16 Investment Ideas for 2016 – NEW YEAR Gift To Our Regular Readers.
16 Investment Ideas for 2016 – NEW YEAR
Gift To Our Regular Readers.
Greetings
from Hitesh! This is the last day of 2015. Many guys have joined in the December.
They all are set for the Prosperous New
Year with us. If you also want to make tons of money – I invite you to join
fast. This time we have decided to share the 16 Investment ideas for 2016. Just
follow it and I am sure you will make tons of money for the next year and your
lifetime. There is lot of confusion between Speculation and Gambling. Let us
deal with that first before we proceed further.
Speculation V/s. Gambling:-
My
simple understanding is - Speculation is a venture based upon calculation.
Gambling is a venture without calculation. The law makes this distinction;
it sustains speculation and condemns gambling.
All
business is more or less speculation. The term speculation, however, is
commonly restricted to business of exceptional uncertainty. The uninitiated believe that chance is so large a part of
speculation that it is subject to no rules, is governed by no laws. This is a
serious error. There are RULES and if you do not follow them – you will
get RUINED.
There
is no royal road to success in speculation. Our effort will be to set for
the great underlying principles of the "art" the application of which
must depend on circumstances, the time and the man.
Let us
first consider the qualities essential to
the equipment of the speculator. We name them: Self- reliance, judgment,
courage, prudence, pliability.
1. Self-Reliance. A man must think
for himself, must follow his own convictions. George MacDonald says: "A man cannot have another man's ideas
any more than he can another man's soul or another man's body." Selftrust
is the foundation of successful effort.
2. Judgment. That equipoise,
that nice adjustment of the faculties one to the other, which is called
good judgment, is an essential to the speculator.
3. Courage. That is,
confidence to act on the decisions of the mind. In speculation there is value
in Mirabeau's dictum: "Be bold,
still be bold; always be bold."
4. Prudence. The power of
measuring the danger, together with a certain alertness and watchfulness, is
very important. There should be a balance of these two, Prudence and Courage; Prudence
in contemplation, Courage in execution. Lord Bacon says: "In
meditation all dangers should be seen; in execution one, unless very formidable."
Connected with these qualities, properly an outgrowth of them, is a third, viz:
promptness. The mind convinced, the act should follow. In the words of Macbeth;
"Henceforth the very firstlings of my heart shall be the firstlings of my
hand." Think, act, promptly.
5. Pliability the ability to change
an opinion, the power of revision. "He who observes," says Emerson,
"and observes again, is always formidable."
The
qualifications named are necessary to the makeup of a speculator, but they must
be in well-balanced combination. A deficiency or an overplus of one quality
will destroy the effectiveness of all. The possession of such faculties, in a
proper adjustment is, of course, uncommon. In speculation, as in life, few succeed,
many fail.
Each
department of life has its language, expressive if not elegant, and in dealing
with the subject we must perforce adopt the language of the Street. The laws
given will be found to apply to speculation of any kind. They are universal
laws; but for the sake of clearness we assume the case of speculation as conducted
in one of our exchanges, where they can be best demonstrated.
LAWS ABSOLUTE. (Means must be followed)
1. Never Overtrade. To take
an interest larger than the capital justifies is to invite disaster. With such
an interest a fluctuation in the market unnerves the operator, and his judgment
becomes worthless.
2. Never "Double Up"; that
is, never completely and at once reverse a position. Being "long,"
for instance, do not "sell out" and go as much "short."
This may occasionally succeed, but is very hazardous, for should the market
begin again to advance, the mind reverts to its original opinion and the
speculator "covers up" and "goes long" again. Should this
last change be wrong, complete demoralization ensues. The change in the
original position should have been made moderately, cautiously, thus keeping
the judgment clear and preserving the balance of the mind.
3. "Run Quickly," or
not at all; that is to say, act promptly at the first approach of danger, but
failing to do this until others see the danger, hold on or close out part of
the "interest."
4. Another rule is, when doubtful, reduce
the amount of the interest; for either the mind is not satisfied
with the position taken, or the interest is too large for safety. One man told
another that he could not sleep on account of his position in the market; his
friend judiciously and laconically replied: "Sell down to a sleeping
point."
RULES CONDITIONAL.
These
rules are subject to modification according to the circumstances, individuality
and temperament of the operator.
1. It is better to "average up"
than to "average down." This opinion is contrary to
the one commonly held and acted upon; it being the practice to buy, and on a
decline to buy more. This reduces the average. Probably four times out of five
this method will result in striking a reaction in the market that will prevent
loss, but the fifth time, meeting with a permanently declining market, the
operator loses his head and closes out, making a heavy loss - a loss so great
as to bring complete demoralization, often ruin.
But
buying at first moderately, and, as the market advances, adding slowly and
cautiously to the "line" - this is a way of speculating that requires
great care and watchfulness, for the market will often (probably four times out
of five) react to the point of "average." Here lies the danger.
Failure to close out at the point of average destroys the safety of the whole
operation. Occasionally a permanently advancing market is met with and a
big profit secured.
In such
an operation the original risk is small, the danger at no time great, and when
successful, the profit is large. The method should only be employed when an
important advance or decline is expected, and with a moderate capital can be
undertaken with comparative safety.
2. To "buy down" requires a long
purse and a strong nerve, and ruin often overtakes those who have both nerve
and money. The stronger the nerve the more probability of staying too long.
There is, however, a class of successful operators who "buy down" and
hold on. They deal in relatively small amounts. Entering the market prudently
with the determination of holding on for a long period, they are not disturbed
by its fluctuations. They are men of good judgment, who buy in times of
depression to hold for a general revival of business - an investing rather than
a speculating class.
3. In all ordinary circumstances our advice
would be to buy at once an amount that is within the proper limits of
capital, etc., "selling out" at a loss or profit, according to
judgment. The rule is to stop losses and let profits run. If small
profits are taken, then small losses must be taken. Not to have the courage to
accept a loss, and to be too eager to take a profit, is fatal. It is the ruin
of many.
4. Public opinion is not to be ignored. A
strong speculative current is for the time being overwhelming, and should be
closely watched. The rule is, to act cautiously with public opinion; against
it, boldly. To go with the market, even when the basis is a good one, is
dangerous. It may at any time turn and rend you. Every speculator knows the
danger of too much "company." It is equally necessary to exercise
common caution in going against the market. This caution should be continued to
the point of wavering - of loss of confidence - when the market should be
boldly encountered to the full extent of strength, nerve and capital. The
market has a pulse on which the hand of the operator should be placed as that
of the physician on the wrist of the patient. This pulse-beat must be the guide
when and how to act.
5. Quiet, weak markets are good markets to
sell. They ordinarily develop into declining markets. But
when a market has gone through the stages of quiet and weak to active and
declining, then on to semi-panic or panic, it should be bought freely. When
vice versa, a quiet and firm market develops into activity and strength, then
into excitement, it should be sold with great confidence.
6. In forming an opinion of the market, the
element of chance ought not be omitted. There is a doctrine of chances -
Napoleon in his campaigns allowed a margin for chance - for the accidents that
come in to destroy or modify the best calculation. Calculation must measure the
incalculable. In the "reproof of chance lies the true proof of men."
It is better to act on
general than special information (it is not so misleading), viz., the state of the
country, the condition of the crops, manufacturers, etc. Statistics are
valuable, but they must be kept subordinate to a comprehensive view of the
whole situation. Those who confine themselves
too closely to statistics are poor guides. "There is nothing," said
Canning, "so fallacious as facts, except figures." (Most media guys
takes you for a ride here)
"When in doubt, do nothing. Don't
enter the market on half convictions; wait till the convictions are fully
matured."
We have
written to little purpose unless we have left the impression that the
fundamental principle that lies at the base of all speculation is this: Act so as to keep the mind clear, its
judgment trustworthy. A reserve force should therefore be
maintained and kept for supreme movements, when the full strength of the whole
man should be put on the stroke delivered.
It may be thought that the
carrying out of these rules is difficult. As we said in the outset, the gifted
man only can apply them. To the artist alone are the rules of his art valuable.
What NEXT?
We have covered the
best 15 investment and trading ideas so far. Now, the 16th one.
These rules were written at least 100 years back. We have
not invented them!! Our credit goes in following them with full trust on them.
If you wish, we can help
you master them in 2016. Once you master them you enter into the state of
Financial Freedom. We are writing from our own experiences.
2015 is over and many
of you were waiting to join us. New Year will start tomorrow. I suggest you take decision this time and
make a difference in your financial destiny, to start with.
We are open for yearly subscription for
2016. You can also take a trial of 3 months if you wish.
Your decisions today will decide your
destiny in 2016. So, make correct and timely decision to join us NOW.
Wish You ALL A VERY HAPPY WEEKEND.
Follow me on Twitter @hiteshmparikh or
on Whatsapp - +91-9869425399 or www.hiteshmparikh.com
Live With Passion…Invest With Passion.
Hitesh Parikh.
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