You may have heard that trading is a zero-sum game. That means, in the simplest scenario, every trading win has a complementary trading loss, equal in value. Adding the two together results in zero.
You buy 100 shares of some company for $30 a share. You pay $3,000 and get 100 shares in your portfolio. Let’s say your neighbor sold you those shares.
A week later, the stock rises to $34/share. A whopping 13.33% rise in just a week! You decide to sell and pocket the profit.
Let’s say your neighbor buys it back from you at this price. You…
About three decades ago, I was walking the corridors at my work and saw a short yet poignant story pinned to the outside of some cubicle. I never forgot about it.
Let’s take a look:
This is a story about four people named Everybody, Somebody, Anybody and Nobody.
There was an important job to be done and Everybody was sure that Somebody would do it.
Anybody could have done it, but Nobody did it.
Somebody got angry about that, because it was Everybody’s job.
Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn’t do it.
“I don’t have a coverall to go into the crawl space,” said the technician.
He said that with a straight face too. I was watching him closely.
You may not think much of it, except, he was the one the extermination company, let’s call X, sent to deal with precisely our situation. A stinky one at that.
I mean it literally. The stink in the air was unmistakable. However, it was building for a few days and it took my wife and me a couple of days to make sure it was reason enough to call X.
We put through…
There once was a king in India who was fond of chess.
He would often challenge visitors to a game of chess. A wise man once accepted such a challenge.
The wise man beat the king in the game. A good sport, the king asked the man to name his reward.
The humble man replied, “O, King! All I want is a few grains of rice. …
The Rule of 72 is a guideline to estimate how long an investment that earns compound interest takes to double. This guideline helps you plan your investment mix in several ways. Much has been written on this topic, right here in Making of a Millionaire, and elsewhere on Medium. And, of course, on the web.
A simple way to compare different investments is to look at their annual rates of return. The higher the rate, the higher the investment balance over time, for the most part.
A practical way to compare the effectiveness of investments is to compare the times…
Last month was special.
In May, my wife Praveena and I celebrated our 40th wedding anniversary! Sadly, I cannot but wonder if I had precipitated a crisis by planning that celebration. Let me explain.
Anniversaries come and go every year like clockwork. That’s what they do. It’s up to us to make the most of them. Praveena and I have done pretty well over the years, but there is one lingering — mostly unfulfilled — desire for an anniversary celebration: travel.
My wife’s major dream was to visit Australia for our 25th anniversary. Didn’t happen. Life happens, and it didn’t…
I was sitting in a chair, upright. My surrounding was unremarkable. Just a basement with its usual dim lighting. I wasn’t paying attention to it anyway.
I was simply looking at my mother. She was lying down on a bed in front of me. She was looking at me as well. We didn’t speak for a while.
Breaking this silence, I started to sing. By myself, a solo A Cappella.
As I was singing, I watched my mom intently. Her gaze was fixed on me. She didn’t say a word.
I finished the song. There was a brief pause. Still…