Additive Connectivity

What’s your market footprint like?

Meaning, where do you tread?

How do you tread?

Are you making a hash of it?

Do you connect the dots?

Are you organized?

Does your one action span across multiple goals?

What exactly are we talking about?

Chaos. 

You are your own light. 

Nobody can help you, except you, ultimately. 

Therefore, gear yourself up, to win the game for yourself. 

It possibly won’t come to exist, that you do one market thing. 

Market activity is multi-faceted. 

Even if you’re trading one single entity, there are many actions that go along with this one single activity. 

Yes, we’re talking about market actions. 

The sum total of your market actions is your market footprint. 

Make your actions additive. 

Meaning?

Each action should add to you. 

If an action is not adding to you, don’t do it. 

Even an action that stops further loss adds to you, for example. 

Also, make your actions connect across segments. 

Meaning?

Let’s say I’m eyeing a stock for a possible purchase, or a repurchase. Stock gaps down next morning, before my action. Aha. Hold. 60-70% of all gap-downs play out further. There’s a solid reason for gap-downs. So… hold. Yeah, action on hold. Why? I will possibly get a better price for reentry later, there’s a 60-70% chance of that. Thus, an action now won’t add to me. Action postponed. What do I do with the money set aside for the repurchase? Liquid mutual fund purchase. Online. Seamless. Connecting across? Absolutely. I’m simultaneously accumulating liquid funds to later go in for a private-placement NCD. Therefore, my one action from the equity segment has connected across to the debt segment. Yeah, connectivity. Additive. Stopped me from possible high entry. Made upcoming NCD purchase more possible by adding to its intended corpus. Additive Connectivity. 

Yeah, make yours a winning footprint. 

Before signing off, I’d like to share with you that i’ve just decided to take additive connectivity to the nth level for myself. 

Sure, I’ll be sharing more examples. 

Sharing brings joy to everyone, even to the person who is sharing. 

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What’s your Answer to Dictatorial Legislature?

Cyprus almost bust…

Money from savings accounts being used to pay off debt…

Five European nations going down the same road…

US economy managing to function for now, but without any security moat (they’ve used up all their moats)…

Our own fiscal deficit at dangerous levels…

Scams in every dustbin…

Mid- & small-caps have already bled badly…

Let’s not even talk about micro-caps…

Large-caps have just started to fall big…

Just how far could this go?

Let’s just say that it’s not inconceivable to think… that this could go far.

Large-caps have a long way to fall. I’m not saying they will fall. All I’m saying is that the safety nets are way below.

I see one big, big net at PE 9, and another large one at PE 12. Getting to either will mean bloodshed.

Inflation figures are not helping.

In a last-ditch attempt to get reelected, the government recently announced a budget for which it’ll need to borrow through its nose.

Oops, I forgot, it doesn’t have a nose.

The whole world is aware about work-culture ground-truths in India.

Things are out of control, and this could go far, unless a miracle occurs and Mr. Modi gets elected. Before such an eventuality, though, things could go far.

When large-caps fall, everything else falls further.

How prepared are you?

Hats off to those with zero exposure.

Those with exposure have hopefully bought with large margins of safety.

Those who are bleeding need a plan B.

In fact, a plan B should have been formulated during good times.

Anyways, how prepared is one for a Cyprus-scenario, where dictatorial last-minute legislature allows the government to whack money from savings accounts?

In future, you might need to find a solution for loose cash in savings accounts. It needs to be kept in a form where government doesn’t have access to it.

As of now, what’s serving the purpose is an online mutual fund platform, through which loose cash can be moved and parked into liquid mutual fund schemes. For government to exercise full control over mutual fund money, it’ll probably need to be more than a bankruptcy scenario.

That’s just for now. Adaptability is the name of the game. It’s always good to be aware of one’s plans B, C & D.

Is Your Money Comfortable?

Everyone likes being comfortable.

So does your money.

Can you function optimally under tension?

Well, neither can your money.

So… make it comfortable. Allow it to breathe.

Money is a concept, a force.

Soon, it’ll find its flow. Till it does, yes, you’ve allowed it to breathe.

What does all this mean?

What are we talking about?

Don’t worry, I’m not getting metaphysical on you…, yet.

Simple – no confinement, no locking, just parking, no further expectations – that’s when your hard-earned life-savings breathe freely.

Yeah, you park them, where you can see them.

If, then, a daily dividend emerges, well, that’s a bonus. Try and make sure that the avenue you’ve used for parking doesn’t reduce your corpus on a daily basis, even slightly. You are more than happy with a miniscule daily dividend, which, of course, is auto-reinvested into the same avenue.

Now, both entities are breathing freely – you and your corpus.

You can take a break.

Reassuring is the fact that your resting corpus is visible to you on your mobile.

You do take that break.

At times you think – freely.

You enjoy life for a bit.

Slowly a thought process emerges.

Where will your money go next?

Where does it want to go?

What’s the most lucrative path for it to flow upon?

You listen to the universe.

The answer floats in the universe.

It is your answer – the resultant vector of your struggle and learning.

For it to flow into your mind, your per saldo vibration must match the exact vibration of that part of the universe, where your answer lies.

If there’s a mismatch, then perhaps you need to struggle a bit more, till your vibration gets even finer and there’s a match.

The solution flows into you.

It’s like an energy bomb, that slowly explodes inside of you, and as the emitted energy starts to seep into every cell of your body, your new system simultaneously starts to dawn upon you.

You are now ready to move your funds to a more permanent and lucrative location. Speed of movement is defined by your new system. So are time, mode, avenue, repetitiveness and tenure.

Meanwhile, your funds have remained intact. That’s a very big thing. Very few human beings know how to keep their funds intact. If you know it, you already know a lot.

Soon, your new system takes over. More than half the battle’s won already.

All the best, wish you well, and if I did get metaphysical on you, it was only to get the point across.

Maybe you actually even liked the meta-bits, so let’s call it even stevens.

A Tool By The Name of “Barrier”

Come into some money?

Just don’t say you’re going to spend it all.

Have the decency to at least save something.

And all of a sudden, our focus turns to the portion you’ve managed to save.

If you don’t fetch out your rule-book now, you’ll probably bungle up with whatever’s left too.

Have some discipline in life, pal.

The first thing you want to do is to set a barrier.

Barrier? Huh? What kind of barrier?

And why?

The barrier will cut off immediate and direct access to your saved funds. You’ll get time to think, when hit by the whim and fancy to spend your funds.

For example, a barrier can be constructed by simply putting your funds in a money-market scheme. With that, you’ll have put 18 hours between you and access, because even the best of money market schemes take at least 18 hours to transfer your funds back into your bank account.

Why am I so against spending, you ask?

Well, I’m not.

Here, we are focusing on the portion that you’ve managed to save.

Without savings, there’s nothing. There can be no talk about an investment corpus, if there are no savings. Something cannot grow out of nothing. For your money to grow, a base corpus needs to exist first.

Then, your basic corpus needs a growth strategy.

If you’ve chalked out your strategy already, great, go ahead and implement it.

You might find, that the implemetation opportunities you thought about are not there yet.

Appropriately, your corpus will wait for these opportunities in a safe money market fund. Here, it is totally fine to accept a low return as long as you are liquid when the opportunity comes. There is no point blocking your money in lieu of a slightly higher return, only to be illiquid when your investment opportunity comes along. Thus, you’ve used your barrier to park your funds. Well done!

Primarily, this barrier analogy is for these who don’t have a strategy. These individuals leave themselves open to be swept away into spending all their money. That’s why such individuals need a barrier.

An online 7-day lock-in fixed deposit can be a barrier.

A stingy spouse can be a barrier.

Use your imagination, people, and you’ll come up with a (safe) barrier. All the best! 🙂

Your Personal War in Cyberia

Are you illiterate?

Literacy is not just alphabetical.

The meaning of literacy has expanded itself into your cyber world and also into your financials.

I mean, can you call yourself literate without knowing computer and financial basics?

I don’t think so. Not anymore. Times have changed, and so must you, in case you want to be called literate.

One of the first things one learns during one’s quest for financial literacy is the operation of one’s netbanking.

Once you are logged in, you soon realize, that your assets are under attack, and must be appropriately secured.

Login password, secure login, phishing filter, security questions, transaction password…you are learning fast. Your vocabulary is changing. Your defences are up. Yes, you are at war.

What kind of a war is this?

More of a cold war, till it gets hot for you, which can happen, but is not a must.

Worst-case scenario is that someone cleans you out. As in, a cyber thief steals all your money that was reflecting in your netbanking.

Your common-sense should tell you that your netbanking password is the all-important entity. Tell it to no one. Store it in a password safe. Keep changing it regularly. Don’t forget to update it in your safe. The safe of course opens with its own password, and is in sync between your mobile and your desktop. On both your mobile and your desktop, internet security prevails. Meaning, don’t use an el cheapo antivirus. Use a good one. Pay for it.

If there is a large amount reflecting in your account for a number of days without being used, secure it. Even if someone hacks in, available amounts should be as minimal as possible. Let the hacker first deal with unsecuring a secured amount. This gives you a time-window, during which you read and respond to any sms sent by your bank, that a secured amount has now been unsecured. The shot has been fired, your watchman has alerted you, and you now need to respond.

For the amount to be actually transferred out of your account, one more thing needs to happen. The hacker needs to set up a new payee under third party funds transfer. Some banks take three days for this, during which they coordinate with you whether or not you really want this payee to be set up. Other banks have a one-time password (OTP) system, where a transfer can only be activated by an OTP sent by sms to the registered mobile number linked to the account. Works.

Nevertheless, hackers seem to be getting around these systems, because one hears and reads about such cyber thefts all the time. However, the window created by your systems in place gives you crucial time to respond.

What is your first response, after becoming aware that you are under cyber attack?

Relationship manager (RM) –  call him or her. After you’ve alerted your RM, login if you can, and secure any unsecured amount. Change your login and transaction passwords, along with security images, words, questions and answers. Delete all payees. Logout. Close all windows on your desktop. Clear all history, cache, temporary files, cookies and what have you. Run a virus cum spyware scan. Clean any viruses, then shut your computer.

How does one go about securing unsecured amounts?

Make a 7 day fixed deposit with your unsecured amount. Or, configure your mutual fund operations through your Netbanking itself, and transfer the unsecured amount to a trusted liquid scheme offering 18-20 hour liquidity, all through your netbanking. Pretty straight-forward.

After you’re done, join your RM in finding the loophole. If you’ve incurred a loss, file a police report along with an application for reimbursal, citing all security measures you undertake as a given while also outlining the chronology of your actions after you realized that you were under attack.

That’s about it, I can’t think of anything else that you could do. If you can, please comment.

Right then, all the best!