All I Know

From the Desk Of Hitesh Parikh:-
"All I know", the philosopher Socrates said, "is that I know nothing."
And so it is true for most of us. We know nothing, but we can imagine we know a
lot. How many of us "knew" that oil would rise from USD 70 to USD 150 in less
than one year? Or that the price of rice or wheat or gold would rise the way it has
risen - in the time horizon that it has.
Or how many of us "knew" that the Index would decline from 20,500 to 14,000 in
6 months?
I am guilty of not "knowing" but, in defence, we did worry about the markets
being frothy based on speculative buying from so-called FIIs. I expected that the
markets could decline maybe 10% to 15% - but not 35%. We figured that real
estate stocks may correct - some really sharply, while the quality stocks would
decline a little less. Everything got hammered.
We thought gold would rise - it did, but not as much as we thought it could.
One did not "know" many things - and it is unlikely we can "know" much
about the future. But we can certainly try to take a view on where the future
could be headed and how we can position our investments to profit from
some trends.
So, I look around to see where I can get clues to what the future may bring.
Future-telling.
CNBC has little to offer. Their definition of the future is end of the trading day.
Nothing wrong with that. But it is a time horizon and an "investment" style that
does not appeal to me. Gambling in the stock markets sounds like a lot less fun
than flying off to Macao or Las Vegas where you can feast your eyes and your
stomach while losing all that money. But given the popularity of CNBC, it
obviously is what people want. Not that it makes it the correct thing to do.
The newspapers are a little generous: their definition of "long term" is between
one week and one month. That is the time it takes me to start planning a meeting
with a company’s management to begin our evaluation of the stock.
I look to the chartists for help. Not much there, either. They can probably tell me
where things may trend on a daily or weekly basis - and the graphs and charts
really look nice.
So, I turn to history. Keeping in mind the Buffett warning:- if past history was all
there was to the game, the richest people would be librarians.
But - to counter Buffet - what if there was a librarian out there that did actually
read all that history which they collect and tabulate; and then had the ability to
forecast the future based on a past trend? Surely, there is something in the
history books….
Past-looking.
I turn to history and begin with the growth rate in the Indian economy as defined
by the growth rate in India’s GDP.
The data indicates that - over the 28 year period from 1980 to 2007 - the rate of
growth in real GDP was 6.2% per annum. The "real" means after inflation-after
the fake increase in wealth caused by an increase in prices.
I add back inflation - which averaged about 7% for the past 28 years. This allows
me to get a sense of how the Indian economy grew at "nominal" prices.
Combining the two, I broadly see that the Indian economy grew by more than
13% every year for the past 28 years.
Not bad.
And the BSE-30 Index increased by 18% every year since 1980.
That is the past.
A solid growth rate in GDP: 6.2% per annum.
Inflation at 7% per annum.
Stock market returns in blue-chip companies at 18% per annum - better than any
"AAA" grade bank deposit or fixed deposit. Means you can double your money
every 4 years.
But what does the future hold for us?
And can we come to any conclusions based on those expectations?
Looking over the gloom.
By all accounts, India’s economy is set to continue its growth. The biggest risk is
that a Left government comes into power and - by some strange reasoning -
does not mind the fact that their masters in China and Russia grow their
economies but shut down India’s economy. So that is a risk. A real risk.
Barring this risk - and I do not think anyone should ignore it - it would be sensible
to assume that India’s GDP can clip along at a 6.5% rate of growth over the next
10 years. And inflation will still be somewhere around 6% per annum. Add them
up and we see a "nominal" growth of 12.5% each year.
While a growth rate of GDP is not a guarantee that stock markets will increase
every year, it is safe to assume that higher economic activity should see
companies making some higher level of profits - and some higher level of share
prices.
Table 1: Linking economic growth to stock markets.

End of year Index at end of year Return GDP Inflation Add them
2008 14,500 15% 6.5% 6.0% 12.5%
2009 16,675 15% 6.5% 6.0% 12.5%
2010 19,176 15% 6.5% 6.0% 12.5%
2011 22,053 15% 6.5% 6.0% 12.5%
2012 25,361 15% 6.5% 6.0% 12.5%
2013 29,165 15% 6.5% 6.0% 12.5%
2014 33,539 15% 6.5% 6.0% 12.5%
2015 38,570 15% 6.5% 6.0% 12.5%
2016 44,356 15% 6.5% 6.0% 12.5%
2017 51,009 15% 6.5% 6.0% 12.5%
2018 58,661 15% 6.5% 6.0% 12.5%
Markets, as we know, never rise -or fall - in a straight line.

They zoom and zip all over the place. We had an incredible run between 2003
and 2007 when stocks increased by 5x in 5 years - not going to see those kind of
returns in a hurry! But, that zoom was part of the 18% per year over the past 28
years - which means that there were years when stocks did nothing.
Or even lost value. Just as they have done since January 2008.
The key to remember on stocks is: be in it for the long term. Put your
savings there. The only time you need to worry is if stocks are going down
at the time when you need your money back.
Otherwise, every fall in share prices of good businesses is a chance to buy
more.
Keep ploughing any excess cash you have back into the various assets
you have: fixed deposits, stocks, gold. In a proportion that matches your
needs and your risk-taking appetite.
If the market wallops you and the value of your holdings go down - try and add
more.
People tend to do the opposite - they get scared. They withdraw.

Yes, you should be scared - if you bought the wrong business.
Or even the correct business at the wrong stock price.
And that comes to another crucial reminder: you are not buying the stock;
you are buying a portion of the underlying business. The stock market puts
a value on the business every day. Mostly an illogical valuation.
Another Buffett gem of simplicity: if the business does well, the stock eventually
follows.
There is a lot of gloom and doom in the markets now. The key is to understand
the underlying fundamentals and trends. To make assumptions and position your
portfolio.
One may not "know" but one can try to decipher.

And, another quote from Socrates: "I cannot teach anybody anything, I can
only make them think."
Turn off the TV, keep the newspaper aside: and think
Have a Nice Thinking this Weekend.
Hitesh Parikh.
The Schemes:-
Portfolio Analysis :-
In this service, we try to find out the companies with long term competitive
advantage in your portfolio. Once found out, we give you the strategy to buy –
when to buy, how much to buy and when to sell depending upon your investment
objective.
During the year, we update about the happening in this companies and any
material change in the future prospects are communicated to you through emails.
The fees for this service are Rs.5000 upto 30 companies in your portfolio. Over
and above 30 companies, we charge Rs.200 per company.
The total report will give you an idea which companies you can hold for longer
term and which you can sell now.
Advisory Scheme:-
In this service, we give investment advice on various opportunities through out

the year.
It can be daily, weekly and monthly. The investment advice is generally sent via
sms on your mobile. You can also ask for an email.
This service has a holistic approach towards investments – we guide you

astrologically, numerological and through Vastu to make things simple for you
and for your family for investments and for personal issues. ( This is an additional
service, otherwise chargeable, if client wishes)
Here the target is to find out the companies which can give you 200% plus return
in coming 3 years time. You can join this service for 1 year and 3 year as the
case may be. If you join this service we provide the Portfolio Analysis Free of
cost. The Fees for the one year scheme is Rs.25000 and for 3 year it is
Rs.60000.
If you are ready to pay the Service Tax, for all the fees you pay – you can get
proper bill from us. Same Bills can be used to show as the expenses in your
yearly accounts, if you are filing IT Return in India.
Salient Features of The scheme:-
1. We will study all your investments in Equity, Mutual Funds.
2. After Detailed study we will send our Suggestions and you can carry
out through your brokers.
3. As and when we feel new opportunities are there, we will inform you through
SMS/Email.
4. You are free to ask opinions on shares recommended by others before buying.
Eg. you are dealing with ICICI Direct.com and they recommend to buy ABC LTD.
You can take our view on ABC Ltd. before investing.
Let me know your decision.

Dear Dr.Gang,
Welcome to the Destiny Management Services.
Kindly take following steps.
1. You can remit the money to my account. My Account details are as under.
Account Holder Name:- Hitesh Parikh.

Bank Name :- HDFC Bank Ltd.
Account No. :- 0145 10000 74940.
If you find it difficult to remit then send the cheque on my address :-
Hitesh Parikh
A/404, Amit Darshan,
Dada Bhai Cross Lane No.3,
Vile Parle West,
Mumbai - 56.
Tel :- 98694 25399 / 2061 4684.
2. Send me your Portfolio Details. I will study the same and send back to you my
analysis. You are requested to send me the excle file having following columns.
a. Name Of the Company b. Qty c. Avg. Pur.Price
3. Since my advice is not limited to just shares - if you can provide me details of
your other investments - I will be able to guide you more comprehensively. Also
write your Investment Goals - for coming 5 years. This will give me a better idea
of what to recommend to you.
4. Send me the Date of Birth, place of Birth and time of birth of all the holder of
shares in your portfolio. If you do not believe in astrology, i have no problem. But
do send me. If you do not know birth time - send me just date of birth. I will give
you the most winning combination from investment, speculation point of view.
5. I have black berry mobile. I remain in constant touch with my clients. I deal
with them through email - sms. You have given your contact at the end of your
email. If they are the final - I will use them.
6. You can deal with Any Broker under the sun. My major business as told to you
is consultancy.Let me know if you have any doubts and queries.
Regards.
Hitesh Parikh
The chief losses to investors come from the purchase of low-quality securities at
times of favorable business conditions." - Benjamin Graham
Knowledge V/s Action:-
In Information age, you are bombarded with the whole lot of information through
Net, TV, News Papers and Magazines. This leads to the belief in the mind of
investor that he knows enough to manage his investments. In fact, the trending
market from 2005 to Jan.–2008, had led many to believe themselves as
Investment Gurus.
Successful Triangle of Investment has Three Dimensions viz. Knowledge,

Temperament and Timely Action, in that order. If any one side is missing, you
can not achieve the expected result.
While free flow of information may be taking care of the 1st dimension, it is the
ability to read between the line, temperament and timely action makes your
investment decision good or bad. In such situations, it is very necessary to have
your personal investment consultant.
Action - Plan
If you think that your investment triangle has the missing link of Temperament
and Timely Action – please contact us and we will be glad to assist you in your
investment decisions.
Sunday, March 08, 2009
Market Next Week:-

As expected market has continued their downward journey, Sensex losing 535
points. Heavy FII sell was the reason for the same. Let us see what is in store for
next week.
Daily momentum indicators are in the oversold zone and the weekly indicators
have declined in to negative zone. The close below 8631 trough implies that the
short-term trend has turned down again. It is fairly certain that the down-trend
from the January 2008 peak has resumed. A re-test of the October trough at
7697 and a move slightly below to 7300 can be expected over the medium-term
in the index.
As long as last week’s low at 8047 is maintained, Market can avoid a slide to
7697 or 7255. The area between 7850 and 8000 is a strong support zone for the
near term. Short-term resistances would be at 8440 and 8670. Reversal below
the second resistance would mean that the index lacks strength and is heading
below 8000.
The bulls can, however, take heart from the fact that Sensex did not penetrate
the psychological 8,000 mark and the Nifty held above 2,500 last week. A close
above 9,000 is required to mitigate this negative medium-term outlook.
Gold :-
We had recommended buy on the gold in our January weekend letter around
Rs.12700. Since then gold has touched Rs.15800, generating 24% in just two
months. Though we are bullish in gold for 3 years time frame, I recommend sell
in Gold now.
Life Betterment Idea :-
Set aside every Sunday evening for yourself and be strongly disciplined with this
habit. Use this period to plan your week, visualize your encounters and what you
want to achieve, to read new materials and inspirational books, to listen to soft
soothing music and to simply relax. This habit will serve as your anchor to keep
you focused, motivated and effective throughout the coming week.
Wish you all a Happy Weekend.

To,
Dear All,
Sub. : Market Next Week.
The Last Week:-
Compared to loss of 575 loss in the last to last week, last week ended with the
gain of 430 points, on the back of expectation of further stimulus packages.
Market also shot up as short sellers covered their positions on the last two
trading sessions. Volumes too were very high towards the weekend especially in
the derivatives segment. FII outflows too abated, easing the pressure on our
markets.
Sensex has averted a decline below 8000 yet again, bouncing off the trough at
8047 recorded on March 6. A closing low below 8000 has not been recorded
since October 2005, and even on that instance, the index closed above 8000 the
very next day. It may be recalled that even on October 27, 2008, Sensex closed
above 8500 though the intraday low that day was 7697.
This short-term rally in the Sensex is a trifle early to pronounce that a sustainable
bottom has been formed in the index. The momentum indicators in the daily chart
that are on the verge of moving in to the positive territory imply that the rally
needs to extend a little more to mitigate the negative short-term outlook. In fact,
weekly oscillators still continue in the bearish zone.
Technical Outlook:-
We have been assuming that the downtrend from the January 2008 had
resumed in the second week of February. We will stay with this assumption
as long as the Sensex stays below 9200. According to this count, this
corrective rally will be followed by yet another leg down with the minimum
target at 7700.
But a close above 9200 will imply that the sideways move from October 27
troughs is still in progress that will keep the Sensex vacillating between
8000 and 11000 for a few more months.
To put it in simpler terms, the current up-move cannot be taken seriously until it
moves beyond 9200. Specific resistance levels for the week are at 9083, 9170
and 9543. Supports for the week would be at 8350 and 8040.
Review Of Recommendations:-
Last week we recommended 3 scrips to our clients – Educomp at Rs.1580 (
Friday Closing -1762), GSPL at Rs. 34.50 ( Friday Closing 36.40), Tata Motor
Rs.152 ( Friday Closing 161).
Happy Investing
To,
Dear All,
The Last Week:-
Last week added further 210 points in Sensex. With this Sensex has given
consecutive 2 weeks in positive territory. Some of the most beaten down stocks
in Midcaps and Small Caps also joined the rally. Needless to say, FII were net
buyers to the tune of USD 320 million. Next week is going to be dominated by the
expiry of the march series.
Technical Outlook:-
It was clearly mentioned in the last week – do not take this rally seriously, unless
it crosses 9200 mark. Market struggled to cross 9000 market last week. Daily
momentum indicators are moving sideways just above the neutral zone while
weekly indicators continue in the negative zone. The implication is that the short
-term outlook is indecisive while the medium-term view continues to be negative
In short, We maintaing our view of 9200 mark this week as well. If the correction
continues, the supports will be at 8710 and 8456. Short-term investors can hold
their long positions as long as the index stays above the first support.
Resistances for the week would be at 9120 and then 9530.
Last week we recommended 4 scrips to our clients – Buy Hanung Toys

Rs.28.30( Friday Closing -32.75), Sell GSPL at Rs. 39. (Touched 37), Sell Tata
Motor Rs.180 ( Friday Closing 161), Buy ABG Ship at 75.90 ( Friday Closing
77.85)
Happy Investing
To,
Dear All,

The Last Week:-
Last week added further 1081 points in Sensex. With this Sensex has given
consecutive 3 weeks in positive territory. Some of the most beaten down stocks
in Midcaps and Small Caps also joined the rally. Needless to say, FII were net
buyers. Bears also covered their positions.
Technical Outlook:-
It was clearly mentioned in the last week about the resistances for the week
would be at 9120 and then 9530. Senses managed to cross both and also
crossed 10000 mark after 2 months. It has closed well above 21 and 50 days
moving average. Momentum indicators in the daily chart are overbought while
they are poised in the neutral zone in weekly chart. The implication is that a
correction is likely in the short-term and the index needs to make further progress
to turn the medium-term view positive
There are two ways to look at the rally -The rally from the 8047 trough could be
yet another leg of a complex triangle formation that is being charted by the
Sensex since the October 27, 2008 trough. According to this assumption, the
rally will get arrested under 11000,
The more bullish count is that one leg of the bear-market is complete at 8047 and
we are in a counter-trend rally that is correcting the entire down-move from the
21206 peak. According to this assumption, the rally can extend to 12100 or
12600.
Supports for the week would be at 9663, 9368 and 8867. Fresh trading longs
should be avoided on a decline below the first support. Resistances for the week
would be at 10469 or 10603. Rally beyond 10600 will take the Sensex to 10945.
Please see the attached file for the review. You can also join in this party by
becoming our member.
Happy Investing
1. Gold was represented by a symbol of the sun. The element denoted physical,
mental, a and spiritual perfection
Prev Next
Prev Next
2. Go through www.thirteensymbols.com
Sunday, April 05, 2009
To,
Dear All,
The Last Week:-
It’s FOUR. Last week was the 4th consecutive week which shows the Sensex
touching new heights. It added further 300 points in Sensex. Satisfactory G-20
meet has further aided the sentiment and helped market participants go in to a
long weekend in a complacent state of mind. Volumes were high both in cash
and derivatives, especially on days on which the stocks advanced
Technical Outlook:-
Sensex declined to 9520 on Monday but it as the only day when the market was
down. The index closed above 10000 mark in the following days. The weekly
momentum have moved into positive territory, implying that the rally can last in
medium term. However, monthly oscillators are still in negative zone, implying
that the long-term outlook is still bleak.
Last week, we have seen two possibilities ie. the index would stay in the band
between 8000 and 11000 for a few more months or a counter-trend rally of a
larger degree is in progress since 8047 that can take the index closer to 12,000.If
November 2008 peak of 10945 is crossed next levels are 11750 and 12900.
Near-term targets for Sensex are 10470, 10664 and 10945. The 200-day moving
average at 11392 will also be an important resistance if the rally progresses
further. But a halt below the second resistance can usher in a correction to 9700
or 9000.
In our email dt.16th Feb.,2009, we had written about the story of Story of NOAH
and The ARK. Please go through the same. How timely that email was, was’t it?
Happy Investing
To,
Dear All,
The Last Week:-
It’s FIVE. Last week was the 5th consecutive week which shows the Sensex
going up by another 455 points. The Sensex closed at 10803. Volumes were
very high as investors returned to the bourses in droves lured by the rising stock
prices. Cash turnover on the NSE on the last two trading sessions was over Rs
17,000 crore whereas the average daily turnover in February 2009 was only Rs
7,800 crore.
Technical Outlook:-
Stock prices have run-up too fast and the daily momentum indicators are flashing
some danger signals. Negative divergence is apparent in the 10-day rate of
change oscillator and the 14-day relative strength index is at 73. The implication
is that investors should watch their step in the short-term.
Following the decline from the 21206-peak that halted last October, Sensex had
been moving in a sideways range. We believe that we are in a counter-trend
rally that is correcting the entire decline from last January peak.
The short-term trend is positive but since the Sensex is approaching key
medium-term resistance levels and momentum is beginning to slacken, investors
should take out some money.
Immediate target for the current up-move is 11600. The 200-day simple moving
average present at 11340 is also a formidable resistance in the near-term.
Supports for the week would be 10393 and 10060. Medium-term view will turn
negative only on a close below 9500
Recommendations:-
Hold Your All Positions with a strict stop loss to 10060 Sensex.
Happy Investing.
To,
Dear All,
The Last Week:-
It’s SIX. Last week was the 6th consecutive week which shows the Sensex going
up by another 219 odd points. The Sensex closed at 11023. Volumes coupled
with volatility were very high. Surprisingly, it was not disturbed by the negative
guidance of Infosys and ongoing Elections. Though the large-cap stocks did not
move in last week’s trade; stellar moves made by mid and small cap stocks
ensured that investors had nothing to complain about. Volumes soared through
the roof. Average volume in NSE cash segment was Rs 18700 crore last week.
Net FII Inflow was USD 730 Billion.
Technical Outlook:-
The index is currently grappling with the strong resistance offered by the 200-day
moving average. High volumes witnessed over the last three sessions too
suggest that the bulls and bears are battling it out for supremacy around the
long-term moving average.
Since 200 DMA is a long-term indicator, we need to wait for the index to sustain
above this line for at least a couple of weeks before we can conclude that the
long-term trend has reversed. Immediate targets for the move from 8047 low are
11305 and 11600. Sensex achieved the first target.
We recommend to be cautious if the index continues to struggle to move beyond

11300, It would imply that a terminal corrective is being formed that can be
followed by a decline to 10000 or even 9500. Rally above 11600 will take the
Sensex to the next resistance zone around 11800.
The short as well as medium term trend is currently up and prudence dictates
that it is best to flow with the trend till we get confirmation that the trend has
reversed. Supports for the week ahead are 10650 and 10230. Upper targets for
the week would be 11367, 11640 and 11820
Recommendations Review:-
Happy Investing.
Sunday, May 17, 2009
To,
Dear All,

The Last Week:-
“Left is no more. All others are Left and Congress is in Power” – Rakesh
JhunJhunwala.
Indian markets have much to rejoice from the verdict of the 15th Lok Sabha
elections. Formation of a strong and stable government at the centre would give
a big fillip to the market sentiment.
Monday morning opening is likely to be euphoric. But this feeling will peter out
after a couple of sessions as the government gets down to the brass-tacks to
tackle the ongoing crisis; sending a grim reality to the markets regarding the
economic positions. Moreover, the rally from the March lows is already 10 weeks
old and both global and local indices are currently showing signs of fatigue.
Where is the Sensex Headed ?
We believe that rally from March low is a counter-trend rally in a bear phase.
Since it has crossed the resistance zone between 11600 and 11800, it can now
touch 2800 and 13000 level. This level is also 38.2 per cent retracement of the
down-move from 21206. Next medium-term target is the 50 per cent retracement
of the 2008 crash, at 14500. The 200-day moving average at 11000 would be the
key medium-term trend deciding level.
Sensex has been moving sideways between 11600 and 12200 since May 4. This
consolidation phase can be followed by an upward thrust to the levels mentioned
above. Short-term supports would be at 11540 and 11350. Fresh purchases
should be avoided below the first support
Recommendations:-
Happy Investing.
To,
Dear All,
The Last Week:-

Singh is King – Again. Market gave a historic move on Monday, going up by
2100 points in a day which lasted for a minute! In 2004, when BJP lost power,
market tanked by 800 odd points and case was made for manipulation!! But this
time no SEBI Inquiry for 2100 points jump in a minute!!!
It is the 11th Week when market closed with a straight gain. Market closed at
13887 points with a gain of 1713 points. FII pumped in over $1 billion on Tuesday
alone.
Technical Outlook:-
Momentum indicators in the weekly chart are extremely overbought. The 10-
week Rate of Change oscillator is currently at a level not attained in the last 10
years. The 14-week Relative Strength Index is at a level last seen in the last
quarter of 2007. The inference is that Sensex is overbought from a medium-term
perspective. The long-term oscillators are however just approaching the bullish
zone indicating that the long-term trend continues to be down.
Volatility is expected to be high next week as the May derivative contracts move
towards expiry. The ceiling of the gap formed last Monday at 13480 would be the
support to watch in the near term. Subsequent supports are at 13300 and 12900.
Upper targets for the week are 14547, 14930 and 15127.
The question that is frequently asked these days is if this is still a bear market
rally or the resumption of the long-term bull market. We maintain that the rally
from March 2009 low is a counter-trend rally or the B wave in a bear market.
Counter-trend rallies retracing 50, 55 or 61.8 per cent of prior down-move is quite
common. This view will be revised only on a strong close above 16000.
Recommendations Review :-
On 26th April, We had recommended to Buy King Fisher Airlines at Rs.41.40 with
at target of Rs.70 in a months time. On 22nd May it made a high of Rs.65.45. We
are still bullish on this stock.
Happy Investing.
To,
Dear All,
The Last Week:-
It is a 12th Week and market is now showing a sign to come down. In fact,
Volumes were extremely robust both in cash as well as derivatives segment.
Advance decline ratio soared to levels not witnessed since the last quarter of
2007. FIIs started ploughing in funds in to Indian markets again last week after a
brief hiatus. Sensex closed at 14625 a gain of around 800 points.
Technical Outlook:-
Oscillators in the daily chart are at 18-month highs but there is no negative
divergence in these indicators yet implying that the near-term outlook stays
positive despite the sharp up-move recorded over the last two weeks.
What is worrying is the 10-week rate of change oscillator at 62, a 10-year high,
since spikes such as these are unsustainable. Monthly oscillators are just
approaching the bullish zone. One more spurt is required to make the long-term
outlook positive for Indian equities.
The index could follow either of these trajectories over the near term,
a) It can reverse from between 14900 and 15200 and head towards 14000 again.
b) A strong break-out above 15200 would mean that Sensex is heading towards
the target band between 15900 and 16200.
c) A close below 13450 would be needed to signal a short-term trend reversal.
The medium-term trend too continues to be up and a close below 12200 is

needed to weaken this trend.
Recommendation:-
Be fearful when all others are Greedy.
Happy Investing.
Hitesh Parikh.
Wednesday, June 03, 2009
To,
Dear Mr.Dharmesh Ruparel,
Sub.: Summary of Our Meeting
It was a pleasant experience to meet you in our office today between 12.30 p.m.
to 3.30 p.m.
In the meeting we discussed following areas.
1. Your Family Back Ground.

2. Your Goal for Investments.
3. Your Ideas about Investmetns.
4. Your fears about investments.
After listening to your talk, I had provided following options to you.
The Schemes:-
Portfolio Analysis :-
In this service, we try to find out the companies with long term competitive
advantage in your portfolio. Once found out, we give you the strategy to buy –
when to buy, how much to buy and when to sell depending upon your investment
objective.
During the year, we update about the happening in this companies and any
material change in the future prospects are communicated to you through emails.
The fees for this service are Rs.10000 upto 30 companies in your portfolio. Over
and above 30 companies, we charge Rs.500 per company.
The total report will give you an idea which companies you can hold for longer
term and which you can sell now.
Advisory Scheme:-
In this service, we give investment advice on various opportunities through out

the year.
It can be daily, weekly and monthly. The investment advice is generally sent via
sms on your mobile. You can also ask for an email.
This service has a holistic approach towards investments – we guide you

astrologically, numerological and through Vastu to make things simple for you
and for your family for investments and for personal issues. ( This is an additional
service, otherwise chargeable, if client wishes)
Here the target is to find out the companies which can give you 200% plus return
in coming 3 years time. You can join this service for 1 year and 3 year as the
case may be. If you join this service we provide the Portfolio Analysis Free of
cost. The Fees for the one year scheme is Rs.50000 and for 3 year it is
Rs.125000.
If you are ready to pay the Service Tax, for all the fees you pay – you can get
proper bill from us. Same Bills can be used to show as the expenses in your
yearly accounts, if you are filing IT Return in India.
Salient Features of The scheme:-
1. We will study all your investments in Equity, Mutual Funds.
2. After Detailed study we will send our Suggestions and you can carry
out through your brokers.
3. As and when we feel new opportunities are there, we will inform you through
SMS/Email on Daily basis.
4. You are free to ask opinions on shares recommended by others before buying.
Eg. you are dealing with ICICI Direct.com and they recommend to buy ABC LTD.
You can take our view on ABC Ltd. before investing.
Investment Management Scheme :-
• Your investment will be done on your risk profile. The investment style is
elaborated above.
• You get the net access – and you can view all your transactions on daily
basis.
• You can invest any amount starting from Rs.10000 to Rs.5 Crs. in a year.
• You will be given Monthly reports of the transaction done with the Fund
Flow Statement. This is over and above digital contract copies and
physical contract copies. Contract Copy is the legal documents for the
transactions done.
• Target return is 25% in a years time. We double your money in 3 years.
• Our fees are Rs.25000/- or 2% of the investments which ever is higher.
Eg. If you invest Rs.10 lakh – than 2% is Rs.20000 but we will charge
Rs.25000/- and if you invest Rs.15 lakh – than we will charge Rs.30000/- (
2% of Rs.15 lakh.)
• At the end of the year - You take away first 25% of the profit on the
investments. E.g. If you invest Rs.10 lakh and year end profit is Rs.5 lakh
– than you take away first 25% of investments i.e Rs.2.5 lakh. The
balance Rs.2.5 lakh is divided in the ratio of 80 : 20 ie. You take Rs.2
lakhs and we take Rs.50000 as bonus for performance.
My Suggestions:-
1. Looking at the opportunities in the market at present, I suggest that you

join the advisory scheme immediate basis. Start dealing in shares from the
comfort of your residence or office.
2. We will provide you SMS to buy with specified qty of shares – so you just
have to buy.
3. I feel that in a month’s time only, you can recover all your investment
made in our fees.
4. We will open your NRI accounts side by side. As and when accounts are
opened and you are also ready to invest NRI funds, we will sell Residence
shares and buy in NRE accounts.
I have given all the details as discussed with you. I have also given one
additional scheme, which we provide, known as Portfolio Analysis Scheme. Just
go through all of them. Let me know if you have any further questions and
doubts.
Remember TIME & TIDES waits for no one.
Wish You A Happy Investing.
Hitesh Parikh.
Sunday, June 07, 2009
To,
Dear All,
The Last Week:-
It is a 13th Week and market is now showing a sign to come down. In fact, there
were days in the week, when the market was weak but B and C group stocks
were attracting the attention of investors. Market closed the week with the gain of
400 odd points.
Technical Outlook:-
The 10-day Rate of Change (ROC) oscillator fell sharply last week from
overbought levels. But the fact that the 10-month ROC has moved in to the
positive territory is an encouraging signal. If this indicator sustains above the zero
line, it would signal a change in the long-term outlook for Sensex.
There is no sign of reversal in the medium-term up-trend from the March lows
yet. We have repeatedly warned against fighting this trend and initiating pre-
emptive short positions over the last two months. The market is known for its
vagaries that can outwit the best brains. Docile trend-following can be the best
way to play such a strong trending market.
Next medium target on a strong close beyond 15300 can be between 16000 and
16300. But it needs to be borne in mind that 15284 (55 per cent retracement) is
also a likely peak for the move from March low.
As far as the short-term is concerned, we had outlined two trajectories in our last
column. Despite a brief move past 15200, Sensex ended the session below this
level. If the decline continues next week, the index can decline to 14594 or
14185. Short-term purchases should be avoided on a close below the first target.
The medium-term view will, however, be roiled only on a close below 13470.
Resistances for the week ahead would be at 15284, 15698 and 15836
Recommendation:-
While market is up, review and redesign your portfolio. In case, you need any
help, please approach us.
Happy Investing.
C & C Construction:-
CMP 181.50 / Tgt 250 plus.
Investors with a long-term horizon may capitalise on attractive valuations to buy

into the stock of construction contractor C&C Constructions. Currently trading at
Rs 181.5, the stock is valued at 8 times its trailing four-quarter earnings.
C&C Constructions’ core competency is in road infrastructure, the segment

accounting for 61 per cent of the order-book. This segment may see a pick-up in
the coming years, with the focus on infrastructure development. Entry into BOT
projects and other infrastructure spaces such as railways, water and sanitation,
as well as commercial buildings provides a balance to the order-book and a
platform for expansion into bigger projects and new segments.
Order-book growth has been healthy; at 75 per cent (to Rs 3,057 crore) since the
start of the current financial year in June 2008. The order-book features a 14 per
cent overseas exposure, constituting projects in challenging areas such as
Afghanistan, which offer superior margins. It is executable over a period of 30
months, providing good earnings visibility for the coming quarters.
In tandem with the order-book, sales too clocked strong growth at 50 per cent-
plus over the past four quarters, despite the general economic slowdown. Sales
growth is suggestive of fast-paced execution, allowing it to secure more contracts
while building on credibility. The company has traditionally banked on joint
venture partners to qualify for bigger bids and enter new construction segments.
That said, the company has also managed to bag projects on its own merits;
share of joint venture projects in its order-book has dropped to 45 per cent in the
March 2008 quarter over 55 per cent the quarter before. Another strategy is to
own most of its equipment. While that may mean increased capex in the short-
term, it ensures timely availability of critical equipment and easy mobility between
projects.
A shift away from the Afghan projects, high employee costs and interest payouts
due to debt-funded growth have cut down margins significantly over the past few
quarters; this may continue. Debt is currently 1.5 times equity, and will be capped
at 1.75 times. Increased project intake and execution has stretched the working
capital cycle, but that should get addressed with easing credit availability.
Everything in this world involves risk but by far the greatest risk is staying in your
comfort zone because this involves the risks of lost opportunities. The secret to
risk lies in knowing how to minimise its impacts on you. If you want to be a
successful trader you must become passionate about the learning process. You
must become totally focused on trading well as opposed to making money. You
must learn from someone who can show you how to trade successfully rather
than rely on machines and promises of "golden eggs". You must become
absolutely disciplined in the activity of trading
To,
Dear All,
The Last Week:-
It is a 14th Week when Sensex kept up the façade of an indomitable uptrend even
as the broader market succumbed to selling pressure last week. BSE Midcap
Index ended 3 per cent lower while BSE Smallcap Index was down 7 per cent.
We are writing clearly since last two weeks that market is showing a sign of
fatigue. For market to move up – budget would surely bring strong surprises.
Market is witnessing a covert correction where Sensex and Nifty have been
trudging sideways with momentum plunging significantly while individual stocks
have declined over 10 per cent. Such a trend is reminiscent of the rallies in 2005
and 2006 where Sensex kept moving higher despite overwhelming scepticism
among market participants and weakness in second and third tier stocks.
Technical Outlook:-
The medium-term is up and Investors can remain invested as long as the index
holds above 13500. If there is a close below 13500, it will suggest the onset of a
correction that can pull the index lower to 12500 or 11000 over the medium-term.
On the higher side, Sensex is nearing the key intermediate resistance at 16000
that is 61.8 per cent retracement of the down-move from 21206. Extrapolation of
the first leg of the up-move from 8047 gives us the next target of 16332. Unless
there is a big bang budget this July or the global equities get unduly ecstatic,
these levels can rein in the current medium term up-move.
A range-bound movement between 14300 and 15600 is likely in Sensex next

week. Fresh purchases should be avoided on a decline below 14300.
Resistances for the week would be at 15600 and 15830
Recommendation:-
The Best Way To Make Money In Share Market Is To Be In The Market. So, If
you are sitting on the fence, take part.
Happy Investing.
Thursday, June 18, 2009
To,
Dear
Sub :- Personal Invitation.
During last year – I have kept in touch with you through my Weekly News Letters
& Wealth Creation Made Easy Series. I hope you would have been taking
advantage of the same. But today I am inviting you to join me in a Grand Party Of
Indian Market which has just started.
What Do I Mean By Grand Party?
I see Sensex crossing level of 35000 by 2013!!! Can’t believe – please go though
the attached article.
How You Can Participate?
I am launching dedicated Investment advisory cum management scheme. Name

of the Scheme is – Change Ur Financial Destiny Forever. As the name
suggest this can change your financial destiny forever. Whatever you have
achieved till now – can be multiplied by at least 3 to 4 times in coming 42 – 48
months as the Sensex crosses 35000 levels from here.
What is so Unique About Change Ur Financial Destiny Forever Scheme?
1. You can start with just Rs.2 lakhs.

2. You can buy and sell shares through your own broker or you can open
account with brokers empanelled with us.
3. You will be getting 60% discount in our services charges.
4. You have the choice to increase or decrease the amount as per your
personal financial goals.
5. The scheme is open till 15th July 2009.
Action Plan:-
Please go though the attached report. It will give you ample food for thought.
Communicate with us – in case you have any doubts or want further
clarifications. In any case – do not miss to join this party as it is going to change
your financial destiny forever.
See You At The Top.
Regards.
Hitesh Parikh.
To,
Dear All,
The Last Week:-
At last the sensex has shown a negative return in the 15th Week. We were
expecting for long, but market has its own mind. Last week we had written that
market is showing Convert Correction. Now, the same has come into the frontline
shares.
Technical Outlook:-
The medium-term is up and Investors can remain invested as long as the index
holds above 13500. If there is a close below 13500, it will suggest the onset of a
correction that can pull the index lower to 12500 or 11000 over the medium-term.
On the higher side, Sensex is nearing the key intermediate resistance at 16000
that is 61.8 per cent retracement of the down-move from 21206. Extrapolation of
the first leg of the up-move from 8047 gives us the next target of 16332. Unless
there is a big bang budget this July or the global equities get unduly ecstatic,
these levels can rein in the current medium term up-move.
A range-bound movement between 14300 and 15600 is likely in Sensex next

week. Fresh purchases should be avoided on a decline below 14300.
Resistances for the week would be at 15600 and 15830
Recommendation:-
Understand the difference between two sentences. Decide to Become Rich.

Wish to Become Rich. When you really decide, you cut off all other possibilities
except becoming rich. But if becoming Rich is just a Wish, you are not ready to
do what it takes to become Rich. Make It a Choice not a Chance.
Happy Investing.
To,
Dear All,
The Last Week:-
Market has shown a small gain of 243 points in the rally which is at 16 th week.
Three incidents affected the market last week – negative statements from Us
president and world bank, vagaries of monsoon and the change in the nifty
weightage. Moreover, last week June F & O cycle also ended with a weak roll
over.
Technical Outlook:-
Index faces strong intermediate resistance in the area between 15500 and
16200. Sensex has already declined 10 per cent from its recent peak of 15600.
The index has also retraced 21 per cent of the prior up-move from 8047. It is,
however, too soon to judge if the ongoing correction is a short-term pull-back in
the medium term uptrend or the commencement of a medium term down-trend
Sensex can be volatile between 14000 and 15600 next week. Failure to move
above the first target will usher in a decline to 14000 or 13800. Target below
13800 is 13197.
Thought For The Week:-
When we shuffle out words in a creative way they become a pathway for
Quotes; similarly, when we shuffle out our positive thoughts creatively,
they become a pathfinder for life.
Happy Investing.
Sunday, July 05, 2009
To,
Dear All,
The Last Week:-
Sensex moved in a very narrow range between 14,400 and 15,000 last week.
Because of the railway budget, market shown a miniscule gain of just 148 points
and closed at 14913. Revival of monsoon also added to the cheer of the market.
Technical Outlook:-
In Short Term, sideways movement has maintained the status quo as far as the
charts are concerned. Sensex has resistances at 14,626, 15,284 and 16,179
based on Fibonacci retracement levels of the previous down-move.
A significant peak could already have been formed at 15,600. We, therefore,
continue to advise caution from a medium-term perspective. Medium-term down-
trend can drag the Sensex down to 12,730 or 10,956 over the ensuing months.
However, a decline below 13,300 is required to confirm a medium-term reversal.
A budget induced rally that takes Sensex above 15,600 will give the next
medium-term target between 16,179 and 16,332 for the index
Call For Budget Day:-
If the Budget is Good, Sensex can rally upwards by 800-1200 points.
A lackadaisical reaction can result in the rally getting stalled at 15,290 and the
index moving lower towards 14,000 again.
An overtly negative reaction will pull Sensex down to 13,360.
Happy Investing.
Index faces strong intermediate resistance in the area between 15500 and
16200. Sensex has already declined 10 per cent from its recent peak of 15600.
The index has also retraced 21 per cent of the prior up-move from 8047. It is,
however, too soon to judge if the ongoing correction is a short-term pull-back in
the medium term uptrend or the commencement of a medium term down-trend
Sensex can be volatile between 14000 and 15600 next week. Failure to move
above the first target will usher in a decline to 14000 or 13800. Target below
13800 is 13197.
Thought For The Week:-
When we shuffle out words in a creative way they become a pathway for
Quotes; similarly, when we shuffle out our positive thoughts creatively,
they become a pathfinder for life.
Happy Investing.
Sensex moved in a very narrow range between 14,400 and 15,000 last week.
This sideways movement has maintained the status quo as far as the oscillator
charts are concerned. The 10-day rate of change oscillator that had declined in to
the negative zone has clambered back above zero implying a neutral view for the
short-term. The 14-day relative strength index continues in the overbought zone
at 71.
Sunday, July 12, 2009
To,
Dear All,
The Last Week:-
It was written in the last week, that an overtly negative reaction will pull
Sensex down to 13,360. Market has lost 1400 points and closed near to our level
of 13504. Volumes were low towards the close of the week. Surprisingly, data
released by SEBI reveals that foreign institutional investors have bought $603
million in the four sessions from the Budget day.
Technical Outlook:-
Medium-term trend will turn negative only on a close below 13,300. The yawning
gap between 12,219 and 13,479 will result in the decline accelerating once the
index closes below 13,300.
We have maintained to the view that the up-move from March lows was a
counter-trend rally in a long-term down-trend market. We have also said that a
strong weekly close above 16,200 is needed to alter this view.
If market gives a strong close below 13000, we can assume that C wave of the
long-term down-trend could have commenced from the 15600 peak. The force
and ferocity of the C wave downward is known to all. But bulls need not throw in
the towel just yet. A strong rebound next week will mean that the B wave can
extend for a few more weeks and maybe help Sensex reach 16,000.
Sensex closed on a very weak note on Friday. But a short-term rebound can take
the index to 14,059 or 14,455 early next week. Key resistance zone for the week
would be between 14,000 and 14,250. Failure to move beyond this zone will
result in the index heading lower towards 13,346 or 12,730 in the short-term.
Thought For The Next Week :-
Stay on purpose, not on outcome. In other words, do the task because it is what
you love to do or because it will help someone or is a valuable exercise. Don't do
it for the money or the recognition. Those will come naturally. This is the way of
the world
Happy Investing.
Saturday, July 18, 2009
To,
Dear All,
The Last Week:-
It was written in the last week, that a short-term rebound can take the index to
14,059 or 14,455 early next week. It has taken to 14750 !! Volumes were high
towards the close of the week. It was also said in the last week letter that if the B
wave extends for a few weeks, it can take the sensex to 16000 level also.
Technical Outlook:-
As said Medium-term trend will turn negative only on a close below 13,300.
During last week, market did not close below this level.
We have maintained to the view that the up-move from March lows was a
counter-trend rally in a long-term down-trend market. We have also said that a
strong weekly close above 16,200 is needed to alter this view.
Sensex closed on a very strong note on Friday. But Key resistance zone for the
week would be between 14,800 and 15,250. Failure to move beyond this zone
will result in the index heading lower towards 14250 or 13,800 in the short-term.
Thought For The Next Week :-
If you have not laughed today, you have not lived today. Laugh hard and loud. As
William James said: "we don't laugh because we are happy, we are happy
because we laugh."
Happy Investing.
Sunday, July 26, 2009,
To,
Dear All,
The Last Week:-
It was written in the last week, that key resistance zone for the week would
be between 14,800 and 15,250 !! Market has passed the first resistance on
the Monday itself. But it hovered around the second resistance during the
week.
Better than expected earnings was the theme of the last week. Next week
promises to be volatile with July series coming to an end. On Monday,
Market may get negative on account of Reliance results.
Technical Outlook:-
The short-term trend in Sensex is up and the index closed the week on a
strong note. However, previous peak at 15,600 is not crossed yet. Index has
formed a broad trading range between 13,000 and 16,000. So, a reversal
from 15,600 to 15,800 can result in a decline towards 13,000 again.
A negative opening on Monday can see the Sensex taking support at

14,577 or 14,058. If 2nd support is broken, Sensex can decline to 13,200
again. If 14,577 is not broken, index will touch 15,546 or 15,880 shortly.
While close below 13,300 is needed to make the medium-term outlook

negative, weekly close above 16,200 is needed to start a bull rampage to
18k.
Technical Tip From The World Market:-
Wave counts in Dow and European indices show that the rally from March
lows could terminate over the next two weeks. In such a scenario, it is
difficult to imagine the Sensex thundering past 16,000 just yet.
Set that one goal for the day and take the occasional break from the screens to
assess whether or not they're living up to their goal. Not every day can be
profitable, but--if you're setting and working your goal--every day can be a
success, building confidence, self-efficacy, and mastery
Sunday, August 02, 2009
To,
Dear All,
The Last Week:-
Last week, Market closed at 15670, crossing the previous high of 15600. It was
said in this column that if the B wave extends for a few weeks, it can take the
sensex to 16000 level also. We are inching towards 16000.
With the earning season is over, now liquidity and global event will move the
market. Foreign institutional investors have pumped in around $500 million last
week and the net FII inflow in July is a whopping $2.3 billion
Technical Outlook:-
Negative divergence is apparent in both the daily rate of change (ROC) as well
as the relative strength index. Similar trend is seen in the weekly ROC implying
lack of momentum in the medium-term as well.
If index crosses 15800 level, next level would be 16200. This level is 61.8%
retracement level of the high of Jan.,2008. Decline below 14,600, where both the
21 and 50-day moving averages are positioned, would be the first signal of a
short-term trend reversal.
Upper targets for the week are 15,880, 16,070 and 16,217. Supports would be at
14,772, 14,600 and 14,178.
Thought For Traders:-
Set that one goal for the day and take the occasional break from the screens to
assess whether or not they're living up to their goal. Not every day can be
profitable, but--if you're setting and working your goal--every day can be a
success, building confidence, self-efficacy, and mastery.
Happy Investing.
1. Simplicity - have a simple, well defined way to generate trading ideas. Have a
simple approach towards the market. You can’t take everything into account
when you try to make an educated decision. Filter the noise and focus on several
key market components. For me, they are relative strength and earnings’ growth.
2. Common sense - create a trading system that is designed on the basis of

proven trading anomaly. For example, trend following in different time frames.
3. Flexibility - be open to opportunities in both directions of the market. Be ready

to get long and short.
4. Selectivity - chose only trades with the best risk/reward ratio; stocks with the
best set ups; it doesn’t make sense to risk a dollar to make a dollar.
5. Don’t overtrade - two or three well planned trades in a week (month) might be
more than enough to achieve your income goals. Patiently wait fot the right set
up to form and to offer good risk/reward ratio.
Good investing is a peculiar balance between the conviction to follow your

ideas and the flexibility to recognize when you have made a mistake.
I advise you to always use stops. I mean actually put them in, because that
commits you to get out at a certain point. Another thing is that if a position
doesn't feel right as soon as you put it on, don't be embarrassed to change
your mind and get right out.
I think the leading cause of financial disablement is the belief that you can
rely on the experts to help you. Investing requires an intense personal
involvement.
I learned that an opinion isn’t worth that much. It is more important to listen
to the market
Winning disrupts the trader’s emotions as much as losing – We are disrupted

when we experience events outside our expectation. The method that is 60%
accurate will experience four consecutive winners about 13% of the time. Traders
are just as susceptible to overconfidence during profitable runs as
underconfidence during strings of losers.
Size kills – The surest path toward emotional damage is to trade size that is too
large for one’s portfolio. We experience P/L in relation to our portfolio value.
When we trade too large, we create exaggerated swings of winning and losing,
which in turn create exaggerated emotional swings.
- Preparedness
- Detachment
- Willingness to Accept Loss
- Taking Controlled Risk
- Thinking in Probabilities
- Being Comfortable with Uncertainty
- Consciousness of Abundance
- Optimism
- Open Mindedness and larity of Thought and Perception
- Courage
- Discipline
To,
Dear All,
The Last Week:-
As said in this letter, B wave can take the market to 16000 levels. It has. Last
week, Market touched 16002 and came down by 510 points by the weekend. The
main worry is the monsoon. We have been alerting our clients on this front since
market closed above 15000.
Technical Outlook:-
Daily oscillators moved to the negative zone indicating that current decline can
prolong in the short-term. More negative is weekly oscillators. They peaked in the
last week of May and have been diverging negatively since then.
The medium-term trend can now be revised to neutral and the index can be
expected to consolidate in a range between 13,000 and 16,000 for a few more
weeks. Weekly close below 12,963 is needed to make the medium-term view
overtly negative.
Sensex has immediate supports at 14,939 and 14,800. Short-term investors

should, however, exit long positions on a close below 14,800 since the next halt
can be at 14,471 or 14,282. Resistances for the week would be 16,002 and
16,217.
Questions Traders Should ASK:-
1. What opportunities did I miss and what could have alerted me to those
opportunities?
2. When I took heat on trades, what could I have done to enter at better
prices?
3. Was the level of risk that I took in trades commensurate with my
conviction in the trade ideas?
4. What were the themes and markets driving prices today that I should be
alert for tomorrow?
5. What are the themes, economic reports, and markets that might drive
prices overnight that I should be alert for in the morning?
6. What kind of trades are making me money? Where am I losing my
money? What can I do about that ?
Happy Investing.
The successful speculator must always have cash in reserve, like a good general
who keeps troops in reserve for exactly the right moment, and then moves with
great conviction, and commits his reserve armies for final victory, because he
has waited until all the odds are in his favor.
Reasonable people act unreasonably when they are afraid. And people become
afraid when they start to lose money, their judgement becomes impaired. This is
our human nature in this stage of our evolution. It cannot be denied. It must be
understood
Trading Lesson: If you let your emotions get the better of you, you could lose all
of your capital. However, if you take a moment and think about your trades, you
can have much better results.
The key to trading success is emotional discipline. If intelligence were the key,
there would be a lot more people making money trading... I know this will sound
like a cliche, but the single most important reason that people lose money in the
financial markets is that they don't cut their losses short.
"There should always be respect for the person on the other side of the trade.
Always ask yourself: Why does he want to sell? What does he know that I don't?"
~ Michael Steinhardt
FW, another way of looking at the same question is: Am I confident to add to my
current holdings, and if I don't, perhaps this lack of commitment should
necessitate an expedient exit.
"The Fruits of Your Trading Success

I re-read a quote from Jesse Livermore today:
The fruits of your success will be in direct ratio to the honesty and sincerity of
your
own effort in keeping your own records, doing your own thinking, and reaching
your own conclusions.
I find time and time again that losing traders are making the same mistakes:
1. They don't keep any records.

2. They do no testing.
3. They become euphoric about (and increase risk wildly after) wins.
4. They become despondent about (and decrease risk wildly after) losses.
5. They focus on how much money they want.
6. They rarely / never think about how much they stand to lose on a trade.
7. They set their stop loss based on a 1:1 or 1:2 risk to reward ratio, just to make
the ratio look good.
8. They discount the importance of psychology.
9. They over-value the importance of the trading "system."
10. They have no routine
The composite of a losing trader would be someone who is highly stressed and
has little protection from stress, has a negative outlook on life and expects the
worst, has a lot of conflict in her/her personality, and blames others when things
go wrong. Such a person would not have a set of rules to guide their behavior
and would be more likely to be a crowd follower. In addition, losing traders tend
to be disorganized and impatient
All the interests of my reason, speculative as well as practical, combine in the

three following questions:
1. What can I know?
2. What ought I to do?
3. What may I hope?"
Trading Wisdom - Winning %
"It's not whether you're right or wrong that's important, but how much money you
make when you're right and how much you lose when you're wrong."
George Soros
To,
Dear All,
The Last Week:-
Unaffected by the Draught and Swine flue, market rebound in the last week by
251 points and closed at 15411. Provisional data released by BSE shows that
FIIs were net sellers on all days except Thursday. Volumes were subdued even
as the third and fourth-rung stocks perked up, which is a sure sign of an
overstretched market.
Technical Outlook:-
Consider the following points.
Since June closing, Market has gone up by just 5%. It means it is taking time to
decide about the next course of action. It is not crossing the crucial 16200 level.
The 10-month rate of change oscillator is also poised at a level last recorded in
December 2007 implying that prices have moved too fast. Reversal of trend from
this level can take the market down very fast. However, weekly close above
16200, will favour bulls.
The short-term trend is down. Downward reversal from 15,545 last week
reinforces the negative short-term view. We maintain a neutral medium-term
view. Decline below 14,244 will make the Sensex head towards the medium-term
support zone between 13,000 and 13,200. Long-term investors however need
not fret unless there is a weekly close below 13,000.
The Sensex can decline to 14,741 or 14,244 in the near-term. The short-term
trend will turn positive if there is a close above 15,600 in the early part of the
week. Upward targets would then be 16,002, 16,179 and 16,421.
Traits of Losers:-
· They don't keep any records.
· They do no testing.
· They become euphoric about (and increase risk wildly after) wins.
· They become despondent about (and decrease risk wildly after) losses.
· They focus on how much money they want.
· They rarely / never think about how much they stand to lose on a trade.
· They set their stop loss based on a 1:1 or 1:2 risk to reward ratio, just to
make the ratio look good.
· They discount the importance of psychology.
· They over-value the importance of the trading "system."
· They have no routine.

To,
Dear All,
The Last Week:-
Liquidity showed the power last week with the Sensex gaining 681 points to close
at 15922. August has been the 3rd month in which the market has not shown any
clear directions. It has been trading in the range of 13000 – 16000. BSE
Smallcap Index gained 8 per cent last week. FIIs turned net buyers once again
last week.
Technical Outlook:-
Monthly ROC chart indicates that prices are getting overbought even from a long-
term perspective. Weekly oscillators that were poised on the verge of entering
the negative zone have recorded a small upward reversal.
It also needs to be borne in mind that the Sensex is drawing close to the 16,180
mark that is the 61.8 per cent retracement of the down-move from 21,206 peak.
We advise caution because the zone between 16,000 and 17,000 is a potent
minefield that can give investors a nasty surprise.
A reversal from here can cause a decline to 14,700 or 14,244. But a break-out
above 16,002 can cause the index to move on to 16,180, 16,312 and 16,459.
Supports for the week are 15,500 and 15,200. Short-term investors can buy in
declines as long as the first support holds
Trading Lesson:-
The successful speculator must always have cash in reserve, like a good general
who keeps troops in reserve for exactly the right moment, and then moves with
great conviction, and commits his reserve armies for final victory, because he
has waited until all the odds are in his favor.
Reasonable people act unreasonably when they are afraid. And people become
afraid when they start to lose money, their judgement becomes impaired. This is
our human nature in this stage of our evolution. It cannot be denied. It must be
understood
Happy Investing.
To,
Dear All,
The Last Week:-
Market Affected By China Flu, touched 14700 on the Monday itself. However,
hopes of revival in monsoon and FM reassuring the country that we have enough
to fight the Draught like situation – made market to recover from Monday’s low to
decent level of 15240, losing about 200 points.
Technical Outlook:-
Though the support of 14700 was tested on Monday itself, it was not broken and
that has made the oscillators in the daily chart reflecting a positive bias.
The oscillators in the weekly chart imply that the Sensex is critically poised and
can launch into a medium-term decline if it closes below 14,282. We, however,
maintain a medium-term range between 13,000 and 16,000 for the index.
In the short Term we see the Sensex consolidating between 14,700 and 16,000.
Trading In Panic:-
Someone asked a surfer what he does when a big surf comes along, and he
goes underwater. The surfer said it was simple. "If I panic, I only have 3-5
seconds of air to breathe. If I stay calm, I have 45-60 seconds of air."
Happy Investing.
Punj Lloyd is a key beneficiary of the revival in activity in global oil and gas
exploration and production, trigerred by a revival in crude oil prices. Order inflows
of Rs 10,000 crore in the June quarter alone is a clear indicator of the revival.
The worst of the impact from the contentious contract of its subsidiary also
seems to be over. Investors with a two/three-year perspective can consider
investing in the stock, which currently trades at 13 times its expected
consolidated per share earnings for FY-11. The equity base includes the recent
institutional placement.
After two consecutive quarters (ending March 2009) of losses and tepid order
flows, Punj Lloyd has made a positive start in the first quarter of FY-10. Apart
from moving into the positive earnings territory with a healthy 14 per cent growth
in consolidated profits in the June quarter, the company surprised markets with a
massive order inflow that took its order book to Rs 27,900 crore, up 38 per cent
over the year-ago period and 2.3 times its FY-09 revenues.
This surge in orders can be attributed to two reasons: One, a revival in capex
spends in the areas of oil and gas pipeline, storage tanks and terminals and
process facilities, on the back of stabilisation in crude prices as well as recent
discoveries. Two, the crude oil price rally in 2009, which means a revival in the
spending activity of economies such as West Asia and North Africa. In fact, it is
the latter (Libya being a key contributor to orders) that has triggered the order
flow for Punj Lloyd. With crude oil remaining range bound and contract values
lower than a year ago, we expect Punj Lloyd to receive a spate of projects in the
infrastructure space from these geographies.
Another key development is the company’s successful qualified institutional

placement of Rs 670 crore in August. The funds would provide for the company’s
heightened working capital requirement, and replace high-cost debt. This could,
in turn, ease interest costs which have doubled over the past one year.
Punj Lloyd saw a two percentage point increase in its operating profit margins to
10.4 per cent in the latest quarter. However, with the present orders tilted in
favour of infrastructure rather than pipelines, Operating Profit Margins are
unlikely to cross the 10 per cent mark in the medium-term. Cost over-runs in
fixed-price projects could also cause volatility in earnings.
Where is your head during the market day?
1) Are you looking through the rear-view mirror, criticizing your last trade?
2) Are you looking at your profit/loss for the day and filtering trades through that?
3) Are you distracted by people or the phone?
4) Are you thinking about yourself and how well or poorly you've been doing?
5) Are you locked in an opinion of what the market "should" be doing instead of
observing what it *is* doing?
6) Are you wanting to get your money back after a loss or hold onto it after a
gain?
7) Are you focusing more on yourself or on what markets are doing?
Many times, our head just isn't in the game. We can't be focused on performance
outcomes and immersed in our performance at the same time
In real-time trading there are three emotional issues to consider:

Impatience to wait for a good setup.
The tendency of being "sucked in" by emotional swings out of short term price
action.
The desire to predict market direction.
Fundamentals that you read about are typically useless as the market has
already discounted the price.
-I call them "funny-mentals." However, if you catch on early, before others
believe, then you might have valuable "surprise-a-mentals"”
-Ed Seykota
Pride is a great banana peel—as are hope, fear, and greed. My biggest slip-ups
occurred shortly after I got emotionally involved with positions.
-Ed Seykota
The market has no firm link between reason and outcome. I don’t have to figure
out the future. I don’t need the weight of opinion on my shoulders. I am free to
react to what happens by relying on my reading of stock action. I keep a flexible
state of mind. Nothing prevents me from changing my tactic if the market doesn’t
act as I expect it to.
Sunday, September 06, 2009
To,
Dear All,
The Last Week:-
Market touched a low of 15356 during the week before closing at the level of
15689, losing some 233 odd point. Last week, we had said that 15500 and 15200
are decent support for the week. It did act as support.
Cash segment witnessed low volume while derivative segment continues to

witness robust volume. FIIs were net sellers during the week.
Technical Outlook:-
Oscillators in Daily charts are witnessing NEGATIVE divergences along with

distribution pattern. There is also a triple top kind of a formation around 4700-
4730 NIFTY levels. This indicates that market may correct sharply in the near
future.
One should avoid going aggressively long at this levels and in-fact should book
profits and exit longs in every rise. Nifty my test 4700-4750 levels before the
correction. On the downside Nifty may break 4350 levels and may even test 4100
levels. Stocks where huge Open Interest is built up on the long side can fall
sharply. Top front liners like RIL, BHEL and SBI are indicating early weakness.
Sectors like Real Estate, Infra and metals may also be in huge pressure.
For BSE – market range is between 14700 to 16200.
Where is your head during the market day?
1) Are you looking through the rear-view mirror, criticizing your last trade?
2) Are you looking at your profit/loss for the day and filtering trades through that?
3) Are you distracted by people or the phone?
4) Are you thinking about yourself and how well or poorly you've been doing?
5) Are you locked in an opinion of what the market "should" be doing instead of
observing what it *is* doing?
6) Are you wanting to get your money back after a loss or hold onto it after a
gain?
7) Are you focusing more on yourself or on what markets are doing?
Many times, our head just isn't in the game. We can't be focused on performance
outcomes and immersed in our performance at the same time
Happy Investing.
As per a leading business daily, the Employees Provident Fund Organisation

(EPFO) is evaluating options to park around 3% to 5% of its Rs 2.6 trillion
retirement fund in stock markets. It may be noted that EPFO has so far never
invested in the stock markets and if the proposal is approved, it could bring in
funds to the tune of about Rs 130 bn. The EPFO is considering options such as
equity linked index funds as returns from fixed-income products are likely to
prove insufficient in providing protection against inflation for its 45 m depositors.
This development must be seen in the background of the finance ministry’s
earlier proposal to park 15% of the EPFO funds in stock markets. The proposal
faced strong opposition from several quarters. The ministry has now suggested
this lower allocation for investment in equities. It remains to be seen whether this
new proposal will be accepted
As humans we do not come equipped to deal with the variety of randomness that
is around us every day. Many professions deal with making processes and things
work reliably. We are taught to strive for perfection, for high scores in school and
in sports. This can be a handicap to traders. There is no perfection in trading.
Instead traders must put probability in their favor."
Amateur traders always think, “How much money can I make on this trade!”
Professional traders always think, “How much money can I lose on this trade?”
The trader who controls his or her risk takes money from the trader whose head
is in the clouds
Trading is a game of probabilities. I don’t have to be right every time. I just have
to follow my rules. I know my system works. Every trade is either a profit or a
stop. Any given trade is not of significance. The results over a certain time period
are what matter. Trading within my proven system puts the odds on my side. I
have to play to allow opportunities to materialize. I know I can trade by my rules.
All I do is react to signals, a signal to enter and signal to exit, that are generated
by my system. They take me in and out with no hesitation. I can observe the
market and emotionally detach from it. Any stock movement is simply numbers
that change following certain patterns. I know how to read those patters. I am
totally focused on what the market is telling me. I can hear it and react to it.
To,
Dear All,
The Last Week:-
Market closed above 16000 after 3 long months of wait but movement of last
week in the market showed typical sign of fatigue. There was no mad rush for
buying. While market was kept up by 10 to 20 points everyday, there was selling
in cash segments. Whether it is end of Bull Phase we have seen from March or
Lull before the new bull phase begins, only time will tell.
Technical Outlook:-
Looking at the charts, we maintain caution and we would like to wait for one more
week, before we can take further call on the course of the market.
However, if we extrapolate the move from the 13,219 trough, the targets for
Sensex are 16,403 and then 17,467. If we consider the minor wave counts of the
move from 8,047, the targets are 16,103 and then 17,370. As mentioned in our
last column, there is a confluence of targets in the zone between 16,000 and
16,500. Since 61.8 per cent retracement of the down-move from January 2008
peak too occurs at 16,200, the zone where Sensex is currently poised is a critical
long-term resistance.
But a strong move beyond 16,500 would take the index to the zone around
17,400. The medium-term trend would turn negative only on a close below
14,600. Supports for the week would be at 16,020, 15,770 and 15,360. Short-
term traders can buy in declines as long as the first support holds. Upper targets
for the week would be 16,430, 16,541 and 16,722.
Trading Success:-
Amateur traders always think, “How much money can I make on this trade!”
Professional traders always think, “How much money can I lose on this trade?”
The trader who controls his or her risk takes money from the trader whose head
is in the clouds.
Happy Investing.
To,
Dear All,
The Last Week:-
Market closed above 16000 for the 2nd week. Now, the question is whether we
are in Bull Phase now or we are still in counter rally? But before that, let us look
at the interesting development taken during the week. Reliance treasury sold RIL
shares in the market. Let us see, what happened in the past when reliance had
played in the market.
1. Mukesh Issued Warrants of Reliance Ind at Rs.1400, when the price was 1150
in early 2006. Market went up and Reliance shares touched Rs.3000 in 2007. (
Buying at the RIGHT TIME)
2. When Mukesh Sold Reliance Petoleum Shares to Chevron at around 213,
market went down and RPL toched Rs.70. Till date the price of the RPL has not
crossed even Rs.150 also. (Selling at the RIGHT TIME)
3. When Mukesh Converted RIL Warrants into shares, Price of RIL went down to
Rs.1400 from Rs.2500 last October. Do you remember??? At that time also
shares were sold around Rs.2500 from group companies to adjust for the
promoters stake.(Selling at the RIGHT TIME)
Time will only tell whether this is a beginning of BEAR phase or Market will move
up further. But technical analysis suggests something. Let us see that.
Technical Outlook:-
Markets rolled out with positive sentiments but witnessed profit booking at higher
levels to close on a flat note. On the daily candlestick charts we are witnessing a
pattern which resembles a 'Shooting star' which clearly indicates that market is
rejecting higher prices. Though the confirmation of the weakness would come
only if the prices close below the low (16637 / 4944) of the shooting star
formation. If indices trade convincingly below 16637 / 4944 then it may test
16550 – 16470 / 4920 – 4895 levels. On the flip side high of the shooting star
16820 / 5003 levels may act as a major resistance for the market.
Traits of Top Traders:-
Temperament - In general, people with more analytical and even tempered

personalities make better traders.
There is a counterbalancing trait which is the willingness to take risks. Some

traders with volatile temperaments are successful because they can take risks
easily and can keep trading after getting knocked down. They also tend to blow
up more often.
Character - Humility is a very important ingredient in trading success. The truth

does not care what you think of yourself. The markets don't care what you want
to believe reality is. Trader's that are humble are better able to examine their
methods and trading objectively and make changes where appropriate
Happy Investing.
To,
Dear All,
The Last Week:-
Market closed above 16000 for the 3rdd week. Not only that, it made an effort
to touch the 17000 index – touched high of 16943 last week and came back.
Sensex closed at 16693, 48 point lower than the last week.
Technical Outlook:-
Last week we had said - On the daily candlestick charts we are witnessing a
pattern which resembles a 'Shooting star' which clearly indicates that market is
rejecting higher prices. Though the confirmation of the weakness would come
only if the prices close below the low (16637 / 4944) of the shooting star
formation. However, market has closed above 16637 / 4944.
I expect market to cross 17000 in short term. One can consider closing of open
positions only below 16000.
Fundamentals:-
Fundamentals that you read about are typically useless as the market has
already discounted the price. I call them "funny-mentals." However, if you catch
on early, before others believe, then you might have valuable "surprise-a-
mentals"
Happy Investing.
Saturday, October 03, 2009
To,
Dear All,
The Last Week:-
Market closed above 17000 for the 1st time in 2009. We had indicated that we
expect the market to cross 17000 in our last week’s letter. At 17000, the
questions are – What next? Where should we invest? What will happen if the
market’s fall? How much it can fall? Will it cross 21000 before December?
Game of Probability:-
Frankly, I do not know any of the answers. But I know that trading is a game of
probabilities. I don’t have to be right every time. I just have to follow my rules.
Every trade is either a profit or a stop. Any given trade is not of significance. The
results over a certain time period are what matter.
Let us see what happens if the market touches 21000. You can make additional
25%. However, for that you should have those shares in your portfolio which are
going to participate in rally from 17000 to 21000. In 75% of the cases, people
would not have those shares in there portfolios. In other words, it will make little
difference to them whether market is at 17000 or 21000.
Let us see what will happen if the market falls. In 75% of the cases, portfolio
value will come down – because you are having those shares which are going to
go down fast!!
At 17000, market is trading at 20 P/E which by no means is a cheap valuation. If

you are really very active and agile trader, hold your position, change your
position with market and cut your position when market breaks very strong
support of 16000. But if you are not very fast executor, then start selling your
shares in lot of 25%.
Being Wrong:-
Being wrong is acceptable, but staying wrong is totally unacceptable. Being

wrong isn’t a choice, but staying wrong is. To play any game successfully, you
have to have some skill, an edge. But beyond that, it is money management.
Good traders manage the downside; they don’t worry the upside.
Happy Investing.
To,
Dear All,
The Last Week:-
Market lost 491 points and closed below 17000 at 16640. In the last week, we
had written about the game of probability and we had seen the likely scenario in
up and down situation in the market. We reiterate our view about the market
given in our last weekly column.
How to Invest In Current Market Situations?
Let us ask some fundamental questions before investing.
1. Is it possible for the company to make sizable increase in the sales of its
products or services for several years?
It is possible to make one time big profit in particular year. But the
challenge is to maintain the consistent growth in the sales and profit. Our
job is to assess the market potential of the company’s products or services
and take a call whether company is in a position to exploit the
opportunities available.
2. What is the management’s attitude towards new development of products

or services?
When we have fully exploited the potential of current products, to maintain

growth, we require new products and services. What is the management’s
attitude towards that ?
3. How Effective or Innovative the Research and Development Team of the

company in relation to its size?
What is the % of Research expenses to total sales? We can compare the

% of different companies in the same industry. This will give us the
indication of the future grown potential we can expect from the company.
4. How is marketing skill of the company?
The goal of any business is to make sales. Given the same kind of
products, it is the marketing skill of the company which can help it to
capture the market in a big way. So, concentrate on marketing skill of the
company.
5. What is the Profit Margin of the company?
From the stand point of the investment, sales have only meaning if it leads
to increased profit. Investment become attractive only and only if the sales
growth leads to the growth in profits.
Just see the power of above questions. You can instantly decide about the
investment potential of the company. I will cover remaining questions in
the coming issues
Happy Diwali and Happy Investing.
Hitesh Parikh.
Sunday, October 25, 2009
To,
Dear All,
New Year Wishes:-
I take this opportunity to wish you all and your family members a Very Happy And
Prosperous New Year.
The Last Week:-
Market lost 512 points and closed below 17000 at 16810. It was 16640 for the
week ended on 10th Oct.,2009. It was above 17000 for the week ended on 17 th
Oct.,2009.
This is a typical sign of correction in the market – 1 step up and 2 steps down. It
gives the falls feelings to the investors that market is not going down when
actually it is going down.
View of Next Week:-

Market has good support at 16400 and 16002. If these levels are broken, market
may go down to 14700 and 13300 levels. Bounce from here can take market to
17500 and 17800 levels.
What You Should Do?
Review your portfolio and your original investment goals? Review your holding
period for your stocks considering your present situations. If you can not do,
please take our help in reviewing your portfolio. We will provide company wise
analysis and overall view of your portfolio for the coming year.
Why You Should Take My Help?
I think all of us have human instincts that work against us and I’m certainly no
exception. In fact, knowledge of and a complete understanding of our own
psychological weaknesses is a big part of trading well.
Most of us are not born traders just like we’re not born lawyers, doctors,
scientists or any other profession that requires a specific skill set, experience and
knowledge based on practice. Most people, including me, really have to really
work hard at it.
I hope that as a member you’ve figured out by now that the difference between
me and others often comes right down to just a few things: 1) I work harder than
most and continue to learn every day, 2) I have a lot of focused experience, and
3) My approach matches both my personality and skill set really well.
Wish you good luck and lot of prosperity in New Year.
Regards,
Hitesh Parikh.
October 30, 2009
To,
Dear All,
The Last Week:-
Market lost 920 odd points and closed below 16000 at 15881. From the High
of 17493 made on 17th Oct.,2009, it has come down close to 10%. In the
News letter for the week ended Sep.,20,2009, we had said that with Reliance
selling shares you can expect sign of correction in the market. Through out
October, we have been cautioning about the possible correction. In fact, last
week we had clearly said that this is a sign of correction in the market. Hope you
would have followed our advice and profited from the same.
View of Next Week:-
Market has broken support of 16002 with heavy volumes. Next strong support is
15400. Below 15400, market may go down to 14700 and 13300 levels. Use relief
rallies to SELL, SELL and SELL Only. We will change our view if market closes
above 17200 on weekly basis.
Figures To Watch:-
USD was Rs.45.80 during week ended 17th Oct.,2009 has touched Rs.47.00
during current week against Indian Rupee. This is good for IT Companies and
Bad for companies in Commodities.
More On Trading:-
The 90% club (fail traders) do not trade the market but they always trade their
perception about the market. There is no absolute truth about the markets. We
only perceive everything happening in the market as a truth.
Most traders always believe and trade news, indicators, numbers, time of the
day, events and find all other reasons to support our belief about the markets. All
the biases are driven by the emotions of greed and fear and hope.
Fear starts when trader experience a losses and creates an emotional situation.
At this stage, the mind is activated to avoid pain and this becomes a priority to
seek pleasure and trader will start trade their perception, not trade the market.
Sometimes the emotions do not require conscious thought to activate them. This
explains why people find it difficult to overcome a strong fear of loss even
through they know that the fear is irrational.
Regards,
Hitesh Parikh.
Saturday, November 07, 2009
To,
Dear All,
The Last Week:-
Market gained 277 odd points and closed above 16000 at 16158. Market
made a low close to 15300 before recovering 700 points from the bottom. If you
refresh your memory – market lost 2000 points in July,2009 from 15600 to 13400
and made a come back. This time also it made a loss of 2000 points from 17400
to 15300 and made a come back. Does this mean that market will make new
high now? Does this mean market will move in range? Let us see.
View of Next Week:-
Market has crossed the resistance of 16002 and closed at 16158. This is a good
sign for the time being. If the momentum continues, you can expect 16450,
16650 and 16850. On downside, 15400 looks a good support. Below 15400,
14700 and 13300 are supports.
Role Of Consultant:-
We are living in the time when free flow of information is the norm. Be it TV,
News Papers, Websites, Your Broker, Your Train Friends (if you are in Mumbai)
– You have lot of free information. There is a saying which says – the greatest
obstacle to Wisdom is not ignorance but illusion of knowledge.
Small investor thinks more information is equal to more knowledge and he does
not believe in appointing a Personal Financial Consultant to help him manage his
finances. In Economics, they say, there is no free lunch. Just think – when so
much information is given free of cost – who is paying for it ? Who is the ultimate
sufferer of the same? Of course, small investors.
If you do not have one, please appoint one for yourself now. You can appoint Us
also, if you wish. Please contact us for our special investment advisory scheme
which we have launched now.
Regards,
Hitesh Parikh.
November 14, 2009
To,
Dear All,
The Last Week:-
Market gained 690 points and closed at 16848. Remember what we had said
Last week – “market has crossed the resistance of 16002 and closed at 16158.
This is a good sign for the time being. If the momentum continues, you can
expect 16450, 16650 and 16850.” It closed the week at 16848. What next? Can
we expect a new high for 2009? Let us see.
View of Next Week:-
In the column dt.30th Oct.,2009, we had said that we will review our decision
about market movement once it closes above 17200 on weekly basis. Close
above 17000 with volume can pave the way for 17800 in the next week. I see the
market consolidating into a broad range of 15000 – 18000 before taking a next
move. I recommend scrip specific trading and investments at this juncture. Do
not hold long below 16400.
Role Of Consultant:-
A Person went to Saint and asked – “Do you believe that GOD is every where?”
Saint replied – “YES”. The person asked – “Then why do we need so many
Temples?” Saint replied – “Air is every where, but we need a Fan to feel it.”
As the fan makes you feel the air, consultants gives you the actionable
interpretations from the given information. Remember, it is the Interpretation of
information which leads you to the profit and not the information. So, make profit
by appointing consultant for yourself.
Please contact us for our special investment advisory scheme which we have
launched now.
Regards,
Hitesh Parikh.
Think about why you really want to trade. If you want to trade for the excitement,
you might be better off riding a roller coaster or taking up hang gliding. In my own
case, I found that the underlying motive for trading was serenity or peace of
mind-hardly the emotional state typi-cal of trading. Another personal motive for
trading was that I loved puzzle solving-and the markets provided the ultimate
puzzle. How-ever, while I enjoyed the cerebral aspects of market analysis, I didn't
particularly like the visceral characteristics of trading itself. The con-trast between
my motives and the activity resulted in very obvious con-flicts. You need to
examine your own motives very carefully for any such conflicts. The market is a
stem master. You need to do almost everything right to win. If parts of you are
pulling in opposite direc-tions, the game is lost before you start
10% of your trades will account for 90% of your profits
1 or 2 months will account for most of your annual profits
1 or 2 days will account for most of your monthly profits
Good investors and traders know that very well. They are ready to press extra
hard when realize that they might have a home run in play. They are ready to
disappear in 60 seconds when things don’t go as planned.
Sunday, November 22, 2009
To,
Dear All,
The Last Week:-
Market gained 173 points and closed at 17021. Remember what we had said
Last week – I see the market consolidating into a broad range of 15000 – 18000
before taking a next move. I recommend scrip specific trading and investments at
this juncture. While market kept two way movements during the week, many
stocks have given good returns. What next?
View of Next Week:-
Market has closed above 17000 with volume last week. This can pave the way
for 17800 in the next week. We again recommend scrip specific investments
during next week. Do not hold long below 16400.
More On Trading:-
Think about why you really want to trade. If you want to trade for the excitement,
you might be better off riding a roller coaster or taking up hang gliding.
In many case, I found that the underlying motive for trading was serenity or
peace of mind - hardly the right emotional state typical of trading. Another motive
for trading was puzzle solving-and the markets provided the ultimate puzzle.
However, while people enjoyed the cerebral aspects of market analysis, They
didn't particularly like the visceral characteristics of trading itself.
The contrast between motives and the activity resulted in very obvious conflicts.
You need to examine your own motives very carefully for any such conflicts.
The market is a stem master. You need to do almost everything right to win. If
parts of you are pulling in opposite directions, the game is lost before you start
Regards,
Hitesh Parikh.
What is the best thing a trader can do to increase their chances for long-term
success? Market Wizard Michael Marcus gives us a glimpse with this insightful
quote: "Taking advantage of potential major winning trades is not only important
to the mental health of the trader but is also critical to winning. Letting winners
ride is every bit as important as cutting losses short. If you don't stay with your
winners, you are not going to be able to pay for the losers. In addition to not
overtrading, it is important to commit to an exit point on every trade. Protective
stops are very important because they force this commitment on the trader." True
words of wisdom!
This is a lesson I keep needing to come back to. I can see that trading for
amusement has been my own downfall a thousand times in the last few years,
and to just sit at the sidelines can be painful.
I just read a brilliant quote by the trader John Piper.
"Once able to trade, it is very likely that a person will make the emotional
decision to do just that when bored. This timing is unlikely to correspond with a
low risk trading opportunity."
.
Why Trading is Difficult
1. Need to internalize lots of trading simulation of specific set-ups in real-time to

trade effortlessly
2. Need to trust money management system to weather +10 losses in a row
3. Tuff to internalize that its the 5-6 huge monthly runners that is the big pay-off
days
4. Must master +3 trade set-ups to make money consistently month to month.
5. It takes considerable time to mathematically think and act like a trader
6. Trading is a performance skill which requires mastery of every element of

trading
7. It requires time capital and considerable effort to achieve the experience to

make it effortless and automatic
8. It takes several attempts at different trading methodology to sync with a

trader's personality and cognitive strengths
9. It takes time to set and internalize specific rules that embed a sense of
mastery
10. To survive in trading requires weathering the lengthy learning curve

To,
Dear All,
The Last Week:-
Market lost 389 points and closed at 16632. It seems that we will see the
market consolidating into a broad range of 15000 – 18000 for some more time
before taking a next move. I recommend scrip specific trading and investments at
this juncture.
View of Next Week:-
Market went below 16400 during Friday trading hours and bounced back to close
at 16632. Had it closed below 16400, we had clearly recommended closing of
trading positions. We see market taking support at 16400 and 16080. Market can
go down to 15400, if 16080 levels are broken. On upside, it has a strong
resistance at 17400.
More On Trading:-
Whether you win or lose, you are responsible for your own results. Even if you
lost on your broker's tip, an advisory service recommendation, or a bad signal
from the system you bought, you are responsible because you made the decision
to listen and act. I have never met a successful trader who blamed others for his
losses.
Successful traders use a combination of intuition, technology, and decision-
support tools, such as the tape, price levels, consultant’s tips and charts to make
an informed decision. The statistical advantage is gained by following your
discipline while employing some of these techniques.
Regards,
Hitesh Parikh.
Sunday, December 06, 2009
To,
Dear All,
The Last Week:-
Market gained 470 points and closed at 17101. This gain has come on the
back of better than expected GDP and Auto numbers for Nov.,2009.
However, Mood on the street was cautious and the volumes were thin. It seems
17400 is acting as a strong resistance and market needs to cross the same to
give break out signal.
View of Next Week:-
Market may consolidate in the range of 16400 to 17400 before taking next move.
If it goes below 16400, we recommend closing of trading positions. We see
market taking support at 16400 and 16080. Market can go down to 15400, if
16080 levels are broken. On upside, it has a strong resistance at 17400.Above
17400, it can touch 17800 fast.
What to Do Now?
Market is range bound since it has crossed 16200 levels. While market is holding
above that level, challenge is to find out what to do now? We have some
suggestions.
1. Find out your investment goal.

2. Find out which sectors are likely to move now.
3. Invest in them.
4. Reshuffle your current holdings in the light of above findings.
5. If you find it difficult to do the same, you can take our help.
Regards,
Hitesh Parikh.
It is my contention that the most successful traders are the ones who have the
discipline to keep trading simple by focusing on the process and not on the
money.
Here are the characteristics:
1. CONFIDENCE: absolutely essential in an environment that feeds on emotional

instability.
2. TRUST: if you cannot trust yourself who can you trust? Trust your rules, trust
your edge, trust that you will do the right thing-no matter what!
3. FOCUS: you will never learn all there is to learn about the market. Push your
ego aside and focus on one market and one edge.
4. ACCEPTANCE: you have to accept what the market is willing to give or you
will give the market what it wants to take.
5. RESPONSIBILITY: you and you alone are responsible for the money you lose
and the money you make. Take the credit for both. Either way you deserve it.
6. PATIENCE: The market is not the place to learn patience, it is the place to
practice it.
7. RULES: the market has no rules and no one else will do it for you. Develop
rules for entering AND exiting trades before trades are made.
8. RESPECT: you have to respect the market for what it is not for what you want
it to be. The market has a logic all its own. You may not like it but you have to
accept it.
If a trader is able to make consistent, positive risk-adjusted returns on a small

capital base with a scalable trading strategy, there is reason to believe that the
trader might be able to sustain a living from his or her work.
The path to success, is not through excessive risk-taking in search of monster

rewards. Rather, the path involves building skills, achieving consistency in the
execution of those skills, and then leveraging those skills through adequate
capitalization--either your own saved capital, capital that you raise independently,
or capital provided by a bank, fund, or proprietary trading firm.
Joy - The happiness that results from exercising one's strengths and
competencies;
Contentment - The inner peace that comes from knowing that you've done your
best;
Energy - The excitement and enthusiasm that spring from focusing on
opportunity;
Affection - The bond that results from sharing your life with others of like values
and visions.
“If price should do something but does NOT do it, then it can lead to a more
powerful trade in the OPPOSITE direction – which has implications for type of
day structure and future opportunities. You can’t forecast trade failures in
advance, but when they occur, they can put you on the right side of the market
while other inexperienced traders scramble to figure out what went wrong and
stop-out in confusion.”
To,
Dear All,
The Last Week:-
Market gained 17 points and closed at 17119. It seems Fevicol has been
applied to the market. Lack luster movements, thin volumes and no clear trend
were the visible traits for the market during last week. Though FII investments
have slowed down, Open position in F & O market has touched 1,10,000 Crore.
This indicates that market participants are expecting a break out from this level.
View of Next Week:-
Market is consolidating in the range of 16200 to 17400 since last 4 weeks. We

feel that break out is likely to happen in the coming week. On upside, it has a
strong resistance at 17400.Above 17400, it can touch 17800 fast. If it goes below
16400, we recommend closing of trading positions. We see market taking
support at 16400 and 16080. Market can go down to 15400, if 16080 levels are
broken.
Golden Rule of Trading:-
“If price should do something but does NOT do it, then it can lead to a more
powerful trade in the OPPOSITE direction – which has implications for type of
day structure and future opportunities. You can’t forecast trade failures in
advance, but when they occur, they can put you on the right side of the market
while other inexperienced traders scramble to figure out what went wrong and
stop-out in confusion.”
Happy Investing.
Hitesh Parikh.
10 steps to fail as a trader.
There is so much ink and pixels spilled on how to succeed in trading. So I

thought, I would zag instead of zig and outline how to fail as a trader. Without
further ado, the 10 vital steps you must take in order to fail in trading:
Start out undercapitalized

Ignore risk management
Compare yourself to other traders, not yourself
Look for the right system
Don’t keep a journal
Be secretive
Be casual
Fill your charts with as many indicators as possible
Trade with your emotions
Be inconsistent
Sunday, December 20,2009
To,
Dear All,
The Last Week:-
Market lost 400 odd points and closed at 16719. As expected in the last week,
it did not cross 17400 level on closing basis and market has come down to this
level. With the onslaught of Holiday’s in the coming week, it remains to be seen
how market moves?
View of Next Week:-
The index has strong short term support at 16,640. A rebound from this level can
take it higher to 17,000, 17,120 or 17,350 next week. Failure to move above
17,000 will usher in a decline to 16,620 or 16,400. Subsequent support for the
index is at 16,210. If it goes below 16400, we recommend closing of trading
positions. Market trend will turn negative, if 6080 levels are broken.
Happy Investing.
Hitesh Parikh.
Your exposure and risk is much higher if you let the market prove you wrong
instead of your actions removing positions systematically unless or until the
market proves your position correct. You decide what is correct according to your
plan.
Trading is not gambling! Treat it as a business where you only want the best
merchandise for the shortest possible time in order to have the maximum profit
with the least possible chance of failure.
On 31st Dec.,2009, we will completing most eventful decade in the area of
financial and investment world. We have seen the rise and fall of the world
markets and also the failure of the world’s biggest – supposedly fail proof –
organizations. What was viewed unlikely on 1st Jan.,2000 has become reality by
31st Dec.,2009.
What’s in it for us? As the new decade starts to unfold from 1st Jan.,2010 onward,
how should we invest ? What we should remember? Well, I have identified some
common mistakes we made. Let us look into them and try to learn from them.
Past Price Is Irrelevant:-
When the Index started falling from 21000 odd levels in 2008, many investors
started buying at 17000, 15000 or 14000 levels. They considered these levels as
the cheap when compared with 21000. In fact, bottom of 12500 was almost
unbreakable. But market made a low of 8000.
If current price is lower than past prices, it should not be the only criteria for your
investments.
Your Investment Should Give You Sound Sleep:-
If your investment can not give you peace of mind, sound sleep at night than your
investment can prove very costly for you and your overall quality of life. Lesson:-
Goal for investment should never be excitement.
Do Not Invest Based On Relative Value:-
Value of stock is absolute. Concept of Relative value is very dangerous.

Investing in one share, just because it is of relatively lesser value, than the other
share is sheer nonsense. Judge your investment based on that.
Invest With Conviction:-

During the turmoil of 2008, Buffett was investing in USA – the most affected
country from the financial crisis. Everybody was skeptical and doubting his
judgments. But he had CONVICTION in his investment. You also have that.
More You Save, More You Invest:-
Unless you spend less than you earn, you can not save. When you can not save
- how can you invest???? So Save.
Trade And Investment Are Not Same:-
If you speculate on the bubble and go right, you can make easy and big money.
Understand that this short term speculation is trade and not investment. Early
2000 many investors were holding Tech stocks and terming them as their long
term investments. When tech stocks started falling from Feb.,2000 onwards, their
short term losses turned into long term disasters. Same happened in Real estate
rally during 2005 to 2008. Next trigger can happen in Power sector.
Watch Long Term Trends:-
Investing based on breaking news of news channels or headlines of new papers

is dangerous if you are not able to visualize the long term trend of the company
or sector.
You Can’t Time Market Perfectly:-
Buying at the lowest price and selling at the highest price is aberration. However,
picking stock when it is at lower valuations and selling when the valuations are
expensive is Normal. So, watch Valuations and do not waste time in timing the
market.
Beware Of Expert Forecasts:-
Just because an expert has said positive about some asset class or about the
market, do not invest based on that. Everybody was convinced that market will
not break its 200 Days Moving Average of 12500. But market proved all of them
wrong!
Stay In The Game:-
If Sachin Tendulakar wants to score run, he has to be on the pitch. If he is not on

pitch, he can not score run. Looking at the turmoil in the market, looking at the
market situations – many investors would prefer to make Fixed Deposits in Bank
rather than investing in Stocks. This is the most dangerous as Inflation and Tax
would eat your money faster than you expected.
“Unlikely” And “Impossible” Are Not Same:-
10 years ago, it was unlikely that Enron, AIG, World Com would fail. Crude can
go from USD 10 to USD 140 or gold to cross USD 1200. It was unimaginable that
real estate can give negative returns and would crash. All of the above events
though unlikely at some point of time in the past, have happened in the last
decade. Keep margin of safety for such events.
Sunday, December 27,2009
To,
Dear All,
The Last Week:-
Market gained 641 odd points and closed at 17360. Market has been moving
in a narrow range of 16600 to 17400 since last 6 weeks. It remains to be seen
whether this sideways movement is Consolidation or Lull before Storm?
View of Next Week:-
A strong rebound from 16580 levels in the last week indicates that market may
touch 17800 now. However, if market fails to move 17500 level with volume, we
can expect 17000 or 16800 levels also.
Change Your Financial Destiny In 2010:-
Invest in 12 stocks, one each every week, those have the potential to give you
100% return. We will provide detailed report on each stock every week. Your job
is very EASY. You just have to buy those shares. You have the liberty to decide
the quantity of shares you buy and you can decide through which broker you
want to buy. Now, don’t you think making money in stock market is EASY?
You can join this scheme before 31st Dec.,2009 at a special price of Rs.25000
per annum instead of Rs.50000 per annum.
Wishing V/s. Realization:-

As the year ends, you will receive many emails, calls and sms wishing you a very
prosperous year 2010. With this email, I am not only wishing you but also giving
you an assured way to realize your dream of making you prosperous in 2010, if
you follow me.
Make your choice.
Hitesh Parikh.
Trade only when you feel confident and optimistic…Think of trading as a cold
ocean. Test the water before plunging in.
1. Undiscplined
2. No money management
3. Unprepared
4. Overtrading habits
5. Easily tilted
6. Does not trade with probabilities

7. Trades emotionally without controlling: greed, hope, fear, and euphoria
8. Does not have a trading plan and strategy
Subros :-
Buy Above 45 and forget.
Auto Airconditioning Company.
Trigger One:-
Is Suzuki buying out Denso’s stake in subros ??
Trigger Two:-
Apart from exclusive supply contracts for some of the latest launched products
such as Maruti’s A-Star and Ritz and M&M’s Xylo,
Subros will start supplying air conditioners to Tata Motors’ Nano from January
2010 onwards, which will help further augment its volume growth.
Trigger Three:-
MARUTI vehicle sales
DEC 09= 84804 vs DEC08= 56293
>Tata Motors December sales double.
>Mahindra and Mahindra has reported a 122% increase in its Dec Auto sales at
22,754 units as against 10,253 units sold during the corresponding month last
year.
Losing money is the least of my troubles. A loss never troubles me after I

take it. I forget it overnight. But being wrong – not taking the loss – that is
what does the damage to the pocket book and to the soul.
Of course, if a man is both wise and lucky, he will not make the same
mistake twice. But he will make any one of ten thousand brothers or
cousins of the original. The Mistake family is so large that there is always
one of them around when you want to see what you can do in the fool-play
line
-Losses make the trader studious – not profits. Take advantage of every
loss to improve your knowledge of market action.
-The most difficult task in speculation is not prediction but self-control.
-Successful trading is difficult and frustrating. You are the most important
element in the equation for success.
-Always discipline yourself by following a pre-determined set of rules.
-Remember that a bear market will give back in one month what a bull
market has taken three months to build.
-Don’t ever allow a big winning trade to turn into a loser. Stop yourself out
if the market moves against you 20% from your peak profit point
Taking advantage of potential major winning trades is not only important to the
mental health of the trader but is also critical to winning. Letting winners ride is
every bit as important as cutting losses short. If you don't stay with your winners,
you are not going to be able to pay for the losers.
In addition to not overtrading, it is important to commit to an exit point on every

trade. Protective stops are very important because they force this commitment on
the trader.
GTL Infra has outbid rival Tata-Quippo in the negotiations to buy a total of 17,500
towers of Aircel that will take its total to 33,000.
As per experts >>VALUE OF EACH TOWER =0.48CR
33000x0.46~~ 15200cr
at Rs 38 mcap of GTL INFRA =3600cr only !!!
The Company is currently operational in 15 Telecom circles namely

Maharashtra & Goa, Gujarat, Madhya Pradesh, Rajasthan, Karnataka,
Kolkatta, UP (E), Punjab, West Bengal, UP (W), Haryana, Bihar, Andhra
Pradesh, Assam and Tamil Nadu.
ANDREW YULE would be trifurcated into three companies
After Demerger NEWS NALCO WAS UP 20% ……WATCH FOR 20% MOVE IN
ANDREW YULE THIS MORNING !!
ENGINEERING +ELECTRICAL+POWER+TEA
PSU FOR DIVESTMENT AFTER DEMERGER
Govt owns 94.42%
Andrew Yule & Company Ltd
Bse code =526173
Profits =Sept 09--q2
=8.7cr vs 2.6cr 234% up
THE REVIVAL PLAN >>>SOLD Phoenix Yule to Phoenix at a consideration

of around Rs 63 crore.The diversified state-run company Andrew Yule said
it completed disinvestment of its associate company Phoenix Yule by
offloading 26 per cent to the German firm Phoenix.
Andrew Yule expects to fetch around Rs 120 crore from stake sale in
TIDEWATER OIL (Andrew Yule holds 2.28lac shares of Tide Water Oil Co
(India) Ltd ).
ANDREW YULE EXPECTS AROUND 50cr from selling stake in Dishergarh

Power Supply Co(DPSC)
What chart says ???
Looking fiery
Grab @ opening bell
Upfreeeze session will start
Today expect 20% upperfreeze
(Whole India will run to Buy )

Small losses + High Odds Of Being Stopped Out + Small Profits + Low Chance
of Success = Loss of Equity
TN Petro u are only getting at Rs.5
(Do u know the reason ?? )
TPL HOLDS 1.93CR SHARES IN HENKEL WORTH 89CR APPROX…..=RS

10/SHARE
AND IF THIS WAS NOT ENOUGH >> In another JV, the company's
management recently confirmed to the stock exchanges that it was talking
to its JV partner Vantico International S.A. for selling its 24%stake in Petro
Araldite Private Limited PROFIT :
HALF YEAR SEPT 09 PROFIT
=8.7CR VS 1.5CR LOSS !!!
Book value Rs 41
sales = 940CR MCAP at Rs 20 =180CR only !!
Not able to understand ,Why nobody recommended till today ??
101% Look at chart and see explosive move on card.
(PAPL).That would fetch cash of Rs 5 or more per share.
Opto Circuit:-
With a recent QIP issue of Rs 400 crore, Opto Circuits has managed to
reduce its long-term debts by Rs 200 crore and cut down its working
capital requirement by Rs 150 crore …!!!
In November’09 it was estimated that company to register 30 % growth this

year. Analyst’s say fairly valued at this price. With recent 5 product
launches in December and just 2 days back the company declared that
Eurocor GmbH the Company's wholly owned subsidiary has received the
CE (Communite European) Mark approval for marketing and sale of its
novel Drug Eluting Stent-Taxcor Plus in world markets (sans US and
Japan). Major achievement – billions dollar business for this heart related
drug … Expect bumper profits this year … 100 % to surpass analyst’s
estimate …!
January 10, 2010
To,
Dear All,
The Last Week:-

Market gained odd points and closed at 17540. Market has been moving in a
narrow range of 16600 to 17400 since last 6 weeks. It remains to be seen
whether this sideways movement is Consolidation or Lull before Storm?
View of Next Week:-
A strong rebound from 16580 levels in the last week indicates that market may
touch 17800 now. However, if market fails to move 17500 level with volume, we
can expect 17000 or 16800 levels also.
Change Your Financial Destiny In 2010:-
Invest in 12 stocks, one each every week, those have the potential to give you
100% return. We will provide detailed report on each stock every week. Your job
is very EASY. You just have to buy those shares. You have the liberty to decide
the quantity of shares you buy and you can decide through which broker you
want to buy. Now, don’t you think making money in stock market is EASY?
You can join this scheme before 31st Dec.,2009 at a special price of Rs.25000
per annum instead of Rs.50000 per annum.
As the year ends, you will receive many emails, calls and sms wishing you a very
prosperous year 2010. With this email, I am not only wishing you but also giving
you an assured way to realize your dream of making you prosperous in 2010, if
you follow me.
Make your choice.
Hitesh Parikh.
“I think the secret is cutting down the number of trades you make. The best
trades are the ones in which you have all three things going for you:
Fundamentals, Technicals, and Market Tone. If you can restrict your activity to
only those types of trades, you have to make money, in any market, under any
circumstances
Jesse Livermore: “It may surprise many to know that in my method of trading,
when I see by my records that an upward trend is in progress, I become a buyer
as soon as a stock makes a new high on its movement, after having had a
normal reaction. The same applies whenever I take the short side. Why?
Because I am following the trend at the time. My records signal me to go ahead!”
Unexpected
Among the hazards of speculation the happening of the unexpected – I might

even say of the unexpectable – ranks high.
There is no reward without risk, and there should be no risk without

reward. Knowing this, there’s absolutely no reason why each trade
shouldn’t have some favorable objective associated with it, so set a goal
for each trade. A realistic one that could quite feasibly be reached during
the course of the trade.
Perhaps you’ll set a hard target and book profits once that level is reached
regardless of how strong the momentum seems at the time. Or perhaps
you’ll plan to book partial profits at intervals along the way.
At the very least, having some idea of a level where your stock could move
to is still going to help you formulate a game plan, even if you don’t choose
to leave a resting order in that zone to book profits.
If you know your stop and you have some kind of upside expectation, then
you’ll have a far better grasp of just what your risk is on a given trade and
whether or not it should be taken
The Lucknow-based company is owned by the government and the Indian

government holds 98 per cent in the firm. This makes it mandatory that Union
Ministry for Heavy Industries should have its nominee on the board. Scooters
India is expected to sell the battery-driven electric two-wheeler through its own
dealer network.
It may be recalled that Scooters India was under the purview of Board for
Industrial and Financial Reconstruction (BIFR) in 1996. The company’s Vikram
range has several variants running on fossil fuel like petrol and diesel and LPG,
CNG and battery. SIL also exports to countries such as Germany, Italy, Sudan,
Nigeria, Nepal and Bangladesh and is also engaged in the manufacture of auto
components for the overseas market, especially the UK.
Disinvestment NEWS on card
Watch unexpected price level in next 30 sessions
Traders will get 20+10% jump or more
(But we think......stock will kiss 75+)
Above 39 ,Catch it !!
Target Rs.44.75 & then
will kiss 50 level in hrs only.
AMD Industries Limited expanding its capacity to double & AMD developing
and building infrastructure at huge level.
AMD is into manufacturing of PET bottles & Caps for the bottles. It is one of the
leading manufacturing this industries and has huge list of clients. Co is right know
using its capacity @ 95% and out of which the major supply is going to one of the
Worlds Leading brand COKE(Coca-Cola). AMD is the largest supplier to COKE.
AMD is expanding its capacity double time due to increasing demand in mkt.
Even the main reason to expand is because of COKE as their sales increase @
double level and they need more of PET bottles.
AMD Clients List includes – Coca Cola India, Pepsico India, Hindustan Lever,
Forsters, United Beweries, SAB Miller Plc etc.
AMD Estate & developers one of the subsidiary co of AMD is developing &
building huge infrastructure into the areas of Noida & Gurgaon. They acquire
huge land areas and developing has started.
By expanding the capacity & its real estate plan the profit and revenues of the co
will increase by 2X of the present.
Saturday, January 16, 2010
To,
Dear All,
The Last Week:-
Market gained 14 odd points and closed at 17554. During the week, the
market witnessed some selling pressure over anxiety over the RBI's next move.
Uncertainty over the central bank's monetary review policy is likely to be the
reason for the same. However, as the week progressed, results of some index
heavyweights (announced during the week) helped prop up the markets during
the latter half.
View of Next Week:-
Under the disinvestment policy, 50 unlisted companies with a positive networth

and profit for three years, and 18 listed companies that have less than 10%
floating equity, would tap the market. With an ambitious government-backed line-
up, the stock market could see 17-18 such issues in next fiscal year and an equal
number the following year.
The government action plan for PSU disinvestment, which is expected to be in
place by March, would aim for no more than a three-week gap between two PSU
issues.
NTPC Ltd, National Mineral Development Corporation (NMDC), Satluj Jal

Vidyut Nigam Ltd (SJVNL) and Rural Electrification Corporation (REC)
would be going to the market before March 31, 2010. These 4 companies
are planning to mop up Rs.27000 Crs from the market.
We feel that market will remain volatile with positive bias in the weeks to come.
The best strategy would be to invest in selected stocks.
We had promised to help you realize your dreams in 2010, with our wealth
creation expertise. We would love to share with you our performance for the first
15 days of the year 2010.
Please remember - YES and NO both are small words. They require lot of
attentions.
Many times we miss on the life's opportunities because we say NO... too soon
and YES... too late.
We have completed just 15 days of 2010 – It is not too late to say YES.
Make your choice.
Hitesh Parikh.
You can't win without an edge, even with the world's greatest discipline and
money management skills. If you could, then it would be possible to win at
roulette (over the long run) using perfect discipline and risk con-trol. Of course,
that is an impossible task because of the laws of probabil-ity. If you don't have an
edge, all that money management and discipline will do for you is to guarantee
that you will gradually bleed to death. Inci-dentally, if you don't know what your
edge is, you don't have one.
“Take your time. There are moments in time where you walk into the market and
you open up the chest, and there’s a ton of treasure in there. Then there are
times you open up the chest, and you get skeletons. And then there are times
you open up the chest and it looks good — and then the next day it doesn’t.
Do not ‘over take‘ what the market is giving — or it’s going to carve you up like
there’s no tomorrow. And that’s what this market has been about.”
Better Sleep
This is where the Better Sleep Principle comes to play. I had not really thought
about it but I have for many years now subconsciously followed the Better Sleep
Principle in my own investing. It works like this:
If I start worrying about something when I go to bed at night I fix it the next
morning. For example, if I own too much of a stock and am concerned about
what would happen if the price falls, I sell some. If I don’t own a particular stock
and I lie in bed worrying that the price would go up before I get a chance to buy
it, I buy some. I do whatever it takes to make me sleep better at night.
Here’s why you should follow your own instincts to make sure you sleep well at
night: it doesn’t help if you follow someone else’s advice and they sleep well
while you lie awake. Investing is a very personal endeavor; only you know what
you need to do
Cut Back Trading Size When Losing
When you are in a losing streak, your ability to properly assimilate and analyze
information starts to become distorted because of the impairment of the
confidence factor, which is a by-product of a losing streak. You have to work very
hard to restore that confidence, and cutting back trading helps achieve that goal
January 24, 2010
To,
Dear All,
The Last Week:-
Market Lost 694 odd points and closed at 16859. FIIs were net sellers in four
out of the last five sessions and they pulled out over Rs 2,400 crore on Friday
alone. Domestic institutions bought stocks worth Rs 2,000 crore on that day.
View of Next Week:-
We have the F&O expiry coming up in three sessions, Reserve Bank's monetary
policy review is scheduled towards the end of the week and the deluge of
earnings announcements will continue. Extremely high open interest that has
risen over Rs 1, 25,000 crore suggests that unwinding of long positions can apply
further pressure on prices. Put call ratio on index options has dropped close to 1.
This implies that short positions that can cushion a fall have already been pared
in the decline recorded last week
We maintain that market will remain volatile with positive bias in the weeks to
come. The best strategy would be to invest in selected stocks.
Better Sleep
This is where the Better Sleep Principle comes to play. I had not really thought
about it but I have for many years now subconsciously followed the Better Sleep
Principle in my own investing. It works like this:
If I start worrying about something when I go to bed at night I fix it the next
morning. For example, if I own too much of a stock and am concerned about
what would happen if the price falls, I sell some. If I don’t own a particular stock
and I lie in bed worrying that the price would go up before I get a chance to buy
it, I buy some. I do whatever it takes to make me sleep better at night.
We had promised to help you realize your dreams in 2010, with our wealth
creation expertise. Our Wealth Creation Journey has already been started on 1st
Jan.,2010. Just 24 days are over. You can still join the same at special price.
Write to us.
Make your choice.
Hitesh Parikh.
Sunday, January 31, 2010
Dear All,
Last Month Review:-
January is Over. Sensex made a high of 17790 and touched 15982 levels
29/01/2010, before closing at 16357. We were writing in our mails that 17800 is a
hurdle and it should be crossed first for sensex to touch new highs. Howeve, it
has fallen back. 16080 is a good support and after that other supports are
15700 / 15400 / 15100 and 14700.
During last six month, we have observed 3 corrections. From 15400 to 13300 in
July,2009, From 17400 to 15700 in Oct.,2009 and now from 17800 to 16080.
Every time market fell by close to 2000 points in 5 to 8 trading days and bounced
back in 2 to 3 trading days. We see that today's pull back will last in the coming
week also.
3rd Qtr Results :-
So far 1013 companies (till 28th Jan.,2010) have come out with the 3rd qtr
numbers. The sales have gone up by 9.6%, Operating profit has gone up by 40%
and interest cost has gone down by 19%. This has led to net profit jumping by
whopping 64%!! This indicates the improvement at the grass root level. We are
bullish on the economy and so on the investments.
What is our performance? :-
We have recommended close to 105 shares during January to our clients. Close
to 3 recommendations per day. 80% of the recommendations have done well.
We invite you to join our advisory services and make good of the opportunities
available.
Find our your Edge:-
You can't win without an edge, even with the world's greatest discipline and
money management skills. If you could, then it would be possible to win at
roulette (over the long run) using perfect discipline and risk control. Of course,
that is an impossible task because of the laws of probability. If you don't have an
edge, all that money management and discipline will do for you is to guarantee
that you will gradually bleed to death. Inci-dentally, if you don't know what your
edge is, you don't have one. So, look into yourself.
Strategy V/s. Speculation:-
In A Race of Wealth Creation, Strategist Wins. Strategist Play For Results While
Speculator Play For Excitements. Do You Want Results Or Excitement? Make
Your Choice.
Regards,
Hitesh Parikh.
Having rules about all of those helps us set specific goals about the
process of trading, rather than about the outcome.
The goal of your learning is to trade well, just as the goal of a pitcher is to
make a good pitch. If you do that often enough, you'll win your share of
outings.
I have always found it profitable to study my mistakes. Thus I eventually

discovered that it was all very well not to lose your bear position in a bear market,
but that at all times the tape should be read to determine the propitiousness of
the time for operating. If you begin right you will not see your profitable position
seriously menaced; and then you will find no trouble in sitting tight.
Sunday, February 07, 2010
Dear All,
Last Week Review:-
Sensex made a low of 15725 and closed at 15950 levels on 05/02/2010. Last
week, we had written 16080 is a good support and after that other supports are
15700 / 15400 / 15100 and 14700. It has taken support at 15700.
Market View:-
Various Broking Houses are coming out with technical analysis and they are
giving targets of Nifty at 3800-4000 post budget. They are predicting bearish
scenario. We have different and more practical view.
Our View:-
Considering the 3rd qtr results, we feel that our economy is better placed. We
expect that our GDP will grow at minimum 7% going forward. Most of the FII
and Institutional Investors have kept their stop losses at 4500 Nifty. When it
is triggered, Nifty can go up to 4300. We suggest buying at those levels. We
see a strong rebound after that and you can mint unexpected money,
provided you buy.
We have recommended host of stocks that can double and give decent
returns. If you want to take advantage, please join us.
Investment Thought:-
We can't control how markets move, so we can't control whether any single trade
we make will be profitable or not. But we can control how we make trades: how
we enter, how we size positions, how we exit, and how we contain losses.
Happy Investing.
Regards,
Hitesh Parikh.
Successful traders know that discipline is what allows them to enter their trades
when the odds are in their favor and, more importantly, to get out when they’re
wrong.
Being right is not the problem. What you do when you’re wrong is the crucial
issue.
There are a lot of traders who buy then pray while the market goes against them,
because they think that it will eventually go their way.
Most traders average down and wait for the market to turn their way.
Trading my way, I always have defined amount of money that I am willing to lose.
I let the market decide how much money I’m going to make
Successful traders know that discipline is what allows them to enter their trades
when the odds are in their favor and, more importantly, to get out when they’re
wrong. Being right is not the problem. What you do when you’re wrong is the
crucial issue.
Discipline means designing, testing, and following your trading system.

I'm continually impressed at how good traders sustain efforts to work on
themselves--even when they're making money. They realize that they can always
get better, and they readily set goals for themselves to guide their development.
In a very real sense, each trading day becomes an opportunity for honing skills
and developing oneself.
It was the change in my own attitude toward the game that was of supreme
importance to me. It taught me, little by little, the essential difference between
betting on fluctuations and anticipating inevitable advances and declines,
between gambling and speculating.
Friday Feelings
Mr.Gates Can Spend 1Cr/Day For 700 Years. Do You Want Your Wealth To Last
Till You Live Or You Want To Live Till Your Wealth Last? Contact Hiteshji To
Create Long Lasting Wealth.
Dear All,
Last Week Review:-
Sensex made a high of 16480 during the week and closed at 16191, thus gaining
40 points over previous week’s close. FIIs were buying in the first three sessions
of the week but they turned cautious towards the weekend. Interestingly,
domestic institutional investors, who were net buyers in most sessions in 2010
turned sellers last week. Chart indicates the sign of indecision on the part of
market players.
Market View:-
Next week is full of events that can change the market sentiments on either side.
We have Railway budget, Union Budget, F&O Expiry and long weekend due to
Holi on 1st March.
In the worst case scenario, most of the FII and Institutional Investors have kept
their stop losses at 4500 Nifty. When it is triggered, Nifty can go up to 4300. We
suggest buying at those levels. We see a strong rebound after that and you can
mint unexpected money, provided you buy.
If all the events turn positive, Market can go up to Nifty 5200/5350. We suggest
stock specific actions.
A really important hurdle to becoming a complete trader is learning to identify and

accept your own limits. There are limits to how frequently you should trade, how
much money you should place at risk, how many different stocks or commodities
you should invest in, how many technical indicators you should use, and so on.---
Happy Investing.
Regards,
Hitesh Parikh.
*Everyone has a stop-loss level: For some, it's a price; for others, it's a pain
threshold.
* It's not stress and emotion that get in the way of trading; it's the stress
and emotion that results when trading becomes personal: about you, rather
than about supply and demand.
* When traders don't track their results, it's because they don't want to
know them.
* The best traders have a passion for markets; the worst have a passion for
trading.
* When it comes to market history, there are only two choices: trading with
awareness of it, trading in ignorance of it.
When U Buy A Stock….
Always remember :U want to hold for a day
for a week
for a month
or u are Warren Buffet ?????
Importance Of - TODAY:-
Enjoy Your Wealth As If Today Is First Day,

Create Wealth As If Today Is The Last Day!
Importance
Hope, fear and greed are not strategies: they are emotions. Simple emotions are
not an effective strategy. Positive emotions could cause us to fail to apply
riskprecautions. Negative emotion could cause us to hesitate.
Trading is a psychological game. Most people think that they're playing against
the market, but the market doesn't care. You're really playing against yourself.
Think in terms of probabilities and act upon them. There are no certainties in
trading. You can keep yourself out of trouble by thinking in terms of probabilities.
Get comfortable with approximate predictions and interpretations.
Dear All,
Last Week Review:-
After Optimistic Budget, Market Participants also became Optimistic. Net result
was surge in Index. Sensex crossed 17000 for a while and closed at 16994.
While FII made investments of Rs.4000 Crs, Domestic institutions sold shares
worth Rs.2500 Crs.
Market View:-
We had said in out letter dt. 21st Feb. that if all the events – Railway budget,
Union Budget and F&O Expiry comes of week – Nifty can make a high of 5200-
5300. Nifty did cross the level of 5100 before settling at 5088.
Going forwards, we feel that market will remain range bound between 4850 –
5200. We suggest investing and trading for scrip specific movements.
Trading is a psychological game. Most people think that they're playing against
the market, but the market doesn't care. You're really playing against yourself.
Think in terms of probabilities and act upon them. There are no certainties in
trading. You can keep yourself out of trouble by thinking in terms of probabilities.
Get comfortable with approximate predictions and interpretations.
How To Trade:-
Please contact us for trading strategy and ideas. When U Buy A Stock….
Always remember : U want to hold for a day / for a week / for a month or u
are Warren Buffet ?????
Happy Investing.
Regards,
Hitesh Parikh.
Why Dabur:-
Trigger 1 : Jump of 28 % in net profits for Q3 2009-10 … Strongest ever growth

in last 6 years in Q2 2009-10 …!!!
Trigger 2 : Overseas growth … stupendous …!!! Sales in GCC region .. 34.1 % ..

Egypt ... 30% .. Bangladesh .. 58 % …!!!
Trigger 3 : Acquired 92.15 % stake in Fem Care pharma … merger petition filed
in High court and approved by shareholders recently … Yes Fem Care recorded
a huge jump of 25.5 % growth … Great news for Dabur …!!!
Trigger 4 : Very low floating stock … FIIs increased their stake by almost 5 % in
last 4 quarters …!!!
Buy at CMP of 170 and Forget for 2 months.

March 11, 2010
March 2009 To March 2010 - Myth Of Indian Market Rally:-
It is general assumptions that Indian market is witnessing bullish undertone since

9th March 2009. This is right also – as the index is near 17000 today when we
look back to last march index of around 8000. But let us go little details to
understand the market moves and further moods.
Sensex closed at 17126 points on 30th September. During week ended on 20th
September, an interesting development took place. We had written about the
same in our weekly news letter. The same is given as under.
“Reliance treasury sold RIL shares in the market. Let us see, what happened in
the past when reliance had played in the market.
1. Mukesh Issued Warrants of Reliance Ind at Rs.1400, when the price was 1150
in early 2006. Market went up and Reliance shares touched Rs.3000 in 2007. (
Buying at the RIGHT TIME)
2. When Mukesh Sold Reliance Petoleum Shares to Chevron at around 213,
market went down and RPL toched Rs.70. Till date the price of the RPL has not
crossed even Rs.150 also. (Selling at the RIGHT TIME)
3. When Mukesh Converted RIL Warrants into shares, Price of RIL went down to
Rs.1400 from Rs.2500 last October. Do you remember??? At that time also
shares were sold around Rs.2500 from group companies to adjust for the
promoters stake.(Selling at the RIGHT TIME)”
In our concluding remark dt 20th Sep.,2009, we had written that – “Time will only
tell whether this is a beginning of BEAR phase or Market will move up
further.”
What happened to the market since then?
Market made a high of 17800 and a low of 15300 in the last 6 months. In other
words, market has not moved up significantly from the level it made in the month
of September 2009. It is debatable, whether they are timing the market or its just
a coincidence!! Whatever may be the case, it seems worthwhile for investors to
add caution to their investing decisions.
Time Correction V/s Price Correction:-
Market can correct both ways – time wise and price wise. After heroic movement
from 8000 odd points in March to 17000 point in Sep.,2009, market may be
correcting time wise, if not price wise.
We feel that market is collecting more inputs for the likely future events, before
deciding about its further mood.
What an investor should do?
We believe in the old adage – “It is not timing the market, but time in the market
that counts.” There are many good businesses are available at fair valuations –
we would not say Cheap Valuations. Invest in them.
Invest with a Goal.
Invest With Passion.
Invest With Proper Study.
Invest With Stop Loss.
Why you must invest?

The recent Union budget will bring growth at the cost of heavy inflation. Your
money will depreciate day by day. India has food inflation to the tune of 15-17%
as of now. This is very high. The only recourse against inflation is to earn more
than inflation. The only asset class that can help you fight inflation is Equity
investments.
To quote from legendary investor Sir John Templeton –
“Not yet have I found any better method to prosper during the future financial
chaos, which is likely to last many years, than to keep your net worth in shares of
those corporations that have proven to have the widest profit margins and the
most rapidly increasing profits. Earning power is likely to continue to be valuable,
especially if diversified among many nations.”
The Author is practicing wealth creation advisor and can be reached at

hiteshmparikh@gmail.com
Dear All,
Last Week Review:-
Indecisiveness of market was witnessed in the last week’s movement of the

Sensex. It hovered between 17000 levels to 17250 levels and closed at 17166,
about 1% up from the previous closing of 16694. In the article captioned “March
2009 To March 2010 - Myth Of Indian Market Rally” dt.11th March 2010, we
had written about the Time Correction in the market. We strongly feel that market
is waiting for further inputs before taking a new course of actions.
Market View:-
Trigger for the next week will be the Advance Tax collection figures. Which we
think will be on higher side. This may trigger a short term rally. Going forwards,
we feel that market will remain range bound between 4850 – 5200. We will
review our view if Nifty closes above 5200. We suggest investing and trading for
scrip specific movements.
Trade Secrete:-
Always wait for the setup: No Setup-NO Trade. Know that THE BEST trades
work almost right away. Never takes a big loss. If it doesn't 'feel' right, remove it!
Always perfecting his craft is patient with winning trades: impatient with trades
that fight back. Know that DISCIPLINE is the key to winning at everything! Never
gets emotionally attached to trades, trading, losses or profits.
Always trade with the size that makes you unemotional.
Investing Helpline:-
Please contact us for trading strategy and ideas. We provide customized

investment advisory solutions.
Happy Investing,
Regards,
Hitesh Parikh.
Sultan
Your Date of Birth. - 21st June 1968
Your immediate family members and their age.-
Mother - 58, Wife -38, Son - 14 yrs, son -4 yrs
Your approximate annual package as an Executive Chef with Elite Suites.-

around INR 10,00,000, but I have commitments - family to support , not much to
sing about, but I do contribute my mite to my widowed Sister
How long you can work in this job ? - not very long hopefully, want to come back
to India, as I have discovered I have gone Diabetic, and need my family around.
How long you want to work ? - hopefully long enough to keep my family free from
worry
Your biggest unachieved dream so far. - Realistic Economic freedom
The underlying concept is, that, if we cannot accurately predict our own
performance, and as we cannot influence how the markets will behave, we
should at least exercise control over those variables that we have actually control
of. And that is the risk that we as traders take when entering a position.
Tuesday, April 06, 2010
What To Do, If Market Falls?
Fact :-
Sensex has closed above17,800 and it is in the range resistance zone of 17800
– 18200.
Technical View:-
There is a strong likelihood of the index moving towards 18,000. Investors with
short-term perspective can ride this up-trend with suitable stop losses while long-
term investors can wait to see the sustainability of this uptrend before committing
fresh funds.
We feel that till it closes above 18500 with volumes it will remain in very broad
range of 14000 – 18000 in the times to come. If it goes below 17500 levels, we
advise a stop loss level for your trading positions. You can also go short in Nifty
with a stop loss of 17900 in BSE.
Historical Perspectives:-
Market has fallen by 800 -1200 points on single day in 2004, 2006 and 2008. We
will be completing another 2 years from 2008 fall. Can we expect market to
repeat the history?
Let us see what the chart says.
Chart is making a similar pattern made in 2004, 2006 and 2008. Open positions
in F & O have also moved above Rs.1 lakh crore. This makes the case for a fall
in the market. The only missing link is Negative News, which may or may not
come.
How Should You Play?
Please read carefully.
1. We feel that market is in the broad range of 14000 – 18000 levels.

2. You can hold your trading positions with index stop loss of 17500. i.e. Do
not cut your positions before sensex goes down 17500 levels.
3. You can buy Put on the Nifty below 5260 i.e. When Nifty closes below
5260, buy Nifty Put near to Nifty level say 5250.
4. You can short Nifty below 5297 with stop loss of 5350.
5. Add Investments stocks in your portfolio at the lower levels.
6. Looking at the Indian economic fundamentals, use dips in the market to
BUY.
7. We feel it is more easy and prudent to sell nifty or buy put when market
goes down, rather than selling your investments stocks.
Please read this email carefully and if you do not understand, do call me.
Regards,
Hitesh Parikh.
A good trading system gives you an edge in the market.
To use a technical term, it provides a positive expectancy over a long series of
trials.
A good system ensures that winning is more likely than losing over a long series
of trades.
If your system can do that, you need money management.
But if you have no positive expectancy, no amount of money management will
save you from losing
Dear All,
Last Week:-
Last week Sensex crossed 18000 mark and closed at 17933 points, with the gain
of 300 odd points compared with previous week’s close. The most interesting
aspect of market rally is, it has given 9 consecutive positive weekly closes from
the intra day low of 15725 made on 5th Feb., to 17933 on 9 th April. It indicates
the buying, buying and more buying. What Next?
Historical Perspectives:-
Market has given sharp correction of 800 -1200 points on single day in 2004,
2006 and 2008. We will be completing another 2 years from 2008 fall. Can we
expect market to repeat the history?
Let us see what the chart says.
Chart is making a similar pattern made in 2004, 2006 and 2008. Open positions
in F & O have also moved above Rs.1 lakh crore. This makes the case for a fall
in the market. The only missing link is Negative News.
Technical View:-
range of 14000 – 18000 in the times to come. For the next week, trigger for the
market would be annual results and outlook for the next financial year.
Trading Tip:-
Professional traders only place a small portion of their assets into 1 position. Or if
they take on a large position, then they strictly limit their risk to 1-2% of their
current equity. Amateurs typically place a large portion of their assets into 1
position, and they give it “room to move” in case they are actually right. This type
of situation creates emotions that ruin accounts, while professionals are able to
make decisions and cut losses because they strictly define their risk.

Have A Happy Investing.
Hitesh Parikh.
Mindfulness helps us do exactly that - see each thought and feeling as a short-
lived memory, nothing more. It is a skill known as "defusion." Defusion simply
means a capacity to decenter from thoughts and feelings. Rather than looking
through our thoughts as if they were tinted glasses coloring our world, we hold
our thoughts out at arm's length, so to speak, and look at our thoughts rather
than look through them. Mindfulness cultivates the mental space which allows us
to do just that.
"Emotion is the enemy when trading": Trading is ruled by fear and greed. Those
two sinners thrive on a lack of enough information or trade expectations. The
Odds Maker readout collars these guys by revealing a strategy's odds of success
(%) as well as average winners and losers and net gains or losses
Do you break out in a cold sweat at the mere thought of risking something - such
as your own capital? Do you think of trading like 'gambling,' a long shot to make
a million? Or can you handle risk in a disciplined fashion, knowing how much is
'too much' for both your capital and your constitution?
Trading is not for everyone. If risk makes you ill, on the one hand, or if taking a
risk brings out the recklessness in you, then trading is probably not for you. But if
you can handle risk with discipline, then perhaps you can find a vocation or
avocation as a trader. Only you can answer that question.
Dear All,
Last Week:-
After 9 Weeks of dream run, last week Sensex closed at 17591 points, with the
loss of 400 odd points compared with previous week’s close. It is worthwhile to
bring to your notice what we said in the email dt. 11th April - Chart is making a
similar pattern made in 2004, 2006 and 2008. Open positions in F & O have also
moved above Rs.1 lakh crore. This makes the case for a fall in the market. The
only missing link is Negative News.
The news did come. Tussle between SEBI and IRDA on ULIP, High Inflations
Numbers and fall in US Market last Friday following news that Goldman Sachs
Group Inc. was sued by U.S. regulators for fraud tied to collateralized debt
obligations that contributed to the worst financial crisis since the Great
Depression. The firm’s shares tumbled 13 percent and financial stocks slumped.
We Also Said - We feel that till it closes above 18500 with volumes it will remain
in very broad range of 14000 – 18000 in the times to come.
Our Track Record:-
If you are a regular reader of our weekly column – Market Next Week - you would
have observed that we write our analysis about market in very simple language
and to the point. You just need to read between the lines and you can make good
understanding of the market moves. We feel that understanding of market is very
important for creating a right mix of portfolio.
What Next? :-
Below 17500, Sensex can touch 17300, 17100, 16800 and 16400 are the
supports. 16400 is 200 Days Average. Break below can take market to 15700.
Market next week is going to be the combination of the negative international
news verses positive annual numbers of Indian Corporates. If market bounces
above 17700 and maintains that level, we expect market to be stable.

Hitesh Parikh.
Have you often gambled longer than you had planned?

Have you often gambled until your last dollar was gone?
Have thoughts of gambling caused you to lose sleep?
Have you used your income or savings to gamble while letting bills go unpaid?
Have you made repeated, unsuccessful attempts to stop gambling?
Have you broken the law or considered breaking the law to pay for your
gambling?
Have you borrowed money to pay for your gambling?
Have you felt depressed or suicidal because of your gambling losses?
Have you been remorseful after gambling?
Have you ever gambled to get money to meet your financial obligations?
Result Update:-
Sonata Software:-
Sonata has come out with Revenue of Rs.239.90 Crs and Net Profit of Rs.60.20
Crs. EPS is Rs.5.72. At the current price if 62, it discounts by 11times. We feel
that the best is yet to come for the stock.
The company has declared the dividend of Rs.0.80 per shares. We recommend
Hold With Stop loss of Rs.58.
Shree Digvijay Cement:-
Company has come out with Revenue of Rs.265.55 Crs .and Net Profit of
Rs.35.70 Crs. EPS is Rs.2.52.
The current price is Rs.18. It discounts just 6 times. Hold. We have

recommended this share at Rs.16.
Ignore market rumors

Buy sector strength (Corollary: avoid weak sectors):
Never blindly follow the “Big Money” (a/k/a Professionals make dumb mistakes
also):
Day-to-day stock action is noise
P/E matters less than you think
Ignore deteriorating fundamentals at your peril
Nothing is more costly than chasing yield
Know what you own
Simple is better than complex
Stick to what you do best
Fess up!
Risk management matters
The Trend is still your friend
Forget the past, don't berate for mistakes you made.Avoid recency bias.The
ability to avoid recency bias is an important component of successful trading
Dear All,
Last Week:-
Yet another week we were proved right! Just read what we said on 18th April-
Below 17500, Sensex can touch 17300, 17100, 16800 and 16400 are the
supports. 16400 is 200 Days Average. Break below can take market to 15700.
Market next week is going to be the combination of the negative
international news verses positive annual numbers of Indian Corporates. If
market bounces above 17700 and maintains that level, we expect market to be
stable.
Market made an intra day low of 17297 and bounced back to close the week at
17694.20. Near to our level of 17700. Last week market gained by 100 odd
points compared to the previous week’s close of 17591.
What Next? :-
range of 14000 – 18000 in the times to come. The fact, that Sensex has bounced
back from 17300 level means it can touch 17800 and 18050 levels in the coming
week. On the down side 17300 and17100 are strong supports.
Our Track Record:-

Hitesh Parikh.
Friday, April 30, 2010
Dear All,
Let us start this week’s news letter with a Shayari. Here it goes….
Mai Akela Hi Chala Tha Janibemanzil Ki Taraf,

Log Aate Gaye Aur Karwa Banta Gaya.
(I started alone towards my goal. People started joining me and now we are a
group)
Financial Crisis started with US. It was alone in 2007. Buy now it has Britain,
Dubai, Greece, Spain, Portugal and many more will join in the times to come.
Last Week:-
Last week we have written that market will touch 17800 levels. It did made a high
of 17808 on Monday. In the wake of Greece downgrading, our market also
panicked and made an intra day low of 17352 on 28 th April. However, it came up
as the weekend was approaching and closed at 17558, losing about 140 points
when compared with the previous week’s close of 17694.
What Next? :-
Remember - the storm is coming; not all storms are evil. With its raindrops, it
can wash away your past and in its flash it can illuminate a new way. This is one
of those storms. Time will only give the right answer – whether storm will wash
the past or it will show the new way.
This week was the 2nd week, when BSE Sensex has bounced back from 17300
levels. We feel that till it is intact, bulls can have a sound sleep.
Our Track Record:-

Hitesh Parikh.
Friday, May 07, 2010
Dear All,
What We Wrote So Far:-
“Remember - the storm is coming; not all storms are evil. With its raindrops, it
can wash away your past and in its flash it can illuminate a new way. This is one
of those storms. Time will only give the right answer – whether storm will wash
the past or it will show the new way.”
“In the email dt.11th April we had written - Chart is making a similar pattern made
in 2004, 2006 and 2008. Open positions in F & O have also moved above Rs.1
lakh crore. This makes the case for a fall in the market. The only missing link is
Negative News.”
The Storm of Negative News did come. It took Sensex from 17558 to 16769 at
the time of closing on Friday.
What Next? :-
Last week we said that till 17300 levels are intact, bulls can have a sound sleep.
This week market has broken that level and it has closed 5% down from the
previous week’s close.
We believe - There is no means of avoiding the final collapse of a boom brought
about by credit expansion. The alternative is only whether the crisis should come
sooner as a result of a voluntary abandonment of further credit expansion, or
later as a final and total catastrophe of the currency system involved. Europe is
facing the same situations as on today. Many other countries will join in the times
to come.
Market is following a typical one step up, two steps down trend. If the trend
continues we can see the levels of 16400/16100/15800/15300. However, for the
next week a decent bounce is not ruled out. We advocate a buy at dip in
selective counters.
Do you want to earn good money? Please contact us for trading strategy and
ideas. We provide customized investment advisory solutions.
Hitesh Parikh.
Monday, May 10, 2010
Dear All,
What We Wrote On 7th May:-
Market is following a typical one step up, two steps down trend. If the trend
continues we can see the levels of 16400/16100/15800/15300. However, for the
next week a decent bounce is not ruled out. We advocate a buy at dip in
selective counters.
Today only market rebounded by 500 plus points to close around 17300
levels.
However, we continue our belief in - There is no means of avoiding the final

collapse of a boom brought about by credit expansion. The alternative is only
whether the crisis should come sooner as a result of a voluntary abandonment of
further credit expansion, or later as a final and total catastrophe of the currency
system involved. Europe is facing the same situations as on today. Many other
countries will join in the times to come.
Invest just Rs.140 Per Day:-

You are getting precise and easy to understand advice. We suggest you to follow
the same and make money. You can also contact us for investments ideas and
trading strategy. We provide customized investment advisory solutions at just
Rs.140 per day.
Take Advantage of the same.
Hitesh Parikh.
Saturday, May 15, 2010
Dear All,
Market Last Week
Market started the week with the big bang recovery on Monday only to come
back to realistic levels by the week end on Friday. The gain of 500 plus points on
Monday was washed away and market closed at 16994 compared to previous
week’s close of 16769, a meager gain of 200 odd points.
We have said in this column that - the storm is coming; not all storms are evil.
With its raindrops, it can wash away your past and in its flash it can illuminate a
new way. This is one of those storms. Time will only give the right answer –
whether storm will wash the past or it will show the new way. We feel that storm
has started to take the grip of world market inch by inch. Impact of the
same will be felt in coming months.
What Next?
Market is following a typical one step up, two steps down trend. This is a typical
bear phase signal. For the coming week, we expect market to break its 200 days
average of 16400. It can also test the levels of 16000. Below 16000, market can
test 15800/15300 /14700 levels. However, We advocate a buy at dip in
selective counters.
AKSHAY TRUTIYA OFFER
You can join our investment advisory services at a special discounted rate of
Rs.112 per day instead of Rs.140 per day. It means you can get 20% discounts
while you join us. This offer is valid only for two days – 15 th and 16th May. So,
Hurry Up.
May Goddess Lakshamiji Bless You And Your Family With Her Blessings?
Hitesh Parikh.
Dear All,
Market Last Week
What we said in the last week…….Market is following a typical one step up, two
steps down trend. This is a typical bear phase signal. For the coming week, we
expect market to break its 200 days average of 16400. It can also test the levels
of 16000. Below 16000, market can test 15800/15300 /14700 levels. However,
We advocate a buy at dip in selective counters.
Had you read between the lines, you would have certainly made good money by
shorting the Nifty. As said, Market did break 200 days average of 16400 and
touched an intra day low of 16209, before closing the week at 16445, with a loss
of 550 odd points. Previous week’s close was 16994.
How market has fallen since May 2009 – Let us See:-
1. June 2009:- Market fell by close to 15%. Points wise, it was around 2400
points fall. The market bounced back in 21 days.
2. October 2009:- Market fell by close to 12%. Points wise, it was around
2100 points fall. The market bounced back in 9 days.
3. January 2010:- Market fell by close to 12%. Point wise, it was around
2100 points fall. The market bounced back in 23 days.
4. May 2010:- Market has come down from high of 18200 to 16209 today.
Fall of 2000 odd points. However, today itself it has bounced back from
16209 to 16445 by the time of closing. This time the bearish phase has
extended to 29 days.
Our Observations:-
1. In last four major falls, market has bounced back after a fall of 2100-2400
pints.
2. If Sensex does not break 15900 closing basis, we feel market will bounce
back. (In fact, today only it has reversed in intraday from 16209 levels.)
3. The bear phase has lasted from 9 days to 23 days maximum in last 3
instances. This time it has take 29 days. If it does not bounce back in
coming week, Market can touch 15400/14700 levels.
Our Preferred View:-
We feel market should bounce back and selective stocks can be picked up to
play in the coming rally. If market closes below 15900, then we will review our
view on the market. Market should close above 16900 to give signal for the
reversal of the bearish trend in the short term.
What You Should Do?
If you are reading this column regularly, then you should have realized the
simplicity and clarity of our views by this time. We invite you to take advantage of
our investment advisory services. Please write to us for customized investment
solutions.
Wish you all A Happy Weekend.
Hitesh Parikh.
Win or lose, everybody gets what they want out of the market. Some people seem
to like to lose, so they win by losing money.
*To avoid whipsaw losses, stop trading.
*Risk no more than you can afford to lose and also risk enough so that a win is
meaningful.
*Trend following is an exercise in observing and responding to the ever-present
moment of now.
*Fundamentalists and anticipators may have difficulties with risk control because
a trade keeps looking ‘better’ the more it goes against them.
*Until you master the basic literature and spend some time with successful
traders, you might consider confining your trading to the supermarket.
*I don’t predict a nonexisting future.
It's a common observation that traders fail because they don't stick to their plans.
My experience is different. Traders develop plans and trade patterns that simply
don't work; they're based on randomness. When the patterns don't work, traders
become frustrated and abandon their plans. So it looks like lack of discipline
causes trading failure. But planning doesn't create success; sound planning
does. Sticking to plans based on randomness is no virtue."
Dear All,
Market Last Week:-
Market opened with the bounce on Monday only to tank on Tuesday. Sensex
mad a low of 15967 in early week. However, by the end of the week, it made an
intra day high of 16885 before closing at 16863 on Friday.
What we said last week……….
“Our Preferred View:-
We feel market should bounce back and selective stocks can be picked up
to play in the coming rally. If market closes below 15900, then we will
review our view on the market. Market should close above 16900 to give
signal for the reversal of the bearish trend in the short term.”
Market did go to kiss our support level of 15900 and it also made an attempt to
breach our resistance level of 16900. As written in the last week’s column,
market bounced back with a gain of 400 odd points at the time of closing on
friday.
What Next?
It is a good sign that market has not broken 15900 levels and given a strong
close in this week. However, it has not closed above 16900. We feel that market
should cross 17200 with volumes to give the comforts to the bulls. Till that time,
market can retest 15900 levels or be in range of 15900 to 16900. If 15900 levels
are broken, expect panic selling up to 15400.
Sure Shot Way To Make Rs.10 Lakhs:-
Do you really want to make Rs.10 lakhs? If your answer is yes, invest Rs. 1 Crs
with greed of making fast money, without adequate investment skills and instead
of appointing a prudent investment consultant, you rely on Market News or
Friendly Tips. You will surely have Rs.10 lakhs!!
However, if your choice is to make Rs.2 Crs or more from investment of Rs.1
Crs., please contact us. We have an attitude and skill set to help you achieve
your target.
Happy Investing.
Regards,
Hitesh Parikh.
One of the specific qualities of knowledge is that it makes itself obsolete very
fast. Skills last unchanged for centuries, knowledge changes every few years. If
you don't renew your knowledge often and thoroughly, you become obsolete and
fall behind."
Saturday, June 12, 2010
Dear All,
Market In Next Two Years – The Larger Canvas:-
You are used to receive my email on the Market Next Week. However, today I
have decided to focus on the market in next 2 years. Regular readers would
agree that whatever we have written on the weekly column about the next week,
they have observed the same in that week.
Now, let me write about market in next two years.
Advantage Of Seeing The Larger Picture:-
If your focus is on your long term goals, you are more likely to consider short
term problems and issues as a stepping stones to those bigger goals. If you do
not have the long term goals, you will see short term problems as big issues and
you will leave the investment in the market forever. We do not want you to leave
the market. We want you to see the investment more comprehensively then a
stand alone issue.
Our Performance In Recent Past:-

On 5th December, 2008, we had sent a SMS to all our friends that SENSEX will
be 14000 plus by the July 2009. We had advised them to shut the television, stop
reading news papers and just invest and stay invested in selected stocks. As
expected, most friends did not follow us. But Sensex did cross 14000
before 30th June 2009, a month ahead from July, 2009.
What Are We Saying Since September 2009? :-
Since the Sensex has made a high of 17000 in September, 2009, we have been
writing that market will now go for time correction. The same thing has happened
since last 9 months. Market has not gone above 18500 nor below 14000 in the
last 9 months. Market is correcting time wise.
What is our target for 2012?:-
In 2009 only we had written that Sensex can touch 35000 from there. Now, the
March end results are out and we reiterate our target for Sensex at 35000 by
December, 2012.
Why Should You Follow Us?:-
We are not a page three investment personality of Indian financial market. You
will not see us in any popular business channels. We do not have website to
make tall claims about our past calls. Then why should you follow our calls?
According to the great scientist Einstein – there are five ascending levels of
intellect; they are Smart, Intelligent, Brilliant, Genius and Simple. For Einstein,
simplicity was the highest level of intellect.
You should follow us because our language of investment is SIMPLE. After

reading us, you can take a call to buy or sell. Our goal is not to confuse you with
high sounding financial jargons. Technology has made our life overloaded and
we are already passing through stress by using it. Our goal is to make your
investment life SIMPLE.
In last 20 years of my career, I have evolved from Equity Analyst, Portfolio

Manager, and Investment Consultant to Investor. Today I see everything from a
paradigm of an investor. This has helped me to bring simplicity in my thinking
and in my working.
So, if you love making money in simple way, please follow us.
What you can do Now ?

Easiest thing is to laugh at our call and delete this email. However, if you delete,
it will be the costliest mistakes of your life in financial terms. Remember –
Nobody Is Rich Enough To Buy His Past.
If you love making money, please join our investment advisory services now. We
provide customized investment advisory services. For more details please write
to us.
Thanks.
Have a Thinking Weekend.
Hitesh Parikh.
12th June.,2010
Dear Mr.Ronald,
Thanks for your interest and quick reply to our emails.
One of the prime qualities of the successful persons is to take fast actions. I
appreciate your fast actions.
To customize any thing we must know your present status and your future goals.
We are master in matching your present state with your future goals.
Let me know – whatever you can about yourself – education, job, business,
approx annual income, current investment in shares, mutual funds, insurance,
resident Indian or NRI etc, about your dependent family members, your
investment style.
This will help us in knowing you.
Now, write your goals in all the above areas, if you have already thought. If not,
take time and write down now.
After we get these details, we will come back to you with our preliminary report.
Thanks.
Hitesh Parikh
Destiny Management Services,
Dreams To Destinations.
12th June.,2010
Dear Rajeev,
Let me know – whatever you can about yourself – education, job, business,
approx annual income, current investment in shares, mutual funds, insurance,
etc, about your dependent family members, your investment style.
Now, write your goals in all the above areas, if you have already thought. If not,
take time and write down now.
Thanks.
Hitesh Parikh
Charak
G 1, Sai Amrut CHS,
Janta Soc Marg,
Rai ghad chowk,
Ghatkopar East
32166817 /
Dear Dr.Sameer Humad,
We are dealing with investments – mostly in equity. We can play role as an

advisory, consultant, portfolio manager and Personal Wealth Coach for you. We
are based in Mumbai with branches in Ahmedabad, Vadodara and Halol.
Our core competency is to guide the investor depending on his priorities and his
goals. To help you with that please let me know – whatever you feel comfortable
to reveal about yourself – Age, education, job, business, approx annual income,
Whether you invest in shares, mutual funds or insurance, etc, about your
dependent family members and How you invest till now?
Thanks.
Hitesh Parikh
Monday, June 14, 2010
Dear Friends,
Thanks for overwhelming response to my email titled – “Read This Email And
You Can Double Your Money By 2012”. Many have requested to explain in
detail about how we can help them in creating wealth? We appreciate your
questions and we have tried to explain the same in this email.
Market Movements:-
Sensex is not going to move in a straight line to 35000 from here. Market has its
own mind and it will take its own course before it reaches the destination of
35000. But the fundamental point to act upon is that you will have to invest
now, if you want to sell at 35000 and make good profit from your
investments. Normally, small investors join the market at the top and sell at the
bottom. This time we want you to Buy Low And Sell Higher.
At 21000 Sensex in 2008, most analysts were targeting 25000-27500 index. This
time also when index will be around 30000, analysts will talk about 35000-40000
index. They will give figures to justify their logic. As usual you will believe them,
only to curse your luck latter.
However, the fact of the matter will be – people like you (who invest with
me now) will be booking profit from 30000 levels onwards. You will be in
cash by the time Sensex is around 35000. You will not repeat the mistakes
Bless me for a life Or Curse your luck:-
When Index was 8000, I was telling people to invest. They did not listen to me.
Now, here is another golden opportunity to double your money in shortest time of
2 years. If you follow me, you will bless me for life. Or there is bad luck to curse
for!!
Our Role:-
We provide total wealth management solutions. You can take our services as
Portfolio Advisor, Investment Consultant or Portfolio Manager. If you know what
exactly you want to achieve in the next two years – please contact us
immediately.
Remember - Knowledge Has Zero Value, If Not Acted Upon.
Join The Journey Of Wealth Creation Now.
Hitesh Parikh.
Friday, June 18, 2010
Dear Rejeev,
Please find point wise answers.
1. Please tell me about your set-up in terms of infrastructure, people, partners,

etc.
I am SEBI Registered Franchisee of Kotak Sec Ltd. I have rented office of 500 sq
ft in Borivali West. I carry out mainly broking activities from here. I have 4
dealers, 1 back office guy and 1 office assistant. Shortly, I will have office
canteen also.
For research side – I have outsourced everything. I have best of the private
research houses and technical analysts to provide me research on companies I
track.
Kotak is only partner I have.

Over and above Mumbai, I have branches in Ahmedabad, Vadodara and Halol.
Halol is my native, near Vadodara.
2. What is the size of portfolio that you have been managing so far.
In discretionary scheme, I have Rs.15 Crs. In Advisory I have 98 clients as on 1 st

June, 2010. Most of clients are with me since 1998. I have grown by
recommendations only.
In case of advisory, I do not track their buying and selling and the size. Many
times, clients also do not reveal the correct financial positions to me. However,
most of them are having Rs.10 lakhs plus in investments.
3. Give some profile of your clients.
Most of my clients are CA / MBA / CFA and CPA. I deal with the most educated
and high salaried people. Very few are Engineers and Doctors also.
I find it easy to deal with this kind of people.
4. Is there a common friend who has used your services? If yes, give his
reference and contact details.
I was not in touch of any of Ex-Aryaman Team, till you all met at Parle. I got all
contacts just 3 months back. I was only in touch with two guys – Vijay – he takes
care of my international courier work and Madhav. I have never advised them on
investments.
5. I would also like to have a broad idea of how do you expect to grow my
portfolio. I do not wish to know where all you will invest. But would like to know
your approach before committing.
My 70% of the times goes for investment management. I do not deal with the day
today aspects. I have taken lot of training in Value Investing and I follow the
same.
I deal with broadly two class of people - Pure Investors and Trader investors. For
pure investors – I recommend them to buy certain shares, update them every qtr
with the company performance and ask them to hold for 18- 30 months. My
target is to generate 50% to 100% return during this period for these stocks.
For trader investors – I have 50:30:20 formulae - 50% in above mentiond

investments, 30% positional trading and 20% pure trading.
Here 30% and 20% is hold with Stop loss. So, any given time – if the market
tanks, my client should have funds 50% of the funds to trade the next day.
I give my calls through SMS / Emails.
6. Your fee is quite steep but I would like to know the above before this part is
discussed.
Tomorrow is Saturday. If you are positive to go ahead or if you have some

doubts to clear in person, we can meet. Let me know your convenient time and
place.
Regards,
Hitesh.
Friday, June 18, 2010
Dear Mr.Gandhi,
I have received some questions from a friend like you before he can take
decisions to join me. I hope this can be of help to you. Please find point
wise answers of questions he raised. You can also send your questions.
1. Please tell me about your set-up in terms of infrastructure, people, partners,

etc.
I am SEBI Registered Franchisee of Kotak Sec Ltd. I have rented office of 500 sq
ft in Borivali West. I carry out mainly broking activities from here. I have 4
dealers, 1 back office guy and 1 office assistant. Shortly, I will have office
canteen also.
For research side – I have outsourced everything. I have best of the private
research houses and technical analysts to provide me research on companies I
track.
Kotak is my partner. Kotak is number one broking house in India.
Over and above Mumbai, I have branches in Ahmedabad, Vadodara and Halol.
2. What is the size of portfolio that you have been managing so far.
In discretionary scheme, I have Rs.15 Crs. In Advisory I have 98 clients as on 1 st

June, 2010. Most of clients are with me since 1998. I have grown by
recommendations only.
In case of advisory, I do not track their buying and selling and the size. Many
times, clients also do not reveal the correct financial positions to me. However,
most of them are having Rs.10 lakhs plus in investments.
3. Give some profile of your clients.
Most of my clients are CA / MBA / CFA and CPA. I deal with the most educated
and high salaried people. Very few are Engineers, Doctors and Businessmen
also.
4. I would also like to have a broad idea of how do you expect to grow my
portfolio. I do not wish to know where all you will invest.
My 70% of the times goes for investment management. I do not deal with the day
today aspects. I have taken lot of training in Value Investing and I follow the
same.
I deal with broadly two classes of people - Pure Investors and Trader investors.
For pure investors – I recommend them to buy certain shares, update them every
quater with the company performance and ask them to hold for 18- 30 months.
My target is to generate 50% to 100% return during this period for these stocks.
For trader investors – I have 50:30:20 formulae - 50% in above mentioned

investments, 30% positional trading and 20% pure trading.
Here 30% and 20% is hold with Stop losses. So, any given time – if the market
tanks, my client should have funds 50% of the funds to trade the next day.
I give my calls through SMS / Emails.
5. I get a sense from our mails that your expertise is in shares and you do not do
much in mutual funds / commodities / bullion / real estate / alternative asset
classes. Correct me if I am wrong.
I deal with total investments - Real Estates, Bullion, Antiques, Coins, Pens, Old
Currency Notes, Rudraksha etc.
I am constantly in look out for bargains in the market. When a person joins me, I
tell them about all these opportunities with me. If they show interest, I tell them as
and when I come across opportunities. This is free when you appoint me as an
advisor.
I do not recommend Mutual Funds. In Insurance also, I suggest pure risk cover
plans.
Frankly, I go for the bargains with little downside risks. Market will take care of
upside
5. Your fee is quite steep but I would like to know the above before this part is
discussed.
Do you think Rs.140 per day is very high ?
Hope to hear from you.
Regards,
Hitesh.
Saturday, June 19, 2010
Dear All,
Market Last Week:-
Market opened with the bounce on Monday. It made a high of 17388 compared
to last previous week’s close of 17065. Last week market did cross 17200 and
made a high of 17721 on Friday before closing at 17570. Interesting aspect of
the last weeks was – very dull overall market, low volume and participation of
second run frontline stocks like Larsen, Tata Motor, ONGC, etc. Very few small
and mid cap stocks also participated.
What we said on 28th May…
“We feel that market should cross 17200 with volumes to give the comforts to the
bulls.”
Market did cross 17200 levels and also closed above it during the last week. But
as said above – front line shares were absent and also volumes were not seen.
What Next?:-
From 1st Jan., 2010 to till date, market is moving in the range of 10% -15%. It has
made a low of 15700 and high of 18000 odd levels. We feel that inherent
strength of Indian economy is getting confused with the negative global cues. In
coming week 16900 levels should not be broken to maintain the upward move of
the market.
How Should You Invest In Such Market?
Be Scrip Specific. Find out the bargains. We had recommended to Buy MTNL
Rs.60 call at Rs.1.30. Last week it made a high of Rs.5. Close to 4 times money
in 7 days. Look for bargains. If you find it difficult, please approach us for
guidance.
Wish You All A Happy Weekend.
Hitesh Parikh.
Sure Shot Way To Make Rs.10 Lakhs:-
Do you really want to make Rs.10 lakhs? If your answer is yes, invest Rs. 1 Crs
with greed of making fast money, without adequate investment skills and instead
of appointing a prudent investment consultant, you rely on Market News or
Friendly Tips. You will surely have Rs.10 lakhs!!
However, if your choice is to make Rs.2 Crs or more from investment of Rs.1
Crs., please contact us. We have an attitude and skill set to help you achieve
your target.
Happy Investing.
Regards,
Hitesh Parikh.
Dear Hiteshbhai
Thanks for your mails. I am US Citizen with some investible funds lying in India. I
am looking for a Professional Portfolio Manager to manage my funds. I have
already signed up with HDFC and have allocated bulk of my investible funds to
them. I was keen to try out a small amount with you as well.
However, it appears that you don't provide Portfolio Management Services. I cant
trade in daily based on your recommendations and hence cant pay you fees
calculated per day.
Dear Dharmesh Bhai,

In a letter titled - A Letter From A Freedom Fighter dt.15th June – I have clearly
said that - To know about our other services and charges please write to
us.
We provide all the wealth management services – be it advisory, discretionary

portfolio management services, detailed financial planning etc.
We manage minimum Rs.25 lakhs in portfolio management and fee structure is

mixer of fixed and performance based charges. More over, you need to have
your trading account, demat account and banking account with Kotak Securites
and Kotak Bank only.
I generally approach new people for Advisory services. Here the client has the
liberty to invest any amount. He can judge me for a year and he can then hand
over his total portfolio to us.
I am looking for a life time relationships and I go very slow but very steady.
My advisory charges for the year are Rs.50000. And that is payable at the time of
joining. The effective cost per day is just Rs.140. You do not have to pay Rs.140
per day.
What I understand from your email is as under. Please correct me if I am wrong.
1. HDFC is managing your investments in Mutual Funds.

2. All your funds are locked up in ULIPs or Equity Mutual Funds.
3. You do not have any trading account and demat account.
4. Your funds size is above Rs.25 lakhs.
Please correct my assumptions. Then we will take this matter forward from here.
Regards,
Hitesh Parikh.
June 24, 2010
Dear Ananya,
Thanks for your interest and inquiry for our services.
We are dealing with investments – mostly in equity. We can play role as an

advisory, consultant, portfolio manager and Personal Wealth Coach for you. We
are based in Mumbai with branches in Ahmedabad, Vadodara and Halol.
Our core competency is to guide the investor depending on his priorities and his
goals. To help you with that please let me know – How much money you are
planning to invest or to play on day to day basis? Do you have any target income
– monthly / yearly? What is your overall goal of coming into this market?
Let me know above and I will come back to you. Please go through the below
given write up.
stand alone issue.
since last 9 months. Market has not gone above 18500 nor below 14000 in the
last 9 months. Market is correcting time wise.
December, 2012.


and in my working.
to us.
Thanks.
Have a Nice Day.
Hitesh Parikh.
Dear All,
It gives me a great pleasure to write to you about our first half yearly
performance. In last six months we have recommended close to 80 shares and
many F&O strategies. For the sake of our understanding and record, I have
considered performance of shares only.
I have taken point to point price i.e, from the recommendation day to 9th July.
Only two companies I have taken the high price and those are Goodyear Tyre
and Enil, due to corporate actions in them. It is worthwhile to note here that we
have recommended profit booking in many of the shares before 9th July. We may
not hold these shares in our portfolio as on today.
The purpose of this record is to bring following points to your notice.
1. Buy When Nobody Buys:- Most of the shares we have recommended

were at the low price and we had real good margin of safety at the time of
purchase. In other words, we had recommended shares when market was
not ready to look at them. We were running ahead of the market.
2. Do Not Waste Time In Timing The Market:- We believe market has its
own mind. By chance, you may read it. However, it is not worth the efforts
to spend time in predicting market movements on day to day basis.
3. Focus on What You Want:- We concentrate on our goals, our priorities

and invest in those companies which we think will fulfill our goals and
priorities. Sooner or later, market will join us. We validate our claim with
the companies we have picked up when market was not ready to look at
them.
4. Sound Fundamentals:- We believe after investing, you should have

sound sleep irrespective of market movements. Sound sleep needs sound
fundamentals. We spend lot of time and money in analyzing the company
we recommend and invest.
5. Quick Returns:- When market started looking at them, we got the fast
and handsome return. Top two companies have given 80% returns. 6
Companies have given return in the range of 40% -70%. 15 Companies
have given return in the range of 20% To 40%. 47 Companies have given
returns up to 20%. 10 companies have given -5% to 0% return. Only one
company is down by 10%.
6. Stop Loss :- We had recommended stocks with strict stop losses. In other
words, we had cash if market decided to take our shares prices further
down.
7. Patience Pays:- Just because you have bought a sound fundamental

company, market will not take it to the heights. As said, market has its own
mind. So, be patient after you have invested. Just see what kind of returns
have come in last 6 months.
What Next?
If you like our performance, recommend to your friends. If you have not joined
to us, you can join us. Please write to us in case of any query or doubt.
Happy Investing.
Hitesh Parikh
The First Sign of 35000 index:-
In a clear sign of industrial turnaround and improved economic activity, the

Centre's indirect tax collections grew 43 per cent in the first quarter of this fiscal
to Rs 56,930 crore (Rs 39,694 crore).
However, in the first quarter of this fiscal, there has been a strong performance
on the industrial front, especially the capital goods sector, and was reflected in
the indirect tax collections, industry observers said. While customs duty has
recorded 60 per cent growth in April-June 2010 to Rs 28,135 crore (17,557
crore), excise duty collections grew 55 per cent to Rs 19,536 crore (Rs 12,601
crore).
The indirect tax collections surged in the first quarter despite partial withdrawal of
the stimulus in Budget 2010-11. The Finance Minister, Mr Pranab Mukherjee,
had, in Budget 2010-11, hiked the excise duty rate to 10 per cent from 8 per cent
and also increased the customs duty on crude oil and petro products. He had,
however, kept the service tax rate unchanged at 10 per cent.
In 2010-11, the Centre has pegged the indirect tax mop-up target at Rs 3.16 lakh
crore while the overall revenue collections target for the current fiscal is Rs 7.46
lakh crore. The target for direct taxes mop up is Rs 4.30 lakh crore.
Reflecting the strong economic fundamentals, direct tax collections grew 15 per
cent in the first quarter this fiscal. Corporate tax collections grew 21 per cent for
the quarter under review. The International Monetary Fund (IMF) had, on
Thursday, raised its India growth forecast to 9.4 per cent in 2010, from an earlier
estimate of 8.8 per cent.
krsrivats@thehindu.co.in
Friday, July 23, 2010
Dear Pravin Mama,
You are used to receive my email on the Market Next Week. However, today I
have decided to focus on the market in next 2 years. Regular readers would
agree that whatever we have written on the weekly column about the next week,
they have observed the same in that week.
Now, let me write about market in next two years.
Advantage Of Seeing The Larger Picture:-

stand alone issue.
since last 9 months. Market has neither gone above 18500 nor below 14000 in
the last 9 months. Market is correcting time wise.
December, 2012.
intellect; they are Smart, Intelligent, Brilliant, Genius and Simple. For
Einstein, simplicity was the highest level of intellect.


and in my working.
to us.
Thanks.
Have a Thinking Week Ahead.
Hitesh Parikh.
abhijit14@hotmail.com; adsawant@hotmail.com; akshays@jsb.com;

alan_master@hotmail.com; amangle@sscomp.co.ae; amarbijur@hotmail.com;
amitv78@hotmail.com; richard.antony@bh.eyi.com; aponkshe@hotmail.com;
ashvaghani@hotmail.com; avinashpitale@yahoo.com; chouglez@hotmail.com;
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Dear All,
Pre- Dipawali Sale In Market:-
Market has made a high of 18237 only to fall back to 17868 by this weekend. It
seems that market is going nowhere. We have identified a pattern in the market
and it tells us that time to invest has come. Let us understand that in little details.
June 2009:- Market fell by close to 15% during 12th June 2009.to 17th July
2009. Points wise, it was a fall of 2380 points. The market bounced back in 21
days.
October 2009:- Market fell by close to 12% during 17th October, 2009 to 6th
November, 2009. Points wise, it was a fall of 2163 points. The market bounced
back in 9 days.
January 2010:- Market fell by close to 12% during 8th January 2010 to 11th
February, 2010. Point wise, it was a fall of 2087 points. The market bounced
back in 23 days.
May 2010:- Market has come down from high of 18200 to 16209 in may. Fall of
2000 odd points.This time the bearish phase has extended to 29 days.
July 2010:- After making a high of 18237, market has come down to 17868 this
weekend.
Our Observations:-
1. In last four major falls, market has bounced back after a fall of 2100-2400
points.
2. Sensex has a strong support at 15800 to 16100 levels. We feel market will
not break these levels.
instances.
In August, if the downward journey continues, we may see market touching

levels of 17300/16900/16400/16100. We consider this as buying opportunity in
the market. We will reconsider our view only and only if market crosses 18500
levels with volumes.
What You Should Do?
There are three kinds of people in the market.
1. Who makes money.

2. Watch others making money.
3. Wonders how come these guys are making money.
If you want to make money, invest in this fall. You will remember us for a
life time. Please contact us for our clear cut investment ideas.
Hitesh Parikh.

Dear All,
Market Next Week:-
Early in the last week market crossed 18300 levels only to fall back by the
weekend. However, it has closed at 18143 i.e. above 18000 levels. We maintain
market will show strength above 18500 only.
We maintain that market is in range of 14000 to 18000 with a strong support at

15800 to 16000. Any decline should be used as a buying opportunity if you are
investing for long term. If you are a trader, you must keep proper stop losses in
your position. The problem comes when your trading position gets converted into
Investments ….!!
What Next:-
If you are still waiting to join us, you can join us….Why you may ask?
make tall claims about our past calls. Then why should you join us?


and in my working.
Wish you a Happy Weekend.
Hitesh Parikh.
A recent study by the National Council for Applied Economic Research threw up
some interesting but rather unfortunate results. The top 20% of India's population
enjoyed more than 50% of the national income in FY10. This may by itself not
seem very surprising. But add to that the fact that in 1993-94, about 37% of
India's people earned over 50% of national income and the picture that arises
does not look very encouraging. Further, 60% of India had a mere 28% share in
total income. This figure stood at 39% around the period of 1991.
The years from 1991 onwards are considered to be reform years for the country.
Evidently, the freeing up of the economy has benefited some sections of society
much more than others. An Economic Times report points out that this disparity
is more to do with the fact that a vast section of Indian society do not have the
means to increase their earning power. Due to this, some people are finding
themselves in a better position to grab the opportunities a growing economy is
throwing up. Clearly, subsidies, support prices and employment guarantee
schemes are not proving to be enough. It is education and skill development
where more focus should be. As the saying goes, give a man a fish and you feed
him for a day. Teach a man how to fish and you feed him for a lifetime.
The hindu
Dt 5/9/2010
The eighth month of this calendar is also complete and the Sensex has gained 4 per cent since the
beginning of this year. July and August were especially trying since the index was confined to an extremely
narrow range between 17,500 and 18.500 in this period. Sheer lack of momentum from a long-term time-
frame is depicted in the monthly rate of change oscillator declining from 96 to 7 since the beginning of this
calendar.
Year to date performances of 82 major stock exhanges shows that they have
risen at average of 5.39%. Srilanka is at the top with 73.69%, Bangladesh at 2 nd
with 49.37%, Estonia 42, Ukrain 40.86 and Latvia 40.26.
India is the best among bric countries with 4.33%. Second is Russia at 1.42%.
Brazil at - 2.43%, China down -18.97%.
Fear and Greed are stronger than long term resolve.
Bear market have 3 stages.
When all experts will agree that something else is going to happen.
Low Risk and High Return Trade Aligns with the fundamental and is opposite of
market emotions.
Speculations is dealing with uncertain conditions of unknown future. Every

human actions is a speculation in that it is embedded in the flux of time.
People are full of Greed, fear and folly is predictable. The sequence is not.
Turning a losing trade into investments is a common disease among

unsuccessful traders.
Trading is the most exciting activity that a person can do with their clothes on.
Trouble is you can not feel excited and make money at the same time.
There are no certainties in the world of investments. Where there are no

certainities, begin with understanding yourself.
September 6, 2010
Dear All,
The Sensex V/s. Hitesh Parikh’s Performance.
Let us go back to January 2010:-
When we approached our friends to join Double Bonanza Investment Advisory

Scheme in the month of December 2009, there were many responses. Many
joined immediately. Many were skeptical about the market, many found that our
fees were high; many were betting that market will go down and they would
prefer to sell, many said they will think and let us know!!
What Happened World Wide Since January 2010?
The Sensex has given modest gain of 4.33% since 1stJanuary,2010. The Among
BRIC countries, Sensex has given the best return. Second is Russia at 1.42%,
The average gain of 82 major stock exchanges world wide is 5.39%. Srilanka is
at the top with 73.69%, Bangladesh at 2nd with 49.37%, Estonia 42, Ukrain 40.86
and Latvia 40.26.
What is our performance in such a Market?
We were of the opinion that market is correcting time wise and we should play in
this market for scrip specific movements. We are happy to inform you that our
strategy has paid rich dividends to us and our investor friends.
Out of 108 calls made by us during last 8 months …one company gave the
highest return of 117.70%! 11 companies gave returns in the range of 50% to
80%. 22 companies gave returns in the range of 30% to 50%. 34 companies
gave returns in the range of 15% to 30% and last 40 companies gave returns in
the range of 2.5% to 15%.
What Next?
Those who have postponed their decision to join us on the basis of fees or
market conditions, please calculate the cost of lost opportunities in the last 8
months. Remember, nobody is rich enough to buy the past!!
We still suggest, do not waste time in timing the market. Just spend time in the
market. All experts’ opinions are just speculation about the unknown future. You
can not know the future by speculating. But you can predict the future of any
business with reasonable accuracy and it will earn money for you.
Money itself has no meaning till it is invested in any form. By investing your
money, you are trying to give meaning to your future life and future generations.
If you want to change your destiny…change your way to manage your money.
Wish you a Happy Investing.
Hitesh Parikh
Encl:- Our Performance Sheet.
Tuesday, September 07, 2010
Dear Mr.
Two New Options For Managing Your Investments.
It has been close to 4 years we have been working together. It was the most
colourful years when the market made a new high of 21000 and also new low of
8000.
Since September 2009, market was in the range of 14000 to 17500 and it was
correcting time wise. Now we expect that market ready to move and it will touch
35000 in 2012. However, do not expect market to go up in a straight line. It will
go at its own speed and its own style.
From the beginning of 2008, we had changed our portfolio model to advisory. In
January 2010, we had launched Double Bonanza Investment Advisory Scheme
and we have maintained records of all our recommendations on daily basis since
then.
and Latvia 40.26.
What Next?
I have got two new options which I suggest you think over.
Advisory:-
You can also join advisory scheme today. You will get following benefits if you
join now.
1. You will get daily SMS of the recommendations from my side. You just have to
call me or sms me back with desired qty of buy and sell and I will do that for you.
2. In the evening you will get detailed email from me giving details of all the
recommendations and comments given during the day. This will act as your daily
review of the market and also you can monitor your portfolio in just 2 minutes
daily.
3. Our fees for a year is Rs.50000 for a normal client. We had given special price
of Rs.25000/- last December. We are revising our fees to Rs.72000 from 1
January 2011. However, to all our old friends I have decided a very special offer
of just Rs.15000 for this year. Remember this price is for all your portfolios and
not for one person. In other words, you can manage all your family members’
portfolio at just Rs.15000 per annum.
4. I have attached my performance in the last 8 months. Please go through the

same.
Discretionary:-
1. In this scheme you are required to invest in cash or shares – minimum of Rs.5
lakhs in any one account. No upper limit for investments.
2. I will do buy and sell as I have been doing
3. As and when the profit is booked in particular share –bought and sold by me –
cheque of profit will be sent to you. You will give 20% of the profit amount to me.
4. The main advantage of this scheme is that you are free to do what you are
doing now.
5. You will be paying me as and when you earn and that too just 20% of the
profit.
Please think it over and let me know your options.
Thanks.
Hitesh Parikh.
Encl:- Performance Report from January to August 2010.

Tuesday, September 07, 2010
Dear Mr. Sultan,
Two New Options For Managing Your Investments.
It has been close to 6 months we have been working together. It was the most
colourful time in which market was stand still and our recommendations were
going up.
Since September 2009, market was in the range of 14000 to 17500 and it was
correcting time wise. Now we expect that market ready to move and it will touch
35000 in 2012. However, do not expect market to go up in a straight line. It will
go at its own speed and its own style.
From the beginning of 2008, we had changed our portfolio model to advisory. In
January 2010, we had launched Double Bonanza Investment Advisory Scheme
and we have maintained records of all our recommendations on daily basis since
then.
and Latvia 40.26.
What Next?
I have got two new options which I suggest you think over.
Advisory:-
You can also join advisory scheme today. You will get following benefits if you
join now.
1. You will get daily SMS of the recommendations from my side. You just have to
call me or sms me back with desired qty of buy and sell and I will do that for you,
if you have account with Kotak.
2. In the evening you will get detailed email from me giving details of all the
recommendations and comments given during the day. This will act as your daily
review of the market and also you can monitor your portfolio in just 2 minutes
daily.
3. Our fees for a year is Rs.50000 for a normal client. We had given special price
of Rs.25000/- last December. We are revising our fees to Rs.72000 from 1
January 2011. However, to all our old friends I have decided a very special offer
of just Rs.15000 for this year. Remember this price is for all your portfolios and
not for one person. In other words, you can manage all your family members’
portfolio at just Rs.15000 per annum.
4. I have attached my performance in the last 8 months. Please go through the

same.
Discretionary:-
1. In this scheme you are required to invest in cash or shares – minimum of Rs.5
lakhs in any one account. No upper limit for investments.
2. I will do buy and sell as I have been doing
3. As and when the profit is booked in particular share –bought and sold by me –
cheque of profit will be sent to you. You will give 20% of the profit amount to me.
4. The main advantage of this scheme is that you are free to do what you are
doing now.
5. You will be paying me as and when you earn and that too just 20% of the
profit.
Please think it over and let me know your options.
Thanks.
Hitesh Parikh.
Encl:- Performance Report from January to August 2010.

Thursday, September 09, 2010
Dear All,
Sub:- Market Next Week
Our Preferred View Since January 2010:-

Since September, 2009, we have maintained that market will correct time wise
and it did. Since last one year the Sensex went up by just 4.33% against more
than 100% from March 2009 to September 2009.
We have always said that market will show strength above 18500 only. This
week not only it has crossed 18500 for the first time since September 2009 but
also closed above it at 18785.
The Sensex has given modest gain of 4.33% since 1 st January,2010. Among
BRIC countries, The Sensex has given the best return. Second is Russia at
1.42%, Brazil at - 2.43%, China down -18.97%.
at the top with 73.69%, Bangladesh at 2nd with 49.37%, Estonia 42, Ukrain
40.86 and Latvia 40.26.
What Next?
We have advised our clients to be ready for new high in the Sensex and Nifty in
coming 2 months. In the race of market moving up, do not do over trade and do
not feel that market will move up in a straight line.
It is all the more necessary now to play in the market for scrip specific
movements. Play for specific scrip requires a detailed fundamental cum technical
study about the same and we believe that it is a full time job. If you can not give
time, we suggest you appoint a consultant who can guide you.
We have given our performance since January 2010. If you like…you can
appoint us also. Please write to us for our investment advisory services.
Our Performance:-
Give Your Money A Meaning:-
Money itself has no meaning till it is invested in any form. By investing your
money, you are trying to give meaning to your future life and life of your future
generations. So, if you want to change your destiny…change your way to
manage your money.
Wish you a Happy Investing.
Hitesh Parikh
Encl:- Our Performance Sheet.
Friday, September 17, 2010
Dear All,
You Can Have A Cake And Eat It Too…
I bet you would jump from your seat and say – “This is not possible”. Wait here.
Let me deal with this in totality. Let me ask you simple questions…
What Do You Do If You Want To Have Cake?

Your Reply Could Be -“Simple, I go to my favorite cake shop, buy and have it”.
Why Do You Buy?
Your Reply Could Be Any of These –
1. I do not know how to make cake?

2. I know but do not have time to make cake.
3. I know, I have time but I do not have the required set up to make the cake.
4. I know, I have time, I have required set up but I do not have the mastery to
make the kind of cakes I enjoy eating.
5. I know, I have time, I have set up, I have mastery also, but I still feel that
my favorite cake shop makes some cakes better than me.
Let us deal with all your answers from above question from the wealth creation
point of view.
The basic premise is that you want to eat cake (You want to create wealth for
your self).
You do not know :–
So you buy. This is not easy as you need to know the credential of your cake
maker (read your investment advisor).
You know but do not have the time :-
This is relatively easy. Since you know, you will select the right cake – from the
cake basket (You can analyse the advice of your investment consultant before
taking any action).
Do not have set up:-

This is 3rd level - Where you realize that you have time, knowledge but can not
analyse many facts as you do not have the kind of data base to pick up the right
cake( right investment idea).
Do not have the mastery:-
This is 4th Stage – where you realize that you have all the things but your cakes –
investment returns – are not better that the one available readymade.
Have mastery but want to have outside cake too:-

This is the most advance stage of self realization and respect for knowledge.
Here you have the humility to accept that you are master but others too have
something better in them to offer you and you buy from them.
How most successful people operate?
Mukesh Ambani had a think tank of 500 well qualified people just to think for him
as on 2007. The number may be more as on today. No doubt he is the richest
Indian and may be the richest person on the earth by 2014.
How you can change your financial destiny?
Find out at what levels you are from the above five. Trick is to reach and stay at
the 5th Stage as fast as possible. If you reach there, you will also be the most
successful like others.
Please find the list of cakes (investment ideas) we produced during first 8 months
of 2010. If you like, please come to our shop.
Happy Cake Eating….
Hitesh Parikh.
Friday, September 24, 2010
Dear All,
The Real Risk In The Market:-
What We Have Always Said:-
From Sep.,2009, we have said that market will correct time wise and it has the
potential to go up to 35000 level by 2012. Market took its time to consolidate
between Sep.,2009 to August 2010. But once the consolidation is over, it took a
jump of 3000 points. Nobody had thought off, nobody had predicted.
Buyers V/s. Sellers:-

Media is flush with the talk of FII money coming to India. SEBI data points out the
interesting fact. While FIIs are buying, Indian Mutual Funds are selling. However,
buy of FII is close to double the sell of Indian Mutual Funds. So, who is selling to
FII the other 50% of stocks? Just think. We have a logical guess for the same.
Another interesting aspect is small investor’s participation is very low.
The Risk:-
We were always of the opinion that if USA and Europe goes bust, the worst
affected would be China and not India. So, we are not worried about strength of
the Indian economy.
When you invest, it is logical to conclude that you are positive about the future
price of the asset. But when you sell – I can not conclude that you are negative
about that asset. There can be various reasons for your selling…book profit,
better opportunities some where else, loss in home country, change in policy,
etc.
The real risk is when these FII starts selling. They will sell at every levels and
every price. This selling can not be predicted and you can not be prepared for the
same.
The Best Strategy:-
We want to bring home this point. Do not time the market but spend time in the
market. The way, up move has come, down move will follow. Surrender to the
market and market will reveal its most kept secrets to you.
We feel thinking positively or negatively about performance or outcome of market

movements interfere with the process of investing. When you focus on the just
investing well, the outcomes take care of themselves. This is originally the
thought of Lord Krishna., who told Arjun – “You have right to do your job. Do not
worry about the results. They will come in due course”.
Your job as an investor is to invest in right companies at the right price. If you do
this, I bet, you will always have a sound sleep.
Want to know where to invest at 20000 Index? Please contact us.
Happy Investing.
Hitesh Parikh.
Wednesday, September 29, 2010
Dear All,
What Market Promises:-
“In trading, the vast market consists of amateurs who are looking for magical
answers to make lots of money quickly and with little risk. They want specific
ideas. They want to be told exactly what to do. Those looking for such things will
not find them. They will not be successful as long as they continue to favor the
easy over the truth.” ~~Curtis Faith ~~
Let us see what is the TRUTH…….
Market Promises:-
1. It promises a playing field, not the game.
2. It promises to reward risk, not proportionately.
3. It promises opportunity, it does not promise profits.
4. It promises a lesson, not learning.
5. It promises that the quality of indicators and analysis is proportionate to
quantity of participants, not quality.
This is not going to endure me to my readers but I think it is important that we all
are reminded what the market promises us.
What You Should Do?
1. Know The Game:- Investing is the most difficult of games: nowhere else
does one begin a career by opposing the world’s most accomplished
professionals. So, you need to master the rules of investing.
2. Understand The Risk:- RISK is the possibility of loss. That is, if we own
some stock, and there is a possibility of a price decline, we are at risk.
The stock is not the risk, nor is the loss the risk. The possibility of loss is
the risk. As long as we own the stock, we are at risk. The only way to
control the risk is to buy or sell stock. In the matter of owning stocks, and
aiming for profit, risk is fundamentally unavoidable and the best we can do
is to manage the risk
3. Explore the Opportunity:- Success is the point at which talent and skill
meet opportunity. So, explore all the opportunity. Realize that not to invest
is also an investment decision.
4. Make Learning A Habit:- Analyze your trades past 3 to 5 years, it will give
you base for your learning. Ask yourself, Why did you do particular trade?
Was it based on logic, facts or tips? If you continue to do what you have
done in past 5 years, where will you be in next 5 years?
5. Follow the indicators:- The market tells the truth, but often there is a lie
buried in the human interpretations. Surrender to the truth and not to your
opinions.
How To Deal With Greed And Fear?
Once again I take help from Lord Krishna. Do your best and leave rest to the
Market. Market is the only authority to give you results for your work. So follow
the truth, reward will come automatically.
Happy Investing,
Hitesh Parikh
Friday, October 01, 2010
Dear All,
Who Are The Real Sellers?
In the letter captioned – The Real Risk in the Market dt 24th Sep.,2010, we had
given interesting statistics. The same is given below….
Buyers V/s. Sellers:-
As per SEBI data FIIs are buying close to double the sell of Indian Mutual Funds.
We had asked - who is selling to FIIs the other 50% of stocks? We had said that
we have a logical guess for the same. Now we have data to prove our point.
As per Bloomberg report, insiders of the 30 companies that make up the BSE
Sensex made at least 110 stock sales last quarter, worth a combined US$ 21m.
The last time the number of sales was this high was the fourth quarter of 2007.
And the Sensex tanked 23% in the following 3 months.
Insiders include company officers, directors and others at the top management
level. For the Sensex companies, they as a group have increased their stock
sales by 200% during the past three months compared to the same quarter a
year ago. Further, their sales have out numbered their purchases by a ratio of 14
to 1.
Our Observations based on the Bloomberg Data:-
1. Insiders are selling their shares.

2. Last time they sold was in 2007 and market came down by 23% in first
quarter of the 2008.
3. Insiders are Company officers, directors and top management personnel.
4. Their Sales increased by 200% in last quarter compared with last quarter
year ago.
What You Should Do?:-
Will market come down now? Should you also start selling as the insiders are
selling? Frankly, neither we have clear cut answers for the above questions nor
we intend to waste our time on such issues. We know one thing…losers spend
most of the time in forecasting the market and winners spend most of the time
figuring out – how smart investors would react to what the market is doing to
them…Where do you stand????
Happy Investing,
Hitesh Parikh
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Thursday, October 07, 2010
Dear All,
Fine Art Of Making Secret Donations:-
There was a family of doctors in ancient China having 3 brothers. The youngest
of them was the most reputed. His reputation was such that he was considered
synonymous with medical science in china. Once the King asked him who
amongst you all is the best?
His reply was…
My eldest brother sees the spirit of sickness and removes it before it takes
shape, so his name does not go out of the house.
My elder brother cures the sickness when it is still minute, so his name also does
not go out of the house.
As for me, I puncture veins, prescribe medicine and massage skin. So from time
to time my name gets out and people know me.
How does this translate into Donations ……

Like Eldest Brother, the super smart Investors spot the opportunity before
it looks like an opportunity to anybody else. This requires the highest form of
intellectual capacities and single minded focus on the objective. For them,
fulfillment of their objective (making money) is of utmost important then the
Fame associated with it.
eg. As per the SEBI law, you are supposed to inform to the Exchange if you
buy half percent of equity of any company in a single day. Assume that
somebody is slowly acquiring a company XYZ Ltd. in small lots. No body will
come to know.
Like Elder Brother, the smart investor buys when the opportunity looks
like an opportunity. Here also the intellectual capacities are of higher standard
and single minded focus on making money is required. Here the motivation is
to reach to the higher level.
Eg. Smart investors smell the buying and they also join in buying the XYZ Ltd.
Now, like Youngest Brother, the most famous and successful investment
managers will be told about XYZ Ltd. Announcement of stake buy will be
done. Bulk deals take place. Media releases are done. Analysts starts talking
and poor small investors starts buying!! Their logic, if all these famous
investors and all analysts put together can not be wrong…!
The Results (Who Got What?):-
Super smart investor and smart investor achieved the objective of making
tons of money. Investment managers got the fame and money. Analysts got
the salaries. Media got the advertisement revenue and other benefits. Our
darling small investors PAID for ALL OF THEM.
If you love making secret donations…You can keep on doing.

However, if you love making money…please contact us.
Remember:- Information is only valuable if no one knows

about it
Happy Investing,
Hitesh Parikh.
Sunday, October 10, 2010
Dear All,
Time to rejoice…Time to celebrate Diwali.
What Happened To Market?
Market has given a one side move from 15900 to 20750 in last 3 months.
This translates into up move of 5000 points, close to 25%. Those who have
followed us would have surely made good money. Those who did not
would have got experience of lost opportunities.
What we said in our letter…..Who Are The Sellers??
“We know one thing…losers spend most of the time in forecasting the market
and winners spend most of the time figuring out – how smart investors would
react to what the market is doing to them…Where do you stand????”
What smart investors will do NOW?
We have two core believes…We can not dictate the market moves but we can
decide our moves. We feel that market may touch and cross a new high in the
coming week / weeks.
Market can do what it fits its mood. We simply go back to basics of
investments….Be fearful when everybody is greedy. The question comes…How
much fearful you should be? Well, it depends on your investment goal, your
portfolio composition and how much you love your hard earned money?
Can We Help?
Get your portfolio evaluated. You can send us the details of your existing
investments through emails and we will send us our analysis of the same at
small fees. If you wish, you can take advantage of the same.
Remember, Fear is more powerful than greed and so down trends are sharper
than up trends.
Happy Investing.
Hitesh Parikh.
Tuesday, October 19, 2010
Dear All,
Timely Advise…Time And Again.
If you all recollect what we said in our news letter “Time to rejoice…Time to
Celebrate Diwali”, dt. 10th Oct., 2010, you will appreciate our timely advise, time
and again.
We said….
“We know one thing…losers spend most of the time in forecasting the market
and winners spend most of the time figuring out – how smart investors would
react to what the market is doing to them…Where do you stand????”
What smart investors will do NOW?
We have two core believes…We can not dictate the market moves but we can
decide our moves. We feel that market may touch and cross a new high in the
coming week / weeks.
Market can do what it fits its mood. We simply go back to basics of

investments….Be fearful when everybody is greedy. The question comes…How
much fearful you should be? Well, it depends on your investment goal, your
portfolio composition and how much you love your hard earned money?”
What Happened? :-
Nifty made a high of 6318 and fall to 6000 levels like nine pins. We had offered
Portfolio Evaluation Services. Many of our friends acted quickly and I believe
they would also appreciate our calls.
Can We Still Help You? :-
If you have earned your money hard way, take advantage of Portfolio Evaluation
Services or better join our Investment Advisory Services. Both the options will
surely help you –conserve and create wealth for you and your generations.
Remember, Fear is more powerful than greed and so down trends are sharper
than up trends.
Happy Investing.
Hitesh Parikh.
Dear All,
Sub.:- Where To Invest At 20000 Index?
Market Movements:-
After making a high in the early October, market is coming down. In fact, we had
identified the trend as early as 10th Oct., 2010 in our article titled – Time to
rejoice…Time to celebrate Diwali. Yesterday, market closed at 20165.
The most frequent questions I am being asked are - where to invest at
20000 index? Should I sell everything and come into cash? Where do you
see market going ahead from here?
The Biggest Myth among normal investors:–
If market is going up, value of individual portfolio will go up. If market is

going down, small investor will be most panicked as he feels that value of
his portfolio will go down.
Let me deal with Questions and Myth. Let us look at the advance- decline
ratio. Advance decline ratio suggest, number of shares advances to
number of shares declines on a given day. Normally, more shares
advances, market will go up and more shares declines, market will go
down.
Advance- Decline Ratio in Last One Year:-
While market has gone up from 17000 odd levels in Sep.,2009 to near 21000
Sep.,2010, Advance-Decline Ratio has been consistently Negative. From
traditional point of view, with the growing market there should be more
advances, then declines. But this time there are more declines than
advances and still market has gone up. How to explain this?
Our Explanation:-
Market is moving up sector wise, company wise, news wise. Here the one sector
moves up, it remains steady or declines little while the other sector moves up.
Ultimately it leads to increase in INDEX and negative ADVANCE-DECLINE
RATIO as written above. Value of your portfolio does not increase proportionately
with the increase in the INDEX, but declines fast, with the decrease in the
INDEX. (check your portfolio performance)
So, Where Should You Invest?
I suggest you put your money where your mouth is. Know your risk taking
capacities and know what market promises you. If you know these two, you will
never worry about market movements. You will never think of selling all stocks
and coming into cash.
Can We Help?
If you know your risk taking capacities, we can help you with investments ideas.
This way you can go for a WIN - WIN relationship.
Let me know your thoughts and feedbacks.
Happy Investing,
Hitesh Parikh
Tuesday, October 26, 2010
Dear All,
Sub.: Simple Trick to Invest In All Seasons. Master It.
“Know how to choose– Most things in life depend on it. You need good taste and
an upright judgment; intelligence and application are not enough…Two talents
are involved: choosing and choosing the best.”
Baltasar Gracian (1601-1658)
Once you have chosen Where to invest, the next question comes is How to
Invest?
Let me share a simple technique for the same. Mind well this is SIMPLE and not
EASY.
Flip A Coin Technique:-
What do you do when you flip a coin? You give a call for Head or Tail. Then you
see the results – it can be Head or it can be Tail. In this total exercise you can
note following points.
1. You have expectations when you toss a coin.

2. You know that anything can happen – it can be HEAD or it can be TAIL.
3. You do not expect to be right every time you toss the coin.
4. You prepare mentally to accept the results.
5. You toss another coin, if results do not fit your expectations.
How Does This Relate To Investing?:-

Remember that in any given trade, pretty much anything can happen, no matter
how perfect your home work is? This way you will detach yourself from the
attachment of getting right every time. Once you do not have attachment you will
be more objective and more focused till you get your desired outcome.
The Common Link in All Successful Traders:-
In a book Millionair Traders, an interview with several successful at-home

traders from around the world, its author Boris Schlossberg found the two
ingredients that all the traders had in common - Discipline and Flexibility.
In short, have the discipline of tossing the coin and be flexible when coin reveals
its judgment.
Happy Investing,
Hitesh Parikh.
November 2, 2010
Dear All,
Sub.:- Learn Investments From Your Digital Camera.
You all must be enthusiastic as the Diwali is approaching. Many of you must
have planned a family get together, Diwali pooja or an outing. You all would love
to capture those unforgettable moments in your digital camera. You would also
wish to share those photos by uploading them for your friends and relatives.
We feel that shooting successful photos is akin to successful investments. Let us

see the common points between the two.
Analyze the situation before taking the picture.
Master photographer studies the background before taking the picture. He

visualizes the final picture he wants to see and accordingly arranges background
or looks for background. As an investor you should also visualize your final gain
from the investments and accordingly you should also arrange or wait for the
background to emerge before you invest.
See that subject is in focus.
Master photographer always knows what he is shooting and accordingly he

keeps his focus on the same. As an investor, you should also focus on your
investments and must know how it would fit in your overall portfolio and overall
wealth creation goals.
Confirm that everything is set up correctly and click.
Before clicking a photo, master photographer confirms that everything – camera,

background, subject of photo are set up properly. Once everything is okay, he
just clicks. As an investor, you also confirm with every thing before you execute a
trade.
So, while you take pictures, you can remind yourself for the lessons you need to
master for your investments.
Wish You All A Very Happy Diwali.
Hitesh Pairkh.
• The game of speculation is the most uniformly fascinating game in the

world. But it is not a game for the stupid, the mentally lazy, the person of
inferior emotional balance, or the get-rich-quick adventurer. They will
die poor.
In their 1934 classic text, Security Analysis, Benjamin Graham and David Dodd
provided a general definition of speculation: “An investment operation is one
which, upon thorough analysis, promises safety of principal and a satisfactory
return. Operations not meeting these requirements are speculative.”
By this definition, most people who buy stocks are speculators. We can
attempt to sharpen Graham and Dodd’s definition by including time-scale.
Speculators are not interested in putting their money into a stock or commodity
for a long time. They want to see a good profit quickly – on a time scale of
minutes to months. If their money does not quickly perform well in a situation,
they move it into another situation.
In pursuit of greater gain, speculators take greater risks with their capital than
people who put their money into Savings & CD Accounts.
Jesse Livermore’s Definition of Speculation
Jesse Livermore, the 20th century’s most (in)famous speculator provided his
own definition of speculation – preceding Graham and Dodd’s by several years.
In Reminiscences of a Stock Operator, under his pseudonym of Lawrence
Livingston, he said: “The speculator is not an investor. His object is not to
secure a steady return on his money at a good rate of interest, but to profit by
either a rise or a fall in the price of whatever he may be speculating in.”
Intelligent Speculation
Benjamin Graham and Jesse Livermore both had more to say about
speculation: Benjamin Graham continued – this time in The Intelligent
Investor:
Outright speculation is neither illegal, immoral, nor (for most people) fattening
to the pocketbook. More than that, some speculation is necessary and
unavoidable, for in many common-stock situations there are substantial
possibilities of both profit and loss and the risks therein must be assumed by
someone.
There is intelligent speculation as there is intelligent investing. But there are

many ways in which speculation may be unintelligent. Of these the foremost
are:
• speculating when you think you are investing

• speculating seriously when you lack proper knowledge and skill for it
• risking more money in speculation than you can afford to lose
Livermore said:
• The game of speculation is the most uniformly fascinating game in the

world. But it is not a game for the stupid, the mentally lazy, the person of
inferior emotional balance, or the get-rich-quick adventurer. They will
die poor.
• Speculation is a hard and trying business, and a speculator must be on
the job all the time or he’ll soon have no job to be on.
Friday, November 05, 2010
Dear All,
Sub.:- Diwali Wishes V/s. Investments.

Be it Diwali, Birthday or any other auspicious occasion, we all love to wish good
to our near and dear. In fact, most of us would send and receive lot of emails and
SMS wishing - Happy Diwali and Prosperous New Year.
Wishing Good is a social custom. It starts with every day - “Good Morning” ,
“Good Day”, “Good Night” to “Happy Birthday”, “Best Of luck”, “May God Bless
You”, etc.
Wishes V/s. Reality:-
When it comes to wishes, we are very generous and casual - we wish in tons and
forget. I have never received a call from the person to check with me how was
my day after he wished a – “Good Morning” to me. Same goes for the Happy
Diwali, Happy Birthday, etc.
Casualness in Investments:-
Our casual nature has gone so much deep in us that we are doing everything
very casual including – investments!! For us investing is very easy – get a tip, call
a broker, buy a stock, hold it and wish that it moves fast so that you can sell after
a minute, after an hour or after a day.
What is Investment in Reality?
According to Benjamin Graham “An investment operation is one which, upon

thorough analysis, promises safety of principal and a satisfactory return.
Operations not meeting these requirements are speculative.”
So, going by the above definition, what most of us do in the name of investments,
in reality it is a speculation!
Remember, according to Jesse Livermore (famous trader), “the game of

speculation is the most uniformly fascinating game in the world. But it is not a
game for the stupid, the mentally lazy, the person of inferior emotional balance,
or the get-rich-quick adventurer. They will die poor.”
My New Year Wish for My Readers:-
If you speculate, you will surely do as it is a nature, do not be stupid, mentally

lazy, have an emotional balance and do not expect it to be a get-rich-quick
adventurer. If you follow this….You will surely get prosperity in New Year.
Happy Investing.
Hitesh Parikh.
Tuesday, November 16, 2010
Dear All,
Expectations V/s. Probabilities

Everyday life is founded on expectations. Just read following sentences….
• I expect to wake up tomorrow morning and not die during the night.
• I expect that I will be able to get out of bed and know how to walk to the
toilet.
• I expect to reach my office on time.
• While crossing the road, I expect the car driver will stop at the red light.
• I expect that I won’t get hit by lightning.
Expectations give us the certainty of particular events to take place. When most
of the daily events – almost 90% - fall as per our expectations, we feel that Stock
Market will also follow our whims E.g. if you have bought stock, it must go up and
sold, it must go down.
Many times I receive a request from prospective clients to give them few days of
free tips. There expectations, if my initial calls are going correct, my future calls
will also follow the same way. (Which I have never entertained till now), because,
I know…..the markets and stocks are not everyday life. They have the ability to
do anything at any time. The only thing 100% certain is that they are 100%
unpredictable.
Expectations create an emotional attachment. When you are attached to an

outcome, your ego also takes a drivers seat. Ego will take you back to childhood
where you will throw tantrums and stomp your feet looking for a sympathetic ear.
“The markets aren’t fair” you say. Well the markets don’t give a shit what your
want or when you want it.
What will happen if you Trade / Invest with probabilities?:-
When you see an outcome as a probability, you can put a wall up between
yourself as a person who is on autopilot accepting everyday expectations and
you as a successful trader who is ruthless in the execution of your plan. Thinking,
trusting and truly believing in probabilities will save the day for you.
When you think that “based on my experience, seeing a very similar situation
before, odds are that the near future direction of this stock is this way. However
since this event is unrelated in every way to my past memories, I must choose
the point at which my decision will be proven wrong and set a protective stop
here.”
When you think this way, it doesn’t matter whether you are right or wrong. You
are simply carrying out your trading plan based on your experiences/edge.
Playing the averages, you don’t get hurt by losing trades. You don’t get happy
over winning trades. Whatever happens, happens for good.
Lord Krishna Said……
Do your best and leave rest to the Market. Market is the only authority to give you
results for your work. So follow the path of probability, reward will come
automatically.
Wish you all a very happy investing.
Hitesh Parikh.
Dear All,
How Dependable Your Eyes Are?

Let us start the article with the famous quote of last century’s
respected writer….
“You can’t depend on your eyes, if your imagination is out of focus”.

Mark Twain.
“Believe It and You Will See It”. Dr. Wayne Dyer.
“See it to believe it”. Unknown (Must be a skeptic).
Let me deal with the first quote…
Year 2008:- How many of us had the imagination that market can fall from
21000 odd levels to 8000 levels in just about 6 months time? When that
happened….most of the people went into hibernation. They became inactive,
skeptical and negative. It means they have not seen the market. They ignored
the market.
What happened had they imagined that market can go to 8000 levels also?
Simple, first they would have invested with stop losses when they were investing
at 18000 plus levels. So, when the market started falling, simply they would have
booked 5-10% loss and would be in the cash as and when sops were triggered.
Secondly, they would have started buying from 12500 levels in small lots
knowing that now the bottom is near.
But nothing happened as they were lacking the imaginations. So we fully agree
with Mr. Mark Twain.
Now let me deal with the second quote….

Year 2009:- Most of the analysts were seeing 5800-6500 levels when the
Sensex was hovering around 8000 in early 2009.
Now just think what were the odds…market had fallen from 21000 to 8000. Now
fall from 8000 to 6500 would mean that market can fall another 20 – 25% and it
can rise to 21000 from 8000, meaning a growth of 150%.
Loss of 20-25% and profit of 100-150%, we think it was a fair deal.
Those who believed in above, saw the Sensex touching 21000 in Nov.,2010.
They made the most money. So, we agree with Dr.Wayne Dyer, too.
Now let me deal with the last one…..
Year 2010:- In Dec.2009, we had imagined that Sensex will be 35000 in 2012.
We have written many times and we maintain our call irrespective of the current
market situations.
Now, if you are a believer in the third quote – “See it to believe it”, you will have
all the pleasure in 2012 for proving me wrong for predicting 35000 Sensex or
saying me – “Your call was right, buddy. Sensex did touch 35000. We should
have listened to you in 2009/2010”.
I am not investing for going right or wrong, I am investing to make money. Ask
yourself…Why do you invest?
Happy Investing,
Hitesh Parikh.
Friday, November 26, 2010
Dear All,
Another 26/11 Attack. This Time on Indian Investors:-
While India and particularly Mumbai were busy in appreciating the sacrifice of
great Police Officers today, Investors were also busy saving their shirts from the
onslaught of FII Sellers. There was all-round panic in 1st hour of trading and both
the exchanges hit the highest turnover for the day.
Can we say that today was 26/11 for investors? Was it all over Now? Where is
the market heading now onwards? Let us deal with these questions.
June 2009:- Market fell by close to 15% during 12th June 2009.to 17th July
2009. Points wise, it was a fall of 2380 points. The market bounced back in 21
days.
October 2009:- Market fell by close to 12% during 17th October, 2009 to 6th
November, 2009. Points wise, it was a fall of 2163 points. The market bounced
back in 9 days.
January 2010:- Market fell by close to 12% during 8th January 2010 to 11th
February, 2010. Point wise, it was a fall of 2087 points. The market bounced
back in 23 days.
May 2010:- Market has come down from high of 18200 to 16209 in may. Fall of
2000 odd points.This time the bearish phase has extended to 29 days.
July 2010:- After making a high of 18237, market has come down to 17868 by
the end of July,2010.
Nov 2010:- After making a high of 21108 in the early part of the Nov., 2010,
market is correcting now and closed at 19125 today.
Our Observations:-
1. In last five major falls, market has bounced back after a fall of 2100-2400
points.
2. Sensex has a support at 18900 to 17800 levels.
instances.
What We have Advised Our Clients on 15th Nov:-
If 21108 is not crossed and 19800 is broken then it can go upto 19450. Three
consecutive close below 19450, with taken Sensex to 17800-17500. Today was
the second day when the Sensex closed below 19450. We need to watch
Monday’s closing for the confirmation for the trend.
Where Do you Stand?
There are three kinds of people in the market.
1. Who makes money.

2. Watch others making money.
3. Wonders how come these guys are making money.
Ask yourself where do you stand?
Hitesh Parikh.
Saturday, December 04, 2010
Dear All,
Sub.:- Timely Advise….Time And Again.
Review of Last Week:-
In the news letter dt.26th Nov.,2010, we had written that market has the trend of
reversing after 2000 odd points. We also wrote that Monday’s closing will be the
deciding factor for the week. Market rebounded from low of 19125 closed on
Friday to high of 20000 odd points during the week. Sensex closed the week at
19966.93 on this Friday. Regular readers would appreciate our track record.
What is your Measure Of Success In Trading?:-
If you are like most, your success or failure will be determined by the amount of
profit you made or lost. If that is what you do, you are missing out on one of the
greatest aspects of your growth. We all need to be more than just disciplined with
our trading tools; we need to be devoted to trading. Eliminate greed and you will
enhance your skills faster.
Factors for Successful Trading:-
In Trading, the STATISTICS show that smarts, experience, etc. are not the
differentiating factor.
The BEST (most successful guys I know and work with) have winning %’s of less
than 50%. Actually, the average is between 45-55% but the point is, basically,
winning percentages don’t matter – so they might as well be a random event.
So, what does make a difference?
• CONVICTION in ideas
• INTERNAL CONFIDENCE
• TRUSTING YOURSELF
• GETTING BIG IN TRADES you believe in
• LETTING WINNERS RUN
• CUTTING LOSERS QUICKLY
• SWITCHING DIRECTIONS QUICKLY
Our call for Next Week:-
As long as Sensex do not close below 19800, market will continue its upward
journey. If you want to profit from market movements, do write to us.
Wish You Happy Investing,
Hitesh Parikh.
Tuesday, December 07, 2010
Sub :- When More Intelligence Means More Failure As A Stock Trader ?
I haven’t seen much correlation between good trading and intelligence…..

Many outstanding intelligent people are horrible traders. Average
intelligence is enough.” - William Eckhardt.
I know you are a person with an above average intelligence. Please congratulate
yourself. You must be wondering that how do I know so much about you?
I am sure you must be following many news channels / new papers and web
sites for managing your investments. You must be establishing logical
correlations to simultaneous happening events in the world and on your
investments particularly. Over and above this you are reading my emails also. It
gives me a sense of certainty that you are smart and person of above average
intelligence. I am sure you must be happy.
Before you start being more happy, let me give you bad news. Because of this
nature, you have approached every success in your life with logic. You have
reasons for your success and failures. But when it comes to market….You will
fail. Why???
When you trade, you are dealing with fear and greed of market participants.
Markets trade on human emotions, not logic. Trying to figure out the reasons is
an exercise in futility.
Because of our dependence on Logic – someone has said - “You are nothing but
a trend following moron”
What is the best strategy to deal with Greed and Fear?
In 2nd Chapter, 38 stanza of Bhagwad Gita, Lord Krishna said…”Fight for the
sake of fighting, treating victory and defeat, pleasure and distress, loss or gain
alike. By doing so, you will not incur any sin”
This is the best strategy to deal with the forces of fear and greed. Try investing
this way and see the difference.
Happy Investing,
Hitesh Parikh.
Behavior of Normal Investor:-
Ask following questions to yourself.
What you would be doing after an hour? Your answer could be – Eating.
What you would be doing tomorrow at this time? Your answer could be –
Traveling.
What you would be doing this weekend? – Your answer could be – Going to
Picnic.
What you would be doing this day after one month? – You answer could be – not
sure, but must be doing routine only.
What you would be doing this day after one year? – You answer could be – Can’t
Say with certainty.
What you would be doing this day after 5 years? – You answer could be –
Haven’t thought about it.
Friday, December 10, 2010
Sub.:- India Growth Story & Investor Psychology.
Market in Last 6 Months:-
Market has moved up from low of 4786(20th May) to recent high of Oct.,2010 at
6349. Going was great. FII money was pouring. Blue Channels and news papers
were flush with news of India growth stories. Investment experts were giving us
the feelings that Buy Now or U will Never be able to buy….
The Dream cum True:-
It was a great excitement for the small investors. They also bought these stories
and started investing little by little. Nobody talked about manipulation, nobody
talked about scams. Everything was rosy. All asset prices were going up.
Everybody was happy. (We were among the few who had pointed about
manipulations in our last letters – Who are the buyers? / Who are the sellers?).
Market Movements from Sep., 2009 :-
Market was range bound from 14300 to 17000 for around 12 months i.e from
Sep., 2009 to August 2010. We had written many times that this is time
correction and it will give break out any time. It gave a break out in Sep.,2010
and made a high of 21108 in just 2 months time. As usual, most of the small
investors’ money came during the last leg of the rally.
The Investor Psychology:-
Nassim Nicholas Taleb, the well known author of The Black Swan has put
together a new book of aphorisms, entitled The Best Of Procrustes. The
Procrustes of Greek mythology was a cruel fellow who stretched or shortened
people to make them fit his inflexible bed.
Mr. Taleb’s new book addresses the modern day ways in which “we humans,
facing limits of knowledge, and things we do not observe, the unseen and
the unknown, resolve the tension by squeezing life and the world into crisp
commoditized ideas, reductive categories, specific vocabularies, and
prepackaged narratives, which, on the occasion, has explosive
consequences.” (Please read, reread and think about the above sentence of
Mr.Taleb.)
The Best Strategy to Invest?

(sorry for repetitions)
In 2nd Chapter, 38 stanza of Bhagwad Gita, Lord Krishna said…”Fight for the
sake of fighting, treating victory and defeat, pleasure and distress, loss or
gain alike. By doing so, you will not incur any sin”
Invest for the sake of investment. Do not invest for profit and do not remain away
from investment for the fear of loss. Be with your investments. It itself will create
wealth for you. Just do it.
Happy Investing,
Hitesh Parikh.
(We are starting – How to Invest?, an educative programme through email. If you
are interested, please write to us.)
Dear All,
Sub, :- What Is an Investor Education Program?
In last 20 years, I have taken a journey from Research Analysts, Portfolio

Manager and Investment Consultant to Investor. I have seen many colors of
stock market and investments mistakes made by small investors.
I have felt the need of the program which is practical and dealing with the
ongoing market situations of the time.
Our Mission:-
There are just four kinds of bets. There are good bets, bad bets, bets that you
win, and bets that you lose. Winning a bad bet can be the most dangerous
outcome of all, because a success of that kind can encourage you to take more
bad bets in the future, when the odds will be running against you. You can also
lose a good bet, no matter how sound the underlying proposition, but if you keep
placing good bets, over time, the law of averages will be working for you.
Our mission is to teach you how to pick good bets.
My email will have following contents.
Basics of Investments:-
We will take one basic lesson in investments. Here one fundamental concept of
investments will be dealt in easy to understand way.
Case Study on the above Concept:-
To make above concept easily understood, we will pick up one or more

companies. This may give you an investment idea also.
Lessons from the masters:-

What is the experience of the great investor’s who have applied the above
concepts.
Current Market:-
This will deal with the current market of the week / fortnight. Understanding this
will help you to apply above concepts in current market immediately. So, you will
learn and earn, together.
Main Benefit of the Program:-
In short, when you join this program, you get to know the concept, case studies
related to the concept, learning from the masters to applying the concept in
current market situations, all in one package. This will truly make you an
excellent investor over a period of time. The USP is that it will be dealing with the
current market situations while teaching the basics.
The Frequency:-
You will get an email twice in a month, in the first week and in the third week of
every month. First issue will come in the first week Of January.
Who Must Join:-
If you have a desire to create great wealth in a simple way, irrespective of your
investment funds, you must join this program.
The Price:-
Price is just Rs.5000/- (Five Thousand only) for one year.
How to subscribe:-
You can send a cheque on our name or transfer / deposit money to our account.
For details, please write to us.
Create Wealth Through Education.
Hitesh Parikh.
The stock market, in brief: participants are calmly waiting in line to be
slaughtered while thinking it is for a Broadway show.
You are rich if and only if money you refuse tastes better than money you
accept.
The best test of whether someone is extremely stupid (or extremely wise) is
whether financial and political news makes sense to him.
You can be certain that the head of a corporation has a lot to worry about when
he announces publicly that “there is nothing to worry about.”
The main difference between government bailouts and smoking is that in some
rare cases the statement “this is my last cigarette” holds true.
The difference between banks and the Mafia: banks have better legal-
regulatory expertise, but the Mafia understands public opinion.
They would take forecasting more seriously if it were pointed out to them that
in Semitic languages the words for forecast and “prophecy” are the same.
The three most harmful addictions are heroin, carbohydrates, and a monthly
salary.
I wonder is anyone ever measured the time it takes, at a party, before a mildly
successful stranger who went to Harvard makes others aware of it.
It takes a lot of intellect and confidence to accept that what makes sense doesn’t
really make sense.
Education makes the wise slightly wiser, but makes the fool vastly more
dangerous.
The best revenge on a liar is to convince him that you believe what he said.
How often have you arrived one, three, or six hours late on a transatlantic flight
as opposed to one, three, or six hours early? This explains why deficits tend to
be larger, rarely smaller, than planned.
The most painful moments are not those we spend with uninteresting people;
rather, they are those spent with uninteresting people trying hard to be
interesting.
The characteristic feature of the loser is to bemoan, in general terms, mankind’s
flaws, biases, contradictions, and irrationality-without exploiting them for fun
and profit.
You don’t become completely free by just avoiding to be a slave; you also need
to avoid becoming a master.
The fastest way to become rich is to socialize with the poor; the fastest way to
become poor is to socialize with the rich.
Some, like most bankers, are so unfit for success that they look like dwarves in
giants’ clothes.
Over the long term, you are more likely to fool yourself than others.
It is those who use others who are the most upset when someone uses them.
A genius is someone with flaws harder to imitate than his qualities.
It is much less dangerous to think like a man of action than to act like a man of
thought.
What I learned on my own I still remember.
Regular minds find similarities in stories (and situations); finer minds detect
differences.
The tragedy is that much of what you think is random is in your control and,
what’s worse, the opposite.
You can only convince people who think they can benefit from being
convinced.
Trust people who make a living lying down or standing up more than those
who do so sitting down.
Even the cheapest misers can be generous with advice.
The difference between magnificence and arrogance is in what one does when
nobody is looking.
When conflicted between two choices, take neither.
A prophet is not someone with special visions, just someone blind to most of
what others see.
You know you have influence when people start noticing your absence more
than the presence of others.
There is much more where the above came from but you will have to get up out
of bed, head to the bookstore, and find out for yourself. May be worth the trip.
Why Do You Invest?:-
If you are trying to fit
-Why u people worry so much about Market fall ??

From 4786 (20th May’10)it rallied upto 6349…….Nobody talked about
Manipulation ,Nobody thought about Rumours ????
Dear All,
Miracles of Investing Rs.110 per day
Market during Last 11 Months:-
Sensex closed at 17464.81 on 31st Dec.,2009. It made a high of

21108 on 5th of Nov.,2010. If we consider point to point return, it gave
a return of 20.86% during 11 months. Most of the gains came in the
month of September, when the market took a leap from 18000 to
20000, a gain of 2000 points in a single month. Overall market was
correcting time wise and we witnessed company and sector specific
movements.
Our Strategy and Our Performance:-
When market is not in secular bull phase and it is moving company

specific and sector wise, it pays to invest in those companies and
sectors which are favor of the market. Following our strategy, we
generated a return of 89.8% (Assuming that No Stop Loss had been
kept). If we consider that we had booked the stop losses between 2%
to 5%, as we strictly follow, our return would be more than 100%!! In
short, had you joined us last year, you would have made 4 times
the money, than an investor in an Index fund.
Cost V/s. Benefits:-
Zig Ziglar, the motivational speaker of our time, says, “When you
pay the price, you don’t incur a cost, you enjoy the benefits”.
Our special discounted investment advisory fees of Rs.40000 per
annum translate into just Rs.110 per day. By paying this price, you
get a benefit of earning superlative and sure shot returns on your
investments. By the way, we call this spending of Rs.110 per day as
an investment in our skill sets. Remember, good investments always
generate good returns.
What Next?
If you think, you should join or you should not join our investment
advisory scheme, both the ways you are right. We believe in a chain
reaction of thought into words, action, habit, character and your
ultimate destiny. If you are starting a year with a “No”, do not expect
drastic change in your financial destiny in 2011. If you go on doing
what you have done till now, you will get what you have got till now.
New results and more benefits require new and smart actions.
However, if you decide to join, take immediate actions and avail

special discount of 20% on our normal price of Rs.50000 plus free
enrollment in our investor Education Program for one year.
Wish you all a happy investing for 2011.
Hitesh Parikh
Dear All,
Where Is Sensex Heading In 2011 & New Decade?
The Favorite Pastime:-
As the curtain falls, this week, to the year 2010 as well as the
decade, the most frequently discussed subject will be to talk about
what will happen to Sensex in next year? Whether it will go up?
Whether it will go down? Which sectors & companies to invest in?
Which sectors and companies to sell? More adventures will come out
with the investment theme for the next decade! Lot of media hours
will be spent on these speculations. Blue channels will be full of
experts with their views about 2011 and investment themes for new
decade. Many pages will be written about the same.
Our Experiences:-
To talk about the market next year / next decade is a kind of trend
which if you don’t follow, you are considered out of the league. We
believe that when you have guessed the unknown, with the help of
various experts, it should result in action. But our experiences show
that it results in INACTION. 99% of the people who were enthusiastic
in knowing about the market do not work out the strategy to take
advantage of the predictions, if at all they go right!!
Our Attitude about the Market Movements:-
Someone had said – “If there is a way, we will find one, if there is
none, we will make one”. Our thought process is very clear. We want
to earn tons of money from this market. If market is going up, our job
will be easy. If not, we will work hard, like what we did in 2010, and
achieve our goals. Market gave 20.86% return and we generated
89.8% in first 11 months of 2010. We are not interested in much
discussion. We are interested in workable strategy based on the
discussions.
Our View about Sensex in 2011 and New Decade?

We believe that India has potential to maintain strong economic
growth in 2011 and beyond. The two challenges that government is
facing is to manage the inflations and the current account deficits.
Other challenges are coming from outside India. They will have
sentimental effects and not the fundamental. Overall, we will follow a
simple strategy – Buy on Dips. We maintain 35000 target for Sensex
by 2012 end. (We have been saying these levels since 2009).
What next?
A BEST Bus Conductor (BEST provides a local bus services in

Mumbai) on asking for the change of Rs.100, had said…”You must
only bring the change. I do not have”
You only can bring changes in your life in 2011 and beyond. I can
not.
Happy Investing,
Hitesh Parikh.
Tuesday, December 21, 2010
Dear All,
Sub. :- Time To Change Your Financial Destiny.
Someone had said….
“If you don’t make a mistake, you will own the world. But if you learn from
the mistakes, you will get what you really want in your life.”
Our Experience:-
When we approached all of our friends and know people last year
with our Double Bonanza Investment Advisory Scheme, many joined
immediately, many said they will think, many said market will go down
and they will wait to invest, many thought our fees are on higher side.
To all of these friends, we would humbly point towards the fact that
from 1st January 2010 to 30th November, 2010, Sensex has given
20.86% return and our investments gave 89.8% !!
Time To Correct Your Mistakes:-
You can join us now for 2011 at a special discounted price of

Rs.40000 per annum or you can give an excuse of your choice this
time also. If you join and work with me for at least 3 years, I assure
you, you would never ever have to depend on any body for your
financial well being. You will achieve your financial freedom. You will
do all your activities, including your job or business, out of choice and
not out of compulsion. You will decide your circumstances rather than
your circumstances deciding your action.
How Destiny Changes?
Destiny starts changing when a thought comes to change the same.

90% of the people do not go beyond thinking. In thought only they get
the orgasm. When those thought is put into action, you will get the
results. The results may or may not meet your expectations. But if
you keep on working on your actions, you will surely get the desired
results.
If you do not want to get disappointed in December 2011 as you are
in December 2010, then immediately join our investment consultancy.
Mark Twain had said….
“Twenty years from now you will be more disappointed by the things
that you didn’t do than by the ones you did do.”
Your Personal Destiny Manager,
Hitesh Parikh.
Saturday, January 15, 2011
Dear All,
Sub.:- The Biggest Risk….In Every Investor’s Life.

Where is The RISK?:-
Everything in this world involves risk. But the greatest risk is staying in your
comfort zone because this involves the risks of lost opportunities. The secret to
risk lies in knowing how to minimize its impacts on you.
If you want to be a successful Investor you must become passionate about

the learning process. You must become totally focused on Investing well as
opposed to making money. You must learn from someone who can show you
how to invest successfully rather than rely on blue channels, news papers
and so called inside information. You must become absolutely disciplined
in the activity of Investing.
Our Approach To Investment in Current Market:-

We believe that India has potential to maintain strong economic growth in 2011
and beyond. The two challenges that government is facing is to manage the
inflations and the current account deficits. Other challenges are coming from
outside India. They will have sentimental effects and not the fundamental.
Overall, we will follow a simple strategy – Buy on Dips. We maintain 35000 target
for Sensex by 2012 end. (We have been saying these levels since 2009).
Our View for 2011 & Beyond:-

We have always written that market is correcting time wise and it can give break
out any time. It did give break out above 18500 levels last year and made high of
21108. Going forward, the Sensex has intermediate support at 18500,
Strong support at 16000 and long term support at 13000.
Close above 21400 can give new strength to the Sensex. Till then it will move in
the range of 19000 to 21000. Our target for 2012 is 35000 and our new target till
2014 is 45000.
How To Play In Such A Scenario?:-
If you want to learn investment procedure, please join our investment education
program. The first issue will be published on 20th Jan. The investment for the
same is just Rs.5000 per annum.
If your goal is to make money while learning, then join our investment advisory
program. You will get investment ideas along with the technique to play the
same. If you join before 20thJan.,2011. You will get 20% discount to our price of
Rs.50000 per annum and you will also get enrolment to our investment education
program as bonus.
Your Choice?:-
Would you love to risk your capital by doing nothing or investing based on TV
news or would you love to minimize your risk by joining both of the above
schemes? Decide before 20th January.,2011.
Happy Investing,
Hitesh Parikh.
Tuesday, January 18, 2011
Dear All,
20th January 2011….Ur Date With Ur Destiny.

"I cannot teach anybody anything, I can only make them think."
Socrates.
What We Had Said In 2008:-
At 8000 Sensex levels, blue channels and analysts were talking about market
touching 6500. We had a different view. Our arguments was simple…It Sensex
touches to 6500, from 8000 levels, I will loose 20% and if it rebounds from this
level it can go to 21000 levels. The risk reward ratio was in favor of reward and
one should have acted that time. Sensex did make a high of 21000 last year. But,
not many believed me at that time.
What We Are Saying Now:-
At this level we are talking about Sensex 35000 in 2012 and 45000 in 2014. We
are saying 18500 is a good support and 16000 levels is a very good support.
This time also down side risk is about 15% (from 19000 to 16000) and upside
more than 100%( from 19000 to 45000).
Our Economy:-
We personally believe that Indian economy can sustain a long term growth in
GDP at 7.5%. We will be happy if it grows at 9% plus rates and sustains the
same. We have absolutely no problem in investing in Indian economy assuming
long term average growth rates of 7.5%. For the growth addicts…at 7.5% also
we are the second fastest growing economy in the world!!
The Game Changer:-
Inflation and increasing current and fiscal deficit can put the stress on the
economy for the short period of time. However, I believe that government will
take steps to correct the same in due course of the time.
Opportunities For Real Investors:-
While government is working out the strategy to fight above two issues, market is
going to be volatile and may see downward movement rather then upward
movements. At this level you will get an opportunity to go for bargain rather than
buying at the higher prices later.
Bonus To You All:-
If you join us before 20th Jan., you will get 20% discount on our consultancy
charges and free enrolment in our investor education program.
Want to correct your 2008 mistake?
Take first step…Join us before 20th January 2011.
Thanks,
Hitesh Parikh.
Wednesday, January 26, 2011
Dear All,
Should You Sell Your Gold And Silver Now? Read Carefully…
Just a month back, you listen to any commodity analysts or investment expert…
they all were bullish on gold…Gold did made a high of USD 1420 plus and
currently it is trading at USD 1330. Same is the case with Silver.
Is all over….Will they continue to go down? Should you sell now? If at all you
want to buy…Why should you buy? Should you also hold what you have? Let me
deal with all of them. Many people are selling gold/Silver. Does this mean the
boom in gold is over?
Gold Price Movements:-
Many people don’t like gold and silver because there’s no interest. When interest
rates were near or at zero, gold and silver prices were rising and people got out
of bonds and into the precious metals bull market. Now that Asian interest rates
are rising, some investors are leaving precious metals, and possibly stocks, and
getting back into bonds.
Many people believe China’s bubble will bust in mid-to-late 2011. There’s simply
too much money flowing into China and the Chinese markets are overheated,
just as the US and European markets were overheated in 2007. If China goes
bust, the world will also go bust.
If you follow the economic events, you must know that too much money at low
interest rates was the cause of the 2007 US market collapse. Unfortunately,
there’s still too much money running around looking for a place to call home,
which causes inflation and speculation worldwide. That is why they’re raising
interest rates, trying to slow speculation and financial insanity.
Role of Politicians World Wide:-
Azim Premji Said about performance of Indian government today on Television

…”I am extremely disappointed. I think it is a national calamity and is personally
very devastating because one had so much confidence when they (UPA-II) came
in”. Same is the case with politicians of the world.
Marc Faber said on Bloomberg TV, “I think he’s (Obama) done a horrible job
and I think that will continue, I think he is a dishonest person, and nothing
has changed… Some politicians are more honest than others. I don’t think that I
have a very high regard for politicians, I have a high regard for businessmen and
for people who work, and not for people who abuse the system continuously. And
in comparison to other politicians, I think he came in on a platform as a
president that would want to change the government in Washington, and
actually he’s made it worse”
While price of anything goes up and down, gold and silver are over due for a
correction. The price should drop. Both metals have been in a ten-year bull
market cycle. I believe we’ll be in a boom and bust world economy for at least
ten more years. This is why I encourage people to stay vigilant, pay attention to
the price of gold, silver, oil, food prices, and interest rates. I believe those prices
more than I believe the words from our leaders.
For now, I trust gold and silver more than I trust political promises. Personally,
I’m not selling. I’m waiting to buy more gold and silver if the price continues to
drop. You can hold 20% of your portfolio in Gold and Silver.
Wish You Happy Investing.
Hitesh Parikh
P.S.:- We have already published 2 issues of our Investor education program…If

you are an investor…you must join.
Tuesday, February 01, 2011
Dear All,
Do You Know Ur Best Friend and Worst Enemy?
In a journey of last 20 years into the field of investments, I have seen the best
and the worst. I have seen many rags to riches stories and reverse also. I have
been constantly looking for the explanations for the superlative profits and dismal
losses. I have found two forces which are dominating the investor’s psychology.
They are Pain and Pleasure.
It is a human nature to avoid pain and increase the pleasure. I bet you would say
we know this. The key to success in the field of investments is not to allow these
two forces to dominate you. Rather you must dominate or control them. How ?
Let me deal.
You Feel Pain…..
1. When you buy and stock does not move.

2. When stock moves but do not move as fast as you want.
3. When stock hits stop loss levels.
4. When you forget to hit the stop loss levels and stock goes below that.
5. When you buy for trading and it becomes your delivery.
6. When you miss to buy and stock moves up fast.
Wednesday, February 02, 2011
Dear All,
Bhaago Nahi…Jaago.
Year 2011 So Far…
Year 2011 started with the expectations with a bull run to continue. However,
market has thought otherwise. It gave a discount of 10% in January…most of the
investors are surprised and shocked. There are talks of Nifty touching
5200/4900/4700 and 4300. There are also talks of Nifty bouncing back to
5600/5850/6100 before a new fall can come.
You have a real problem...Should you follow the bear and sell or should you
listen to the bull and hold your stocks? My experience shows that this is the exact
point in the life of an investor, he makes no decision(Real investor would have
expected this and would have taken steps for the same). He stays put. He stays
away from market. His decision making faculties are overpowered by fear of loss
on both the sides. In short, he goes in hibernation. He escapes from the stock
market.
I do not want you to escape…Just be present to the market. When you be

present to the situations…Things will start getting clear to you. That’s Why the
title…Bhaago Nahi..Jaago.
What We Expected….
In an email titled..”Technical View of The Sensex In 2011 and Beyond, dt.,2nd

Jan.,2011…We had said….“Going forward, the Sensex has intermediate
support at 18500, Strong support at 16000 and long term support at 13000.”
Right Strategy According to Us:-
As a rule we do not base our investments on market movements. (because

market movements are beyond anybody’s control). We invest because we feel
that particular company’s business model has resistance power and staying
capacities in adverse conditions and will grow fast when situations are in favor. In
Investment we follow the rule…”Buy When Others Are Selling, and Sell When
Others Are Buying.”
However, when we trade, we trade as per market momentum. Here idea is to
make fast money in a day trading or position trading with a stop loss of 2-3%. So,
at any given point of time…we loss maximum 2-3% and not more.
How To Apply Above Rules In Your Case?:-
First, you decide, what you want to do…Investments or Trading? As per rule of
investments, FII is selling and our domestic institutional investors are buying. You
can also decide to join them and start your investments little by little. However,
take professional help or do detailed study yourself before you invest.
Market has lot of volatility, meaning you can trade on both the side also.
See after reading this, you know that there are more compelling reasons to play
in the market in 2011 than 2010.
Can We Help?
You can take our help in trading and investments or for just investments or for
just trading. If you invest just Rs.1 lakh, you can accumulate upto 220 grams
of gold in coming year…in spite of market movements. Want to know how?
Write to us.
Happy Investing.
Hitesh Parikh.
Thursday, February 10, 2011
Sub.:-
market as a result of: greed, fear, ignorance, and hope. That is why the
numerical (technical) formations and patterns recur on a constant basis.
The game of speculation is the most uniformly fascinating game in the world.
But it is not a game for the stupid, the mentally lazy, the person of inferior
emotional balance, or the get-rich-quick adventurer. They will die poor.
Don’t take action with a trade until the market, itself, confirms your opinion.
Being a little late in a trade is insurance that your opinion is correct. In other
words, don’t be an impatient trader.
It is foolhardy to make a second trade, if your first trade shows you a loss.
Never average losses. Let this thought be written indelibly upon your mind.
Remember this: When you are doing nothing, those speculators who feel they
must trade day in and day out, are laying the foundation for your next venture.
You will reap benefits from their mistakes.
When a margin call reaches you, close your account. Never meet a margin call.
You are on the wrong side of a market. Why send good money after bad? Keep
that good money for another day.
Successful traders always follow the line of least resistance. Follow the trend.
The trend is your friend.
A prudent speculator never argues with the tape. Markets are never
wrongopinions often are.
Few people succeed in the market because they have no patience. They have a
strong desire to get rich quickly.
I absolutely believe that price movement patterns are being repeated. They are
recurring patterns that appear over and over, with slight variations. This is
because markets are driven by humansand human nature never changes.
When you make a trade, you should have a clear target where to sell if the
market moves against you. And you must obey your rules! Never sustain a loss
of more than 10% of your capital. Losses are twice as expensive to make up. I
always established a stop before making a trade.
I am fully aware that of the millions of people who speculate in the markets,
few people spend full time involved in the art of speculation. Yet, as far as I’m
concerned it is a full-time jobperhaps even more than a job. Perhaps it is a
vocation, where many are called but few are singled out for success.
The big money is made by the sittin’ and the waitin’not the thinking. Wait until
all the factors are in your favor before making the trade.
It was never my thinking that made big money for me. It was my sitting…Men
who can both be right and sit tight are uncommon. I found it one of the hardest
things to learn. But it is only after this that a stock operator can make big
money. it is literally true that millions come easier to a trader after he knows
how to trade than hundreds did in the days of ignorance.
Give up trying to catch the last eighth – or the first. These two are the most
expensive eighths in the world.
Without faith in his own judgment no man can go very far in this game. That is
about all I have learned – to study general conditions, to take a position and
stick to it.
Remember that stocks are never to high for you to begin buying or too low to
begin selling.
That is where the tape comes in – to enable you to decide as to the proper time
for beginning. Much depends upon beginning at exactly the right time.
If you begin right you will not see your profitable position seriously menaced;
and then you will find no trouble in sitting tight.
The public, with their eyes fixed on the stock market, saw little – that week.
The wise stock operators saw much – that year. That was the difference.
A speculator must not merely be a student, he must be both a student and a
speculator.
Tape reading was an important part of the game; so was beginning at the right
time; so was sticking to your position. But my greatest discovery was that a
man must study general conditions, to size them up so as to be able to
anticipate probabilities.
I knew that some day I would find out what was wrong and I would stop being
wrong. I would then have not alone the will to be right but the knowledge to
insure my being right. And that would mean power.
A loss never bothers me after I take it. I forget it overnight. But being wrong –
not taking a loss – that is what does damage to the pocketbook and to the soul.
The speculator is not an investor. His object is not to secure a steady return on
his money at a good rate of interest, but to profit by either a rise or fall in the
price of whatever he is speculating in. Therefore the thing to do is to determine
the line of least resistance at the moment of trading; and what he should wait
for is the right moment when the line defines itself, because that is his signal to
get busy.
In a narrow market, when prices are not getting anywhere to speak of but move
in a narrow range, there is no sense in trying to anticipate what next big
movement is going to be – up or down.
Instead of hoping he must fear and instead of fearing he must hope.He must
fear that his loss may develop into a much bigger loss, and hope that his profit
may become a big profit.
A man may beat a stock or group at a certain time, but no man living can beat
the stock market.
A man must know himself thoroughly if he is going to make a good job out of
trading in the speculative markets.
I learned that the weaknesses to which a speculator is prone are almost

numberless.
Among the hazards of speculation the happening of the unexpected – I might

even say of the unexpectable – ranks high.
Observation, experience, memory and mathematics – these are what the
successful trader must depend on.
There is nothing new in Wall Street. There can’t be because speculation is as

old as the hills. Whatever happens in the stock market today has happened
before and will happen again.
Of course there is always a reason for fluctuations, but what the tape does not
concern itself with the why and wherefore. It doesn’t go into explanations. The
reason for what a certain stock does today may not be known for two or three
days, or weeks, or months. But what the dickens does that matter? Your
business with the tape is now – not tomorrow. The reason can wait. But you
must act instantly or be left.
There is a time for all things, but I didn’t know it. And that is precisely what
beats so many men on Wall Street who are very far from being in the main
sucker class. There is the plain fool, who does the wrong thing at all times
everywhere, but there is the Wall Street fool, who thinks he must trade all the
time. No man can always have adequate reasons for buying and selling stocks
daily – or sufficient knowledge to make his play an intelligent play.
The desire for constant action irrespective of underlying conditions is

responsible for many losses on Wall Street even among the professionals, who
feel that they must take home some money every day, as though they were
working for regualr wages.
I never argue with the tape. Getting sore at the market doesn’t get you
anywhere.
Much more to the game of speculation than to play for fluctuations for a few
points.
There is one side to the stock market; and it is not the bull side or bear side, but
the right side.
A man must believe in himself and his judgement if he expects to make a living
at this game.
Specualtion is a hard and trying business, and a specualtor must be on the job
all the time or he’ll soon have no job to be on.
It seems so obvious now that tape reading is not enough, irrespective of broker
execution, that I wonder why I didn’t then see both my trouble and the remedy
for it.
I can’t tell you how it came to take me so many years to learn that instead of
placing piking bets on what the next few quotations were going to be, my game
was to anticipate what was going to happen in a big way.
Since suckers always lose money when they gamble on stocks – they never
really speculate.
There is nothing like losing all you have in the world for teaching you what not
to do. And when you know what not to do in order to lose money, you begin to
learn what to do in order to win. Did you get that? You begin to learn!
The game of speculation isn’t all mathematics or set rules, however rigid the
main laws may be. If a stock doesn’t act right don’t touch it; because being
unable to tell precisely what is wrong; you cannot tell which way it is going.
I should say that a chart helps those who can read it or rather who can
assimilate what they read. The average chart reader, however, is apt to become
obsessed with the notion that the dips and peaks and primary and secondary
movements are all there is to stock speculation. If he pushes his confidence to
its logical limit he is bound to go broke.
I can see now that my main trouble was my failure to grasp the fundamental
difference between stock gambling and stock speculation.
I had to study what was going to happen; to anticipate stock movements.
It was the change in my own attitude that was of supreme importance to me. It
taught me little by little, the essential difference between betting on fluctuations
and anticipating inevitable advances and declines, between gambling and
speculating.
I made up my mind to be wise and play carefully, conservatively. Everybody

knew that the way to do that was to take profits and buy back your stocks on
reactions. And that is precisely what I did, or rather what I tried to do.
Friday, February 11, 2011
Dear All,
Three Kinds Of Investors – Where Do You Stand?
You can classify investors in many categories. Big or Small, Long Term or Short
Term, Day Traders or Positional Traders and the list can go on. We have broadly
classified them in 3 categories.
Those Who Know What They Don’t Know:-
Those Who Don’t Know That They Don’t Know What They Are Doing:-
Those Who Knows That They Do Not Know, But They Pretend That They Know:-
There are two kinds of investors, be they large or small: those who don’t know
where the market is headed, and those who don’t know that they don’t know.
Then again, there is a third type of investor – the investment professional, who
indeed knows that he or she doesn’t know, but whose livelihood depends upon
appearing to know.” William Bernstein in his new book…The Investor’s
Manifesto.
February 13, 2011
Dear All,
Is This A Bull Market Or Bear Market? Must READ.
Now a day Investors often ask…Is this a bull market or bear

market? My usual reply …If it is a warm day, and I say that it is
winter, will you still wear your heaviest coat? Does it make
sense…No…Let me clarify…
Let us Read what We said on 2nd Of January 2011 in our news

letter Technical View of Sensex for 2011 and beyond?
We have always written that market is correcting time wise and it can
give break out at any time. It did give break out above 18500 levels
last year and made high of 21108. Going forward, the Sensex has
intermediate support at 18500, Strong support at 16000 and long
term support at 13000.
Close above 21400 can give new strength to the Sensex. Till then it
will move in the range of 19000 to 21000. Our target for 2012 is
35000 and our new target till 2014 is 45000.
What Happened Since 2nd Jan.?
Market has come down and made a low of 17291 last week. Fall of
3700 odd points from the top of 21000. We have been very
categorical in our communications about the market for 2011. It is
another matter that people read what they want to read!! Hope I have
answered your above mentioned question now.
Opportunities For You:-
You have two opportunities…
Sell And Buy:-

Shelby C. Davis, an American Investment Banker, had said….You
Make Your Most of Money in Bear Market, You Just Do Not
Realize It At That Time. Just follow the market…Sell Now…Buy
Latter. You can mint money fast. However, 90% of the investors are
not ready to learn this art. This leads to panic; frustration and they go
into hibernation.
Buy, Hold and Sell:-
Warren Buffett had said…be greedy when others are fearful. If you
read our Technical Call for 2011 minutely, we are saying very
categorically that market will touch 35000 in 2012 and 45000 in 2014.
So, when others are selling in 2011, you need to buy for 2012 and
2014. You can grow your money by 200% in just 3 years!! It’s not a
joke.
Now this is not at all easy…You buy and stock will go down. You do
average and it will go down further!! This requires lot of patience,
conviction and knowledge of what to buy at what price. You need to
develop patience over a period of time. Conviction will come from
correct information. If you wish, you can take our help for knowledge
of what to buy at what price.
Our Track Record:-
This may give you conviction….
2008:- On 5th Dec.,2008…we had given a buy call for 2009 and rest is
history. Market doubled form 8000 odd levels to 17000 in just 6
months.
2010:- We had clearly said that market is correcting time wise and it
did happen. Sensex gave just 17% return….our recommendations
generated 93% return.
2011:- We gave a call for 18500/1600/13000 index…you know what

happened till date.
Closing Question:-
You do not do your business or job, listening to TV analyst or reading

news papers. Why do you do your investment then?
Whatever is your choice…approach us for Sell and Buy or Buy, Hold

& Sell Strategy and make money for the decade.
Hitesh Parikh.
It has broken intermediate support of 18500 and minor support of 17800. Next
levels are 17200, 16600,16200,16080, 15850.
AD-VALOREM DUTIES:-
These are the duties determined as a certain percentage of price of the

product.
ANNUAL FINANCIAL STATEMENT:-

It is a statement of receipts and expenditure of states for the
financial year, presented to Parliament by the government. It is divided
into three parts: Consolidated Fund, Contingency Fund and Public
Account.
APPROPRIATION BILL:-
This Bill is like a green signal enabling the withdrawal of money from
the Consolidated Fund to pay off expenses. These are instruments that
Parliament clears after the demand for grants has been voted by the Lok
Sabha.
BALANCE OF PAYMENTS:-
The difference between demand and supply of a country\'s currency in the

foreign exchange market.
BALANCE OF TRADE:-
The difference between monetary value of exports and imports of output

in an economy over a certain period of time. It is the relationship
between a nation\'s imports and exports.
Banking cash transaction tax (BCTT):-
BCTT is a small tax on cash withdrawal from bank exceeding a particular

amount in a single day. The basic idea is to curb the black economy and
generate a record of big cash transactions. This tax was introduced in
2005-06 budget.
BUDGETARY DEFICIT:-
Such a situation arises when expenses exceed revenues. Here the entire
budgetary exercise falls short of allocating enough funds to a certain
area.
BUDGET ESTIMATES:-
It is an estimate of Fiscal Deficit and Revenue Deficit for the year.

The term is associated with estimates of the Center's spending during
the financial year and income received as proceeds of tax revenues.
CAPITAL GOODS:-
Goods used in the manufacturing of finished products.
CAPITAL BUDGET:-
Capital Budget keeps track of the government\'s capital receipts and

payments. This accounts for market loans, borrowings from the Reserve
Bank and other institutions through sale of Treasury Bills, loans
acquired from foreign governments and recoveries of loans granted by the
Central government to State governments and Union Territories.
CAPITAL PAYMENTS:-
Expenses incurred on acquisition of capital assets.
CENVAT:-
This is a replacement for the earlier MODVAT scheme and is meant for
reducing the cascade effect of indirect taxes on finished products. This
is more extensive scheme with most goods brought under its preview.
CESS:-
"This is an additional levy on the basic tax liability. Governments
resort to cess for meeting specific expenditure. For instance, both
corporate and individual income is at present subject to an education
cess of 2%. In the last Budget, the government had imposed another 1%
cess as secondary and higher education cess on income tax to finance
secondary and higher education.
CURRENT ACCOUNT DEFICIT:-
This deficit shows the difference between the nation\'s exports and
imports.
CURRENT ACCOUNT SURPLUS:-
Excess of receipts over expenditure on current account in a country\'s

balance of payments.
CUSTOM DUTIES:-
These duties are levied on goods whenever they are either brought into
the country or exported from the country. The importer or the exporter
pays custom duties.
COUNTERVAILING DUTIES (CVD):-
This is levied on imports that may lead to price rise in the domestic
market. It is imposed with the intention of discouraging unfair trading
practices by other countries.
CONSOLIDATED FUND:-
This is one big reservoir where the government pools all its funds
together. The fund includes all government revenues, loans raised and
recoveries of loans granted.
CONSUMER PRICE INDEX:-
It is a price index covering the prices of consumer goods.
CONTINGENCY FUND:-
It is more or less similar to that extra little bit of savings that all
mothers set aside in case of an emergency. Likewise, the government has
created this fund to help it tide over difficult situations. The fund is
at the disposal of the President to meet unforeseen and urgent
expenditure, pending approval from Parliament. The amount that is
withdrawn from the fund is recouped.
CAPITAL EXPENDITURE:-
Long-term in nature they are used for acquiring fixed assets such as
land, building, machinery and equipment. Other items that also fall
under this category include, loans and advances sanctioned by the Center
to the State governments, union territories and public sector
undertakings.
CAPITAL RECEIPT:-
Capital Receipts consist of loans raised by the Center from the market,
government borrowings from the RBI & other parties, sale of Treasury
Bills and loans received from foreign governments. Other items that also
fall under this category include recovery of loans granted by the Center
to State governments & Union Territories and proceeds from the
dilution of the governments stake in Public Sector Undertakings.
CENTRAL PLAN OUTLAY:-
It refers to the governments budgetary support to the Plan. It is the

division of monetary resources among different sectors in the economy
and ministries of the government.
DIRECT TAXES:-
Taxes paid directly by the person or organisation on whom they are

livied. Income Tax and Corporate Tax fall under this tax category.
DISINVESTMENT
It is the dilution of governments stake in Public Sector Undertakings.
DEMAND FOR GRANTS:-
It is a statement of estimate of expenditure from the Consolidated Fund.

This requires approval of the Lok Sabha.
EXCISE DUTIES:-
These duties refer to duties imposed on goods manufactured within the

country.
FINANCE BILL:-
It is the governments proposals for imposition of new taxes,

modification of the existing tax structure or continuance of the
existing tax structure beyond the period approved by Parliament.
FISCAL DEFICIT:-
It is the difference between the Revenue Receipts and Total Expenditure.
FISCAL POLICY:-
Fiscal policy is a change in government expenditure and/or taxation

designed to influence economic activity. These changes are designed to
control the level of aggregate demand in the economy. Governments
usually bring about changes in taxation, volume of spending, and size of
the budget deficit or surplus to affect public expenditure.
FRINGE BENEFIT TAX (FBT):-
It is the tax lievied on the fringe benefit / perks given by a company

to its employees. Companies could no longer get away with marking such
expenses as ordinary business expenses and escape tax when they actually
gave out club memberships to their employees. Employers had to now pay a
tax (FBT) on a percentage of the expense incurred on such perquisites.
This tax was introduced in the 2005-06 budget.
FRBM ACT:-
Enacted in 2003, the Fiscal Responsibility and Budget Management Act

required the elimination of revenue deficit by 2008-09.This means that
from 2008-09, the government was to meet all its revenue expenditure
from its revenue receipts. Any borrowing was to be done to meet capital
expenditure i.e. repayment of loans, lending and fresh investment. The
Act also mandates a 3% limit on the fiscal deficit after 2008-09; one
that allows the government to build capacities in the economy without
compromising on fiscal stability.
GROSS DOMESTIC PRODUCT:-
Total market value of the goods and services manufactured within the
country in a financial year.
GROSS NATIONAL PRODUCT:-
Total market value of the finished goods and services manufactured

within the country in a given financial year, plus income earned by the
local residents from investments made abroad, minus the income earned by
foreigners in the domestic market.
GST:-
A GST (Goods and Services Tax) contains the entire element of tax borne
by a good / service including a Central and a state-level tax.
INCOME TAX:-
This is the tax levied on individual income from various sources like
salaries, investments, interest, etc.
INDIRECT TAXES:-
Taxes imposed on goods manufactured, imported or exported such as Excise

Duties and Custom Duties.
INFLATION
A progressive increase in prices of goods and services. It is the

percentage rate of change in the price level. In inflation, everything
tends to appear more valuable except money.
MINIMUM ALTERNATE TAX (MAT):-
Its known that a company pays tax on profits as per the Income-Tax Act.
If a company's tax liability is less than 10% of its profits, it has to
pay a minimum alternate tax of 10% of the book profits.
MODVAT
It stands for Modified Value Added Tax and is a way of giving some
relief to the final manufacturers of goods on Excise Duties borne by
their suppliers.
MONETIZED DEFICIT:-
Measures the level of support the RBI provides to the Centres borrowing
program.
NATIONAL DEBT:-
Total outstanding borrowings of the central government exchequer.
NON-PLAN EXPENDITURE:-
Expenses that dont form a part of the governments five year plan. These
expenses consist of Revenue and Capital Expenditure on interest
payments, Defense Expenditure, subsidies, postal deficit, police,
pensions, economic services, loans to public sector enterprises and
loans as well as grants to State governments, Union territories and
foreign governments.
NON-TAX REVENUE:-
Any loan given to state governments, public institutions, PSUs come with
a price (interests) and forms the most important receipts under this
head apart from dividends and profits received from PSUs.The government
also earns from the various services including public services it
provides.
PEAK RATE:-
It is the highest rate of Custom Duty applicable on an item.
PERFORMANCE BUDGET:-
It is a compilation of programs and activities of different ministries

and departments.
PER CAPITA INCOME:-
The national income of a country, or region, divided by its population.

PROGRESSIVE TAX STRUCTURE:-
A tax structure in which the marginal tax rate increases as the level of
income increases.
PUBLIC ACCOUNT:-
It is an account where money received through transactions not relating

to consolidated fund is kept.
PUBLIC DEBT:-
The difference between borrowings and repayments during the year is the
net accretion to the public debt. Public debt can be split into two
heads, internal debt (money borrowed within the country) and external
debt (funds borrowed from non-Indian sources).
PLAN EXPENDITURE:-
Consists of both Revenue Expenditure and Capital Expenditure of the

Center on the Central Plan, Central Assistance to States and Union
Territories.
PLAN OUTLAY:-
Plan Outlay is the amount for expenditure on projects, schemes and

programmes announced in the Plan. The money for the Plan Outlay is
raised through budgetary support and internal and extra-budgetary
resources. The budgetary support is also shown as plan expenditure in
government accounts.
PRIMARY DEFICIT:-
Fiscal Deficit minus Interest payments.
PROPORTIONAL TAX:-
A tax taking the same percentage of income regardless of the level of

income.
REGRESSIVE TAX:-
A tax in which the poor pay a larger percentage of income than the rich.
It is the opposite of Progressive Tax.
REVENUE DEFICIT:-
It is the difference between Revenue Expenditure and Revenue Receipts.
REVENUE SURPLUS:-
Opposite of Revenue Deficit, it is the excess of Revenue Receipts over

Revenue Expenditure.
REVISED ESTIMATES:-
Usually given in the following budget, it is the difference between the

Budget Estimates and the actual figures.
REVENUE BUDGET:-
Consists of Revenue Receipts and Revenue Expenditure of the government.
REVENUE RECEIPT:-
Consists of duties imposed by the Centre, interest and dividend on

investments made by the government.
REVENUE EXPENDITURE:-
Expenditure incurred for the normal functioning of the government

departments and various other services such as interest charges on debt
incurred by the government.
SUBSIDIES:-
Financial aid provided by the Center to individuals or a group of

individuals to be competitive. The grant of subsidies is also aimed at
improving their skills of those who benefit from the subsidies.
SUBVENTION:-
This is how a government bears the loss that financial institutions

incur when asked to give farmer loans below the market rates.
SURCHARGE:-
This is an extra bit of 10% on the tax liability that individuals pay
for earning more than Rs. 10 lakh. Companies with a revenue of up to Rs.
1 crore are spared.
SECURITIES TRANSACTION TAX (STT):-
STT is a small tax you need to pay on the total amount you pay or
receive in a share deal. In the 2004-05 Budget, the government did away
with the tax on profits earned on the sale of shares held for over a
year (known as long-term capital gains tax) and replaced it with STT.
TREASURY BILL (T-BILLS ):-
These are bonds (debt securities) with maturity of less than a year.
These are issued to meet short-term mismatches in receipts and
expenditure.
VAT
This tax is based on the difference between the value of output and the
value of inputs used to produce it. The aim here is to tax a firm only
for the value it adds to the manufacturing inputs, and not the entire
input cost. Thus, VAT helps avoid a cascading of taxes as a product
passes through different stages of production/value addition.
VOTE ON ACCOUNT:-
It is a sort of interim budget where the government presents accounts

required to keep the process on until the next government takes over.
WAYS AND MEANS ADVANCE (WMA):-
RBI is the banker for both Central and State governments. Hence, it
provides a breather to manage mismatches in their receipts and payments
in the form of ways and means advances.
WHOLESALE PRICE INDEX:-
Prices of goods that are dealt with wholesale (mostly inputs to

production, rather than finished commodities).
Budget Terminology Demystified.

Friday, February 18, 2011
Dear All,
Your Language and Your Financial Success.
I am sure you would have heard following sentences or words in

some or the other situations….
Let me think / let you know / I would love to do, But…/ I wish to do…/
Need to ask ….( somebody) / I can not do it…/ I have not done it
before…/ I should have done / My past experiences are not good…/ I
can not afford it…/ It is very expensive…/ It is not safe…./ Do It later.
By using above sentences, the user tries to create the sympathy in

the mind of other person about his inability to say YES for a given
proposal.
Why Do They Say Such Sentences?
I have found either of the following factors individually or collectively

responsible for such behavior.
Lack of Vision:-
They do not know what they want from their lives. What they can
achieve from their lives and their resources? No big dreams.
Lack of Guts:-
They lack the guts to come out of their comfort level. Do not have the
courage to try something new / try for one more time / do it in a
different way / change / Fear of Failure.
Lack of Intelligence:-
Their focus is on Why Something Can Not Be Done rather than How
Something Can Be Done?
How Does This Affect Their Financial Success?
They go on doing what they have always done or they do what they
have always believed to be right. So, they get what they have always
got!!
Prime quality of an investor is to have Vision, Guts and Intelligence.

Successful investors have all these qualities or any of this quality or
they are ready to outsource any of them depending upon the
situations.
History proves that those who have made millions were investors
only. Their investment may have been in idea, technology, shares of
companies or some good businesses.
So, What Next?
Personally, I have not met many of you. I do not know many of the
facts about your life and your situations, so I can not comment
anything about you. However, if you listen any of the above
sentences…spoken by you or anybody…you can just be present to
them!!
Hitesh Parikh.
Dear All,
Law of Reverse Effects & Your Investment Returns (A Gift

For My Regular Reader)
Have you come across following situations….
1. Talk about order and U see disorder.

2. Try to make people moral and U see lot of immorality.
3. Try to make people be good and they will be bad.
4. Try to make your child be saintly and he will do exactly
what you wanted him not to do.
5. While learning to drive, you tried hard avoiding to hit the
road side Electric Pole and you just end up hitting it.
6. You try to reach for an appointment on time and you get
late.
7. You invest for profit and you end up losing.
This is noting but law of reverse effect. It is a very deep psychological

law: do something and just the reverse happens. You must be afraid
deep down that it is going to happen!!
What the Law Of Reverse Effect Says….
If you start avoiding, you have already started creating it. If you start
wondering how to avoid it you have already taken for granted that it is
going to be there. You have already become self-conscious about it -
and that will help to create it. For the future, never create any worry,
because your very worry will create the reverse effect.
Have You Watched???
If you travel in a train, you can judge who is traveling without a ticket
because he is constantly worried about the ticket checker - the law of
reverse effect. He looks afraid, he looks worried. Whenever
somebody enters the compartment he looks startled. You can simply
see who has come without a ticket - he is creating his own difficulty
around him.
And sometimes it happens that you have purchased a ticket, and it

has fallen out of your pocket but you are not aware of it. You don't
know that you don't have the ticket. Then you walk and you sit as if
you have the ticket. Nobody can judge, nobody can catch you; even
the ticket checker will not come to you. He knows that you must have
the ticket.
People are always surprised that when they have tickets nobody
comes to check, and when they don't have the ticket suddenly the
ticket checker comes, because he has become aware of this small
law - that you can judge who is the culprit. There is no difficulty about
it. He cannot be natural, he creates his own unnatural vibrations
around him. Immediately the ticket checker goes to him.
How This Affects Your Investment Performance??
Warren Buffett invests as if market is going to be closed down for 10

years. He does not worry for the index movements. He has no
expectations from the future. What he does is that he studies the
present and the past thoroughly. He is aware that this is the only
thing he has control over it and he has no control on future.
So, How To Invest?
Lord Krishna Said to Arjun in Chapter 2 of Bhagavad Geeta, Sloka

38,”Fight for the sake of Fighting. Treat victory and defeat, pleasure
and distress, loss or gain alike. By doing so you will not incur any sin”
Don't try to avoid losses, you will not create it.
Hitesh Parikh.
( Excerpted from Investor Education Program, our email learning

program. You are welcome to join.)
March 3, 2011
Dear All,
Who Are You? Do You Know?
I am sure, you would say…Of Course I Know ! Why are you asking
funny questions today? Let me deal with this. I have come across a
beautiful story….
Just go through the same…..
In a jungle a fox saw a very delicate rabbit. Rather than running away
from a fox, rabbit came near to the fox and stood in front of the fox.
Fox asked…Aren’t you afraid of me? I am a fox. Rabbit replied…
Prove me. Get me a certificate that you are a fox!!
Fox went to lion and asked him to write a certificate. Fox came back
only to find that rabbit was not there….fox got annoyed and came
back to complain to lion. Then he saw something unique….
A goat was asking lion…Prove me that you are a lion…Lion

said….When I am Not Hungry, I Do Not Care Whether You Consider
Me Lion or Not And When I Am Hungry, You Will Have No Time To
Ask Me !!
Listening to this, fox asked lion….why you did not guide him like this
when I asked for the certificate? Lion said…you did not tell me that
you wanted a certificate for rabbit. I thought you need certificate for
some funny human beings.
So, I repeat my question… Who Are You? Do You Know?
Fox is a normal investor. He can be easily taken for a ride by Media,

Operators and Market Rumors (Rabbits and Goats). When he is in
doubt he looks up to the smart investors like the lion. Lion is a real
investor. He does not care for Media, Operator and Market Rumors.
He only cares for market when he wants to Invest and when he wants
to sell. In day to day life, he does not have any problem with the
market. Human beings are company peoples.
Now The Best Part….The Jungle….Market is A Jungle.
One of the great things about the market is… the markets don’t care
about you. The market doesn’t care whether you are a lion or rabbit,
goat or fox. They don’t like you. They don’t dislike you. They just don’t
care. They are there everyday. You want to play, you can play. You
don’t want to play, don’t play. And you can choose. You sit, there is
no penalty. You know, when you stand you know. You can stand
there and wait. You can go home and wait. It doesn’t matter.
So, Know Yourself……!!!
Hitesh Parikh.
(Excerpted from Investor Education Program, our email learning

program. You are welcome to join.)
Wednesday, March 09, 2011
Dear All,
End of The Season Sale….But No Buyers!!
Now a day, when I move around in Mumbai, I see big hoardings of

SALE. They are offering various products with discounts ranging from
20% to 80%....and the best part I see lot of people are taking
advantage of these offers. It makes me wonder…how come there is
lack of volume when the market gives discounts???
In 2008....market gave close to 65% discounts and there were few

takers….In 2009 they increased the prices by 100% and there were
many takers…From January 2011, they are giving 20% discounts
and the case is the same…no takers!!
I have come across an investment point in the above dilemma.
When a person buys any consumable items in sale he can have one
or more of the following ideas in his mind….
1. He knows that the brand he is buying is good and top it all he is

getting discounts.
2. He has used that brands and he wants to have more items of
the brands at discounted prices.
3. He always wanted to buy this brand but he was waiting for the
SALE.
4. He would love to have particular brand in his collection…to use
or not to use may not be the consideration at all!!
5. He spends lot of time in finding the best SALE offer in the Town
and he goes there.
6. The best part…No TV analysts or Media is guiding him to buy
that product!! Do you agree with me?
Now let us see, what happens when the market declares SALE…he
stays away…Why???
1. He is not sure about the company fundamentals.

2. As he is not sure about the fundamentals, he has no ready list
of companies to buy at lower levels.
3. He has misconceptions about word investments.
4. He does not spend much time in studying the company.
5. He has no desire to hold the shares for the sake of holding…he
wants fast return.
6. He relies on FREE TIPS from Brokers and Media and they give
free because they all have their interests to serve.
The NET EFFECT:-
He ends up buying when the time is to sell and he ends up selling

when the time is to buy. He goes through this vicious circle many
times…and he never makes money. This leads to the two
fundamental beliefs…..Market is nothing but a Casino and You need
luck to make money!!
If you have above beliefs….please look into yourself…study your

investment style…it will help you. If you need any help for
investments…please write to us.
Hitesh Parikh.
Thursday, March 10, 2011
Dear All,
A Big Thank You for Your Responses…
I have been overwhelmed by your responses to my yesterday’s

email… End of The Season Sale….But No Buyers!! All the
readers have expressed their thanks for enlightening them about their
behaviour. They have also asked couple of questions….I thought let
me give a collective reply to you all. It may be of help to others, also.
How to decide about the right price to invest or to sell? (Most

have experienced that they have bought and the price went
down and they sold and price went up.)
In 20 years of my experience with the market, I have observed 90%

of investors only focus on the price before they invest. They operate
with a typical mentality of middle class…Cheap or Costly, as if they
are buying a consumable item. When you are obsessed with the
price…you will end up buying BRASS at the price of GOLD. (In fact,
yesterday many callers were interested in our service charges
alone…not interested in knowing our background, track record or our
style of investments)
Another factor is trying to time the market. It has been said by various
investment gurus that it is futile to time the market as you can not buy
at the bottom and sell at the top.
Now, the next question can come…how to solve this situation…
Let me share what I do for myself and my clients…..
1. Before I buy anything, I ask myself whether I am going to hold

shares for an hour, a day, a week, a month, a year or 3 to 7
years. In short, I decide my investment horizon.
2. If I have bought the shares for a horizon less than a year, I will
follow the strict stop losses e.g If I buy ABC Ltd at 100, I will
keep a stop loss at say Rs.95. I will never do average, when I
am in loss in the first position e.g If I have bought ABC Ltd at
100, I will not add more at 90/80/70.
3. If I have bought the shares for a horizon of 3 to 7 years, I will
not keep a stop loss…I will go on buying the shares at all the
prices….will not worry if I have loss in a particular year as I
have a vision for next 3-7 years. (Here the assumption is that I
have studied the company in detailed and I am convinced
about its fundamentals.)
The majority of you have a problem when you have bought the
shares for trading and it becomes you’re your investment, you go on
averaging and it goes further down!! So, be clear with your horizon
and you will never come into this trap.
I will deal with other questions in my next emails.
Good Bye.
Hitesh Parikh.
Monday, March 14, 2011
Dear All,
Your Questions & Our Answers- Dealing with Losses.
Those Who Think – “Success in Investment”- Is All About “Luck”,

Don’t Understand Investments, And Don’t Understand Luck. Hitesh
Parikh.
Your emails have inspired me to form the above sentence…thanks

for the same. We think other way round…we think investment is a
process and you need to work on your process till you get the desired
outcome…I know you will ask – what about Luck?…For us Luck is an
acronym for Labor Under Correct Knowledge. The best of the
traders and investors deal with losses very logically rather than
reacting emotionally.
They ask following questions…
What is the lesson here? Every loss teaches you a lesson. Are you
ready to learn?
What did I learn? Learn and write in your trading diary.
How can I avoid this next time? Be present to your trading, next time.
What is my strategy the next time I encounter this situation? Follow

stop losses.
Did I remember to pat myself on the back for the good trades this
month? Celebrate your success.
Did I remind myself that I have had many more successes the past?
One loss or current losses are not an end to your trading.
Did I remind myself that this is just an opportunity to do it better next

time? If you had learned from your mistakes,you will be able to
improve upon that.
Did I use proper discipline? How committed you are?
Did I wait for a proper trade set-up? No set up, No trade.
Did I follow my trading rules? Do you have them in first place?
How long am I going to wallow here? Decide the time frame you will
continue to book losses.
Did I remind myself that the market is very generous and will always
give me plenty of opportunities for profit? Market will touch 35000 in
2012 and 45000 in 2014…Am I prepared?
Do I have more money now than I did at the beginning of the

month/year?
If YES, you are ok. If the answer is NO and you are consistently
taking hits,then STOP and RETHINK your strategy, There is
something WRONG. Find out that before your next trade!!
Investment is akin to winning the war, though you may lose a few
battles. I can tell you where to trade or where to invest. I can not
teach you how to trade; all you can do is fit my investment ideas in
your trading style.
Remember…Thinking through your losses logically will give you the

best advantage over reacting emotionally.
Hitesh Parikh.
Betting Rules by Phantom of the Pits
16 March 2011
In a losing game such as trading, we shall start against the majority and assume
we are wrong until proven correct! (We do not assume we are correct until
proven wrong.) Positions established must be reduced and removed until or
unless the market proves the position correct! (We allow the market to
verify correct positions.)
It is important to understand that we are saying the one criteria forremoving a
position is because it has not been proven correct. We at no time use as criteria
for removing a position the fact that the market proved the position incorrect.
There is a big difference here as to how we treat all positions from what most
traders use. If the market does not prove the position correct, it is still possible
the market has not proven the position wrong. If you wait until the market
proves the position wrong, you are wasting time, money and effort in
continuing to hope it is correct when it isn’t.
How many traders ever hoped it wouldn’t be proved wrong instead of hoping it
was correct? If you are hoping it is correct, it obviously wasn’t ever proven to
be correct. Remove the position early if it doesn’t prove correct.By waiting
until a position is proved wrong, you are asking for more slippage as you will
be in the same situation as everyone else getting the same message.
What makes this strategy more comfortable is that you must take action without
exception if the market does not prove the position correct. Most traders do it
the opposite by doing nothing unless they get stopped out, and then it isn’t their
decision to get out at all — it is the market’s decision to get you out.
Your thinking should be: When your position is right, you have to do nothing
instead of doing nothing when you are wrong!
I don’t mean to repeat and repeat but, in this case, you will better understand
the rule the more you read it. It is very critical to your success in trading. Over
time it has proven to be the rule which keeps the losses small and keeps a trader
swift and fast to take that loss.
A person’s thinking when the market proves a trade to be bad is counter to
what is productive. By using the rule properly, you are productive and don’t
have to face the demoralizing effect of the market when you have a proven
wrong position. This enables you to continue to trade with the proper frame of
mind. You are more objective in your trading this way than letting a negative
reinforce your thinking. This way you only let good trading
reinforce your thinking and actions.–Phantom of the Pits
Rule Number Two:

Press your winners correctly without exception.
Sounds pretty elementary but correctly is the key. What you hear quoted most
of the time is cut your losses. Cutting you losses is only one side of the coin.
Without Rule 2, you will find that trading still isn’t even a 50/50 game. Without
a correct method to press your correct positions, you will never recover much
beyond your losses. You need rule two to ensure you have a larger position
when you are correct. You always want a larger position when you get a great
move or trending market than when your position isn’t correct.
There certainly will be debate on how you know when to add to a correct
position and on how a market can turn a correct position into a wrong position.
We will cover those debates later. First, let us get the rules and reasons
established. By knowing what is expected in Rules 1 and 2, we can prove the
theorem based on good assumptions and experience.
Rule 2 does not mean just because you have a position in your favor that you
must now add to that position. Correctly in Rule 2 means you must have a
qualified plan of adding to your position once a trend has established itself. The
proper criteria for adding positions depends on your time frame of expectations
in your trade plan.
You might be a day-trader just trading back and forth, a short-term
trader, weekly trader, monthly trader or trend trader only . The add criteria
will be different for each trade plan. The important point of Rule 2 is to
point out the rule is established so you can make the most gain with the
least drawdown expectations. You must also use Rule 1 properly.Rule 2 is
important for it keeps you in a good position as well as impresses upon your
own thinking about having a correct position initially. Most traders are
conditioned to want to take a profit to prove to themselves that they are
right. Being right does not, in itself, make the most amount of profit. Most
traders also want to get out before the market turns and takes away any
profit they may have. Ordinarily, they will let losses get larger but only
let gain get started before getting out. This is just simple human nature
when having a market position. Human nature in trading is not often proper
trading technique.Always a good reason for adding to a winner is because
traders usually tend to doubt the position unless they reinforce the
correctness of that position. Adding to the position correctly best does
this.The other good reason is that you must be larger when correct on a
position than when your position is wrong.
Correctly adding to a proven position must be done so that a pyramid isn’t
established that will hurt the trader in a minor reversal. Each add onto an
original position should be done in smaller and smaller steps. As an example,
if you put six contracts on as your initial position, you should use four
contracts for your first add and two contracts for your next add. This gives
you twice the original position when all three positions are in place. This
is a 3:2:1 ratio in establishing three levels of positioning.
At all times during the trade it is important that Rule 1 be in your plan.
This includes when you are adding to your positions to protect your trade
from any major reversals, which often happen.
Your plan for adding positions could be as simple as using each buy signal
for longs and each sell signals for shorts. It could be on 45-degree
retracements or support lines.
Without exception the rule indicates it is not an arbitrary decision on
the trader’s part whether to add. Keep in mind this does not exclude the
correct method of adding in respect to variables of different trading plans.
What is a correct way of adding in one trade plan may not be in
another.Reviewing Rule 2, it states only that you must add to correct
(proven) positions and that it must be done correctly. The rule does not tell
you how to add, as this is your requirement in the trade plan you develop.
The rule makes no exception on adding to correct positions. The intent of
Rule 2 is twofold: Reinforce your correct position both mentally in your
thinking and your
execution and increasing the size of your position. — Phantom of the
Pits
The Number Three:

We shall go against the majority and assume the market is not always
correct (those times being when liquidity is poor). At those times we shall
question all signals and wait for future signals for positioning.
We shall use the converse of poor liquidity and remove our existing
positions when extreme liquidity takes place in two steps and within three
days of extreme high volume. Half of our position shall be removed
immediately the following day after an extreme high-volume day. The other
half of our existing position shall be removed within two additional days. We
shall wait for further signals in those cases for future positioning.
The first part of the third rule addresses the situation of thin or
illiquid markets. It states that we shall question our trade program signals
and wait for further clarification of signals in those thin markets. At
illiquid times the market is not a valid indicator for taking positions.
Because most signals are generated by price, you can see the importance of
the third rule allowing you to have an exception of questioning your signals.
Some trade programs address this situation very well. Not many programs use
volume and open interest such as moving average indicators in generating
signals.
I am not questioning various systems but only saying that with the third
rule we must put an illiquid relief valve somewhere in the plan to preserve
equity at those times.
The second part of the third rule gives us criteria for taking profits or
removing any previously established position. We do know when to take
profits. Although we take all the profits and may miss some of the move, we
shall await further signals at extreme high-volume days. Additional signals
develop quickly after high-volume days, and we want the benefit of that by
not being positioned incorrectly prior to additional signals.
Don’t forget that a good plan will continue to give you signals based on
market conditions. We are using extreme liquidity to our advantage by knowing
that huge volume is the prelude of further correction possibility. Many times
huge volume days are the very reversal days in bull markets. At any one time
there could be an event that causes extreme volume. It usually takes several
days to play out when this happens. We also use that to our advantage in the
third rule.
When we say we shall take the last half of our position off within two
additional days, it is important to note there will be times when we will do
it very quickly and not extend to two additional days. The two additional
days gives us the outside limit allowed for our rule.
The third rule is a good rule, and it stresses the acknowledgment of
trading in the long run and not the short run.–Phantom of the Pit.
ALS: There were some questions on when to get out of a position. I realize
this is out of order here, but I know we need to include Rule 2.
POP: That’s okay, as a common question is when do you know when to get out
of a position. Actually Rule 2 addresses this very well because it says to
press your winners correctly without exception. Rather than getting out of a
position with the proper criteria, you will be increasing your position. You
only do the adding with correctly proven positions.
The time to get out of a position is not when the market is proving your
position to be a correct one. You have the opportunity to be wrong as often
as correct, but when you are already proven correct, this is certainly the
time to step off of first base.
We have two rules to keep us protected from our lack of certainty and
enforcement of certainty. Many trading plans have the trader in a position at
all times, the thinking being that the market is either going to go up or go
down.
Well, this is just absolutely an idiot’s plan. Maybe I shouldn’t say it so
strongly as I should still have an open mind. I have to put this in the
category of thinking a statement that says not to do something actually says
to do the opposite of that statement.
Too many times I have watched a fund bid the market so they can sell the
market. It’s a plan to take advantage of the surprise element in the markets.
There was the day when you would only see me on both sides only when I was
wrong. I am wrong a lot more lately. That’s not bad either!
The readers are surely asking by now: How do we use these two rules?
It’s easier to use real-time quotes and markets to prove the points, but
because we only have hindsight here, we will do it differently. Let’s use the
old common day-trading technique, on which I am not going to give you
judgment at this time.
You say your plan wants you long if you take out the opening range! Okay,
let us say we are trading onions and the price is 1000 ($10). The price goes
to 1001 and the opening range was 999-1000. Your plan says buy so you buy.
You get filled at 1002! Why 1002? Well, execution is getting the position
filled! You gave up a slip of 1 tick. Not bad. Most of the time it is
small.
We can go into the importance of execution now or continue the trade. Let
us continue the nature of the trade and cover the importance of execution
later.
Now that you are long at 1002, you are using Rule 1. You assume this is a
bad trade until the market proves to you that the trade is good. If the
market does not prove this a good trade, you are going to exit the trade.
Fine so far!
What criteria in your day-trading plan says you are right? Most say what
determines you are wrong. Not us! We only want to know the criteria for being
right. Okay, for us our program says, If in the first half hour the market
opens lower than yesterday and moves higher, expect a move above the prior
day’s high within the first half day of trading.
Our program also says the position is only correct if the market stays in
the prior day’s top half in the first half hour. Our last criteria for the
trade is that it must show a 3-point profit by the close. Now, I ask you,
what is your next step?
Your criteria for remaining in this position is only when the requirements
of your data indicate to you the position is correct. The other data you
would need in the program is yesterday’s range, yesterday’s high and
yesterday’s close. Your day-trading program says to use the old rule of
opening range breakout. Yesterday’s data is critical in knowing when you are
correct.
For our example we will use yesterday’s high as 997 and yesterday’s range
as 991-997. It gets interesting here because you are going to decide whether
you will exit the position. At the end of 30 minutes the market is at 997.
What would you do?
The first criterion of our trade program is in conflict with your
day-trading strategy, but you still bought the opening range breakout. We
don’t care if the two are in conflict! We only care what causes our position
to be correct.
Okay so far. The market has been open a half hour and our price is 997. As
you can see, you must know your trade plan before the market opens and what
you are required to do. What makes your position correct? You must be in the
top half of yesterday’s range after the first half hour of trading.
Are you indeed in the top half of the range from yesterday?
I am going to give you the answer indirectly so you can’t slip down to
find it. We will go to the next step here. At the end of the first half day
of trading the price is 996. Are you still in the position? You did take out
the prior day’s high but you didn’t open lower.
Okay we still did it! Stayed in the first half hour. That’s right.
Now the first half day price is down to 996 and we bought at 1002 — still
in the top half of yesterday’s range. Okay, we are still in the position. Bad
entry, though, as our plans conflicted. Should have only taken the position
if it opened lower. It didn’t. Well, okay, because we are day-traders, we
used the opening range breakout. Our entry wasn’t the best but so what!
At the end of the day the market is at 992. Are we still in the position?
You have the right answer but why? The market had to be at 1005 to keep the
position — it had to show a 3-point profit on the close.
How would you get out of this position? You would have used a stop close
only order after the first half day to sell the position: 1004 stop close
only.
The example gives you several interesting situations and perhaps just as
many questions about Rule 1. Rule 1 will not protect you from wrong entries!
That is your job. You must solve your own conflicts in your trading. Rule 1
did take you out of the trade on the close because you were not proven
correct based on the required criteria.
Keep in mind this example is a very different situation than you would
expect of your trading program. You can’t have a program that says, if the
market doesn’t go to 980, it looks for the market to go to 1100 sometime.
There has to be a time frame on when to expect 1100.
When a market doesn’t go up anymore, somewhere it isn’t correct to stay in
the position, regardless of the expectations. The market must prove and
continue to prove. There can be simple or complex strategies in your program,
but when the position is not going according to the expectations, it is wrong
– not when it proves your stop price got hit.
Stops? Yes, we did use a stop to get out. We did not use the stop as the
criteria for getting out. The stop did not prove us wrong, but the criteria
proved us wrong.
I realize that in the example we put conflict, various criteria that was
required for the position to be correct and a bad entry. Does this point out
more than just Rule 1 to you? Rule 1 will get you out of a position that is
not proven correct, but it won’t fix a bad entry. Know your plan before the
market opens! If you had known your plan in this example prior to opening,
you would have never positioned as you did.
ALS: Okay, I see your point. But how can most traders with jobs trade as
the example shows?
POP: I can give you other examples, but it all comes down to the criteria
for proving a position correct. If you trade by looking in the newspaper each
night, your trading plan will be different and your positions must be smaller
as you are going to need wider ranges to work with your criteria.
In the example above, you could never have placed the order to buy the
opening range breakout; therefore, it would never have been in your plans.
You may have had criteria that said to buy yesterday’s low plus one tick or
two ticks and a time of day order that said, TOD10:00a.m. sell 993 stop.
The market would have to be in the bottom half after the first half hour
to get out as the criteria indicated that, to be correct, the market had to
be in in the top half of the range after first half hour.
The other criteria could be met with either OCO (one cancels other) orders
or stop limit close only orders. Not all brokers take all orders so your plan
must include this possibility of difficulty in trading.
For each tool you lose or don’t have in trading, you must reduce your
position accordingly to have an effective long-range program. The farther
away you are from all the tools you need, the wider road you must have.
Reduce the size of your car (position) for the road that isn’t wider.
Now that we have your attention, I think it is clear to see how just two
simple rules can be exploited. You can’t help but understand why trading can
be so difficult. You want to be a knowledgeable trader, and you need to take
all of the difficulty out of your daily trading when the market is closed.
ALS: I would like to ask you a question that I have wondered over the past
couple of decades: When you take a position, do you feel you have taken a
good position?
POP: Never! Do you understand my NO? If a trader thinks at any time they
have a very good trade, they are going to get removed from trading very
quickly. I make the best trade on my trade probabilities program, but who is
to say my guess is better than someone else’s? Never do I know it is a good
trade until it proves to be.
To feel you are making a good trade is signing your death warrant in
trading. The majority of traders do certainly feel they have a good handle on
a trade and are only putting on good trades.
There is an old saying that the market is never wrong. I don’t mean to
protest directly, but I think that is not always the case. However, that is
what we must trade by in price.
Markets go to extremes, and that is certainly a challenge in always being
right. Once we know markets go to extremes, we can put that on our side and
exploit the advantage. Very few traders exploit that advantage. You must
press your winners with Rule 2.
Oftentimes, you won’t understand the importance of pressing the winners,
but it makes no difference as to reason when you collect your profits. Who
really cares if the market is or isn’t always correct? The market price is
what we are measuring our equity with and always will.
In trading nothing goes right for most traders unless they take total
control of positioning and letting the market only prove when a position is
correct. I know I am repeating myself, but there is no better way to impress
information of this insight upon the readers.
I don’t want to see any small traders wiped off the map when it comes to
trading, but that is what happens to most of them. They are small and are
stopped by the big traders and funds most of the time. If they can understand
the urgency of not letting the big traders ruin their plans and hopes, they
will do much better.
The first step is what we are pointing out. I know because I have driven
the big cars on the small tracks. It is better to drive the small car on the
big track, but it just never comes out the same. With a little understanding
we shall change that for them.
–Phantom of the Pit
Wednesday, March 23, 2011
Dear All,
When Is Your “Someday” To Earn Billion In Your Life?
I am sure you all would have come across the below written beautiful
song. We used to sing this song in our school days.
“We shall overcome some day,

Oh, deep in my heart, I do believe,
We shall overcome some day.
We'll walk hand in hand
We shall all be free some day
We are not afraid some day
We are not alone some day
The whole wide world around some day
We shall overcome some day”
The base of this song is “Someday”. Someday you will be living your
life. Someday you will be what you always wanted to be. Someday
you will invest. Someday you will become Billionaire!!
Question is when that someday will come? If it comes, how will you
recognize the “Someday”?
Frankly, I do not know when your “Someday” will come!! (You can
approach astrology division of Destiny Management Services, if you
believe in astrology and if you have desire to know when is your
“Someday”, No Jokes, I am very seriously suggesting). Today, I want
to deal how to recognize that “Someday”. Let us brush up 3 important
events in Stock Market of India in last 20 years.
1. 1992:- After Harshrad Mehta scam, Sensex went down from

4100 to 2200, again to cross 4400 in 1994.
2. 2000:- After Ketan Parikh’s scam, Sensex went down from
6100 to 2800, again to go one side 21000 in Jan.,2008.
3. 2008:- After scam in US, Sensex went to 8200 only to regain
21000 in 2010.
Every time the fall came, Media and Analysts were generous with
their free predication of dooms day. At all the time, they created a
scenario as if there is no tomorrow! You must have heard…This time
it is different!! All is over!! But you know what happened? Market rose
up from ashes and moved ahead to scale the new peak.
Due to our experience of last 20 years in market, knowledge of

investments and astrology, we have been very categorical about
2011 from the day one. We had given the target of Sensex
18500/16000/13000 on 2nd Jan.,2011. While you are reading this,
Sensex has already made a low of 17200!
As the year 2011 is unfolding, Market is dealing with domestic issues

of corruptions, inflation and poor infrastructure. Market is also dealing
with international issues of War, Tsunami, Earthquake, etc.
According to me, utter pessimism, fear, chaos like situations are the
best indicators of recognizing the “SOMEDAY” for investments. I am
investing. My target for Sensex in 2012 is 35000 and 2014 is 45000 !!
Now, just look into yourself and find out when is your someday to
start investing?
Happy Holi to All of You!
Invest With Passion!
Hitesh Parikh.
The secret of discipline
Discipline seems to be that elusive element in trading, the thing you
just can’t seem to get no matter how hard you try. Its a willo-the-wisp
that we’ve only heard rumours about. Do you jump from system to
system, method to method, change your chart constantly and have a
favourite indicator of the month? We roughly call this poor discipline.
However I’ve discovered that there is something more fundamental
underneath this behavior, which is a lack of belief in the system you
are using. You have no faith in it. If you did, all such behavior and
“discipline problems” would vanish in a puff of smoke.
To prove the point, consider this: imagine if I gave you a magic box,
and if you put a dollar in this magic box and pulled the lever it would
always dispense one dollar fifty.
What would you do? Yes thats right, you would do it over and over and
over wouldn’t you? Probably for hour upon hour you would do it.
Would you at any time become bored with this magic box and go in
search of a better one? Would you try to improve it or invent your
own? If you had absolute faith in the fact that the box will dispense the
dollar fifty I say you would have no discipline issues what so ever.
You’d sit there putting in dollars and cranking the handle like maniac.
The problem is that in trading the dispensing of the dollar fifty is not so
obvious but blurred under a win / loss ratio and other complications,
but quite honestly the process of trading is the same.
Hence I say that if you are still jumping from system to system and
have poor discipline, try reframing it as having no faith or belief in the
system you are using.
Saturday, March 26, 2011
Dear All,
How About Selling Silver at Rs.300000 Per Kg.?
Our Track Record In Silver:-
We had spotted silver in July 2004 when it was trading at Rs.10000

per kg. We had recommended to all our friends through SMS in
October 2006, at 17500, again in August 2009 at 24000 / Again at
31000 in Oct 2010 and latest at 47500 in Feb.,2011!! Through out this
journey, we have been asked at what price to sell? We are trying to
answer the same. But first, why it is moving up?
Why Silver Prices Are Moving Up?
A few months ago, Mr. Bart Chilton of the Commodity Futures and
Trading Commission (CFTC) said he “believes that there have been
repeated attempts to influence prices in the silver markets”. Global
banking firms JP Morgan and HSBC now potentially face class action
lawsuits alleging they had forced silver prices down for their own
benefit. Since Mr. Chilton blew the whistle, it was game-on. The silver
price started playing catch-up without fear of getting crushed by the
big players.
Historical Ratio of Gold to Silver:-
For the last few thousand years the gold price has been fifteen times
more than the silver price on average. This wasn’t by design, and
was probably just because gold is fifteen times rarer than silver in the
earth’s crust. This fifteen-to-one ‘gold-to-silver price ratio’ stayed true
through history right up to start of the twentieth century.
Then as Central Banks grew in power, silver was kicked off the
podium and lost its importance. It soon became a shiny financial relic
from a ‘less educated’ time. So the relationship between the gold
and silver price changed completely. So much so, that silver has
been around seventy times less valuable than gold for the last
few decades.
Factors Influencing the Silver Prices:-
Value Of Money:-Paper money’s value was based purely on the

bond of trust we have in Central Bankers. But this bond has been
broken. World over, Central bankers have become printing press of
notes and they are likely to continue printing more notes in
foreseeable future.
Stock of Silver:- There are only 1.2 billion ounces of silver bullion in
the global ‘stockpile’. At $30 an ounce, there are only $33 billion
worth of silver available. Total value of Silver is just half of Net worth
of Mr. Bill Gates!! Considering how many buyers there are worldwide,
this market is tiny!
ETFs:- The real game-changer is the money going into Exchange

Traded Funds (ETFs). Incredibly these hold about 60% of the world’s
silver stockpile already. There’s really not much silver out there left to
buy, and the ETFs are quickly buying what’s left. They snapped up
another 1.5% of the global stockpile in November alone. It would take
less than two years to mop up the rest at that rate.
Unusual Problem In Silver Mining and Supply:- We find gold

mines strewn across Russia, South Africa, Mexico, Peru, Chile and
China but Silver actually appears as an after-thought in Lead or even
Zinc mines as an associated metal. The extraction rate is as lowly as
1 gm to a 1 tone of mud. Eighty per cent of silver supply comes as
a by-product from mining companies producing other metals.
There are no dedicated Silver Mines!! So supply can not be
increased !!!
What is our call?:-
We believe silver will catch up with the historical ratio of Gold to Silver
in the times to come. It has come up from 1:70 to 1: 38 (Current price
of gold is USD1430 per ounce and Silver is USD 37 per ounce) in last
3 years alone….just think what will happen if prices moves to 1:15 in
coming years??? Or what will happen to silver prices, if gold prices
goes to USD 2000/USD 5000?
I believe this is once-in-an-investment-lifetime opportunity.
How to Invest in Silver?
We have suggested a risk free strategy to our clients…you can also

join us and know more about the same or you can follow your own
investment consultant, if you have.
Hitesh Parikh.
Saturday, March 26, 2011
Dear All,
Sub:- 52 Lessons in Investor Educations.
To Celebrate Warren Buffett’s Indian visit, I have taken 52

best quotes of him. Kindly read them, think on them and
share your views on them with me. This will give you an
opportunity to learn what investment is all about. Just start
reading one after another…
1. A public-opinion poll is no substitute for thought.

2. Chains of habit are too light to be felt until they are
too heavy to be broken.
3. I always knew I was going to be rich. I don’t think I
ever doubted it for a minute.
4. I am quite serious when I say that I do not believe
there are, on the whole earth besides, so many
intensified bores as in these United States. No man
can form an adequate idea of the real meaning of the
word, without coming here.
5. I buy expensive suits. They just look cheap on me.
6. I don’t have a problem with guilt about money. The
way I see it is that my money represents an enormous
number of claim checks on society. It’s like I have
these little pieces of paper that I can turn into
consumption. If I wanted to, I could hire 10,000
people to do nothing but paint my picture every
day for the rest of my life. And the GNP would
go up. But the utility of the product would be zilch,
and I would be keeping those 10,000 people from
doing AIDS research, or teaching, or nursing. I don’t do
that though. I don’t use very many of those claim
checks. There’s nothing material I want very much.
And I’m going to give virtually all of those claim
checks to charity when my wife and I die.
7. I don’t look to jump over 7-foot bars: I look around for
1-foot bars that I can step over.
8. I never attempt to make money on the stock market. I
buy on the assumption that they could close the
market the next day and not reopen it for five years.
9. If a business does well, the stock eventually follows.
10. If past history was all there was to the game, the
richest people would be librarians.
11. If you’re in the luckiest 1 per cent of humanity,
you owe it to the rest of humanity to think about the
other 99 per cent.
12. In the business world, the rear view mirror is
always clearer than the windshield.
13. Investors making purchases in an overheated
market need to recognize that it may often take an
extended period for the value of even an outstanding
company to catch up with the price they paid.
14. It takes 20 years to build a reputation and five
minutes to ruin it. If you think about that, you’ll do
things differently.
15. It’s better to hang out with people better than you.
Pick out associates whose behavior is better than
yours and you’ll drift in that direction.
16. It’s far better to buy a wonderful company at a fair
price than a fair company at a wonderful price.
17. I’ve reluctantly discarded the notion of my
continuing to manage the portfolio after my death –
abandoning my hope to give new meaning to the term
‘thinking outside the box.’
18. Let blockheads read what blockheads wrote.
19. Look at market fluctuations as your friend rather than
your enemy; profit from folly rather than participate in
it.
20. Long ago, Sir Isaac Newton gave us three laws of
motion, which were the work of genius. But Sir Isaac’s
talents didn’t extend to investing: He lost a bundle in
the South Sea Bubble, explaining later, ‘I can
calculate the movement of the stars, but not the
madness of men.’ If he had not been traumatized by
this loss, Sir Isaac might well have gone on to discover
the Fourth Law of Motion: For investors as a whole,
returns decrease as motion increases
21. Most people get interested in stocks when
everyone else is. The time to get interested is when no
one else is. You can’t buy what is popular and do well.
22. Never count on making a good sale. Have the
purchase price be so attractive that even a mediocre
sale gives good results.
23. Of the billionaires I have known, money just brings
out the basic traits in them. If they were jerks before
they had money, they are simply jerks with a billion
dollars.
24. Only buy something that you’d be perfectly happy
to hold if the market shut down for 10 years.
25. Only when the tide goes out do you discover who’s
been swimming naked.
26. Our favorite holding period is forever.
27. Price is what you pay. Value is what you get.
28. Risk comes from not knowing what you’re doing.
29. Risk is a part of God’s game, alike for men and
nations.
30. Rule No.1: Never lose money. Rule No.2: Never
forget rule No.1.
31. Wall Street is the only place that people ride to
work in a Rolls Royce to get advice from those who
take the subway.
32. The business schools reward difficult complex
behavior more than simple behavior, but simple
behavior is more effective.
33. The investor of today does not profit from
yesterday’s growth.
34. The line separating investment and speculation,
which is never bright and clear, becomes blurred still
further when most market participants have recently
enjoyed triumphs. Nothing sedates rationality like
large doses of effortless money. After a heady
experience of that kind, normally sensible people drift
into behavior akin to that of Cinderella at the ball.
They know that overstaying the festivities — that is,
continuing to speculate in companies that have
gigantic valuations relative to the cash they are likely
to generate in the future — will eventually bring on
pumpkins and mice. But they nevertheless hate to
miss a single minute of what is one helluva party.
Therefore, the giddy participants all plan to leave just
seconds before midnight. There’s a problem, though:
They are dancing in a room in which the clocks have
no hands.
35. The only time to buy these is on a day with no “y”
in it.
36. The smarter the journalists are, the better off
society is. For to a degree, people read the press to
inform themselves-and the better the teacher, the
better the student body.
37. There are all kinds of businesses that Charlie and I
don’t understand, but that doesn’t cause us to stay up
at night. It just means we go on to the next one, and
that’s what the individual investor should do.
38. There seems to be some perverse human
characteristic that likes to make easy things difficult.
39. Time is the friend of the wonderful company, the
enemy of the mediocre.
40. Value is what you get.
41. We believe that according the name ‘investors’ to
institutions that trade actively is like calling someone
who repeatedly engages in one-night stands a
‘romantic.’
42. We don’t get paid for activity, just for being right.
As to how long we’ll wait, we’ll wait indefinitely.
43. We enjoy the process far more than the proceeds.
44. We simply attempt to be fearful when others are
greedy and to be greedy only when others are fearful.
45. We’ve long felt that the only value of stock
forecasters is to make fortune tellers look good. Even
now, Charlie and I continue to believe that short-term
market forecasts are poison and should be kept locked
up in a safe place, away from children and also from
grown-ups who behave in the market like children.
46. When a management team with a reputation for
brilliance tackles a business with a reputation for bad
economics, it is the reputation of the business that
remains intact.
47. Should you find yourself in a chronically leaking
boat, energy devoted to changing vessels is likely to
be more productive than energy devoted to patching
leaks.
48. Why not invest your assets in the companies you
really like? As Mae West said, “Too much of a good
thing can be wonderful”.
49. Wide diversification is only required when investors do
not understand what they are doing.
50. You do things when the opportunities come along.
I’ve had periods in my life when I’ve had a bundle of
ideas come along, and I’ve had long dry spells. If I get
an idea next week, I’ll do something. If not, I won’t do
a damn thing.
51. You only have to do a very few things right in your
life so long as you don’t do too many things wrong.
52. Your premium brand had better be delivering
something special, or it’s not going to get the business
I have marked some of the thoughts with red and blue. Kind
read them, read them again, read them again, again and
again. You will surely benefit.
Thanks.
Hitesh Parikh.
Thursday, March 31, 2011
Dear All,
Sure Shot Tips To Make Money In Financial Year 2011-

2012.
On the eve of 31st March 2011, I was thinking to share about

the sure shot ways to make money in Financial Year 2011-
2012. I have listed them below for you all. Please read them
and follow. They are very simple…but not easy.
Find Your “Why?”
The reason most people go through life with big dreams but fail
to achieve them is because they ask themselves “how” before
they know their “why”. If you know the purpose, you will find
out the ways to achieve the same. So, work on your “WHY”.
Get To Know Yourself
The perfect trader-if such a person exists-is methodical and

careful about making decisions, extremely disciplined, resilient
to setbacks, with a high degree of internal confidence. He
holds strong opinions but is also able to admit quickly when he
is wrong, not take it personally, and view it as a learning
opportunity rather than a failure. He understands the value of
leaving his ego at the door. He’s willing and able to trust his
gut and place big bets when the opportunity presents itself. In
fact, that pretty well describes the ideal blend of
characteristics of any successful person, no matter what he is
doing professionally or personally.
Learn To Love The Process
The best traders don’t think about how many millions they
need to make each year. They focus on making the best
trading decision they can with each trade they make. And if
there isn’t a good trading opportunity right now, they have the
discipline to do nothing and just wait. Concentrating on one
trade at a time is their process.
Sharpen Your Edge
Gaining a competitive advantage is like having a two-edged

sword, and you need to keep both of them sharp. On edge is
internal-knowing what unique skills you bring to the table. The
other is external and comes from gathering knowledge that
makes it more likely you’ll succeed.
Be All That You Can Be
The takeaway lesson for everyone wanting to optimize their

own performance without regard for what others are doing is
fourfold:
1) Know your edge;

2) Act only when you have the edge;
3) Avoid taking the outcome personally because it involves
factors that are beyond your control;
4) Measure your success in terms of how well you performed
and not only the outcome.
Keep Your Cool
Deciding when to cut your losses is one of the toughest

decisions for anyone to make, but traders at the top of their
game know that they always have to make the decisions
they need to make, which may or may not be the ones
they want to make. Learn to book losses at right time.
Get Comfortable With Being Uncomfortable
In the trading world, you will either make money or lose money
on any given trade. All that matters in the end is making more
money when you’re right than you lose when you’re wrong.
Knowing this, traders have learned to accept failure as part of
the game, but they also use the information they acquire from
their mistakes as a learning tool. Frequently, what they learn
from losing money is more valuable than what they learn when
they make money.
Make Yourself Accountable
Commitment, perseverance, and discipline are the

characteristics that move people beyond desire to action, that
differentiate mediocrity from greatness, and that separate
greatness from superstardom.
And to sum up: True success begins with a state of mind. But
it takes specific actions and behaviors to move from intentions
into action and get results. So, take actions now…
Can We help?
Our experience has made us to believe that we follow the

above mentioned steps. If you know your "WHY", please feel
free to contact us for "HOW" and "WHEN".
Wish you all a very successful financial year 2011-2012.
Hitesh Parikh.
Dear All,
Are You Ready For Investment World Cup 2012

& 2014?
World cup is the zenith of achievement in any sports. Team

India has established that they are Champions in the World
in Cricket.
We believe that there is always a Secret of Winning in game

and in investments. Let me draw some of my observations
from yesterday’s game.
Early Preparation:-
Great achievement requires great preparations and
Mr.Sehwg told they were planning since 2010 for the world
cup 2011. I have been categorical in my call that market will
touch 35000 in 2012 and 45000 in 2014….The time to invest
is now !! Prepare yourself now.
Role of Professional Coach:-

Great success needs great coach. Team India had Gary
Kirsten. Warran Buffett has Charlie Munger. You will also
need a Professional investment consultant to guide you. It is
the best investment you can ever do before you invest.
Proper Mix of Portfolio:-

The best of the players can fail when you need them most…
Sehwag and Sachin were out when we needed them most !!
Market can fail best of your calculations, research and
forecast. Be ready with proper mix of portfolio…Team India
had a good mix of players. Check your portfolio. Our
experiences show that 70-80% of the investment is in 20%
of the shares!! You can not generate excellent returns in
such portfolio.
Support of your Near & Dear:-
Team India had backing of India. You will feel most
comfortable and confident if you know that your relatives
and friends are with you. Take them into confidence. Their
support will provide the best comfort in the times of despair
and you will have people around you to celebrate when you
win!!
Team Spirit:-
In your winning, you will always find that you had support of
your investment consultant, your broker, your trader, your
near and dear and the market. Be humble to acknowledge
them.
Captain’s Innings:-
At the end of the day, you are the captain of your funds. It
can happen that market may fail you, your calculations may
also fail…but if you want to win…you will change with the
market, you will take challenge on yourself and play…
Mr.Dhoni did the same yesterday.
World Cup Offer:-

You can join our investment advisory services till 17th Of
April, 2011 at a special discount of 20%. Incidentally, as per
Hindu Calendar New Year and Navratri Starts from 4th April.
If you join us you have 3 advantages. Right Time ( you are

investing at 19000 index for 35000 and 45000 levels). Time
is Auspicious ( Hindu New Year and Navratri Starts) and you
get 20% discount also !!
So, What are you waiting for???
Invest With Passion.Hitesh Parikh.
Saturday, April 09, 2011

To,
Dear All,
Week After World Cup…..IPL !!
It has been a week of celebrations for India…From Ordinary

to Extraordinary, everybody celebrated like anything. The
overall mood was positive. Market was also positive at the
start of the week.
Let us see what happened since the World Cup final….
1. Team India got the prizes and surprises in cash and

kind. Many of them have been offered advertisements
contracts at revised rates. They are happy.
2. Support staff, coaches, commentators and all other
agencies related to World Cup arrangements got their
share of rewards.
3. Bookies betted for India or against India made or lost
money.
4. India as a Country made a name in the world of cricket
as a team of champions.
5. Common man clapped. He enjoyed. He danced on the
street. He spent out of his pocket to take part in the
enjoyments.
What Next?
Now our dear common man is ready to clap for IPL teams.
How Does This Relate To A Normal Investor?
Sensex moved up from 3600 in 2003 to 21000 in 2007…..our

normal investor clapped. Sensex went down from 21000 to
8000 in 2008, he grumbled. Again From 8000 in 2008 to
21000 in 2011, he clapped again.
What Next As An Investor?
Sensex will touch 35000 to 45000 in coming years. Normal

Investor will again take part in clapping.
The Truth of Share Market Investments:-
“Bulls Make Money, Bears Make Money But Pigs Gets

Slaughtered.”
I am not against any celebration or sports. The point is what

is your role? Are you ready to become investor? The biggest
reward for cricket went to the players same way the biggest
reward at 35000 or 45000 Sensex will go to investor!!
Want to become true investor? Contact us.
Hitesh Parikh.
Normal investor reads news papers, watches business

channels and discusses for or against any investments as if
he has invested millions in an asset.
April 17, 2011

Dear All,
How to Beat the Inflation with Just Rs.1 Lakh?

Inflation is Part of our Life:-
Thanks to central bankers of the world. Inflation has become

part of our life. Price of anything and everything is moving
up, up and up. Governments around the world are facing
unrest and revolution because of the inflation. There is utter
chaos and confusion in the mind of common man. He is
concerned with maintaining his day to day life at the same
level as he used to live before 2008.
Can We Provide Solution?
We have one unique way to beat the inflation with ease. The
unique way is simple but not easy. However, we can make
that easy for you. We need a capital of just Rs.1 lakh for
trading. I know you all will be ready to take out Rs.1 lakh
provided we give you solid planning and strategy.
How It Works?
We suggest that you divide Rs.1 lakh into 5 parts of

Rs.20,000 each.
We will give you trading ideas on daily basis through

messages or emails. In fact, we send emails on the previous
day for the next day trading.
You are supposed execute our calls through your broker. You
can open an online account with any broker of your choice.
You can also open a trading account with us.
Maximum investment in any calls will be just Rs.20,000. So,

you can play minimum 5 calls a day.
We expect you to earn minimum Rs.2000 per day. There are
254 days in a year when stock market is open. So, you can
earn upto Rs.5 lakhs extra in a year.
With extra Rs.5 lakhs and your regular income (from your
job, profession, business etc), I think you will not only be
able to beat the inflation but also maintain the lifestyle of
your choice.
Our experiences:-
I am sure your skeptical mind will argue immediately that if

this is so easy, how come everybody is not doing it?
Moreover, I am talking about earning up to Rs.5 lakhs from
Rs.1 lakh and that too in a year… For those who are earning
10% per annum in fixed deposit or 20% per annum in Mutual
funds would find it hard to accept.
Let me deal with your skeptical mind…..
Everybody is not doing this because they do not know that

this is possible and they are not trained to trade!! I am sure
you would not have thought about earning up to Rs.5 lakhs
extra in a year before you read this email!!
On 2nd Feb., 2011, we had launched a programme - If you

invest just Rs.1 lakh, you can accumulate up to 220
grams of gold in coming year…in spite of market
movements. Since then we have got many clients to
give references to you, who are earning Rs.2000 per
day and above.
Socrates had said…"I cannot teach anybody anything; I can

only make them think." Same way, I can only make you think for
the possibilities of making money. I am sure if you think today,
someday you will act. You have a choice…you can have your
“someday” ….TODAY or sometime in future. Make your choice.
Want to earn extra Rs.5 lakhs? Contact us.

April 17, 2011
Dear All,
Questions & Answers on How To Beat the Inflation?
Thanks for your questions. Since morning, I have

received following questions on above email. Main
questions are as under.
1. Is It Possible?
I have many clients who are earning this amount

everyday….I can give you references for the same.
In short, it is 100% possible.
2. How Is Works?
You will get my email on the previous day for the

next day trading followed by sms on the trading day.
Eg. For trading on Monday, you will get email on
Sunday and also sms on Monday morning before
trading starts.
3. What Are The Charges?
We want you to try our services for 1 month to 3

months. Once you get 100% satisfied, then only you
can go for yearly contract with us. For 1 month we
will charge token of just Rs.7500 and for 3 months
our charges are Rs.18000. Proof of Pudding lies in
eating…so try for 1 month to 3 months and come to
your own conclusions.
Let me know, if you have any other query.

Want to earn extra Rs.5 lakhs? Contact us.
Hitesh Parikh.
Monday, April 18, 2011
Dear Mr. Rangan / Mr. Vinod,
With regards to your email to me and your email campaign

against so called SPAM, I would like to clear my stand.
Kindly go through the same….
My Background:-
I am an MBA and CFA and I am in stock market since 1992. I

have seen 5 cycles of Teji and Mandi.
I had started my career as a research analyst. I moved up

from Research to Portfolio Management and currently I
generate 85% of income from my own investment and just
15% from investment advisory. So, I need not steal
somebody’s data base or spam you guys. Even, I am not
encouraging people to do broking with me.
My Track Record:-
This may give you some idea….
2008:- On 5th Dec.,2008…we had given a buy call for 2009 and rest is
history. Market doubled form 8000 odd levels to 17000 in just 6
months.
2010:- We had clearly said that market is correcting time wise and it
did happen. Sensex gave just 17% return….our recommendations
generated 93% return.
2011:- We gave a call for 18500/1600/13000 index…you know what

happened till date.
Now Real Question...Why then I am sending emails to you
guys???
If you shout a lie 100 times, listeners start believing it as a

truth. Same way small investors are being duped by Media,
News planting, IPOs and other investment campaign.
In last 20 years of my experience in this market…I have not

heard a single time….great investors have done investments
in mutual funds or they have done SIP or they have made
money based on their broker’s tip. They all have made
money by following investment principles.
My Mission :-
I want you all to become a real investor. I want you all to

know what real investment is all about. How most successful
investors of our time invest? With money printing business
going on around the world…you are losing value of your
money faster than ever before in the past. Right investment
will only save you. I want you all to do the same.
I hope, I have made myself clear to you all.
My Request:-
If anyone of you is not interested to receive my emails,

please let me know. I will remove your name from my
database with immediate effects.
With Best Regards,
Hitesh Parikh.
Saturday, April 30, 2011
Dear All,
From Expenses Management To Income Management.
A Year in A Life of A Normal Individual:-
If you look at the balance sheet of a normal individual you will find
that he is earning X amount through his job/business/profession. The
same is being spent on food, clothing and shelter. Some of it goes
into investments for tax savings, some into tax payments and some
goes into social obligations.
The Focus:-
Before the income is received, planning is done for allocations of

funds and management of expenditures. Because of constant
pressures on Expense Management, he is unable to enjoy the money
he earns. You may ask, why he is not concentrating on Increasing the
Income?
Is it possible to increase the Income?
If he is in job, his income is governed by company policies, his

efficiency v/s. his colleagues and his skill sets. Age also plays a big
role. In business and profession also he faces government policies
and competitions. In short, normal individual perceives that to
increase income is more difficult than managing expenditure and
living a life of compromise!!
Abnormal Expectations:-
From his experiences of life, Normal Individual has experienced two

sure shot results….
1. His income has increased at a slow and steady rate.

2. He has received regular payments.
So, when he comes to Shares Market…He expects….

1. The price of shares must increase, once he has purchased!
The height comes when he expects, price of shares sold by him
should not increase!!
2. His investments must give regular returns.
The Hard Facts of Shares Investments:-
The way your income is determined by company policies and normal

environment around you…in shares investments your income is
decided by Mr.Market.
Mr. Market has its own way of rewarding. It may come in as early as
a minute and it can take years also!! It promises a playing field, not
the game. It promises to reward risk, not proportionately. It promises
opportunity, it does not promise profits. It promises a lesson, not
learning. It promises that the quality of indicators and analysis is
proportionate to quantity of participants, not quality.
How Smart Investors Play?
They know the market’s mood. The way you manage your
expenses…they manage their losses. Isn’t it easy to understand
now ? The way you keep some money for rainy day, they protect their
capital with stop losses, so that they can play when market provides
them the best opportunity.
Is it a BEST TIME to Invest Now?
We maintain our call that market will touch 35000 to 45000 levels by
2012 to 2014. If you invest now, you can double your money…How
about increasing your income now?
Make Your Choice.
Hitesh Parikh.

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From the Desk Of Hitesh Parikh:-

That is the past.

A solid growth rate in GDP: 6.2% per annum.

Inflation at 7% per annum.

But what does the future hold for us?

And can we come to any conclusions based on those expectations?

Looking over the gloom.

Table 1: Linking economic growth to stock markets.

Markets, as we know, never rise -or fall - in a straight line.

People tend to do the opposite - they get scared. They withdraw.

One may not "know" but one can try to decipher.

Have a Nice Thinking this Weekend.

In this service, we give investment advice on various opportunities through out

This service has a holistic approach towards investments – we guide you

Salient Features of The scheme:-

1. We will study all your investments in Equity, Mutual Funds.

Let me know your decision.

Welcome to the Destiny Management Services.

Kindly take following steps.

Account Holder Name:- Hitesh Parikh.

If you find it difficult to remit then send the cheque on my address :-

a. Name Of the Company b. Qty c. Avg. Pur.Price

Knowledge V/s Action:-

Successful Triangle of Investment has Three Dimensions viz. Knowledge,

Sunday, March 08, 2009

Market Next Week:-

Life Betterment Idea :-

Wish you all a Happy Weekend.

Sunday, March 15, 2009

Sub. : Market Next Week.

The Last Week:-

Sunday, March 22, 2009

The Last Week:-

Last week we recommended 4 scrips to our clients – Buy Hanung Toys

Sunday, March 29, 2009

Sub. : Market Next Week.

Sunday, April 05, 2009

The Last Week:-

Sunday, April 12, 2009

The Last Week:-

Sunday, April 19, 2009

The Last Week:-

We recommend to be cautious if the index continues to struggle to move beyond

Sub. : Market Next Week.

Where is the Sensex Headed ?

Sunday, May 23, 2009

Sub. : Market Next Week.

The Last Week:-

Sub. : Market Next Week.

The Last Week:-

c) A close below 13450 would be needed to signal a short-term trend reversal.

The medium-term trend too continues to be up and a close below 12200 is

Be fearful when all others are Greedy.

Sub.: Summary of Our Meeting

In the meeting we discussed following areas.

1. Your Family Back Ground.

After listening to your talk, I had provided following options to you.

In this service, we give investment advice on various opportunities through out

This service has a holistic approach towards investments – we guide you

Salient Features of The scheme:-

1. We will study all your investments in Equity, Mutual Funds.

Investment Management Scheme :-