Updated - October 20, 2000
 
So it is the fast track for you, eh? Great! We all cherish the guy whose adrenaline pumps more than what Amazon pumps into its business. Although we would love to dispel the myth that all high risk decisions border on foolishness, unfortunately it is a very thin line, which divides the two. Maybe it does not take much time for a true-blue Greek citizen to become an Icarus.

But, we believe that there has to be a few sacrosanct rules that will maintain the divide between success and Icarus. We call these rules the Panchsheel and strongly recommend that the 5-paisa investor keep them in mind. As Mr. Mulliner would have told his nephew - " If ever one is accosted by Aunt Martha, face her with the iron resolve that the Mulliner clan patronizes, but never forget the Buck-O-Uppo"

Panchsheel
Lesson #1
Thou shalt never use the money that has been kept aside for today's dinner, tomorrow's school fees or day-after's insurance. It becomes so easy to get carried away that often thou would never think it amiss to break the money-pot stowed away for the future. Always beware of the urge to take the pot with the self-assurance that it will be replaced when he strikes gold, for all you know, it might remain as elusive as the gold at the end of the rainbow.

Lesson #2
Thou shall never borrow money to play in the market. With thy money there is a limit (unless thou are Aladdin with the obvious magic lamp, then he has no business in the stock market!), with plebians, as much as they can be touched. As is a folly with many, never use your credit card to invest in the market. Thou shalt learn first-hand what the North Block feels like in a debt trap.

Lesson #3
Thou shalt always keep track of the value of thy portfolio. If at any time thou felt that thou are uncomfortable with a stock in the portfolio, dispense with it. Stock markets have never been too valuable to lose your sleep over. Thou shalt always keep a target value below which thou shalt exit from the stock. Never let one stock in the portfolio make up for the fall in another. Ina high-risk portfolio, under-performers have no place to behold.

Lesson#4
Thou shalt have a short time perspective in mind because in the long-term we are all dead. Never let a stock stay in the portfolio waiting for it to perform. If it does not perform within the time set, remove it and scout for the next one. Never shalt thy forget that shares are thy slaves waiting to work for you. If one does not discharge its duties, banish it.

Lesson#5
As is told from the biblical times, thou shalt never fall prey to greed. If thou have made the moolah, exit, before the market sucks thou into the vortex. If thou have made your target returns move away from the stock and re-shuffle thy portfolio.

Appendix to the Panchsheel
Last but not in any way the least, even if thou are not concerned about valuations, earnings, management quality et al, thou shalt never get trapped in a scrip with no liquidity. We set the limit at Rs100mn of market cap and an average BSE turnover exceeding Rs10mn per day in the last 3 months. Maintain a particular weightage for each one of the stocks in the portfolio. Finally, remind yourself of the Panchsheel everyday because remember that you are only as good as yesterday.

Global Tele-Systems
Global Tele is a default choice. Not because it makes all the right kinds of sounds namely convergence, e-commerce, dot.coms et al or that it's business plans are laced with jargons or because of a savvy management that plays up to the expectations of the market. But because of the omnipresent market operators and institutional investors. The market loves it and therefore we love it. After all, is there a harm in making a little money?

Satyam
A top shot IT company. Perhaps not as glorious as Infosys, but reaching there nevertheless. A lot of market interest, good liquidity - well, what else do you require in Risky Rapids.

Zee Telefilms
This Subhash Chandra is no freedom fighter but he has all along harbored intentions of ruling India's airwaves (or is it the entire globe now for him). However, much as he would like to see some shooting STARS, he presently has to contend with a born-again superstar every night four days a week. Since then, he has revealed to his viewers his idea of becoming a 'Malamaal'; the punters at Dalal Street are placing their bets on becoming one.

Pentamedia
This company, is a service provider involved in the animation and special effects industry. But let that remain of purely academic interest. For much more important is its speculative value. Made for Risky Rapids.

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