Something I Say Again and Again…

Mindset

1. $5 Invested has potential to be $5 Million or more in 100 years.

2. Over time, one big winner in the long term portfolio can cover for the losses of 100’s of losers – provided you did not sell any.

3. A bear market is when stocks return to their rightful owners.

4. Prepare for the Worst, Hope for the Best.

5. Fear is Temporary. Greed is Permanent.

6. Use your weekend to build the life you want, instead of escaping the life you have.

7. Let the painful past be a powerful catalyst for a future-focused mindset.

8. There is a big difference between an idea and execution. Orkut and Myspace were an idea – Facebook is an execution.

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Investing Principles

1. There is no other asset class which will give you a return better than stock market can.

2. Over time, one big winner in the long term portfolio can cover for the losses of 100’s of losers – provided you did not sell any.

3. Trading makes money, Investing creates Wealth.

4. Buying a home is an emotional decision and not a financial one.

5. Frugality can beat Inflation.

6. Don’t be an IPO Cheer Leader – They don’t get paid well.

7. My underlying assumption is that all crypto potentially can go to zero one day. Invest carefully and wisely.

8. 401K – Keep it in S&P 500 equivalent (VOO). Try to keep it around 10% of your net worth.

9. Always keep maximum money in the “Investment” account – and less money in the “Trading” account. I prefer 80-20 Ratio.

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Trading Principles

1. Always keep Trading and Investing separately – in separate accounts.

2. 1% Stop loss / 2.5% Profit will allow you to be profitable in trading even by being right only 3 times out of 10.

3. Options are always a TRADE – don’t make them an investment.

4. Kharidne Wale Ki Jeb Khali, Bechne Wale Ki Tijori Khali – for options buying and selling.

5. Trading makes money, Investing creates Wealth.

6. Earnings are less about what the company reported but more about what they are going to report next (Guidance).

7. Winners keep on winning. Losers keep on losing.

8. Nothing good ever happens to any stock which is trading below its 200 Day Moving Average.

9. During the downturn – you want market to open red – as much red as possible.

10. Fundamental analysis will tell you what to buy. Technical analysis will tell you when to buy.