Traders are like Albert Einstein!
The core purpose of stock market is to meet companies with investors where:
- Companies can raise money
- Investors can earn from appreciation, dividends
Stock exchanges found another game over it known as:
This is just working over the price-movements. Good for exchange and government as they:
- Extract brokerage
- Margin fee
- Service taxes
- Capital gain taxes
Unfortunately, 99% traders took in the wrong way of multiplying wealth. They expect 100 to 1000% returns in a trade leveraging high & with no money management skills.
These traders feel themselves like Albert Einstein as the trader-world immerse them with lot of ideas:
- Moving Averages
- Exponential Moving Averages
- Candle Sticks
- Relative Strength Index
They explore it with great passion & their passion would have turned destructive, once they realize that:
- 99% Traders won’t make wealth in trading
- Trading is one of the brain-storming job where the investor works hard to destruct wealth
- Technical signal works wrong with External news
- To make 1 rupee in 1 hour they have to be smarter than the 99% rest
- Trading is not passive job. It requires time, energy & infrastructure. If one takes a whole year of trading profit, they could have made double the money by going for a regular job. 🙂
- The tips providers sell tips for living, instead of trading-compounding 1000% every month and becoming rich person in the world
- Big money wins requires big money losers on the other end
Trading is not the core purpose of market. It is the manifestation to squeeze money from amateur-investors who do not wanted to take the hard ship of analyzing company, holding long term to multiply money.
We have seen successful traders though. They use big money, active time, sophisticated software & solid money management skills. But, they are not becoming super-rich like Warren Buffet. They trade for living. If we see their yearly-guaranteed returns, it is much less than the fundamental way of investing comparing the active-dull-6-hour-trading they have to perform.