The Cost of Missing Best Days in Market: Why and How to Stay Invested

Missing best days in markets!

Missing best days in markets can cost an investor a lot. Many would wonder what and how?

Disadvantages of missing best days in markets:

Performance Report on our BANKING SECTOR BUY REPORT- Also more view on Market

Dear visitors,

This goes with our repeated recommendation on Banking Sector stocks rally, starting with aggressive and ironic satiring comments on operandi of market mis-understandings.

Click below link for looking our original report of April 2010-

http://www.meghainvestments.com/2010/04/banking-bulls-and-bull-market-biases.html

Click below to see our repeated recommendation on 31 May 2010-

http://www.meghainvestments.com/2010/05/research-that-is-out-of-question-follow.html

and, below at our FREESTOCKIDEA, free sms group, where we continually send sms for same,

http://smsgupshup.com/groups/freestockidea

and, continual enforcement of our view by putting the links prominently visible on top side home page.

BELOW IS THE TABLE SHOWING THE PRICE AS ON RECOMMENDATION DATE, PRICES AS ON CLOSING DATE, HIGH PRICEC SINCE, AND RETURN IN PERCENTAGE.

COMMON AND MUST TO KNOW RULES FOR INVESTORS

• Grab stocks when good companies post bad subdued or less than expected quarterly numbers. This could be a good opportunity to buy at discounted price.
• Always keep a list of good companies ready with the price at which you want to buy their stocks and keep checking their prices. This practice gives excellent exercise to individual investors.
• Always remember that acquisition price will determine your retrun first of all and other variable more so later.
• Keep your investment broking and demat account different from trading account.
• Write this on stone that a Bear market is the BEST time to go on hunting for investors.
• Never work on rumours. That’s traders’ recipe.

QUALITY STATEMENT of Megha Investments and Research

QUALITY STATEMENT

Of MEGHA INVESTMENTS AND RESEARCH

We believe, in our activity, there are two aspects,

1. The quality of Analysis, and
2. The quality of Delivery of service

We strive to remain best in both of these aspects.

Our MAIN FOCUS remains on highering our existing CUSTOMER RENEWAL RATIO than ACQUISITION OF NEW CUSTOMERS.

And that also explains our No Sample Trial culture followed since beginning of fee based services.

1. THE QUALITY OF ANALYSIS:

To take care of this important aspect, we follow top-down as well as bottom-up approach.

We have team of experienced, qualified and MOST IMPORTANLY those fellows who have ability to imagine, work with and deliver through THE MOST OBVIOUS to MOST ADVANCED AND INNOVATIVE in these subjective field of market research and analysis.

We encourage and entertain such study people in our organization, who can imagine of flying in skies while their feet firmly on the ground.

We believe in concept of internationalization and inter-market analysis, i.e. all markets classified into asset-class, locations, and so on are interconnected and increasingly doing so. However, the magnitude and frequency of co-relation keeps changing with times.

We suggest to read 'About Us' page for more views on research and analysis.

2. THE QUALITY OF DELIVERY OF SERVICE:

To take care of this aspect we have put down in place robust systems that ensures,

1.    Prompt receipt of new customer queries and response to it via phone call, SMS, email, contact form.

2.    Priority of task mentioned in 1^st point above for EXISTING CUSTOMERS than new prospects.

3.    Regularity of respective services, and informative SMS when services are disrupted of for other reasons.

4.    Specificity of all the services. This goes with our hard-core approach that we must know what we are offering PRECISELY, and the investor/trader must know what he is BUYING IN THE FORM OF OUR SERVICE.

Many times we help prospects to identify their need and choose right service from our basket of useful services.

We happily apologize for our customer care executives’ rigid behavior in explaining and getting too specific!

Diversification in Investment

Diversification in investments:

      It is literal and clear that diversification has all to do with reducing risk. You may also want to fancy-name it ‘asset-allocation’. Why would one ‘allocate’ to multiple asset classes or ‘diversify’ if one is safely sure about one asset class, and the return on would get, one would never think of any sort of allocating or diversification. Yes it also has to do with the advent of the ‘financial industry’. Recently we see in indian markets the launch of, simultaneously, gold etf and hybrid mf schemes involving equity, debt as well as gold etf investment. Why? They have launched only now? Wasn’t there as need of ‘gold-touch’ earlier? Or in one year only gold has become ‘investible’ or worth giving ‘allocation’? thus most of us do/or should understand, this is about business and they have to sell financial products, any for that matter.

Well, coming to the main topic, lets’ see some expert thoughts on diversification in investing:

Legendary investor Warren Bufferr has said for diversification,

“Diversification is protection against ignorance; it makes very little sense if you know what you are doing.”

He also says,

IPOs-Some Most Important Things to know about

WHEN ITS HOT AND FIREY!

IPOs only and only come in hot and bull market. Why? So that they can obtain the highest price.

MERCHANT BANKERS AIN’T YOUR FRIEND

Investors forget that Merchant Bankers are selling agents of the issuers. And many times they are also given extra fee for performance selling over and above fixed fee.

Merchant/Investment banking is a cream business. So many are in race to get mandates for IPOs from issuer companies. They will do everything to please the company.

SELL ON LISTING? If you’re lucky enough.

Most investors have only one funda for investing in IPOs.

To sell on listing!

They all think that they will be able to sell and outsmart everyone else.

They all feel so because of psychology. They have seen some issues listing at high premium and their listing premiums quoting in so called ‘gray-market’; and this brings the representative bias. The availability bias makes him confront only good and positive news and information. They ignore the discounted/failed listed IPOs. And in hot market there is all news of economic growth as well.

New sectors are not invented every now and then: The fad and fancy for ‘new’ in markets:

Many IPOs come which are highly pricey and shares of some peer company are already available in secondary market. Still

COMMON AND MUST TO KNOW TRADING RULES

• Always have a trading plan. Never trade without a trading plan (a trading plan consists of a trading system which is made of few components)
• Never trade without a StopLoss (Repeat 10 times).
• Never ever hold on to a losing position. Never average/add to a losing position. (Repeat 10 times).
• Let your profits growing. Add to your winning trades.
• Trade on Rumors and Exit at news. But be care ful while following this strategy.
• Never discuss your

HOusing Finance Counters: Update on Recommendation given on Behavioral Finance principles

Behavioral finance has just evolved in earlier part of this decade.

Understanding of behavioral finance can help tremendously in investing; and so in trading and speculation as well.

On 13 May, we reported in brief about the application of rule of behavioral finance in housing finance sector stocks. We talked about the ‘representative’ and ‘leadership’ bias. How small companies tend to follow the sector leader. We covered a sector with fewer listed companies.

The LIC Housing is listed industry leader and after it Dewan Housing, Gruh Finance, Ind Bank Housing, Can Fin Homes can be listed amongst the housing finance specific companies.

DEWAN HOUSING has since shot up to new high of 260 from 230 levels.

While GRUH FINANCE has since shot up to new high of 351 from 290 levels.

Can Fin Homes hit new high of 140 today, while Gruh Finance, and Dewan Housing also hit highs in this month. while Ind Bank Housing is trading firmly above 20.

We still recommend both of this stocks for fresh buys.

Click below link to Read the Earlier Article:

http://www.meghainvestments.com/2010/05/trade-with-behavioural-finance-rules.html

Rock-Solid Picks

GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD.

CMP-34.50

The takeover by the old French financial giant BNP will give it the expertise and experience of international operations of BNP.

The company insiders are saying the firm has huge expansion plans in year 2011.

Various fund managers have started taking coverage on the stock and will add in their portfolio before giving public reports and recommendations.

One looking at investing into finance stocks can invest with a view of mid to long term.

The company has managed to post profit for the quarter ending March. This is commendable since the leading brokerage house had posted a loss for the same period last year. It recorded a profit of Rs. 7.07 crore for the above mentioned period as against Rs. 10.93 crore loss last year. The firm showed its consolidated income to be Rs. 62.09 crore for the March quarter. This is an increase over last year when the figure was Rs. 43.74 crore

MARICO LTD.

CMP-125

Accumulation going on between 115-125 levels.

Now sustaninig above 115 levels.

To cross 150 in short term.

Our clients hold position.

Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty 
and Wellness space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods generated 
a Turnover of about Rs. 26.6 billion (about USD 600 Million) during 2009-10. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic.

Experience and Learning

Experiences and learning:

“The second name of experience is to learn”

-Dhirubhai Ambani

         Would anyone contradict with this great personality? Every day is experience, every hour is experience, every minute is experience, every event is experience, every response is experience, every action is experience, and every reaction is experience. So does that mean all the life is experience? And by virtue of all the experiences being learning; there is nothing in saying that life is an experience or/and learning. Experience can also be described as the meeting place or convergence of the situation one faces and the mental effects of those situations.

            There is a thin differentiation understanding it. But there are few things to it. All experience, but

Useful Links

     USE FUL LINKS:

LINKS	BRIEF DESCRIPTION
WWW.BSEINDIA.COM	BOMBAY STOCK EXCHANGE, ASIA’S OLDEST AND WORLD’S 2ND OLDEST EXCHANGE
WWW.NSEINDIA.COM	NATIONAL STOCK EXCHANGE OF INDIA
WWW.SEBI.GOV.IN	SECURITIES AND EXCHANGE BOARD OF INDIA
WWW.RBI.ORG.IN	RESEARVE BANK OF INDIA
WWW.FMC.GOV.IN	FORWARD MARKET COMMISSION, INDIAN COMMODITIES FUTURES REGULATOR
WWW.MCXINDIA.COM	MULTI COMMODITY EXCHANGE
WWW.NCDEX.COM	NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE OF INDIA
WWW.IBA.ORG.IN	INDIAN BANKS’ ASSOCIATION
WWW.BCSBI.ORG.IN	BANKING CODES AND STANDARD BOARD OF INDIA
WWW.AMFIINDIA.COM	ASSOCIATION OF MUTUAL FUNDS IN INDIA
WWW.IRDAINDIA.ORG	INSURANCE AND REGULATORY AUTHORITY OF INDIA
WWW.INDIA.GOV.IN	THE NATIONAL PORTAL OF INDIA
http://www.mcx-sx.com/	MCX STOCK EXCHANGE OF INDIA
http://www.nbhcindia.com/	NATIONAL BULK HANDLING CORPORATION LTD.-MCX
http://www.nationalspotexchange.com/	NATIONAL SPOT EXCHANGE- MCX
http://www.ncdexspot.com/	SPOT EXCHANGE- NCDEX
http://www.iexindia.com	INDIAN ENERGY EXCHANGE-MCX
http://www.powerexindia.com	POWER EXCHANGE INDIA LTD-NCDEX NSE
http://www.worldbank.org/	WORLD BANK
http://www.un.org/	UNITED NATIONS-UN
http://www.ifc.org/	INTERNATIONAL FINANCE CORPORATION
http://europa.eu/	EUROPEAN UNION WEBSITE
http://www.aseansec.org/	ASEAN-ASSOCIATION OF SOUTH EAST ASIAN NATIONS
http://www.saarc-sec.org/	SAARC-SOUTH ASIAN ASSOCIATOIN FOR REGIONAL COOPERATION
http://www.fao.org/	FAO-FOOD AND AGRICULTURAL ORGANISATION OF UN
http://www.bis.org/	BANK FOR INTERNATIONAL SETTLEMENTS
http://www.financialstabilityboard.org/	FINANCIAL STABILITY FORUM-INTL
http://www.ecb.int/home/html/index.en.html	EUROPEAN CENTRAL BANK-ECB
http://www.federalreserve.gov/	USA-FEDERAL RESERVE BANK
http://www.g20.org/	G-20
http://www.icrier.org	INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS
http://mospi.nic.in	INDIAN MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION
http://www.cmie.com/	CENTRE FOR MONITORING INDIAN ECONOMY
http://www.ccilindia.com/	CLEARING CORPORATION OF INDIA LTD
http://www.fimmda.org/	FIXED INCOME, MONEY MARKET AND DERIVATIVE ASSOCIATION OF INDIA LTD
http://www.thehindubusinessline.com/	BUSINESS LINE
http://www.thehindu.com/	THE HINDU
http://www.business-standard.com	BUSINESS STANDARD
http://economictimes.indiatimes.com/	THE ECONOMIC TIMES
http://www.livemint.com/	LIVE MINT
http://www.ptinews.com/	PRESS TRUST OF INDIA
http://pib.nic.in/	PRESS INFORMATION BEREAU OF INDIA
http://www.sezindia.nic.in	SEZ GOVERNMENT PORTAL OF INDIA
http://bloomberg.com/	BLOOMBERG NEWS
http://reuters.com/	REUTERS
http://www.dnaindia.com/	DNA NEWS
http://www.dnaindia.com/money	DNA MONEY
http://www.financialexpress.com/	FINANCIAL EXPRESS
http://timesofindia.indiatimes.com/	THE TIMES OF INDIA
http://www.world-newspapers.com/india.html	LINKS OF NEWS SITES
http://www.samachar.com/	NEWS SITES AND FEEDS
http://www.ndtv.com/	ND TV
http://ibnlive.in.com/	IBN LIVE
http://www.hindustantimes.com/	HINDUSTAN TIMES
http://www.indiatimes.com/	INDIA TIMES
http://www.foxnews.com/	FOX NEWS
http://www.cnbc.com/	CNBC WORLD
http://www.bbcworldnews.com	BBC WORLD NEWS
http://edition.cnn.com/	CNN WORLD
http://finance.yahoo.com/	YAHOO FINANCE
http://money.cnn.com/	CNN MONEY
http://www.onlinenewspapers.com	ONLINE NEWS PAPER LINKS
http://www.moneycontrol.com/	MONEY CONTROL INDIA
http://utvmoney.mangopeople.com/	UTV MONEY INDIA
http://www.zeenews.com/	ZEE NEWS
http://news.nettop20.com/	TOP 20 NEWS SITES
http://www.mscc.edu/library/news.html	LINKS OF INTL NEWS SITES
http://www.forbes.com/	FORBES
http://www.businessweek.com/	BUSINESS WEEK
http://india.wsj.com/home-page	WALLSTREE JOURNAL INDIA
http://www.msnbc.msn.com/	MSNBC MSN
http://www.ft.com	FINANCIAL TIMES
http://abcnews.go.com/	ABC NEWS INTERNATIONAL
http://in.msn.com	MSN INDIA
xx	xx
www.discoveroptions.com	Jim Graham, Options Educator
http://www.bell-labs.com/	Premier Innovation and research organization owned by MNC Alcatel-Lucent
http://en.wikipedia.org/wiki/Main_Page	Online encyclopedia about almost everything, google of knowledge and information on variety of subjects
http://www.nbanewdelhi.com	represents the private television news & current affairs broadcasters. It is the collective voice of the news & current affairs broadcasters in India .
http://www.nipfp.org.in/	A centre for research in public finance and public policy. Established in 1976 as an autonomous society, the main aim of the institute is to contribute to policy making in spheres relating to public economics.
http://papermart.in	A bi-monthly magazine for pulp, paper and converting industries in India.
http://www.ciel.co.in/	is a learning solutions company focused on competency building for the banking and financial services sector.
http://www.nurturetalent.com/	It conducts programs for budding entrepreneurs on areas like finance, business plan, marketing and setting up a company
http://www.gujaratstartups.com	is a networking platform for Gujarati Entrepreneurs. This is a community platform that allows various entrepreneurs, businesses to network with each other and promote their products and services.
http://www.ipoxschuster.com/	IPOX Schuster LLC is an independent, research-driven financial services firm specializing in financial products design related to global IPOs and spin-offs
http://www.emarketer.com	Online research, analysis and survey agency/firm
http://www.businessweek.com/	Bloomberg businessweek, intl news site
http://www.frost.com	Global business and industry consultancy firm
http://www.aviationeconomics.com/	provides economic, strategic and financial consultancy services to the world’s aviation companies - airlines, airports, manufacturers and government agencies
http://www.joneslanglasalle.co.in/India/en-gb/Pages/Home.aspx	a financial and professional services firm specializing in real estate services
http://www.imd.gov.in/	Indian Meteorological Department-forcasts monsoon in India
http://dod.nic.in/	The Ministry of Earth Sciences (MoES) is mandated to provide the nation with best possible services in forecasting the monsoons and other weather/climate parameters, ocean state, earthquakes, tsunamis and other phenomena related to earth systems through well integrated programmes.
http://www.fatf-gafi.org	The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing.
http://www.mckinsey.com/	Global business consultancy firm
http://ww1.mckinsey.com/ideas/mgi/index.asp	McKinsey Global Institute, is promoted by Mckinsey, a global business consultancy firm; which does independent economic research
http://upgov.nic.in/upinfo/weblinks.htm	Find more useful links on this site
xxxx	xxxx
http://www.siamindia.com/	Society of Indian Automobile Manufacturers, an Indian Trade Body.
http://www.cafral.org.in	CAFRAL has been set up by Reserve Bank of India in the backdrop of India’s evolving role in the global economy, in the financial services sector and its position in various international fora, to develop into a global hub for research and learning in banking and finance.
http://www.shadowstats.com/	is an electronic newsletter service that exposes and analyzes flaws in current U.S. government economic data and reporting, as well as in certain private-sector numbers, and provides an assessment of underlying economic and financial conditions, net of financial-market and political hype.
http://www.efama.org/	European fund and asset management association, trade body
http://www.realtrends.com/	USA based real estate consultancy, research firm
http://www.infraline.com/	Research, data, and consultancy on Indian power, oil , gas, and infra space
http://www.stratfor.com/	a subscription-based provider of geopolitical analysis. Individual and corporate subscribers gain a thorough understanding of international affairs, including what’s happening, why it’s happening, and what will happen next.
http://www.eurekahedge.com/	the world's largest alternative investment funds research house, specialising in hedge fund databases.
http://www.iias.in/Aboutus.aspx	Institutional Investors Advisory Services is an advisory firm dedicated to providing participants in the Indian market with independent opinions, research and data on corporate governance issues. It helps investors make value-creating decisions, and the translation of these decisions into portfolio performance.
http://www.ifagalaxy.com/	Independent Association of Indian financial advisors
http://www.asiaetrading.com/	Fastest growing asia’s electronic trading industry portal
http://isid.org.in/	The Institute for Studies in Industrial Development (ISID), successor to the Corporate Studies Group (CSG), is a national-level policy research organization in the public domain and is affiliated to the Indian Council of Social Science Research (ICSSR)
http://www.cges.co.uk/	is a non-profit think tank, specialising in oil market analysis and forecasting, and the economics and politics of energy.
http://energy.gov/	USA energy intelligence agency
http://www.teriin.org/index.php	Global Research, projects, consultancy, publication firm for sustainable development
http://www.otcbb.com/	Biggest OTC trading and data provider and facilitator. The OTCBB: provides access to more than 3,300 securities; includes more than 230 participating Market Makers; electronically transmits real-time quote, price, and volume information in domestic securities, foreign securities and ADRs; and displays indications of interest and prior-day trading activity in DPPs.
http://www.symphonyfintech.com/	Indian provider of online trading softwares, algo trading softwares
http://www.mellanox.com/	is a leading supplier of end-to-end InfiniBand and Ethernet connectivity solutions and services for servers and storage.
http://www.alphastream.com/	an independent asset manager which specializes in the management of institutional investment products.
http://www.streambase.com/	real-time analytics solution that enables business users to analyze, anticipate, and act on opportunities or threats as they occur
http://www.progress.com/en/index.html	Another Software products company
http://adsa.in/	The Academy for Decision Science Ahmedabad (ADSA) offers a certification course on Data Analysis
http://www.ippai.org/	Independent Power Producers Association of India. An independent body that provides a neutral platform for the discussion and examination of issues critical to the development of the private power sector in India.
http://powerwatch.com/	100% Canadian developed and manufactured advanced technology for real-time management of electrical consumption and costs.
http://www.ascendworldwide.com	Global aviation sector consultancy
http://www.nbanewdelhi.com	The News Broadcasters Association (NBA) represents the private television news & current affairs broadcasters. It is the collective voice of the news & current affairs broadcasters in India. It is an organization funded entirely by its members.