The fact that more and more banks in the West are reporting losses tells us that the sector is stressed and will demand cash infusions. In a phase when the cost of funds (interest rates) is rising, it means the US Fed will focus on bailing out the big fish, whereas the small mom-and-pop businesses may struggle for liquidity. With rampant printing of unbacked currency during covid lockdowns triggering multi-decade high inflation, printing more cash is not a good option. Big money smells that dilemma and is deleveraging (cutting down on risky bets). This episode discusses the same in detail.
There are two ways to make Rs 10,000 in trading profits. Either buy 1,000 shares and wait for a Rs 10 price move or buy 10,000 shares and await a Re 1 price move. September is a mo ... Read more
There are two ways to make Rs 10,000 in trading profits. Either buy 1,000 shares and wait for a Rs 10 price move or buy 10,000 shares and await a Re 1 price move. September is a month better suited for the latter strategy. Since a trader is taking a higher exposure, his risk is elevated. He must take smaller and more frequent profits. Carrying over positions to the next session should be avoided wherever possible. Such traders who take small but frequent profits are called scalpers. September historically favours scalpers. Read more
While Indian financial markets have outperformed their global peers, the slam dunk decline in US markets on Friday may unnerve many. The US Federal Reserve is likely to continue on ... Read more
While Indian financial markets have outperformed their global peers, the slam dunk decline in US markets on Friday may unnerve many. The US Federal Reserve is likely to continue on the path to rate hikes. That is negative for corporate profitability and, by extension, equities. Read more
Last week I wrote financial markets were climbing over a wall of worries. Markets lived up to my expectations. I also wrote a trader should ideally take profits daily wherever avai ... Read more
Last week I wrote financial markets were climbing over a wall of worries. Markets lived up to my expectations. I also wrote a trader should ideally take profits daily wherever available since markets were highly volatile. Read more
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