Philosophy, Process and Portfolio Statement

Philosophy
An investment philosophy is a set of core beliefs that you can go back to when
the original plan on investment has not worked well for you. It is also a coherent
thinking, how the market works and the investor’s behavior towards trading.

 assess the risk, be aware of the cost of trading and understand the financial
statement.
 Generate a view on how will the market behave and where they might fail
 Seek stock that you believe are currently underpriced by the market and whose
prices will eventually rise significantly
 Must be aware of the risk and return trade off
 Engineer the strategy by diversifying the portfolio
 Investment decision does not stop when you acquire a stock, vigilant monitoring
of its performance is critical.

Process
One should kick start his decision making with a mental preparation. This has to
start before you invest on anything in order to have an efficiently performing portfolio.
One should identify,exploit opportunity in markets, observe,research,and conduct trade
planning.
Second step is performing or managing your movement along with the
movement of the market. This involves risk management, entry and exit execution, how
well you will adjust to new datas in the market, and how the trader will execute and
engage on a daily basis
Last critical point to keep in mind is to learn. After the preparation,actual
performance of the stock and the trader himself, and review of the key factors, one
should understand, examine and learn from the mistakes to aid future performance. He
must review the issues and learn to plan more precisely than he did the last time.

Portfolio Statement
 Your portfolio statement brings together information about your investment, so
you can see at a glance how your portfolio is doing.
A profitable portfolio means a satisfied client. A wise trade off decision will bring
forth an efficient portfolio.

 The return on the portfolio with the risk as measured by sharpe ratio
 The total gain over the trading period.