Chapter 1: Listening
by PRASHANT SHAH -
Me: I have been trading the markets, but have had no luck. It is really difficult to become successful here. You: Hmm. Which instruments you trade? Me: I have traded in all possible ways. I have invested in stocks in the short term. I have a long-term portfolio. I have traded derivatives. I have done ... Read more
Chapter 2: The Problem
by PRASHANT SHAH -
You: I want you to know that you have worked very hard. You are intelligent and experienced. You have understood several aspects of trading and investment. Me: Yes, but I am not successful. I need to find the solution to my problem. You: In today’s era, where information is easily available, finding the solution is ... Read more
Chapter 3: Duties
by PRASHANT SHAH -
Me: What is a better time frame for trading if you want to generate good returns? People say you benefit by investing for the long term. You: What is the definition of long term? Me: May be one year? You: Why one year? Because of tax benefits? Or is it that you might need the ... Read more
Chapter 10: Risk
by PRASHANT SHAH -
Me: There may be instances where it may be difficult to write down the strategy for investment in stocks. This is when I found principles to be useful. I will not invest or remain invested in the stock if it doesn’t fit my basic principles of investment even if it is a tempting opportunity. Is ... Read more
Chapter 11: The Market
by PRASHANT SHAH -
Me: I agree on the importance of having a well-defined risk management principle. Can we trade any system successfully simply by managing the risk? Let’s take an example of a coin-toss for simplicity. We will have some simple exit criteria as well. Ultimately it is a game of probability. You: Coin toss will not give ... Read more
Chapter 12: Methods
by PRASHANT SHAH -
Me: There are some very knowledgeable people on various subjects. They understand the market phase, situation, and the economy well. The must be investing based on their analysis of the situation and making money. Do they also operate in this fashion? You: Have you not seen views of two great analysts or economists being entirely ... Read more
