Saturday, January 23, 2010

Stock Trading (Pareto Analyses)

* 80% of the profits come from 20% of the trades (Know what makes these trades click and make more of these).

* 80% of the losses results from 20% of the trades (Know what makes these trades result in loss & avoid).

* 80% of the stock movement happens in 20% of the time (Use this fact and make max use of time).

* 80% of the profit is lopped up by 20% of the traders (Aim to be in this list).

* 80% of the losses are suffered by 20% of the bottom traders (avoid this list).

* 80% of the profits come due to 20% of good habits (Know these habits and follow them religiously).

* 80% of the losses come due to 20% of bad habits (Know these habits and avoid them).

* 80% of the patience is displayed by 20% of the investors (that is why they win big)

* 80% of the traded volume is in 20% of the stocks (traders better concentrate here),

* 80% of the stocks move considerably just 20% of the time (traders better concentrate on the rest)and 20% of the stocks move 80% of the time (like suzlon)

* 80% of the luck happens in 20% of the trades (inference = u can't always depend on luck while trading, merit of the trade is crucial)

* 80% of the fall happens in 20% of the time. (But 80% chase the fall for the balance 20% and suffer.)

* 80% of the "Experts" agree with each other only 20% of the time. (Inference = if u blindly follow the "experts", God be ur saver!

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