Search

Why you should not Trade in stock market ?

Updated: Sep 10, 2021


Two type of people in the Stock market

1) Institution (FII/DII)---Mutual fund /insurance/HNI etc.

2) Retail (individual trader or investor)

Number of retail people are maximum and number of in the market

and number of institution are less in the market

BUT

fund flow of the intuition people are 93% and Retailer fund flow is 7%

Now let's understand the what mistake retailer do ?

according to my understanding there are 5 type of retailer in this market


1) Shortcut type of retailer :-

people they took stock market as a part time -or for extra income

They want some extra income from market

Example :-

whenever I meet someone when they ask what you do - I said work in stock market -

they ask for tips


Conclusion :-

They do not get profit / they don't have knowledge-

after losing the amount they said this is everyone loss here


2) Scam attracted Retailer :-


a) They influence from Tips and start doing trade .

b) They influence from others profit - and start doing trade .

c) They influence from business news channel and start doing trade.

d) They got massage in there mobile that your money will be double and start doing trade.

e) They attracted from theoretically past value -

For example -if I would say Maruti share was 500 in 2003 and now Maruti share value is 10,000/- due to the greed of human being they calculated their profit as own they start searching company like that and start doing trade or investment

f) they attracted from quotes-for investor

g) they attracted from movie like -scam 1992/Gafla/ wolf of wall street /bazaar/ big bull

they want to be like that movie actor.

Let's understand with example

I meet with one teacher she was the teaching Economics in school and past she work in stock market, when she knows i also work in stock market , she start discussing and starting complaining about market

what was her complain:-

she said :-whatever news channel said everything is wrong, everything is gambling

I ask :- do news channel said to watch you

she said -NO


but i know the resign why she said like this -because she loosed the amount in market and also how she get trapped form news channels - I will explain sometime how mind function

how people get trapped i will discuss in next blog.

Conclusion:-

They never get profit -if by mistake they get profit -they can't sustain that profit.


"you only get the things what you deserve , you don't get what you want

if you get something like that those you don't deserve one day you will loose that amount or anything"


3) Escapist type of Retailer :-

kind of people those who don't get success in one field they try something new and they start doing trade.

they escape whatever they do even in stock market


let's understand with example:-

few month back i was talking with someone who want to do training along with me

I ask-- what you want to learn ?

he said -I want to learn -how I can make profit in bank nifty future and option ?

i said ok - i will teach you but first tell me why you want to learn future option ?- why not cash or commodity or technical or fundamental- why you want to learn -bank nifty only

He said -- I know only people can make money in bank nifty only

I ask -- How do you know ? do you ever trade in bank nifty ?

he said--No, but i know only bank nifty will make me profitable

I ask - can you tell me how do you know ? that bank nifty will make you profitable

he said - i try everything- i loss 2 lac in stock cash - i loss 2 lac in stock future -i loss more then 2 lac in commodity

I ask - do you know anything about research work or anything.

he said - I took tips , now i can see so many YouTube channel and adds showing that in bank nifty option is good to earn money.

I said - please save my number and contact me after sometime-you will add one more line -that you loss 2 lac in bank nifty also.


Conclusion:-

If you are escapist you can't make money in this market.


4) illusion attracted type of retailer :-

kind of people those get initially profit and they created image and forget everything

For example :-

if someone trade and get profit 2000 in a day

next day again get profit 2000

then they calculated profit for a month

i will trade 20 days -it means 2000*20 =40000/- here mistake happened they make illusion they forget next day will be new , and this is in that case those who did self trading -if taking tips from anywhere then first option is already applicable


Conclusion:-

These kind of people never make money from market

even these kind of people comes in more travel.

initially when they get profit They took money form other people also -from friend /from family / from relative and after sometime they loss everything and they come in travel


5) Serious and Mature type of Retailer:-


a) kind of retailer those who knows there is know shortcut in learning.

b) They know depth about markets pros and cons.

c) They understand the practical way of market.

d) They work in emotional discipline and money management.

e) They update them self . (invest in themself)

f) They knows every system has a limitation.

e) They don't want overnight success.

g) They knows if they are doing job -they have study school then they go to collage now they are doing job 8-10 hours after that they are getting salary as per there skill

same thigs will happen here also - here also need time - time work on self fear and greed

h) They know the power of institution investor.

I) They knows limitation of their system ( never put all amount ) they divide there amount as per trade.

j) They don't take 3-4 trade in a day ( they took 1 trade in day sometime they took 2-3 trade in week)

k) They train there subconscious mind to work as per there instruction .

l) They invest in there knowledge.

m) they know this is Continue process.


Conclusion:-

probability of become success in these kind of retail trader is 2-3 percent.

why i am saying this ?

These are theoretical part emotion discipline - not easy for everyone to control there Emotion

will discuss in depth about intelligence and emotion intelligence.



#banknifty #stockmarket #trading #chart #investing #investor #trader #equity #sharemarket #nifty #banknifty #nse #bse #economy #index #Stock #index #nifty50 #technical #technicalanalysiswithikt #research04

64 views0 comments

Recent Posts

See All