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Wednesday, January 4, 2012

LAW OF CONVERGENCE(L.O.C)

Hey buddies,
I am back!! these university exams really sucks... duh..whateva i'll not take much of your valuable time and will take off with my new post.
One fine day,just running through T.V channels ,i stopped on to one of the channels displaying SHARE MKT....
It showed various crest and trough in terms of profits and loss.I murmured myself "what is that bullshit?...why people invest in share market even if they know that there are much more chances of a loss rather than gain//"
I gave a thought on it and asked myself...."Is it possible to cut down the chances of a possible loss dramatically??...if so how can we?""
I wondered "is it possible to do it mathematically?.....and BINGO!! a new idea landed on my top floor"
The most tricky part(as always) is the nomenclature of the theory.So by observing  the diagrams and calculations involved,i thought of giving it a name as"LAW OF CONVERGENCE (L.O.C)".Sounds cool right?? :P
BASIC PRINCIPLE INVOLVED-
This theory/law simply deals with the predictions relating to the gain or loss in share mkt.(as there can't be any accurate predictions in it)
The figure displayed below shows us a RED box with a pair of inclined lines.
For minimizing any sort of losses our basic aim is to pass the red boxes through the space provided between the inclined lines.(sounds crazy isn't it!!?? ;))...For now this much info. as i think is enough for today !..The later half of this post , which explains its working , its practical applications , and its use for minimizing losses will be covered in my next post.
Till then.....keep guessing///
as is it well said"One who uses his/her brains daily....lives a good long life"... ;)