Markets and Emotions

 Hello Reader

 Hope you all are doing fine.

 The stock market is a device to transfer money from the impatient to the patient.

 -Warren Buffet 

 This one is one of the topics which excites me to discuss.

 I thought about sharing some epiphanies of the stock market, I will try to make this as less boring as possible. Also, I would like to make it clear this is my opinion and it is realistic. disagreements and discussions are welcome!

 Okay, let us start with a fun fact now Indian stock markets are considered the most expensive ones to trade.

 Why do analysts say that? If you look at bigger markets like NASDAQ or the London stock exchange, they have a lot of options to fund a trader like, they believe in collateral management, extensive margins.

 But in India, as the years of passed by the securities exchange board of India (SEBI) has brought a ton of rules curtailing the margins that can be given to traders from sub-brokers: the reason being they want to flush out all the small fish from the tank and only keep the big trading bulls and bears in the ring!

 Starting September 2021, the futures and options market must be traded with a 100% margin which means all cash. The channel partner licenses are no more given to new entrants. (Channel partners are people who register with SEBI who are allowed to pump in the margin to traders who can't afford the whole value of the trade) 

 Critics of YouTube like MR. P.R Sundar, Vikram Prabhu who believe and earn huge in option selling have commented saying indeed Indian stock market is the most expensive one for trading.

 SEBI justifies this by saying they implemented the zero-margin rule to protect investors money and safety collectively called investor protection.

 So now the question is can we do not trade anymore? when I say trade I mean intraday trading, Of course, you can have two ways to do it either load your DEMAT with the amount required to trade or build your capital by investing in  shares which can be pledged  to pledge this as collateral and can get margin incase you want to start trading.

 Losses and Emotions:

 After throwing some light on the current situation, let us understand what the right thing is to do in my opinion.

 How to start this journey in the creation of wealth as it is described by the “gurus” how can you get a stable income or increase annual gains by investing money in markets?

 Some myths that people should strictly remove from their minds:

• The stock market is not, and I repeat is not gambling.
• You just don’t lose money if you invest in the market there are no thieves in there who just steal your money, it's your wrong move.
• There is a clear distinction between a trader mindset and an investor mindset.
• All traders are not good investors and vice versa.
• You cannot earn stable profits by just watching DIY (Do it yourself) videos on the internet.
• The stock market is seriously just not just a trend it is an emotion that leads to either a profit or a loss and it is a field that requires a lot of understanding and research.

 Why I felt the urgent need to write this nonfiction is, I see a lot of young people who want to enter the markets but are not getting guidance from people who are well established in markets or anyone for that matter.

 Eventually, they get misguided or take their own decisions and enter sectors of the markets which they are not familiar with for example the future and options market which is very volatile money and lose their hard-earned money!

 Also, I am seeing some successful people are posting videos on YouTube luring people to join their training where they make you feel index options trading or trading in futures is just like eating a pie? it is for them because they don't show you how they reached it, please realise they posted these videos after they reached the summit of success! so you are just being made to watch success stories, so don't you feel the building blocks of this success is not shown? 

 Guys imagine we are entering a stock market with a market capitalization of $3.4055 trillion! the sixth largest in the world and we are thinking just knowing to taste some small glass of wine makes us official wine tasters to the queen of England!

 Therefore, all we need is a structured approach.

 Start your journey with a simple investment in a good and healthy NIFTY 50 stock do discipline and monthly investments from your primary source of income, like Mr. Warren Buffet, says "buy and forget and don't buy a stock if you don't want to hold it!"

 This will help you build your capital, also make it possible to buy some margin by pledging these shares.

 Meanwhile, learn the various strategies which are used to trade do your self-study or enroll yourself for a course, MOST IMPORTANT please do virtual or paper trading for at-least a quarter before you put your real money in the market.

 Well, I would like to give it a pause there for today, I hope I could give you some insights which would help you build your portfolio and start your amazing journey in the market!

 All the best to you.

 Gold mines do have gold! But do we know how to differentiate gold and stones in the mine?

-Thomas Fallon

Courtesy Google images

 Thanks for your time, have a nice evening.

 Helios