The Zurich Axioms

"Zurich Axioms" are as follows:

• Axiom 1 On risks. This simply states that Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.
  
  
• Axiom 2
  It follows the greediness. And states that always have your profit.
  
  
• Axiom 3
  This teaches how to get out of a bad situation. This follows the quote that when the ship starts to sink, don't pray rather Jump.
  
  
• Axiom 4
  It is about the forecasting. Human behavior cannot be predicted easily. Rather distrust anyone who claims to know the future.
  
  
• Axiom 5
  About the patterns. Patterns or the orderly designs are necessary.

Drawbacks of Indian Stock Market

1. Single Stock Futures

• Have made it easier for market players to manipulate not only prices of individual stocks but also the indices created using them.This is possible since one needs only small amount of margin money for buying futures.
• Use of these futures gives FIIs more leverage into reshuffling their country mix, which add to market volatility.

2. Unrestricted Day Trading

• No deliveries required
• In the US, regulations require that the seller of a share first becomes its owner by paying for it. Thus Indian markets are more risky.

3. Lack of market making

• Market making makes market broader and ensures liquidity of small and mid cap shares.