Solution of yesterday's Investment quiz.
****Tutorial Note****
Given 1BTC = 40BCH
(I) When BTC strengthen, it means, purchasing power of BTC have been increased, now you can buy more BCH. In the same way, When BCH strengthen, it means, purchasing power of BCH have been increased, now you can buy more BTC.
(ii) When BTC weakens, it means, purchasing power of BTC have been dicreased, now you can buy lesser BCH. In the same way, When BCH weakens, it means, purchasing power of BCH have been dicreased, now you can buy lesser BTC.
****Question****
Suppose today is 01/August/2020 and 1BTC=40BCH, then what will be 1BTC=?BCH on 31/October/2020, in the given cases.
(I) BTC strengthen by 5% w.r.t BCH over the period.
(ii) BTC weakness by 5% w.r.t BCH over the period.
(iii) BCH strengthen by 5% w.r.t BTC over the period.
(iv) BCH weakness by 5% w.r.t BTC over the period.
****Solution****
Case (I) BTC strengthen by 5% w.r.t BCH over the period.
1BTC = ( 40X1.05)BCH
=> 1BTC = 42 BCH
Case (iii) BTC weakness by 5% w.r.t BCH over the period.
1BTC = (40X0.95) BCH
Case (iii) BCH strengthen by 5% w.r.t BTC over the period.
(1X1.05) BTC = 40 BCH
=> 1 BTC = 38.0952 BCH
Case (iv) BCH weakness by 5% w.r.t BTC over the period.
(1X0.95) BTC = 40 BCH
=> 1BTC=42.1053 BCH
Thank you for reading.
Cryptocurrency exchange Okex reveals it suffered the $5.6 million loss as a result of the double-spend carried out by the attacker(s) in Ethereum Classic 51% attack. Okex says it fully absorbed the loss as per its user-protection policy while insisting that the attack did not cause any loss to the platform’s users.
Bitcoin's Hashrate Hits Record High 130 EH/s, as BTC Price Faces Resistance at $12,000.
Interpretation of Bollinger Bands chart.
****Background****
Bollinger Bands was developed by John Bollinger in 1980. This band are used by technical analysts for studying the volatility and price behaviour of securities ( Cryptocurrency, Foreign Currency, Share of Company etc. )
**In Bollinger Bands chart, there are Three Band's.**
**(1) Middle Band :-** Middle Band exhibits the 20 days moving average of the prices.
**(2) Upper Band :-** Upper Band exhibits the 20 days moving average of the prices + 2SD.
**(3) Lower Band :-** Lower Band exhibits the 20 days moving average of the prices -2SD.
Standard Deviation (SD) is a measurement of volatility.
At a given time,
Wider band represents -higher Volatility.
Narrower band represents - lower volatility.
**Interpretation of the Bollinger Bands chart.**
In uptrends, the price usually moves between the exhibits the 20 days moving average of the prices in the upper band.
In downtrends, the price usually moves between the exhibits the 20 days moving average of the prices in the lower band.
Penitration of the upper Bollinger band in an uptrends usually suggests continuation of the uptrend. However, if the price quickly moves back into the band, a trend reversal or at least a deep correction is likely.
Penetration of the lower Bollinger band in a downtrend usually suggests continuation of the downtrend. However, if the price quickly moves back into the band, a trend reversal or at least a strong temperary rally is likely.
Thank you for reading.
Thank you all for reading and liking my posts. I observed that when I am sending Thanks massage individually, my points are not increasing ( this may be due to , there security system maybe treating ' Thanks massage ' as a spam. Without you i am nothing. So that I have deviced this method to thanks you.
What is Six Sigma ( 6σ )
****What is Six Sigma ( 6σ )****
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986. Jack Welch made it central to his business strategy at General Electric in 1995. A six sigma process is one in which 99.99966% of all opportunities to produce some feature of a part are statistically expected to be free of defects.
Six Sigma ( 6σ ) is the statical measure used to ensure quality of products and services. The Six Sigma academy has developed a break through strategy consisting of measure, analyse, improve and control, that allows companies to make exceptional bottom line improvements.
****Six Sigma ( 6σ ) capability****
(I) Six Sigma ( 6σ ) :- 3.4 defects per million.
(ii) Five Sigma ( 5σ ) :- 233 defects per million.
(iii) Four Sigma ( 64σ ) :- 6,120 defects per million.
(iv) Three Sigma ( 3σ ) :- 66,807 defects per million.
(v) Two Sigma ( 2σ ) :- 3,08,537 defects per million.
(vi) One Sigma ( 1σ ) :- 6,90,000 defects per million.
**List of Six Sigma companies ( Source :- Wikipedia )**
The following companies claim to have successfully implemented Six Sigma in some form or another:
(1) 3M
(2) Amazon
(3) Atos
(4) Autoliv
(5) BAE Systems
(6) Bank of America
(7) Becton Dickinson
(8) Bechtel
(9) Boeing
(10) Caterpillar Inc.
(11) Computer Sciences Corporation
(12) Convergys
(13) Cooper Tire & Rubber Company.
(14) Credit Suisse
(15) Damco
(16) Deere & Company
(17) Dell
(18) Denso
(19) Eastman Kodak Company
(20) Evonik Industries
(21) Ford Motor Company
(22) General Electric
(23) Inventec
(24) Lionbridge
(25) Maersk
(26) McKesson Corporation
(27) Motorola
(28) Mumbai's dabbawalas
(29) Northrop Grumman
(30) PolyOne Corporation
(31) Raytheon
(32) Sears
(33) Shop Direct
(34) Starwood Hotels & Resorts Worldwide
(35) Unipart
(36) United States Army
(37) United States Marine Corps
(38) The Vanguard Group
(39) Wipro
Thank you for reading.
Investment Quiz
Suppose today is 01/August/2020 and 1BTC=40BCH, then what will be 1BTC=?BCH on 31/October/2020, in the given cases.
(I) BTC strengthen by 5% w.r.t BCH over the period.
(ii) BTC weakness by 5% w.r.t BCH over the period.
(iii) BCH strengthen by 5% w.r.t BTC over the period.
(iv) BCH weakness by 5% w.r.t BTC over the period.
I will give you answer ( with detailed calculation ) tomorrow.
Read.cash informed that there was DDoS attack. What is DDoS attack and what it can damage.
Cricket Lovers.
Players, Fans Urge BCCI To Retire MS Dhoni's Number Seven Jersey
MS Dhoni's legions of fans including 7.8 million Twitter followers and a few former teammates said they did not want to see 7 on the back of any other Indian cricketer's jersey.
Dow Jones Theory.
****Important Note****
**I have used some original text of Theory, so that Original soul of the Theory may not lost. This theory is mainly for Capital Market but same is applicable in Cryptocurrency too.**
****Background****
The idea of Charles Dow, the first edition of the Wall Street journal, are known as Dow Jones Theory. In 1900 Dow Jones wrote a series of articles emphasizing that the direction of Share market appeared to based on a set of rules. Collectively, these articles and rules become known as ' The Dow Theory '.
Dow expressed that the general level and trend of the stock market can be understood with the help of Index numbers/average constructed on the basis of price movements of some important stocks. He believed that the behaviour of Index numbers/averages reflects the hope and fear of the entire market. He created two averages to understand the price behaviour of the stocks in the USA.
**(a) Dow Jones Industrial average :-** It is an average price of 30 Blue chip US stocks prevailing in the New York stock exchange.
**(b) Dow Jones Transport Average :-** The Dow Jones Transportation Average is the most widely recognised indicator/average of the transportation sector of USA.
****Dow Jones Theory****
**(1)** A share price reflects everything that is known about a stock. This means that all the positive and negative about a company are assumed to be known by the market and built into the share price.
**(2)** Share market has three well defined movements which fit into each other :-
**(i) Ripple :-** It is the daily variation due to difference between buying and selling at that particular time or changes in very short period. Very short period is known as market period in economics. Such changes are due to instant reactions.
**(ii) Wave :-** It refers to the movements which cover a period ranging from day's to week's ( change in short period ). Such changes are generally referred to as corrections. Such changes do not reflect changes in fundamentals.
**(iii) Tide :-** It refers to the movement which is a great swing covering from months to the years ( Long-term, is also termed as primary trends ). Such changes are the results of the changes in fundamentals.
**(3) Primary Trends :-** Bull markets are broad upward movements of the market that may last for several years, interrupted by secondary reactions. Bear markets are long declines interrupted by secondary rallies. These movements are referred to as the primary trends.
****Bull markets.****
Bull markets commences with reviving confidence as business conditions improve.
Prices rise as the market responds to improved earnings.
Rampant speculation dominates the market and price advance are based on hopes and expectations rather than actual results
Dow defined a Bull trend as a time when successive rallies in a security price close at levels higher than those achieved in previous rallies and when lows occur at levels higher than previous lows.
****Bear Markets****
Bear markets start with abandonment of the hopes and expectations that sustain inflated prices.
Price decline in response to disappointing earnings.
Distress selling follows as speculators attempt to close out there positions and securities are sold without regard to their true value.
Bear trend occurs when markets make lower lows and lower highs.
**(4) Trends are confirmed by volume :-** Dow believed that the volume confirmed price trends. When prices move on low volume, there can be many different explanations. An aggressive seller could be present. But when price movements are accompanied by high volume, Dow believed this represented the true market view.
**(5)** Trends should be judged with the help of Share price Index numbers.
The purpose of Dow Theory is to determine the market's primary trend. Successful investing, according to the Dow Theory, means staying on the right side of the primary trend and ignoring short term movements. According to Dow, the primary trends can not be manipulated.
Thank you for reading.
Oh no, what is happening after M. S Dhoni's announcement of retirement Suresh Raina
also Announcess Retirement From International Cricket.
Sad News for Cricket lovers.
MS Dhoni announced his retirement from international cricket on Saturday, as he brought the curtain down on his illustrious 15-year career as an India cricketer when he announced his retirement from all forms of cricket. MS Dhoni has been one of the best wicketkeepers to play international cricket and his record speaks for itself. The 39-year-old last played for India in the World Cup 2019 semi-final.
Accept the challenge. Can you say any any News Channel is unbiased in your country. In my Country ( India ), NDTV is only one News Channel which is reporting unbiased news and other News Channels are biased i.e they are favering any Political party, Religion, Community etc.
Modern Portfolio Theory ( Markowitz )
****Background****
The maxim **" Do not put all your eggs in the same basket ".**
It means you should not put your all your wealth in One asset only, rather you should invest in many asset. In other words, the maxim suggest diversification of investment for Risk reduction.
Portfolio is a combination of securities ( Cryptocurrency, Foreign currency, Shares of a company etc. ). Combining securities in a portfolio can reduce the Risk because some of the fluctuations offset each other. Investor can reduce Risk ny holding investment's in diversified portfolio.
****Modern Portfolio Theory ( Markowitz )****
Modern Portfolio Theory seeks to construct an optimal portfolio by considering the relationship between Risk and Return. The theory recommends that the Risk of a particular security should not be looked on standalone basis, rather it should be looked in relation to portfolio. A security may be very riskey but when combined with other security, the combination may not be that much riskey because some of its -ve fluctuations may be set off by +ve fluctuations of other security.
**Markowitz showed that, by using portfolio, the Risk can be minimised without reducing the expected return, by diversifying out the unsystematic risk.**
****Example****
Suppose there are two Cryptocurrency. X ( Expected return-10% and SD-15% ) and Y ( Expected return -20% and SD-30%) and covariance between X and Y is Zero ( Zero covariance means there is no relation of price movement between X ad Y )
We can see that Cryptocurrency Y is more riskey (higher SD ), so anyone can say don't invest in Y, but by diversification we can reduce Risk.
Let, I have 100$ to invest. I invested in lesser riskey Cryptocurrency i.e X, it means I will get 10% return and for that I am bearing a Risk of 15%.
and you are a smart investor, you invested 80$ in X and 20$ in Y, then your Return and Risk will be.
Return
=( Return on X + Return on Y )
= ( 80*0.1) + ( 20*0.2 )
= 12 or 12%
Risk
= √[ {w1^2}*{SD1^2} + {w2^2}*{SD2^2} + 2{w1}*{w2}*r*{SD1}*{SD2}]
=√[{0.8^2}*{0.15^2} + {0.2^2}*{0.3^2} + 2*{0.8}*{0.2}*{0}*{0.2}*{0.3}]
= 0.1340 or 13.40%
**Above calculation shows, you in better condition than me in both terms.**
**My Return and Risk (10% and 15% )**
**Your Return and Risk ( 12% and 13.40%**)
Thank you for reading.
Cryptocurrency markets remain a scammers paradise, according to new research.
University of Technology Sydney and the Stockholm School of Economics in Riga found boiler room-style scams are rife and generate millions of dollars of suspicious trading volume each month.
Researchers found 355 incidents of price manipulation across several cryptocurrency exchanges over a period of just seven months. $350m (£267m) of suspicious trading activity was linked to “pump and dump” scams that reaped an estimated profit of $6m for organisers.
How to Calculate the Risk of a Cryptocurrency.
There are some statical tools by which you can calculate the Risk associated with any Cryptocurrency. I have chosen only basic tools and I will give you more advanced tools in upcoming posts.
****Standard Deviation (SD)****
SD measure the variation in the value of the Cryptocurrency. It is used as the measurement of the Risk.
**Note :- The absolute value of SD don't convey any meaning. It is used to Rank the Risk of a Cryptocurrency in relation to other Cryptocurrency.**
**Example**
There are Three Cryptocurrency X,Y and Z of SD's 10,20 and 16 respectively, then Y will be the most risky Cryptocurrency ( highest SD ), X will be least riskey ( Lowest SD ) and Risk of Z will be between X and Y.
****Variance****
**Variance=(SD)^2**
It measures the Risk in the same way as SD.
****Coefficient of variation****
**Coefficient of variation=(SD/Mean)X100**
It indicates to the Risk per unit of currency of return.
**Example**
Coefficient of variation of a Cryptocurrency X is 20%, this means for earning an income of 1$, the Investor has to take the Risk of loss of 0.20$.
****Beta****
Beta is the indicator of an investment's /Systematic Risk ( Systematic Risk is concerned with economy as a whole Such as Change in Cryptocurrency protocols, Government Regulations for Cryptocurrency etc. This Risk affects whole market in same fashion. ). It represents systematic risk associated with an investment in relation to total risk associated with market portfolio ( In practical Cryptocurrency represent the whole market are taken only in market portfolio such as BTC, ETH, BCH etc. ). The Beta represents the riskiness of individual Cryptocurrency relative to market portfolio.
**Example**
If Beta of a Cryptocurrency is 1.25, it means the Cryptocurrency is 1.25 times riskier as compared to the whole market portfolio. If whole market portfolio varies by 1%, then the return from that particular Cryptocurrency is likely to varry by 1.25%.
**Formula**
Beta = ( covariance between the returns from market portfolio and return from those particular Cryptocurrency ) / Variance of Market portfolio.
Beta of market portfolio is taken as 1.
Thank you for reading.
$8 million in drugs seized in largest heroin bust in Georgia's history.
In total, authorities said they seized 170 kilograms of heroin, 10 kilograms of cocaine, eight kilograms of marijuana, more than $1 million in cash, and 41 firearms.
Link Price Surges 32% to Overtake Bitcoin Cash as 5th-Largest Crypto by Market Cap.
LINK stands at $5.76 billion compared to BCH's $5.30 billion in total market value with a 24-hour volume clocking in at $1.05 billion versus BCH's $83.7 million.
Telegram set to add video call feature to take on WhatsApp; starts testing video calling functions in beta.
India has recorded the biggest single-day spike of 66,999 COVID-19 cases, taking the total number of infections to 23,96,637. However, the recovery rate has gone up to 70.76 per cent, with 16,95,982 people recovering in the country from the highly-contagious disease, government data this morning showed. With the death of 942 patients in the last 24 hours, the county's fatality count rose 47,033, the Union Health Ministry said. India is the third worst-hit country by the pandemic after the United States and Brazil.
Learning Curve Theory.
T. P Wright of Curtiss - Wright, Buffalo, USA introduced the theory of learning curve.
**When the production quantity of a given item is doubled, the cost of that item decrease at a constant rate.**
Learning is the process by which an individual acquires skill, knowledge and ability. When a new product or process is started, performance of worker is not at it's best and learning phenomenon takes place. As the experience is gained, the performance of worker improves, time taken per unit reduces and thus his productivity goes up. This improvement in productivity of workers is due to learning effect.
Learning Curve is also known as Experience Curve, Improvement Curve and Progress curve.
The learning effect exist during worker's start up or familiarisation period on a particular job.
**After the limits of experimental learning are reached, productivity tends to stabilize and no further improvement is possible.**
**Learning Curve Ratio**
Learning Curve Ratio = ( Average labour cost of first 2N units / Average labour cost of first N unit )
****Example****
If the average labour cost for first 500 units is $25.00 and the average labour cost for first 1,000 units is $20.00 then,
Learning Curve Ratio = ($20.00/$25.00)X100= 80%
Lower the Learning Curve Ratio is higher the Learning takes place.
Intexcoin is Airdroping INTX coins.
Event Duration
**11 August 2020, 17:00 KST to 17 Aug 2020, 23:59 KST**
How to Get INTX Airdrop
Create a new account on ProBit Exchange and complete phone verification.
https://www.probit.com/r/11181946
****Phone verification is not KYC. Users need not conduct KYC to participate.****
**Social Tasks.**
**(I) Follow Intexcoin and ProBit social media accounts:**
Reward: 60 INTX tokens
Intexcoin Twitter: https://twitter.com/intexcoinorg?s=09
Intexcoin Telegram: https://t.me/IntexcoinOfficialGroup
Intexcoin Instagram: https://instagram.com/intexcoin_official?igshid=1qutjvtgfv97s
ProBit’s Facebook: https://www.facebook.com/probitexchange/
ProBit’s Twitter: https://twitter.com/probit_exchange
ProBit’s Twitter #2: https://twitter.com/ronald_probit
ProBit’s Instagram: https://www.instagram.com/probit_exchange/
Fill up the form: https://forms.gle/ecmJCrk8UqKRiURn8
**(II) Retweet ProBit Exchange’s Twitter post.**
Reward: 50 INTX tokens
Search ‘@ProBit_Exchange Twitter’ on Google
Go to the ProBit Official Twitter page and like & retweet the pinned post
Search ‘@ronald_probit Twitter’ on Google
Go to Ronald Chan’s Twitter page and like & retweet the pinned post
Complete the following form: https://forms.gle/GEAap4iK94rthJcP6
Kids will soon be able to use Google Lens to take a photo of a math problem or equation and access step-by-step guides to solve it and better understand the key concepts with the help of detailed explainers. The feature will be powered by the mobile learning app Socratic, which Google acquired in August last year. Weirdly, however, Google hasn't revealed exactly when the feature will begin rolling out.
Spot gold is on track for its biggest single-day decline since 2013 as investors divert cash to risk assets.
Prices sank as much as 4.7%, to $1,932.28 per ounce, on Tuesday. Gold futures for December delivery tumbled 3.9%, to $1,946 per ounce, at intraday lows.
Earn TFuel 24X7 with THETA.tv
THETA is a end-to-end infrastructure for decentralised video streaming and delivery.
By watching and using THETA.tv platform, you will earn a Cryptocurrency called TFuel for free.
You can use this TFuel to support streamers on THETA.tv or you can sell this TFuel on exchange.
Refferal link
https://www.theta.tv/invite/oqsx
Other Important Information
(1) Current Market price ( 1TFuel=$0.00883)
(2) Exchange where TFuel is listed :- Upbit, Binance, Hotbit, Gate and Indodax.
Understanding Financial Instrument ' Option contract '.
****Background****
Forward and Future contracts provide protection against adverse movement in price of an underlying asset ( Cryptocurrency, Foreign Exchange, Shares of a Company etc. ) buyer doesn't get benefits from favourable movement of price of the underlying asset.
**Option are the financial instrument which provides protection against unfavorable movement in price of the underlying asset as well as gives benefits of favourable movement in price of the underlying asset.**
****Important Terms****
**(i) Call Option :-** An option gives to the buyer of the option, the right but not the obligation to buy an underlying asset.
**(ii) Put Option** :- An option gives to the buyer of an option, the right but not the obligation to sell an underlying asset.
**(iii) Strike Price ( or Exercise Price ) :-** The fixed price, at which the buyer of the ' Option contract' can exercise his opinion to buy/sell the underlying asset.
**(iv) Expiry date :-** The last date on which the option may be exercised.
**(v) European Option :-** An option which can be exercised only on the specified date.
**(vi) American Option :-** An option which can be exercised on any date upto expiry date.
****Value of ' Option contract '****
The option contract are cash settled ( and not delivery settled ). ' Value of the Option contract on the date of maturity ' means that the option buyer receives on exercising the option.
****Example****
**Call Option**
X Ltd. has purchased a 3-month Call Option of Euro with an exercise price of $1.8000.
In the given example, X Ltd. has the option to buy '$' @ 1Euro=$1.8000, at the time of expiration of the contract, but not the obligation to buy '$' @ 1Euro=$1.8000.
If the price of Euro is at or below $1.8000, he will not exercise the option and when price is above $1.8000, he will exercise the option because he will get '$' at lower price than the market.
(i) In case when spot price of Euro is $1.7500, he will not exercise the price, value of Option is Zero.
(ii) In case when spot price of Euro is $1.8600, he will exercise the option and takes the profit of $.0600/Euro.
**Put Option**
X Ltd. has purchased a 3-month Put Option of Euro with an exercise price of $1.8000.
In the given example, X Ltd. has the option to sell '$' @ 1Euro=$1.8000, at the time of expiration of the contract, but not the obligation to sell '$' @ 1Euro=$1.8000.
If the price of Euro is at or below $1.8000, he will exercise the option and when price is above $1.8000, he will not exercise the option.
(i) In case when spot price of Euro in is $1.7500, he will exercise the option, and takes the profit of $.0500/Euro, ance value of Option is $0.0500.
(ii) In case when spot price of Euro is $1.8600, he will not exercise the option and hence value of the Option is Zero.
Android is becoming a worldwide earthquake detection network.
Google is creating a worldwide, Android phone-powered earthquake alert system. The first part of that system is rolling out today. If you opt in, the accelerometer in your Android phone will become one data point for an algorithm designed to detect earthquakes. Eventually, that system will automatically send warnings to people who could be impacted.
Band Protocol (BAND), an arch-rival blockchain network to Chainlink (LINK) has just hit an all-time high. Data from Coinmarketcap showed BAND growing from $0.2 on Jan 05, 2020, to $11.24, showing an impressive gain of 5,620%, recording a new high.
Former Pakistan fast-bowler Shoaib Akhtar said that Indian batting great Rahul Dravid was a difficult proposition for him to bowl. Akhtar said that Dravid's determination and ability meant that the latter could play him pretty easily.
The International Cricket Council (ICC) today confirmed that the ICC Men’s T20 World Cup 2020 that was postponed due to COVID-19 will be held in Australia in 2022. India will host the ICC Men’s T20 World Cup 2021 as planned.
The ICC Women’s Cricket World Cup 2021 in New Zealand has been postponed until February – March 2022 because of the impact the pandemic has had on cricket globally.
@Ju1882
