Another tickling entry in the dictionary-like book is about those ‘scintillating specimens of sparkling soul and wit’ who ‘spend their time locked away in offices and actually enjoy compiling and poring over rows upon rows of numbers’ – the accountants! It’s a thoroughly useful thing to have a good accountant, suggests the author. “The way to go about finding one is to ask friends first if they know a reliable, trustworthy (with the emphasis on trustworthy) accountant.”

What is ‘bear raid’? Not ‘Winnie the Pooh raiding the larder for honey,’ clarifies Doughty. ‘Dead cat bounce,’ she explains as a ‘charming phrase’ City dealers use ‘when the stock market plummets downwards and then pathetically bounces a tiny bit, only to sink flat on its back again.’

Then, there is the ‘dog,’ a dud share, which is usually the share that a good ‘friend’ tipped you to buy. “The dog has been sitting in your portfolio for years, and you’ve always refused to sell it in the conviction that one day, it will rise in value. And very occasionally, luck strikes and it does.”

Makes learning joyous.

Losing a little money can be educational, says Michael Sincere in ‘Understanding Stocks’ ( www.tatamcgrawhill.com). One, it forces you to analyse what you did wrong. “Determine whether the strategies you and your financial adviser are using are on the right track,” advises Sincere. Two, the loss tests your character, he says. “If you crunch k eyboards or throw things around when you lose money, you had better change investment strategies. Successful investing and trading is not supposed to be exciting – the pros take their gains and losses in stride.”

Three, it forces you to be disciplined, especially if you had failed to ‘limit your losses or protect your winnings.’ And four, it forces you take action. Rather than repeating the same mistakes, you have the chance to get it right the next time, counsels the author.

Well-presented.

Commodity contrasts

There is a stark contrast between capital markets and commodity markets, notes ‘Commodity Derivatives’ from Indian Institute of Banking & Finance ( www.macmillanindia.com ). “In the commodity market, statutes today keep out a huge section of the financial players, like banks, insurance companies, mutual funds, FIIs, NRIs and pension funds.”

Commodity derivatives can play an important part in the risk-management strategies employed by banks and financial institutions and their customers, the book proposes.

“The Banking Regulation Act prohibits banks from dealing in goods. The RBI has interpreted this to imply that banks are prohibited from dealing in derivatives on goods. This prevents banks from fully engaging in the agricultural economy.”

For a serious study.

Mini-breakthroughs

Learn how to convert interruptions and detours into mini-breakthroughs, instructs Al Secunda in ‘The 15-Second Principle’ ( www.jaicobooks.com ). He offers two techniques for the purpose. One, don’t take the problem personally.

“Develop another eye that enables you to detach yourself from the immediacy of the situation. This will enable you to think, act, and feel from a fresher and more objective place.”

Secunda likens the problem to that of an emergency-room doctor trying to save the life a young boy whose parents are weeping and screaming in the reception room.

“To do your best work, you can’t afford to let their panic and pain overly influence you. To take the most appropriate actions you would have to remain calm, trusting, and focussed,” he says.

“At some point, you would have to become larger than the situation; otherwise, you would become a victim of it.”

Another tip that the author recommends is ‘to take quick mini-actions that will guide you back into an experiential performing mode.’ What caused you to go off course in the first place is often your veering into a result, approval, or control mode rather than an experiential one, he reasons. “It is difficult to live and perform in present time, when you are totally obsessed with reaching a goal, receiving accolades, and controlling everyone and everything around you.”

Readily usable inputs.

http://BookPeek.blogspot.com

More Stories on : Books | Management | Book Value

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

---

---