Googled (Bamboozled) Investors!
Tag: Investor
Warren Buffet Quotes from Twitterfeed
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New to Stock Market : Part 2 : As Investor or Trader or S ?
Just to remind you in case you forgot, previous article has a question (kinda, open book question) on whether you are entering the stock market as Investor or Trader?
Close your eyes and say loudly what you have chosen.
What did you hear? An Investor? Or Trader? Still confused?
I appreciate if you are almost cursing me. To me that means you are thinking!! I really want you to revisit the feeling again at closure of article and I hope wisdom dawns on you by that time 😊
You have been told/heard from so many known/unknowns that making money in stock market is simple (even government thinks so, hence long-term taxation introduced sometime back). And here is someone coercing you to choose a domain out of the two. Why?
Because unfortunately, the bigger world out there is different and looks something like this
Who’s S?
S believes in easy things & easy money. S need tips from people, from TV, from friends, from everywhere. Basically, most of us are S. We are in constant lookout for some hints/tips where money can be made. Any relevant names for S? Correct, S is a speculator. Period.
Now you know why one after another Ponzi scheme work and fool people. Its nothing but the lure of easy money.
Also read : New to Stock Market : Part 1 : As Investor or Trader?
Speculators are so much big in numbers that one can safely assume that they will be omnipresent. Below I try to show you the approximate pie area occupied by Speculators as compared to Investors & Traders
Don’t tell me World is not fair!!
I can envisage a shocking realization for most of you.
Does above realization reduce our chances of making money or does it make it riskier?
No, in fact this many numbers of Speculators will make stock markets inefficient meaning Investors & Traders with right systems in place can make use of stupidity of large number of people to make money.
You see at times unfair world is advantageous!!
One can safely assume the swapped positions for speculators & investors/traders in above pie chart in terms of probability of making money. Let’s try to see the point rather than estimating accurate probability.
So, what you and I can do
1st step is to realize that there exists a big speculator in us and we will NOT FEED him.
Remember for once and all, Speculating and gaining money from market is as good as playing in Casino and hitting a Jackpot. Yes, people get lucky in casino and so are people in stock market by speculating. But unfortunately, how many will remain rich, that’s a question to answer before proceeding further.
The house wins in casino and investor, traders , brokerage houses wins in stock market. Only Once in a while speculator wins in casino and stock market.
One can still argue that probability of making money with speculation is not zero and we need only one stock to click despite many bets being failure. I don’t deny that tiniest possibility but do stick a note on your ego/laptop/mobile
Speculation will destroy my wealth unless I’m super lucky
By speculating not only you can lose your money but might also put your survival at risk. I just don’t want to talk about the hit on your confidence levels in other fields as well as a side effect. I hope I have made my point clear and that is
Don’t tread the path of speculation
Wait!! You still did not the got the answer whether you choose the right domain!!
You can choose to be an investor or as a trader. Nothing wrong or right about it. Both are separate ways of making money and requires different skill set.
Investing requires you to understand the industry, company, its balance sheets, quality of management and a bit more.
On the other hand, trading requires you to be converse of the technical tools and a better control over your emotions apart from many other things.
In both cases, you need to do your homework well before putting your hard-earned money. Rewards are worth of effort being put and so are the risks on downside.
You must make sure that right systems are in place to reach the data point you need to make decisions.
Let’s begin with (newly) dawned wisdom and start rewarding ourselves.
What are the further steps? Let’s seek answers in next article
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
New to Stock Market : Part 1 : As Investor or Trader?
8-10 min read
Target Audience – Beginner
| Before I congratulate you on taking a plunge in stock market, I must ask you Are you ready to lose your invested money in one heap and start again and never breathe a word (not literally) about your loss? If you hear yourself saying NO, please understand you are still NOT Ready for stock markets If you heard YES, read further!! Time is to congratulate yourself on the idea that you finally took a decision to venture into stock market. You have crossed a huge barrier which restricts millions of people to potentially earn more money.  Congratulations aside, Don’t just leave your job/studies by getting too excited about the idea of earning more money and jumping into stock market full time. |
 The idea of jumping full time into stock market has destroyed many people as compared to enriching few of them |
| Before you say b**ls**t, No, I’m not saying that you shouldn’t do it full time. Go through one full bull and bear cycle before considering it seriously. The full journey will give you insights which no Book, Blog or a person can. The journey is unique and you have to develop your own strategy to master the markets What i can do for you. I can help you through this journey when doubts creep in and you need a bit of hand-holding. |
| So whats the starting point? Get on-board and lets start the journey By definition trader is the person who is engaged into buying or selling goods, currency or shares So who is investor then- By definition — a person that puts money into financial schemes, property, etc. with the expectation of achieving a profit. Its pretty confusing and it seems both terms are interchangeable. |
| Ok, Ok , have you said, its about shareholding duration. If a person buys or sells a share within a year, a month or a day, he is referred as trader. Investor is someone who keeps share for more than a year before he sells it. So its partially true but largely false. |
| Before you kill me, Lets come to the point and see from the viewpoint of stock markets. Broadly a person who is engaged in selling and buying shares based on technical data is called Trader while a person who is engaged in buying and selling shares based on fundamental data is called Investor. Since technicals (moving average, candlestick etc) of a stock can change on daily, weekly and monthly basis and so on, hence the underlying assumption on which shares are bought remains valid for a shorter time period. Accordingly the person is engaged in buying and selling too frequently. On the other hand, Fundamentals (earning, profit, cash flow etc) of a company change slowly over a period of time. A company can not become bad or good overnight or on weekly basis. e.g. it took Infosys 20 yrs to become overnight success story!! Who’s best among Investor or Trader? Both are best in their field and there is nothing wrong if you choose yourself as a trader or investor. But for the sake of increasing the probability of success in stock market, choose your domain and stick to it for a considerable period of time to hone your skills and make money. Stock market is not a place for weak hearts anyway. Closely look around among your peers, family, relatives, friends. There is a high probability that you are influenced by one of those saying that he’s milking the money in stock market and there is no better time for you to jump in. Did he tell you about losses he has made? NO? Pretty high chances he’s a trader. I can put my neck on line for same. |
| Everyone has made losses whether investor or trader. Stick it on your wall and curse this fact. |
| Should you try first trading or investing? Its up-to you, Who am I to tell you or for that matter anyone!! Its your money!! Being an investor increases your chances of success in longer run. It’s a low risk and high reward game as compared to trading which is a very high risk, very high reward game. Trading involves overcoming your emotional behavior on real time basis and many of us fail at it (more on this in upcoming blogs) while investing gives you bit of time to take decisions rationally. No guarantee that you may pass 🙂 |
| So ponder for a while to choose your domain first before jumping to a new article on stock market. Also Read : Investor or Trader or S |
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
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