Monday, November 14, 2011 0 comments

World Bank

World Bank is an international financial institution which provides loans to developing countries for capital programmes such as investment in education, infrastructure, financial and private sector administration, agriculture, natural resource management etc. The World Bank, established in 1944, headquarter in Washington DC. The bank has more than 10,000 employees in 100 offices worldwide. 

Robert B. Zeollick is the current President of World Bank. As per 2010 revised percentage United States has highest voting power of (15.85%) Japan (6.84%), China (4.42%), Germany (4.00%), United Kingdon (3.75%), France (3.75%), and India (2.91%)

The World Bank differs from World Bank Group. The World Bank comprises of two institutions:
  • International Bank for Reconstruction & Development (IBRD): Established in 1944, aims to reduce poverty in middle income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products and analytical and advisory services. This institution is owned and operated for its 187 member countries
  • International Development Association (IDA): Established in 1960, aims to reduce poverty by providing interest free credits and grants for programs that boost economic growth, reduce inequalities and improve people's living conditions. Since inception, IDA credits and grants have totaled US$238 billion and approx. 50% share directed to Africa. Currently institution consists of 170 member countries.
The World Bank Group includes IBRD, IDA and three more institutions.
Last year World Bank released, World Development Report 2012: Gender Equality and development book which shows that greater gender equality can enhance productivity, improve development outcomes for the next generation and make institutions more representative.

In 2010, bank launched new Open Data Website, which provides free access to a comprehensive set of data about the development in countries around the globe. The data is categorized by country, topic and indicator which can be use for analysis. 


Monday, July 18, 2011 0 comments

Why Gold Could Lose its Grip on $1,600?

Richard Hastings, a macro strategist at Global Hunter Securities view on gold : "An extended selloff in stocks and a drop in the Swiss franc against the dollar are two signs that the rally in gold is likely to fade".

Wednesday, June 15, 2011 0 comments

The Power of Less - Leo Babauta

The book " The Power of Less - the fine art of limiting yourself to the essentials...in business and in life" written by Leo Babauta. This is about streamline life by identifying the essential and eliminating the unnecessary. This book shows how to:
  • Break any goal down into manageable tasks.
  • Focus on only a few tasks at a time.
  • Create new and productive habits.
  • Increase efficiency
Here is what I learnt from this book.

There are some guiding  principles which helps us to  maximize productivity by simplifying life.
  • Setting limitation: Limits helps
    •  our life to become more manageable and less stressful.
    • to focus on more important task.
    • to be more productive and efficient.
  • Choosing the essentials: Identify needs and eliminate the wants, which are non-essentials. Make a list and start eliminating according to needs such as what are
    • Yearly Goals
    • Life Commitments
    • Work Project and tasks.
  • Focus: Focusing on single task is more effective than multi-tasking. How to focus on the present is by
    • taking deep breathe, stretch and taking breaks.
    • Single tasking.
    • doing exercise regularly.
    • putting reminders.
    • Always practicing.
  • Creating habits: It makes long-lasting improvements.
    • Choose an easy goal.
    • Choose something measurable.
    • Be consistent.
    • Keep a positive attitude.
  • Starting with small: main reasons are
    • It narrows our focus
    • keeps energy and enthusiasm going for longer.
    • It's easier to handle.
    • You ensure success
    • Gradual change is longer-lasting.
The book is divided into two parts- part I includes principles and  part II is of practical examples (of his own). The book is written in very simple language and is very inspiring. The author Leo Babauta is famous blogger and his blog zenhabits.net  is also interesting. I would suggest everyone to read this book and implement to make life more better.
Friday, May 20, 2011 0 comments

Tribes



The book "Tribes" is written by Seth Godin. He is the most popular business blogger in the world, his blogs are very much inspiring.  There are no chapters in this book and is full examples of tribe and leader.

"A tribe is any group of people, large or small, who are connected to one another"

Some of the interesting points explained in the book.
  • You can't have a tribe without a leader - and you can't be a leader without tribe.
  • Everyone is not just a marketer- everyone is now also a leader.
  • Tribes are about faith- about belief in an idea and in a community.
  • " Leadership is management"
    • Leaders have followers. Managers have employees.
    • Managers make widgets, Leaders make change.
  • The Art of leadership is understanding what you can't compromise on.
  • The Secret of leadership: Paint a picture of the future.  Go there.. people will follow.
Seth Godin has explained in below video why tribe is needed.



I would recommend this book to all. You can visit www.sethgodin.com to know more about him.
Wednesday, April 13, 2011 0 comments

Recommendation - JA Solar Holdings (JASO)

Delivery Call: Buy JASO @ $6.55, Target $ 7.25 ( Short term investors can maintain the stoploss of $6.26)

The Group's principal activity is to develop, produce and market high-performance photovoltaic solar cells, which convert sunlight into electricity.The Group sells its products to customers' primarily in China and it has also sold its products to customers in Germany, Sweden, Spain, South Korea and the United States.

Below is the daily chart of JASO which shows:
  • RSI is in oversold zone.
  • MACD is below 0 level.
  • Stochastics is neither overbought nor oversold.

Tuesday, March 29, 2011 0 comments

ReneSola Ltd ( SOL) - Target Acheived

Short term pick : Buy Renesola Ltd., (SOL) @ $ 8.95, Target $ 9.99, Stoploss $ 8.40 - 
(Call generated on 07th March 2011)

The stock has traded below the stop loss of $8.40 on 09th March. Only two days the stock traded below the stoploss and the low was $8.08. 

Today the stock is 8% up and the target of $9.99 is acheived in just 17 trading sessions.



Wednesday, March 23, 2011 0 comments

High Probability Trading Strategies

Today I finished reading " High Probability Trading Strategies" by Robert C. Miner. This book accompanies with 2 hrs video CD which includes examples of how to apply the high probability trading strategies for many markets and time frames with bar-by-bar and step-by-step recording. Also the author has devoted an entire chapter called "Real Traders, Real Time" with trade examples submitted by his past students.
The book includes four key factors of dual time frame momentum, pattern, price and time. 

Here is what I learnt from this book.
  • Dual Time Frame Momentum Strategy:
    • A Larger time frame to identify trade direction and a smaller time frame for trade execution setups.
    • Traders with different time frame.
      • Positional trader  : weekly and daily charts
      •  Swing trader      :  Daily and hourly charts
      • Day trader           :  60 mins and 15 mins
    • Main Indicators:
      • Stochastic: It includes overbought(OB) and Oversold (OS) zones. Line above 75% indicates overbought and below 25% oversold. 
      • MACD Histogram: It measures the difference between two moving averages.
  • Pattern Recognition for Trends and Corrections:
    • ABC correction: It is a frequent type of correction for all markets and all time frame in 3 swings. Below are some guidelines.
      • The Wave-C should exceed the extreme of Wave-A.
      • If the market trades back into the range of Wave-A, the minimum conditions for a correction are complete.
      • A trade beyond the Wave-B extreme is a pattern signal that the correction should be complete.
    • Five- wave patterns ( Eilliot Wave): The five wave trend pattern make five sections and the section do not overlap, is called an impluse wave. Some of the guidelines are below.
      • Wave -2 cannot trade beyond the beginning of Wave -1.
      • Wave - 3 cannot be the shortest in price of waves 1, 3, and 5.
      • Wave - 4 cannot make a daily close into the closing range of Wave-1.
  • Beyond Fibonacci Retracement: 
    • Alternate Price Projections (APP): 
      • It compares the price range of swings in the same direction also called as price extensions.
      • Frequently used APP are 61.8%, 100% and 162%.
      • APP made of three pivot points, the price range between two pivots is measured and projected from a third pivot.
    • Internal Retracement:
      • are 38%, 50%, 61.8% and 78.6%
      • The  38.2% level is temporary support or resistance.
      • The 78.6% retracement is typically the maximum retracement for a correction. If a market closes above the 78.6% retracement, typically it is not making a correction but will continue to trend to a new high or low.
    • External Retracement:
      • are 127%, 162% and 262%.
      • are important to help identify the final section of a trend or countertrend.
      • are not used on their own for price targets, but to confirm an alternate price projection and or internal retracement.
    • End Of Wave-C:
      • ABC correction ends with Wave-C, which should include internal retracement and an APP.
      • Internal retracement are first in the order of importance of the three sets of projections, since most corrections end near one of the four internal retracement.
    • Entry Exit Strategies and Position size:
      • Trailing One Bar Entry and Stop:
        • Following a smaller time frame momentum reversal in the direction of the larger time frame.
        • The entry price is trailed one tick above/below the last completed bar.
        • When the trade entry order is executed, the initial protective stop is placed one tick below/above the swing high/low made prior to entry.
      • Position Size:
        • Formula to calculated position size is:
    Available Capital X 3% / Risk per Unit = Maximum position size.
        • Exit Strategy Concept:
          • Use of Trailing stop, never exit at a predetermined price target.
      All four strategies momentum, pattern, price and time together help to develop a trading plan that includes entry and exit strategies and trade management.

      This book is not difficult to read and understand, but the reader must spend time learning and practicing each strategy. I took almost 2 month to read this book and currently practicing and implementing each strategy.

      This is very practical book and would recommend to every trader and investor. The author also post blog on his website http://www.highprobabilitytradingstrategies.com/blog/

      Thanks Robert!!!


      Thursday, March 17, 2011 0 comments

      RBI's Credit Policy

      The Reserve Bank of India has raised repo and reverse repo rates by 25 basis points each on March 17, 2011. The repo rate is 6.75%, reverse repo rate 5.75% and the CRR has been left unchanged at 6%.

       RBI's monetary policy review:
      • GDP growth for 2010-2011 to be 8.6%.
        • High commodity prices pose threat to GDP growth.
      • IIP is weak, but other indicators like tax, exports, credit point to growth momentum.
      • March 2011 whole sale price inflation expected at 8% vs earlier estimate of 7%.
      • Increase in oil, fertilizer subsidies could put pressure on expenditure.
      • Current Account Deficit (CAD) estimated to be lower, at 2.5% of GDP.
        •  Focus on longer term capital inflows to sustain balance of payments.
      • Non- food credit growth at 23%, estimate of 20% in Feb (YOY).
      • Net liquidity injection through Liquidity Adjustment Facility down on higher govt spending.
        • Till March 16: Rs. 68000cr Vs February: Rs. 79000cr Vs January: Rs. 93000cr.
        • Temporary pressure on liquidity in second half of March due to advance tax payment.
      Mr. Rajiv Kumar ( Director General, FICCI) said:



      Below link shows industry experts views on 25 bps rate hike:

      http://www.moneycontrol.com/video/economy/howindustry-experts-viewing25-bps-rate-hike_530149.html





















      Monday, March 7, 2011 0 comments

      Recommendation - ReneSola Ltd ( SOL)

      Short term pick : Buy Renesola Ltd., (SOL) @ $ 8.95, Target $ 9.99, Stoploss $ 8.40

      SOL with market cap of 777.6M is trading at the support level of 61.8% ( $8.90)  Fibonacci retracement level and corrected  more than 60% in past few days .Below daily chart shows gap down opening on 01st March 2011.
      52 week high - $15.34
      52 week low - $ 4.72

      ReneSola Ltd. (ReneSola) is a manufacturer of solar wafers and producer of solar power products based in China. The Company possess a global network of suppliers and customers that include some of the global manufacturers of solar cells and modules.

      Friday, March 4, 2011 0 comments

      Doji Candlestick Pattern

      A doji represents an equilibrium between supply and demand, a tug of war that neither the bulls nor bears are winning. All dojis are marked by the fact that opening and closing prices are almost same . There are 4 types of doji.
      • Common Doji:
        • is sign of indecision or reversal in the market.
        • is more significant in up-trending market than in downward moving market.
          • Long Legged Doji:
            •  has long upper and lower shadow.
            • When close below the midpoint of the candle indicates weakness. 
            •  Dragonfly Doji:
              • occurs when price open at high and closes at high.
              • looks like "T" with long lower shadow and no upper shadow.
              • indicates that the sellers drove the prices lower, however at the end of session buyers pushed the prices back to the opening level and formed the shape of "T".
              •  Gravestone Doji:
                • is bearish reversal pattern that mainly occurs in the top of uptrend.
                • occurs when open and close near to the bottom of the trading session ( day's low price).
              Above patterns are useful in technical analysis, however other indicators such as RSI, Stochastics should be consider while trading.
              0 comments

              Apple INC - Target Acheived

              Call posted on 23rd Feb 2011- Target acheived of APPL $359.90


              short term pick-- buy Apple (APPL) @ 341.05 Stoploss 330.90Target 359.90


              Above is daily chart of Apple Inc. Target of $ 359.90 acheived in 8 trading session.
              Tuesday, March 1, 2011 0 comments

              Dark Cloud & Piercing Line Candlestick

              Dark Cloud Candlestick:
              • is reversal pattern followed by uptrend.
              • Stock opens with gap up and closes below the midpoint of previous bullish candle.
              • Must have closing price within the price range of the previous day.

              Piercing line candlestick:
              • is opposite to Dark cloud
              • is followed by downtrend and is bullish pattern.
              • Stocks opens with gap down and closes above the midpoint of previous bearish candle.
              • Must have the closing price within the price range of the previous day.

               These patterns are mostly found in daily and weekly charts and are strong candlestick patterns.
              Wednesday, February 23, 2011 0 comments

              Recommendation - APPLE INC.

              Short term pick - Buy Apple Inc (APPL) @ $341.50, Target $359.90, Stop-loss $330.90

              Apple Inc (APPL) is trading in higher top and higher bottom and formed the channel on daily chart. Below chart shows APPLE Inc is trading at the support level with huge volumes.


               Apple Inc. (Apple) with market cap of 315.6B, designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. It's products and services include Macintosh (Mac) computers, iPhone, iPad, iPod, Apple TV.

              Call posted yesterday on twitter @snehalbrid

              0 comments

              Marubozu Candlestick Pattern

              Marubozu Candlestick: It indicates that the stock has traded in one direction throughout the trading session and closed at the day's high or low price.This candlestick pattern gives strong bull and bear signal.
              • Bullish Marubozu Candlestick:
                • It is formed when open - low and close - high are equal with huge volumes.
                • The buyers control the price of stock from opening to closing session.

              • Bearish Marubozu Candlestick:
                • It is formed when close - low and open - high are equal with huge volumes.
                • The sellers control the price of stock from opening to closing session.

              Above charts shows that whenever Marubozu candlestick is formed ( Bullish or bearish) there is sharp rise or fall in the price. Hence it is a strong candlestick pattern and can be use in technical analysis.








              Wednesday, January 26, 2011 0 comments

              Reserve Bank of India and Monetary Policy

              The Reserve Bank of India (RBI) is the nation's Central Bank since 1935. The basic functions of RBI is
              • To regulate issue of bank notes.
              • Monetary stability
              • Operating currency and credit system. 

              Role of RBI:
              • Monetary authority.
              • Issuer of currency.
              • Banker to banks.
              • Regulator of the banking system.
              • Manager of foreign exchange reserves.
              • Regulator and supervisor of the payment and settlement systems.
              • Developmental role.
              RBI Central Board of Directors:
              •  Official Directors:
                • 1 Governor
                • 4 Deputy Governor
              • Non- Official Directors:
                • 4 Directors-- representing each local board.
                • 10 Directors-- experts in various sectors of the economy.
                • 1 representative of the central government.
              Monetary Policy:  is use of instruments under the control of central bank to regulate the availability, cost and use of money and credit to achieve specific economic objectives, such as low and stable inflation and promoting growth.

              There are several direct and indirect instruments used in formulation and implementation of monetary policy.

              Direct Instruments:
              • Cash Reserve Ratio (CRR):
                • is maintaining cash balance with RBI by banks.
                • Varies between 3% - 15%
                • Current CRR - 6%
              • Statutory Liquidity Ratio ( SLR):
                • is maintaining safe and liquid assets by banks such as government securities, gold and cash.
                • Current SLR - 24%
              Indirect Instruments:
              • Repo Rate:
                • is RBI lends money to commercial banks.
                • Current repo rate - 6.50%
              • Reverse Repo Rate:
                • is RBI borrow excess funds from commercial banks.
                • Current reverse repo rate - 5.50%
              The Reserve Bank of India announces monetary policy review quarterly ( April, July, October and January). The day before the policy review  is to be announced, a detailed report on  Review of Macroeconomic and Monetary Developments is released on RBI website.

              Tuesday, January 18, 2011 0 comments

              Technical Analysis : Part 8 ( Fibonacci Retracement)

              Fibonacci Retracement:
              • It is identified by mathematician Leonardo Fibonacci in the 13th century.
              • Fibonacci sequence is the sum of the two preceding number. The Fibonacci numbers are: 0,1,1,2,3,5,8,13,21,34,55,89,144 etc .
              • The characteristics of this numerical sequence is that each number is 1.618 times (approx) greater than the preceding number.
              • Fibonacci ratios are 23.6%, 38.2%, 61.8%, 100% and 61.8% is also referred as " the golden ratio" or "the golden mean".
              • Fibonacci retracement is created by taking two extreme points ( peak and trough) and dividing the vertical distance by fibonacci ratios to identify support and resistance.
              • This tool is used for intra-day, short-term and long-term.
              •  Above is the daily chart of TSL ( Trina Solar Ltd).
              • R1, R2 and R3 indicates the resistance level at 61.8%.
              • There is sharp fall in price after testing the resistance level of 61.8%.
              • Many traders even use 50% and 78.6% retracement levels for analysis.
                • 50% retracement level is used because of the overwhelming tendency for an asset to continue in a certain direction once it completes a 50% retracement.
                • 78.6% level is used in commodity market because of high volatility.

                Sunday, January 9, 2011 0 comments

                Presentation Zen


                I just finished reading Presentation Zen: Simple Ideas on Presentation Design and Delivery by Garr Reynold. This book provides guidelines for preparing, designing and delivering the presentation in simple and creative way. It includes practical examples, stories in simple terms which are easy to understand. I think this book is very useful for presenters and people who want to improve their presentation delivery skills. Here is what I learnt from this book.

                Presentation has three phases: Preparation, Design and Delivery.

                Phase I: Preparation
                • Start with beginner mind because beginner's mind is fresh, enthusiastic and open to vast posibilities of ideas and solutions.
                • Always plan away from computer. Plan with pen and paper or whiteboard. This will save time and also the analog approach to sketch out ideas and create a rough storyboard helps to solidify & simplify the message.
                • Ask yourself two important question:
                  • What's your point? 
                  • Why does it matter?
                  These questions will put presenter in audience shoes and will help him to understand what audience want and how effectively to convey the point.
                • "Create a Document not a Slideument". Don't combine slide and document together. Always prepare presentation with these three components:
                  • Slides: for audience
                  • Notes: for presentor's reference
                  • Handouts: audience copy
                • Six principles to remember while preparing for presentation:
                  • Simplicity will help to deliver message effectively to audience. Make presentation simple. Don't include everything, include only points containing of core message.
                  • Unexpectedness is violating people's expectation and creating curiosity. Making audience aware that they have a gap in their knowledge and then filling the gap with the answers to the puzzel (guiding them). 
                  • Concreteness is natural speech with real examples, not abstractions.
                  • Credibility is putting the terms that people can visualize. 
                  • Emotion, whenever possible put ideas in human terms by showing images or pictures rather than words. This will have more impact on audience. 
                  • Stories with real examples gets attention and are easier to understand than the list of rules. Story come in by information, emotion and visualization. It makes the presentation memorable.

                Phase II: Design
                • Design is not decoration. It is to make things more clearer and organize information. It is about making conscious decisions about inclusion and exclusion.
                • Four design principles: Contrast, Repetition, Alignement and Proximity. 
                • Techniques to prepare design:
                  • Images/ Pictures: Use of more images makes the presentation memorable and powerful. Image should cover entire slide and should have plenty of empty space so that text can fit comfortably with good contrast.
                  • Grids and the Rule of Thirds: Divide the slide into nine boxes just like tic-tac-toe board and adjust the text or image into 1/3rd portion of slide. This will help to create clean and simple presentation and also saves the time.
                  • Bullet points: are effective to summarize the key points. It is advisable to use bullet point followed by 1-7-7 rule. The rule means 1 idea per slide, only 7 lines and 7 words per line. But bullet points are not effective in live talk and should be avoided whenever possible.
                  • Logo: Logo's, trademarks and footers are not advisable to use in every slide because it's an unnecessary bombarding on audience. It should be display on first and last slide.

                Phase III: Delivery
                • Increase confidence by rehearsing more and more.
                • Complete presentation before allotted time.
                • It is better to leave audience satisfied yet yearning for a bit more, than leaving them stuffed and with feeling that they had more than enough.
                • Audience must always see and hear presentor. Don't switch off lights and always use wireless mic whenever possible. This creates bonding between presenter and audience which results in effective presentation.
                Along with explaining these phases, Reynolds also mentions about two popular events: PechaKucha and TED talks. These two events helps to spread ideas by delivering presentations.  
                • PechaKucha presentation format is simple: 20 slides x 20 seconds. Each slide is allocated 20secs and is set to automatically move to next slide after 20sec. Presenter has to tell story in sync with the visuals in 6 minutes 40 seconds. PechaKucha is changing attitudes toward presentation in a wonderfully creative and unconventional way.

                • TED talks is annual conference where world's most fascinating thinkers and doers are invited to share their great ideas in only 18 minutes. The time limitation usually results in very focused talks. TEDs mission is to "spread ideas", which they do by releasing best talks online on their site, so that ideas can reach wast majority of population around the world.

                This book has provided a good balance of principles and concepts, inspiration and practical examples. I have never given thoughts on these details while preparing and delivering presentations in past. This book has given me insight into getting better. Thanks Reynolds!
                 
                   
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