Showing posts from July, 2017

Am I a good investor?

Peter lynch once state that there is no point in doing market timing. If a company is good it will continue to grow. Small Amount of over valuation should not matter in the long run for growth stocks. This is in contrast of Benjamin Graham focus on margin of safety. Focus on value investing.Modern fundamental school of thought is to choose good growth / value companies with a long term outlook, and use technical analysis to price entry and exit points. So far, my portfolio has made overall gains throughout with only 2 positions resulting in losses. Granted it is a small portfolio (diversification through deep analysis and market exposure and risks), the plus is successful in overwhelming the minus. Still, I admit I really suck at the market timing portion via technical analysis. I initially buy stocks at certain level above resistance lines. The thing about technical analysis is it is very short term based (short term is hours, long term is less than a month). At this point of time,

Feasibility of Dollar cost averaging in Philips Capital, and alternative trading platforms

Links Pros 1) You Don't Have The Money Upfront 2) Psychological appeal: if the market dips, people will be happy because DCA will be saving them money; and if the market goes up, people will be happy regardless . 3) You don't believe in mar

The Warren Buffet philosophy of investment

1) markets are not rational. Share performance will be more volatile than company real performance. Share price is most widely tracked but least useful. Book value is not accurate reflection on company's ability to generate profit. 2) strong opponent of emh. If you are so smart why am I so rich. William Sharpe. Outperformance of market is a sigma event. It is easier to explain a sigma event than explain gaps in Emh. Opponent of capm (unrealistic assumptions )and technical analysis (not reproducible) There is poor autocorrelation in prices and technical analysis should fail. There is no way to reproduce results reliably. Flip a chart over and the results are not reproducible 3) Business schools and markets reward complex behaviour more than simple behaviour. But simple behaviour is more effective. Strongly prefer simple business with predictable results. If you can't explain why you want to make an investment, don't do it. Invest within your circle of competence. If res