Anirudh Sethi Report

1. Traders must have the perseverance to stick to trading until they break through to success. Many of the best traders are just the ones that had the strength to go through the pain, learn, and keep at it until they learned to be a success. 

2. Great traders cut losing trades short. The ability to accept that you are wrong when a price goes to a place that you were not expecting is the skill to push the ego aside and admit you are wrong.
3. Letting a winning trade run as far as it can go in your time frame is crucial to having big enough winners to pay for all your small losing trades. 
4. Avoiding the risk of ruin by risking only a small portion of your capital on each trade is a skill to not get arrogant and trade too big, if you risk it all enough times you will lose it all eventually. 
5. Being reactive to actual price action instead of predictive of what price action will be  is a winning principle I have seen in many rich traders. Letting price action give you signals is trading reality, trading your beliefs about what price should be is wishful thinking.
6. Great traders are bullish in bull markets and bearish in bear markets, until the end when then trend bends. 

7. Great traders care more about making money more than any other thing. Proving they are right, showing off, or predicting the future is not as important as hearing the register ring.

It looks like the International Monetary Fund has been jinxed. It’s fated. It’s doomed! The next managing director should start wearing garlic around their neck already or at least burn sage in their office to ward off evil spirits. Seems these days that anyone that steps into the shoes of the Managing Director of the IMF ends up becoming fated, the object of all desire. The man (or woman) to be in the sites of all our guns. The one to be bumped off.

Christine Lagarde has defended herself. She has stated, declared, promised and reiterated countless times until she has gone blue in the face that she did not do anything untoward. “I always acted in the interests of the state and in conformity with the law” she said last night before she headed off at double-quick speed to chit-chat with her lawyer. All image! Outwardly calm and collected. Inwardly, terrifiée. She is an ‘assisted witness’ in the Adidas case, embroiling Bernard Tapie (and the 45 million euros that were awarded to him, which Lagarde never appealed against as Finance Minister of France) and Sarkozy’s (illegal?) election funding in 2007 and 2012. Being an ‘assisted witness’ is a nice way of putting it that you aren’t going to be prosecuted yourself, but you had some dangerous dabbling and fancy footwork going on and the judge knows more than you think. Why is it that the French always allow their past Ministers and Presidents to be ‘assisted’? I thought they hated their image of ‘assistanat’ (translate as: (state) dependency)!

Jacques de Larosière (yes, another Frenchman), Managing Director of the IMF from 1978 until 1987 once wrote about moral hazard. Moral hazard is the name given by insurers to people who take risks just because they are insured and that they wouldn’t have taken those risks had the insurance policy not existed. Maybe he should have got on the blower to Lagarde before she took the risk of toying with Tapie and told her that; and maybe he should have stunted Strauss-Kahn’s ardent desires in room 2820 of the Sofitel Hotel NY before he took the risks.

But Lagarde and Strauss-Kahn are not the only ones that have been involved in scandals. Some of other Managing Directors have too (thankfully, not all of them, and not all of them while they were in office at the IMF). >> Read More

This may be an unpopular suggestion, but those with a contrarian view of the world will surely appreciate the logic here. The chart below from Goldman shows the consensus economic forecast for 2013 GDP growth of the large Eurozone nations. Again, this is not the actual GDP, but a forecast over time.

It shows that the “herd” of forecasters following each other in the realization of how dire the recession has been across the area. But keep in mind that these are some of the same forecasters that 18 months ago were calling for a “shallow” downturn in these nations (see discussion). Many weren’t even talking about a possible recession. And now they are continually downgrading their predictions – after the fact?

Sober Look

>> Read More

 ICICI Bank, India’s largest private sector bank, has proposed a pay hike of over 20% to its top management team just months before issue of new bank licences to corporate houses by the Reserve Bank of India.

The board of directors have rewardedChanda Kochhar, the managing director and chief executive offer of the bank with a 20.75% salary hike to Rs 5.12 crore in 2013. The board has also decided to raise the minimum and maximum range of monthly supplementary allowance for Kochhar to Rs 10-18 lakh from about Rs 8.70 lakh per month.

Other directors have also got pay hikes of over 20%. NS Kannan, the chief financial officer, received a 26.17% hike which is the steepest hike among the top brass at the bank. K Ramkumar, executive director and head human resource at the bank received a 24.78% hike of Rs 3.56 crore.

The salary of Rajeev Sabharwal, executive director and head of the bank’s retail banking and rural initiative that’s been the driver of profit for the March quarter increased by 20.56% to Rs 3.20 crore. The steep hike comes at a time when the Reserve Bank of India and the government are considering fresh banking licences to select corporates.

Pillorying the government of the day for pervasive corruption is the easy thing to do, whereas it might just be an escapist option. It helps those of us who are neither in politics nor in the government to pretend that we are not tainted, and therefore have the right to point fingers at politicians, who we assume are not. The truth, as recent events have brought home forcefully, is that corruption has permeated fields that have nothing to do with politics and government.

The cricket establishment is a disgrace, and now suspected of far worse than the misdemeanours of the Indian Olympic Association, for which that body has suffered the deserved misfortune of being thrown out of the international Olympic movement. If it is spot fixing in cricket, it has been widespread doping in wrestling; problems persist in half a dozen sports bodies, whose recognition the government has withheld. You could argue that it is politicians who mostly run the sports bodies, except that none of the people around Mr Kalmadi were from the world of politics. In any case, the cricket boss is a businessman. >> Read More

Jones is considered one of the best traders in the business for one main reason: CONSISTENCY! He has produced positive returns for 25 straight years! I don’t know the exact number of years, but you get my point. The fuel behind his consistency is his discipline, specifically his ability to manage risk and cut losses.

Besides his tremendous success as a trader and a hedge fund manager, what makes Jones an even bigger hero in my view is his philanthropy. I love the phrase “The secret to living is giving” and Jones truly exemplifies this quote. In other words, what’s the point of being successful if you never give back to others? As Jones says in this 60 Minutes interview: “You find your joy in life through service and sacrifice.” Enjoy the video!

Must Watch !

From Everest to the Antarctic, Globe-Trotter suitcases have travelled around the world. With a history stretching back to 1897, this luxury luggage-maker has some very famous fans. Bloomberg paid a visit to Globe-Trotter’s British factory to see how they do it

Above is Qtly Chart of Nikkei-225

Just Click and Enlarge it.

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