STOCK-MARKET TRADERS--“A WINNING EDGE” PSYCHOLOGY

STOCK-MARKET TRADERS--

DEVELOP “A WINNING EDGE” PSYCHOLOGY

Stock Trading demands fundamental understanding of the stock valuations, future prospects and never the less stock behaviour relates to news and corporate developments. Stock market Traders shall have the necessary financial back-up, right associations to understand the movements with precision & care, more over traders shall develop psychologically matured, emotionally balanced, analytically strong mind and disciplined in judgement which we often find HARD with the amateur traders. 

Afresh blood of INVESTOR community come to markets on regular basis, and many novice investors get converted to Day-Traders for early-quick bucks, more than that a KICK and Excitement. The amateur Traders, think trading is an easy job, get trapped in the psychological compulsive state, loose control of rational thinking and suffer losses due to lack of understanding about the market operations. The stock-market play is always a two way game. But most traders believe just a BUY&SELL.  These Traders seldom recognise the basic fact that every BUY from their end is corroborated by some others SELL side position and vice-versa. 

Most of the times, the Day traders believe as if they are making a winning trade as small profits are reflected in their positions due to the market fluctuations. In fact, the day traders fail to understand the actual Trend, because the small moves are perceived as TREND and more positions built over that, as if right. The move to eliminate day traders/jobs shall never be taken as granted as TREND, whereas seasoned market makers/market operators generate such a false swing move to eliminate the amateur weak traders in the opposite direction of the main trend to see the stop-loss orders get triggered. Trends sustain for longer period usually than the fluctuations. The fluctuations of PUSH & PULL due to the urge to garner VOLUME, market operators generate a minor move in the direction of TREND or against. This happens normally when stocks in a Trading Zone, with well-defined boundaries. 

No doubt, traders are the volume creators, provide DEPTH to the markets. The amateur traders who are hyper active in their decision are making process seldom find time to cross check the rationale, enters the market to create a position on the buy side or on the sell side, and get struck to that thought process. These Traders tend to behave erratically, because initiated some positions, don’t hesitate to add more even if the position is at loss, and presume that averaging can turn the table. The similar behavioural pattern compels these traders to go for wild coverings that force to accept huge losses. Many a times, hear the complaining sympathy seeking statements like “when my positions are cleared/stoploss hit, the markets took a U-turn”. 

Day Traders enjoy the ecstasy, get involved in the PROFIT-LOSS drama of excitement that keeps tense mental state, and fail to evaluate the strength of winning trades. Similarly when losing. Either, Greed for Profits and FEAR of Loss generate impulsive heartbeat, turbulent emotions encircle the traders mind, generate confusion while making a judicious decision making, and end up in frustration.

Traders has to accept the very fact that, they have to understand the behaviour of the stock market moves but not the Markets. A seasoned trader can easily identify these moves and their nature strength, can generate good profits, whereas the amateurs be they Traders or Investors, always emotionally take a decision and challenges themselves to prove their ability to take right decisions,  prefers to Buy at the Top edge and Sell at the Bottom. The problems with these Compulsive, emotionally imbalanced traders is that they DEMAND the TREND, always look at the markets with an influenced mind set, thinking as if they are insurmountable and a pre-defined blind approach. Here, I am suggesting to understand the difference between a PLANNED & STRATEGIC APPROACH and a pre-determined adamant approach. 

In my next article, will try to analyse the PILLARS of Stock Markets…

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CSR-14000 Cr!!!

CSR spend may grow over 4 times to Rs 15k cr: Study

The finding was part of a report by consultancy firm BCG and Nasscom Foundation

Press Trust of India  |  New Delhi  

February 15, 2015 Last Updated at 10:40 IST

Spending by Indian companies on corporate social responsibility (CSR) activities can grow more than four times to $2.5 billion (over Rs 15,000 crore) a year if all companies spend the funds as per the norms.

The total spending on CSR initiatives stood at $600 million in the 2012-13 fiscal, while almost half was accounted for by top 10 entities including RIL, Coal India, Tata Steel and SBI.

These funds were spent by the companies on various social initiatives of the government and NGOs.

"If all eligible companies spend their mandated budget this year, CSR spend is estimated to grow about four times to $2.5 billion and technology companies will likely contribute about 20 per cent or more of this," according to a report by consultancy firm BCG and Nasscom Foundation.

As per the new regulations under the Companies Act, 2013, the government has mandated a minimum CSR spend of 2 per cent of the company's profits, for all organisations above a certain size of revenues and profit.

Analysis of CSR activities of top 100 companies shows that the mode of giving has primarily been through NGOs and other social organisations as around 90 per cent companies are channelling their funds through these organisations.

"While majority of companies have established in-house foundations to engage in social activities, around 10 per cent of the organisations choose to design and execute activities directly through them," the report said.

Besides providing monetary assistance, companies are now also beginning to show greater degree of involvement in social initiatives like volunteering and providing expertise on best practices to NGOs.

A sector-wise analysis shows education and healthcare have received disproportionate attention with around 80 per cent of the companies supporting these two sectors.

Many companies are focusing on providing access to quality primary education, supporting mid-day meals at schools as well as health check-ups or blood donation camps. Other focus areas include skills development, women's empowerment and environment sustainability.

The CSR norms came into effect from April 1 last year through the Companies Act, 2013, which is being implemented by the Corporate Affairs Ministry.

As per the norms, a certain class of profitable companies are required to shell out at least 2 per cent of their three- year average annual net profit on CSR activities.

Going by estimates, about Rs 14,000 crore is expected to be spent towards CSR activities by companies in the current fiscal.

http://www.business-standard.com/article/pti-stories/csr-spend-may-grow-over-4-times-to-2-5-bn-study-115021500107_1.html

SAHARA FORGERY CASE..!!

Mirach fiasco: Sahara initiates legal action; eyes new deal

By: PTI | New Delhi | February 12, 2015 7:51 pm

Accusing Mirach Capital of “cheating and forgery” in the failed USD 2.05 billion loan arrangement, Sahara today said it has initiated legal action against the US-based firm and it is now working on a new deal to raise funds to secure bail for its chief Subrata Roy.

The crisis-hit group alleged that Mirach and its CEO Saransh Sharma’s “criminal conduct and lack of financial capabilities to honour such huge commitments led to the breaking down of its deal with Sahara, leading to the loss of precious time, resources and position of Sahara”.

“… Sahara is now taking legal actions both of civil and criminal nature against such gross criminal conduct of MCG (Mirach Capital Group) and their officers, both in India as well as in the US,” a Sahara spokesperson said.

He further said that an FIR has already been filed in this regard, while adding that the group is now “working on another deal and Sahara will comply the order (of the Supreme Court) very soon.”

There was no immediate reply to queries mailed to Mirach, which had earlier accused Sahara of going back on the deal and also warned the Indian group of legal action.

Mirach had yesterday formally called off its USD 2.05 billion loan financing for Saharas and said it has returned the entire due diligence fees of USD 2.625 million to them.

It also accused Sahara of being an “unwilling seller” for the three overseas properties — The Plaza and Dream Downtown in New York and the Grosvenor House in London.

With its financing arrangement, which involved transfer of loans taken by Saharas from Bank of China for three these hotels to a clutch of investors, Mirach had emerged as a white-knight in Sahara’s efforts to secure release of its jailed chief Subrata Roy till its syndicate loan offer got embroiled in an alleged “forged letter” controversy.

Sahara and Mirach were asked to finalise their deal by February 20 to help arrange funds for securing release of Roy and his two colleagues, who have been lodged in Tihar Jail for almost a year now.

While calling off the loan deal, Mirach yesterday said it was still willing to arrange a full buyout of Sahara’s three overseas hotels for a similar amount of USD 2.05 billion.

The loan deal fell apart after Bank of America disclosed that it was not involved in the deal as was being claimed.

Sahara said that its own due diligence found the letter to be “forged”, which was purportedly from Bank of America and claimed to provide guarantees worth USD 1.05 billion for the Mirach-Sahara deal.

The Supreme Court, which had asked Sahara to deposit over Rs 24,000 crore to Sebi in August 2012 for further repayment to investors, was informed yesterday that the Mirach deal has failed. Only a part of these funds has been deposited by Sahara with Sebi, although the group claims to have already repaid over 93 per cent of investors directly.

In a detailed statement on its side of story in the loan arrangement with Mirach and the eventual collapse of the deal, Sahara said the MOUs and basic agreements were signed between the two parties after several rounds of discussions, negotiations and meetings, “in person, through e-mail

Sahara said it was left with no option but to “rescind the deal” and is also contemplating to take civil action for damages for causing wilful loss by Mirach and its officers.

On Mirach’s claims that it was interested in purchase of three foreign hotels, Sahara said it has found that the US-based firm “has no such huge funds of its own and is trying to build a consortium of various corporates to jointly fund for taking over of the said hotels”.

It also alleged that the “financial capabilities of MCG and Sharma are doubtful and mischievous”.

“Sahara is now taking all sorts of legal actions against such gross criminal conduct of Mirach and their officers, both in India as well as in the US,” the group spokesperson said.

Sahara said that Mirach had always defended the purported BofA letter and claimed that funds were available in that account.

It also raised questions about the source of the said letter and the signature thereon, among others.

A blame-game has been continuing between Sahara and Mirach for about a week now over their floundered deal.

The three iconic hotels — The Plaza and Dream Downtown in New York and Grosvenor House in London — were acquired by Saharas between 2010-2012 at an estimated valuation of USD 1.55 billion. Market experts peg their current valuation at upwards of USD 2.2 billion, after taking into account the appreciation in their values.

Mirach, however, says the three hotels can get a maximum valuation of USD 1.67 billion, while the prevailing “distressed circumstances” can bring down the value to as low as USD 700 million.

The US-based firm had earlier sought a “formal apology” from Sahara for going back on the deal.
Sharma, who is himself facing legal lawsuits for a few cases in the US and has reportedly admitted to wrongdoings in the past in a case relating to stealing database, had also warned of initiating legal recourse and seeking compensation from Sahara.

The Sahara-Mirach deal took a curious turn after Bank of America’s disclosure that it was not the banker as claimed earlier for this proposed financing arrangement.

Sharma however claimed that a banker from Bank of America had sent an e-mail on December 17, 2014 directly to Sahara confirming financial capabilities.

According to him, on December 19, 2014, Bank of America officially withdrew to act as escrow agent to this transaction citing “integrity issues with Sahara” as the reason for not being involved with the transaction.

http://www.financialexpress.com/article/industry/companies/mirach-fiasco-sahara-initiates-legal-action-eyes-new-deal/42194/

Madhu Kinnar, country's first transgender mayor...!!!!

NEW DELHI, JAN 5:  

A city in central India has elected the country's first transgender mayor, nine months after a court ruled that transgender be recognised as a legal third gender, local media reported.

Madhu Kinnar, 35, won the mayoral election in Raigarh in the mineral-rich state of Chhattisgarh on Sunday, beating her opponent from the governing Bharatiya Janata Party (BJP) by more than 4,500 votes, the Press Trust of India reported.

Television images showed a sari-clad Kinnar, with a large red bindi on her forehead, greeting supporters who placed marigold garlands around her neck.

Kinnar - who is from the Dalit or "low caste" community and used to earn a living singing and dancing in trains - said that she was overwhelmed by her election.

"People have shown faith in me. I consider this win as love and blessings of people for me. I'll put in my best efforts to accomplish their dreams," Kinnar was quoted as saying.

"It was the public support that encouraged me to enter the poll fray for the first time and because of their support only, I emerged as the winner."

Activists say there are hundreds of thousands of transgender people in India, but because they were not legally recognised, they faced ostracism, discrimination, abuse and forced prostitution.

Last April, Supreme Court recognised transgender as a legal third gender and called on the government to ensure their equal treatment.

While the landmark judgment was welcomed by human rights campaigners, many say it contradicts the court's reinstatement of a gay sex ban that has resulted in an increase in the persecution of lesbian, gay, bisexual and transgender (LGBT) people, forcing many to conceal their sexual identity.

(This article was published on January 5, 2015)

http://www.thehindubusinessline.com/news/india-elects-first-transgender-mayor-in-raigarh/article6756820.ece