Key Reasons why Financial Planning is important…

We are aware that financial planning enables us to reach our financial goals in a much more organized and scientific manner. But, have you ever wondered about the importance of financial planning in your financial scheme of things. In fact, the importance of financial planning can be gauged from the following 13 unique factors. These are the 13 unique reasons why financial planning is so important. We prefer to call it the “Bakers Dozen” of financial planning. Continue reading

Trading Rule – “Beware the Risk of Selling Options”…

Selling options has limited upside and unlimited downsides. If you thought people must be crazy to sell options, think again! 95% of all options expire worthless. That means, in 95% of the cases, it is the seller of the option who makes money. But selling options is for the experts. If you try selling options without knowing the downside risks, it could spell disaster for you. Watch out! Continue reading

Key Areas in which Financial Planning can be done…

Financial planning is all about milestones. You first identify the key milestones. Then you plan for these milestones (both in terms of returns and in terms of risk). Eventually, you need to monitor these milestones at regular intervals so that corrective action can be taken. These milestones are also called as various life events which have major financial and risk implications. Typically, your key milestones are specifically identified and then unknown goals are clustered into a generic category. Let us look at 6 of the key areas in which financial planning can be done… Continue reading

PSU Bank Mergers

The challenge will be in handling the softer aspects…

The cabinet finally approved the plan to merge PSU banks. With gross NPAs of the PSU banks at over 12.5%, there was little else that could have been done. However, there are a few key things to know about the next steps in the PSU bank merger plan.… Continue reading

Trading Rule – “Don’t be in a hurry to bottom-fish stocks”…

There is something seductive and buffettian about bottom fishing for stocks. It is the dream of every trader to buy at the bottom and sell at the top. In practice, though, it rarely happens. P/E and valuations are just a plain theoretical approach to buy stocks of deep value. In reality, the time for bottom fishing is when the last optimistic bull has been squeezed out of the markets.
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