Out of the GAME!

With the Billions of Dollars of Write-offs looming and the market having seen 300+ falls, Bernanke saying growth is slowing - I AM OUT OF THE GAME! From 30,000 to 36,000 in just 20 days and then from 36,000 to 28,000 in 30 days! Net-Net - I have lost 2k and need to back pay 2k in taxes ~ Lost 4k in 51 days. Yep, there are people who have lost more and are still HOPING to come out when the market gets good. I am better off than them. More than the 4k I have lost the biggest loss is the loss of confidence - a fear of the future - on how money can be minted. I mean - this corporate job is never going to be sufficient to build an economic empire. I was building castles in the air with making a Million dollars in a year or two and then multiplying it.

I have been learning - learning - never applying the lessons. I will again start with toddler steps but now I dont even have a margin of safety to try. So the only way out is for the markets to stabilize. But when? I will take to more reading. More and more.... and will see ...

The Portfolio

Not long ago the Fed decreased the interest rates by 50 basis points (9/18/2007). The market rallied and so did my holdings. It showed a 30% return when the markets were up by 10%. I was building castles in air. A super jumper IPO STV (China Digital TV) came out and I picked a 100 for 31.00. It closed at 28 jumped to 39 then to 50 then to 54 in the next 4 days. I grabbed 50 more at 52.00. So, as it happens with a volatile stock it tanked to 42 in minutes following BIDU's revised analyst erstimate (Phew - a mere 300k). Call it Panic selling - I fell a victim. I surrendered my $2500 loss and let it fall to a mere $500. Huh - and as it happens always the stock turned and touched 47 and off to 50 in the next days. Not to be left out again I jumped right back there - this time to recoup lossed quickly - bought a 300 @ 50. With the overall portfolio showing gains I let this guy slowly slip to 46 42 and 37 when it has closed on this Black Monday anniversary in 2007 at 39.5. I dont know what market holds in store for Monday. Analyzing back I have just made $500 in all these weeks of trading, having been unable to hold on to my gains and see them melt away.....each day. This trading is not even taking me to the millionaire club in years. Few salient points:

- Grab your gains when it is reasonable. The truth is no one went broke taking profits.
- Cut losses short. That is the only way for you to stay in the street and pursue opportunities.

Well - these are not new to anyone who has traded for some time. But these basics will come back to haunt everyone - I believe you are empathizing! Waiting on Monday....

Black Friday

At the outset I have to admit this is my first blog ever! What drew me to this is the series of events in Wall Street on this Black Friday where the basics were relearnt time and again. The Blog is an online diary - someone told me. So what - I stopped writing diary ever since school. Let me not deviate now.

I want to be a Trillionaire. Well, yes, a USD Trillionaire. My philosophy in life is different - Make as much money when you are young and having a lot of energy to spend it. An expensive car, a royal home, fly in private jets, own an island off Mauritius. The power of compounding overwhelms everyone. The rule of 72 defines the years needed for doubling ones money. Even assuming I double my money every four years (compounded at 18% p.a) my seed of USD 30,000 will turn into (paltry) 32 Million USD in 40 years! How measly! So, here I am, trying to beat the market every single day of my life in my quest to become a Trillionaire - perhaps the first in the world. Can I do it? This is a summary of my past experiences, my daily tryst with truth (Read Wall Street and its gimmick creators) in reinventing wheels and finding out the best solution. I know I will succeed some day - well - in the next 20 years.

Hope you have fun with my blogs!