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Hope, Fear, Greed

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“Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble… to give way to hope, fear and greed.” – Benjamin Graham

The story is a familiar one: an enduring bull market (whether it is in commodities, equities, etc) often make the general public believe that the trend can continue forever. The greed from being left out of a potential gold mine rises to proportions that create a mad buying frenzy – aptly supported by media and wide-spread mania. This goes on for a while. Then at some time, a fear starts to creep in as the market is not perceived as strong as initially assumed. Over time, this fear turns into panic selling – and often the prices drop to a level way below what it was when the whole craze began – and from which it will take even years to recover.

The most realistic distinction between the investor and the speculator is found in their attitude toward stock- market movements. There is nothing wrong in buying stocks for speculation. There is no crime in that. And if you are buying stocks for speculation it is perfectly proper to take speculative factors into account, which are different from investment factors. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices.

Most people are however into the stock market in search of quick profits – the fast and easy money – and often they develop methods, philosophies, etc that are touted as ways to make money but are controlled by shortsightedness. In fact, in India one could make a wild guess and say that at least 95% of the investments are done with short-term motivations. Naturally, such traders are always looking for (and regularly fed by the media) what can be called short-term stimuli. If news on a given day is good, it is a buy and if news on the next day is bad, it is sell – regardless of the long term economic prospects of the economy or the company. And as such, the search for momentum drives their enthusiasm and trading patterns.

The feeling of missing out on an opportunity to take home a profit is the most psychologically trying and dangerous situation all traders face. Often one experiences more pain from missed opportunities (errors of omission) than realized losses (errors of commission). This is perhaps the ultimate paradox – that our human instinct and desire to fit in with the crowd often paves the way to our financial ruin.

Due to the overwhelming power of the crowd and the tendency for trends to continue for lengthy periods of time on the basis of this strength, the trader is faced with a conundrum: does he or she follow the strength of the crowd or defy it valiantly based on his own analysis. Sadly, if the investment orientation is short-term, the crowd often wins. It is suffice to say that Operations for profit should be based not on optimism but on arithmetic.

The Author is the Founder and Managing Director of Hedge Equities

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Features

Success Tips for Young and Aspiring Entrepreneurs

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An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. They are commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

Not all of them have a mentor or chance to meet one. So here are some tips to motivate the entrepreneur in you.

Do work you care about
There’s no doubt that running a business take a lot of time. Steve Jobs noted that the only way to be satisfied in your life is to do work that you truly believe in.

Take the risk
We never know the outcome of our efforts unless we actually do it. Jeff Bezos said it helped to know that he wouldn’t regret failure, but he would regret not trying.

Believe in yourself
As Henry Ford famously said, “Whether you think you can, or think you can’t, you’re right.” Believe that you can succeed, and you’ll find ways through different obstacles. If you don’t, you’ll just find excuses.

Have a vision
The founder and CEO of Tumblr, David Karp, notes that an entrepreneur is someone who has a vision for something and a desire to create it. Keep your vision clear at all times.

Take action
The world is full of great ideas, but success only comes through action. Walt Disney once said that the easiest way to get started is to quit talking and start doing. That’s true for your success as well.

Manage energy, not time
Your energy limits what you can do with your time, so manage it wisely.

Build a great team
No one succeeds in business alone, and those who try will lose to a great team every time. Build your own great team to bolster your success.

Learn from mistakes
Many entrepreneurs point to mistakes as being their best teacher. When you learn from your mistakes, you move closer to success — even though you initially failed.

Know your customer
Dave Thomas, the founder of Wendy’s, cited knowing your customer as one of his three keys to success. Know those you serve better than anyone else, and you’ll be able to deliver the solutions they need.

Learn from complaints
Bill Gates once said that your most unhappy customers are your greatest source of learning. Let unhappy customers teach you where the holes in your service are.

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Entertainment

Perfect weekend getaways in Kerala for your Christmas holidays

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No plans for Christmas holidays yet? Here is your getaway guide!

Christmas is the festival of joy and giving. It is that time of the year when you spend time with your loved ones. With Christmas falling on a Monday, it’s going to be a long weekend for many of us. Here is our list of places where you can spend the weekend with your family and friends.

Wayanad

If you are an adventure freak, Wayanad is going to be the best place for you. Adventure activities from Cycling to Mountain Climbing, Wayanad brings out the adventure soul in you. A relaxed night camp with campfire on a starry night would be the best way to spend your weekend.

 

 

Munnar

Munnar is a beautiful hill station in the Idduki district. The term Munnar refers to ‘Moon Aaru’ which means three rivers. It is known for cardamom and tea plantations. This hill station is also famous for the ‘Neelakurinji’ flower which blooms once in 12 years. If you are looking for a laid-back holiday, just soak into the beauty and greenery of the place. You can also go for boating and pay a visit to tea museum and tea plantations.

             

 

Thekkady

Thekkady is heaven for nature lovers. This place evokes the love of nature in you. It is known for the Periyar Wildlife Sanctuary which is one of the largest national parks in the country. Bamboo rafting, visiting the reserve through trekking, jeep or boating, camping in the woods are few of the highlights of this place.

 

 

Vagamon

Vagamon is a hill station located on the Kottayam- Idukki border. The greenery expanded across and the gushing water place is a favorite spot for photographers and couples. Since this scenic place has not been touched with any kind of commercialization, it offers many adventurous activities for people like rock climbing, trekking, paragliding etc.

      

 

Alappuzha

Alappuzha also known as Alleppey is one of the famous tourist destinations in Kerala. This place will make you fall in love with backwaters.  Lazily cruising in the houseboats with lush blue sky and allure of the greenery around will make you forget about all your problems.  Apart from boat rides, the city is home to many holy shrines like Ambalappuzha Sri Krishna Temple, Chettikulangara Devi Temple and more. There are also many churches in the town like Champakulam Church, St. Sebastian’s Church and Edathua Church. The city also has a carefully preserved statue of Buddha.

 

 

Make your Christmas Merrier by going to these beautiful places with your loved ones.

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Features

SHOPPERS, STOP AT KOCHI

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As Kochi cements its place as the shopaholics destination to splurge on, we look at the trends that emerge.

Kochi undoubtedly is the coolest place to be in Kerala right now. The ambience and lifestyle, the walkways alongthe water bodies, interlocked alleys, the brilliantly starry nights, busy roads and people, crowded railway stations, this city is vibrant as any. A Mumbaikar friend who was recently at Kochi kept telling me that the place reminded him of Mumbai but I was not sure to be flattered or offended, for Kochi we like to believe has a character of its own.

Bringing Together Two Worlds

It comes as no surprise that buildings are shooting up like mushrooms in Kochi, and the infrastructure development has taken to a whole new level considering the burgeoning population and their affluence. Notwithstanding the general perception of being a lazy foreigner’s haven with an unlimited supply of
“peace of mind” sprayed all over these group of tiny islands, the swanky urbanised Kochi throws an

lulu

amazing shopping experience to the shopaholics. Like with every other thing, Kochi stays ahead of the rest of Kerala as a shopping destination too, with multitudes of shopping centres and malls opening up. You probably had seen a plain stretch of land a few years back, and when you return, you find a magnificent place, that’s the pace at which Kochi grows.

The Big Ideas

When the idea of constructing India’s largest Shopping Mall brewed in the minds of the promoters, we think thatthe only question they had in mind was “Where in Kochi?” ; Kochi, it would be was a foregone fact. To say that Lulu Mall has changed the way Kochi, sorry, Kerala shops would be an understatement. I once overheard a conversation between an elderly couple, and it went “Where the hell did all these people buy their stuff before this place came up?”; a very valid question considering how quickly the Kochiites have adapted to and embraced the mall culture.

Shifting Lifestyles

The Kochi Folks have completely changed their routines, preferring to ‘eat, drink, watch and entertain’ rather than spending a sweet Sunday at their sweet homes. The malls now have more movie screens than one could imagine, and they run full houses almost every day of the week. We would say it’s clever enough to book the ticket ahead a week and relax, be calm and enjoy the movie with a bag of popcorn. Kochi also boasts about the India’s first Leadership in Energy and Environmental Design(LEED) certified gold-rated green mall, and this even sounds refreshing and healthy. Nucleus Mall at Maradu with a 273,000 sq ft area brings this eco-friendly atmosphere with symphony halls, a multiplex and food courts.
As the backwaters, antique shops and Chinese fishing nets create the  traditional story, the contemporary Kochi talks about shopping malls, iced drinks and fast food. The purchasing power of the Kochi population is seeing an upward curve and this is proportionally balanced by the availability of more international brands. Shopping malls are major players in providing visual merchandise and the window shopping that inevitably happens to trigger the desire.

Making it Work

In addition to more than seven existing popular malls, Kochi will witness a massive mall-storm in the near future, and the additional count from a credible source says 11 more. It is quite difficult to fit that context into our minds, but the builders seem so comfortable to fit their structures in that tiny map. With a current estimated 20lakh sq ft of combined mall area in Kochi, roughly the size of a whole small airport, 11 more is something beyond what we could
fathom. Kochi impresses its residents every time, and this mall culture has seriously increased the brief outings
and pleasurable get-togethers. The malls are standing high enough to touch the sky of Kochi with pride. I would want to know what our elderly couple would have to say about the mall mania in Kochi and of course, the reaction will be “11 more? Really? ” Yes, really, But we are sure the people of Kochi are looking forward and will embrace these as they did to the malls that have already arrived. With these beautiful structures that are springing up day in and out, the iconic marine drive and the Kulukki sarbath that quenches your thirst, the beaches and cool, happening things that goes in Kochi on my mind, I am forced to borrow a catchphrase from my Mumbai friend “ Kochi Meri Jaan.”

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