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Why A Casino Always Makes Money

Ever wondered why people almost always lose money in a Casino (except for the few times when luck works in their favour and they leave richer than when they first entered)? Well, for starters, the House always wins because they rig the game. How?

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Trade Expectancy

Trade expectancy is the calculation that shows what the typical profit is for each trade that is placed. If it's a negative, the strategy is a loser. Here is an easy way to understand it with a simple example.

Firstly, the calculation combines how many trades are typically won with the average loss on losers and the average gain on winners.

Say for example, you buy a stock at Rs.100, your stop loss/risk for the trade is 10 points (you will sell when the price falls to Rs. 90) and your target is 20 points from you purchase price ( i.e, Rs. 120).

Views from Fort Aguada

Views from Reis Magos

The view we got from Reis Magos, a fort in Bardez, Goa

DHFL is a HOT MESS right now. Why?

Dewan Housing Finance Corporation Ltd. is a home finance company which has caught itself up in a problem they did not see coming. So what's all the fuss about?
This is what normally happens: You put your hard earned money in a low risk debt instrument (usually marketed by a mutual fund)  and forget about it for sometime because you know (or atleast you think you do) your money isn't going anywhere. DHFL comes and borrows money from a debt mutual fund for its HF loans. This keeps on happening periodically and the general understanding is that the company will repay your MF in regular intervals of time. End of story.
This is what has happened:

Cross Default Covenant

Cross default is a provision in a bond indenture or loan agreement that puts a borrower in default if the borrower defaults on another obligation. Simply put, if you take a housing loan from Bank A repayable yearly for 5 years at a fixed interest rate, you are liable to pay the installments at the end of the year. However, if you have also taken some other kinds of loans, say for example, car loan from Bank B, and end up defaulting on that, Bank A will ask you to pay the rest of your amount immediately instead of waiting for the loan term to end.

So, a default on one loan becomes a trigger factor for the repayment of the other loans that you have taken.

Why? The answer is a question.

What guarantee does Bank A have of you paying up their money and not running away when you are struggling to pay up to Bank B right now?

Better to get paid now rather than wait and cry later on. Cut your losses short.

Summer Holiday Reads

The thought of vacations sometimes is a lot more fun than the actual vacation for some people. Summer holidays can get quite boring if you don't have anything on your calendar. At that time, you'll remember just how much you miss college. But the hols (that's a word from the very popular child detective series "The Famous Five") can also be a very good time to brush up on some reading and help widen your perspective and understand of the world while you become a couch potato (atleast that way, you win one time).

I've compiled a list of books that have the power of getting you hooked on and for sometime (even if just for a few hours a day) giving you the opportunity of living the lives of the characters in the books. Afterall they do say, "A normal person lives only One Life, but a reader lives a thousand in a lifetime". 

Jeffery Archer Books: Clifton Chronicles

Mightier than the SwordSins of a Father
 Personal Favorites:

Be Careful What You Wish For O…