Have you bought a stock on someone’s advice to make quick profits and then waited for months, may be years, to just recover your capital?
90% of retail investors fall to that trap and loose money in the the market. Just by reading this article till the end, it will change your perception towards market completely. Understand WHY YOU ARE LOOSING MONEY IN THE MARKET and how YOU can move out of those 90% people into 10% who make money from it?
You’ve tried tips from experts on TV. You’ve started and stopped dozen’s of different stock tips services, perhaps attended several different investment seminars, and have read the best books on technical analysis, fundamental analysis, candlestick chart patterns but the truth is you just can’t seem to be consistently profit in market.
Perhaps you are feeling a little disgusted with yourself and your inability to make a profit in the market. You feel like no matter what you try, its not going to work.
If you have tried everything and still nothing seems to be working and you are just compounding losses, you have come to the right place and you are about to read the letter you’ve been waiting for all your life.
Money is neither created nor destroyed in market, it is a zero sum game (excluding the brokerage and exchange costs) which means someone has to loose money if others are making profit in it because the sum total of all the money in the market is the money invested by all investors.
In simple terms, it means investing in market does not print money for people making a profit from the market. If someone is taking the profit out of the market, it is at the cost of someone else losing the same amount in the market.
But because there are millions of participants in an exchange, you don’t realize it as a zero sum game.
You invested and made profit. It means you purchased a stock at a lower price and sold at a higher price. The person who brought it from you is anticipating it will go even higher (like you anticipated when you purchased it) and the person last in the chain which is more often a retail investor will have to either remain invested for an elongated period of time to break even or get tired and eventually book a loss.
If large investors or FII’s want to be making big profits in market, hundreds of thousands of small investors needs to lose money and still remain invested in the market for those big investors to consistently make profits.
I am Shabbir Bhimani and like any other investor I also started to look at the market as money making opportunity. When the markets were booming in 2007, I did my first trade on 22nd June 2007 and purchased MAN INDUSTRIES (INDIA) LIMITED. In a day or two, I was richer by Rs 300…