Let’s face it, As per stats. 95% of the Indian traders / Investors lose money in the stock market. Even Zerodha’s (Largest brokerage house in India) Nithin Kamath stated that “Just 1% of active traders make more than bank fixed deposits over 3 years timeframe. Active trading is like running a business, only a small % succeed.” See full tweet here.
He also said “Traders with an alternate source of income tend to do better or have higher odds of winning than those who rely only on trading for a living. The pressure to generate profits daily or monthly can lead to more mistakes.”
Before COVID-19, There is not enough financial related quality content available for Free, Thanks to Jio, Indian’s enjoy the internet at super cheap rate compared to the western countries. Many well qualified people like CA, CFA’s started their own YouTube channels since there is also a good scope for revenue via YouTube (Google) ads. So it indirectly encouraged them to work harder to make quality unique / content.
When we started in Sep. 2016, Just like everyone, We lost almost all the capital. How ? Subscribed to a Tips provider who claimed that they are market experts & convinced us by showing fake profit reports. We believed that their PNL reports are legitimate & Trusted. We tried to learn online but the info. out there is half-baked. The subscription fee which we pay them is not the real loss, the losses which we get in market by following those tips is the real loss.
There is no short-cut in making money via markets. Top companies like Reliance Industries, Pidilite, Asian paints etc., aim to make just 15-20% ROI per year. The sad reality is most retail people come to market with Un-realestic expectations like making 10x returns in ultra short period. Do you want to create wealth in long term & want to learn about personal finance + investing in the right order / way ? We have created the below Learning map, You can follow it step by step, There is a 99% chance that your stock market journey will turn positive from now.
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Investing is just one part of the puzzle. Saving on Taxes is also very important, Once you are done with watching / understanding the above concepts, you can go-ahead with the below videos which talks with Tax-saving. Remember – A penny saved is a Penny earned.
Many people also ask about Trading, It is the process of buying and selling a security, commodity, or a financial instrument. Trading can be done on behalf of an institution or on one’s own behalf. Day trading generally refers to trading with short holding period, Typically less than a day, While positional trading means trades that hold for more than one day but less than a week. Trading can be done on behalf of an institution or on one’s own behalf, This is known as private trading.
Stocks are a type of security that represent ownership in a company. They can be bought and sold on exchanges such as the National Stock Exchange (NSE) & BSE etc., Stock exchanges make it easy to buy and sell stocks online with-in just one few clicks, When you have a lot of money invested in stocks, you are considered an investor. When you have just a few thousands invested, you are considered a retail investor. When it comes to investing in stocks, the most important thing is to know how much risk you’re willing to take.
Many investors choose Index fund EFT’s like NiftyBees & BankBees because index funds don’t require much work or knowledge to maintain. Index funds are diversified so that they will not lose money if one stock does poorly and there is no chance for a manager to take excessive risks and make a fortune. Stock exchanges takes care of adding / removing the stocks from the index, So you don’t need to worry.
Investing in stocks is an excellent way for people to make money over the long-term, but there is always some risk involved with investing your money into something new and unknown. As with any investment, there are times when a stock price drops suddenly and dramatically. This can happen for many reasons, including the company running out of funds, a new competitor entering the market, or even if the company has been poorly managed.
You might see stock prices drops suddenly because of negative events that could be seen as terrorist acts such as 9/ 11 or 26/11 Mumbai attacks. For example, during the 2008-09 financial crisis, there was an incredible decline in the stock prices of major banks like Merrill Lynch, Lehman Brothers and Bear Sterns.
In 2008, This trend occurred because investors were worried about a possible global economic recession that could lead to bankruptcy and a heavy drop in bank stocks.A steep decline in stock prices caused the ‘bank run’ which occurred in September 2008, causing a worldwide economic recession. A bank run happens when an individual or groups withdraws money from their bank and takes it out of the banking system due to concerns that banks are not financially secure.
Most beginners lose money in trading as they solely use technical analysis to place trades. Technical analysis is the study of market data for the purpose of expecting future prices. This can be done by analyzing market trends, volume, and price changes. Technical analysis is used in all aspects of trading, from timing entry and exit points to identifying support and resistance levels. Almost all market participant makes use of technical analysis to some extent.
Trading is a numbers game and you need to have the ability to analyze data in order to make decisions. You can do this by using charts, but technical analysis is where you take your charts one step further. Technical analysis is simply taking the information on charts and applying it in your day-to-day trading.As a trader, you will want to understand the trends of each market you trade.
“The present represents a point in time, not a final destination”. Trend analysis is used to uncover which direction a market is moving in order to give an idea of what direction it will take in the future. The trend analysis is relative to the market’s price as it increases or decreases on a particular timeframe. There are many ways to go about this, one of which is using candle stick & line charts.
Do you know ? Warren buffet is one of the largest option sellers in the world, Even today Buffet makes a lot of money by strategically selling put options of top quality companies in United states. Here in India, Rajesh jhunjhunwala started his journey with just Rs. 5,000 /- & traded futures to make money from markets & then jhunjunwala invested those trading profits in quality companies like Titan.
Rajesh jhunjhunwala once said, “To invest, you need capital. So how do I get capital? The only way was to borrow or trade. Therefore, I studied trading. Trading is at the heart of all my wealth”. At WealthBulls, We both Investing & Trading like Rakesh jhunjhunwala & Warren buffet. Want to learn Trading too ? Check the below details…
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Options Trading
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Options Basics,Greeks, 7 Option Strategies, Risk Management & Adjustments for Non-Directional Strategies