The Ultimate Algorithm - just set up and run. You will make tons of money for life time.

7^th April 2024

 

The Ultimate Algorithm – just set up and run. You will make tons of money for life time.

 

Dear Fellow Investors,

 

Namaste! Algo Trading is the in thing for big and tech savvy traders. They are rushing towards newer and newer algo programmes. Tons of share market experts are joining with the tech experts and trying to come out with newer solutions to make money at the speed of thought. I am also following one algo programme. I am going to give it to you free of cost. Just read this post. 

 

What is ALGO TRADING? 

 

As per google – Algorithmic trading or automated trading or just algo trading uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.

The defined sets of instructions are based on TIMINGS, PRICE, QUANTITY or any mathematical model. Apart from profit opportunities for the trader, algo-trading renders markets more liquid and trading more systematic by ruling out the impact of human emotions on trading activities.

In simple language – your computer will trade for you based on your given parameters. 

 

With the AI coming in – the ALGO will be finetuned and more and more software will be available to the investors. 

 

What will happen due to that? 

 

Today each and every broker has their website and most of them are sharing the same corporate information which is easily available in company balance sheets / stock exchange websites. 

 

Going forward each and every broker will be giving the same kind of algo with little change in parameters. They may offer you a software which you can set as per your own parameters. Those who are big – they will set up their own TECH TEAM and try to make money out of the market. 

 

So, if you see in the coming years – we all will be using some or the other algo products without fail.

 

When everybody is doing the same thing – an individual performance can’t be above average. He needs to be different from the rest to outsmart fellow investors. 

 

The Ultimate Algo used by the 6^th Richest Billionaire of the World: - 

 

As per the latest Forbes list the 6^th Richest billionaire is Mr. Warren Buffett. He is also using this algo. I am a follower of him in words and deeds. I just follow his algo. 

 

He along with Munger used a very simple but the most effective algo which is effective even today and will be effective after 1000 years also. The name of the ALGO is INVERT. 

 

They say – invert, invert and just invert. They have taken this algo from the German mathematician - Carl Gustav Jacob Jacobi

 

How to apply this “INVERT” Algo?

 

Say you have to find out the 10 best companies from the BSE SENSEX for the investments. Rather than finding out the best companies – they will start removing the worst performing companies from the list. This is easy also. Now, they go on removing the one worst company after another. They will remove 20 such companies. Now, what remains are the 10 best companies. 

 

Here the focus is not on success. Focus is on not getting the failure. If you focus on success – failure will come along with the same. But if you focus on not getting Failure – success will come by default and stay with you for a longer time.

 

Munger has said the above in his poetic sentence – “All I want to know is where I am going to die so I will never go there.”

 

What happens when you apply INVERT in your life and investments?

 

You will have to do your own thinking. Somebody had said – “people will prefer to die than to think.” When you think and take action – the onus for failure will come on you. It can affect your EGO and SELF-IMAGE negatively.  

 

To avoid damage to the self-image – normal people will do what others do.  They will prefer to follow the masses – media – their religious organisations – their society norms. They want to keep up with the joneses. 

 

People will do what their brokers tell them to do. Today they are investing in SIP / Mutual Funds – because their friends are also doing the same. They will buy the same car as their neighbour has bought. They will go on the vacation to the same place where their friends have gone. Just copy. Don’t think.

 

If you apply INVERT in the above scenario – you will do your own thinking and save yourself from unnecessary expenses and use your money as per your own choice. 

 

This is the reason – I call INVERT the ultimate algo.

 

What NEXT?

 

Life and investments are very simple. You make it complicated by your thought process. All you need is to INVERT before you do anything and you will see miracles in your life and investments. 

 

The fun of doing INVERT is that you don’t need a computer / software or mobile. It’s FREE. The 6^th richest person is using it for the last 80 years.

 

Think beyond the obvious and make your choice.

 

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

 

Learn a Lesson. Live with Passion & Invest with Reason.

 

Hitesh Parikh.