

China's railway construction has been on a fast track as annual investment surged by 11.3 per cent from 580 billion yuan in 2011 to 800 billion yuan in 2014.

By: PTI | Beijing | November 28, 2015 1:33 PM

China plans to invest a total of at least 2.8 trillion yuan (USD 438 billion) in railway construction during the 13th Five-Year Plan period (2016-2020) making it a stimulus to halt the slowdown of the economy.

National railway network will grow by more than 23,000 kms over the next five years, with intercity projects and ones in Midwest regions being priority, China’s Economic Information Daily reported.

China’s railway construction has been on a fast track as annual investment surged by 11.3 per cent from 580 billion yuan in 2011 to 800 billion yuan in 2014.

During the 12th Five-Year Plan period, China spent a combined 3.47 trillion yuan on newrails, exceeding the original target of 2.8 trillion yuan by far, according to the newspaper.

High-speed railway which covered about 16,000 kms in China still remains as one of the key infrastructure projects, according to the 13th Five-Year plans released by local governments.

President Xi Jinping has directed the officials to keep the GDP to be around 6.5 per cent in the 13th plan as the economy in the Q-3 slipped below the seven per cent for the first time since 2009 causing uncertainty at home and abroad.

China ruled out a major stimulus but has been announcing huge projects to keep up the investment driven growth.

Projects that are expected to be underway include lines from Yinchuan to Lanzhou, Baotou to Xi’an, Chongqing and Guiyang, Datong to Taiyuan and Zhanjiang, and Xiamen to Changshaand Chongqing.

Beijing plans to expand its suburb rail lines by 800 kilometers, and urban transits by 900 kilometers, according to 13th Five-Year Plan proposal, state-run China Daily reported.

The Belt and Road Initiative will also boost exports of high-speed rail technologies and related products, the report said, adding that China expects rail equipment sales to exceed 650 billion yuan by 2020.

http://www.financialexpress.com/article/economy/china-plans-to-invest-438-bn-in-railway-construction-in-5-yrs/171570/

CHINA -YUAN, IMF to include in SDR...!!

What will it mean for the yuan to get IMF reserve-currency nod?

Many major economies, including the US, Germany and UK, say they’re prepared to back the yuan’s inclusion if it meets the IMF criteria

Washington: International Monetary Fund (IMF) representatives have given China strong signals that the yuan is likely to soon join the fund’s basket of reserve currencies, known as Special Drawing Rights, Chinese officials with knowledge of the matter told Bloomberg News this week. Here’s a primer on what that means.

What is a Special Drawing Right?

The fund created the SDR in 1969 to boost global liquidity as the Bretton Woods system of fixed exchange rates unravelled. While the SDR is not technically a currency, it gives IMF member countries who hold it the right to obtain any of the currencies in the basket—currently the dollar, euro, yen and pound—to meet balance-of-payments needs. So the ability to convert SDRs into yuan on demand is crucial. Its value is currently based on weighted rates for the four currencies.

How much of these SDRs are out there?

The equivalent of about $280 billion in SDRs were created and allocated to IMF members as of September, compared with about $11.3 trillion in global reserve assets. The US reported about $50 billion in SDR holdings as of August.

Why does China want this status so badly?

In a 2009 speech, People’s Bank of China Governor Zhou Xiaochuan said the global financial crisis underscored the risks of a global monetary system that relies on national reserve currencies. While not mentioning the yuan by name, Zhou argued that the SDR should take on the role of a “super-sovereign reserve currency,” with its basket expanded to include currencies of all major economies.

Chinese officials have since been more explicit. After meeting President Barack Obama last month at the White House, President Xi Jinping thanked the US for its conditional support for the yuan joining the SDR. Winning the IMF’s endorsement would allow reformers within the Chinese government to argue that the country’s shift toward a more market-based economy is bearing fruit.

Why is the IMF likely to approve this?

Global use of the yuan has surged since the IMF rejected SDR inclusion in the last review in 2010. By one measure, the currency became the fourth most-used in global payments with a 2.79% share in August, surpassing the yen, according to the Society for Worldwide Interbank Financial Telecommunication, known as Swift.

The IMF uses several indicators to determine if a currency is “freely usable,” the benchmark for inclusion in the SDR basket. IMF staff members said in a report in August that the yuan trails its global counterparts in major benchmarks, such as its use in official reserves, debt holdings and currency trading. But staffers have also stressed that the fund’s 24 executive directors, who will make the final call, will need to use their judgment.

Many major economies, including the US, Germany and UK, say they’re prepared to back the yuan’s inclusion if it meets the IMF criteria. Supporting the yuan may boost relations between China and countries such as the UK, which has sought to make London a major yuan trading hub.

Adding the yuan to the basket may also help the IMF improve its standing with the Chinese. China and other emerging markets were supposed to gain greater representation at the fund under reforms agreed to in 2010, but the U.S. Congress has yet to ratify the changes.

What’s likely to happen to yuan assets in the longer term?

At least $1 trillion of global reserves will migrate to Chinese assets if the yuan joins the IMF’s reserve basket, according to Standard Chartered Plc and AXA Investment Managers.

Foreign companies’ issuance of yuan-denominated securities in China, known as panda bonds, could exceed $50 billion in the next five years, according to the World Bank’s International Finance Corp.

“Once the Chinese yuan becomes part of the SDR, central- bank reserve managers and institutional investors will automatically want to accumulate yuan-denominated assets,” Hua Jingdong, vice president and treasurer at IFC, said in an interview in Lima earlier this month during the IMF and World Bank annual meetings. “It will be strategically important for China to welcome all kinds of issuers to become regular issuers in China’s onshore market.” Bloomberg

Bonnie Cao in New York and John Quigley in Lima contributed to this story.

http://www.livemint.com/Politics/t9azL5zeY1yAl4dbgVxNRP/What-will-it-mean-for-the-yuan-to-get-IMF-reservecurrency-n.html