How Day Traders are LOOTED?

OPEN CHALLENGE TO TRADERS!

Most of the Traders are not agreeing that they are being Conned! So this is an Open Challenge to Traders:

  • If a Trader can Prove me a Winning Strategy of 50% Monthly Returns Consistently for 6 Months, I will give you Rs. 1 Lakh & then Stop this Advisory Business to Become Day Trader

NOT A SINGLE TRADER/BROKER TOOK UP THIS CHALLENGE SINCE LAST 5 YEARS! It means Traders are Being Looted & They are JUST Getting Aware of it! 

Here is the STORY of an Educated Ravindran Master A School Teacher from Kerala took a Risk at the age of 60 in order to Hike his Retirement Corpus.  He loaded Rs. 5 lakhs with a reputed broker who charge 0.75% brokerage – they straightaway took Control of His Account & Started Day Trading along with Futures & Options.  During the bull peak last year he made some profits & increased the capital.  As always Trading will Lure you with Initial Profits!  Unfortunately during the Corona times market crashed & Broker asked to increase more funding to prevent square-off.  He added another 2 Lakh more believing this Broker who earns his income from the client’s money.  At the time he called me he was at 6+ Lakh loss! I asked him to Exit the position & Stop this Mad Run immediately!  

This is the case of 95% Investors our there – they are loosing money in Trading!

Believe Me, Trading is NOT Investing!  You are Cheated!  If you wanted to gain real Investment Knowledge then read the article here.

Brokers are Providing 40-50% Commission to Advisors & YouTube Channel Makers to MAKE YOU TRADE!  At the End you will be LOOSING ONLY while making them rich! 

Below is the Sample of the Email we Futurecaps received to make people trade so that we can earn Lakhs every month.  Every YouTube Channel Host who endorse Trading is getting money through your losses.  Don’t let them Fool you!

email copy no day trading

A Trader is loosing 5 Crore in 20 Years! Read more to understand it..

TRADERS ARE LOOTED!

Yes, even after Running complicated calculations – full day & night thinking like a Scientist – they are Loosing Money!  Let us see the reasons why they loose money.

Core Purpose of Stock Market

The core purpose of stock market is NOT Day Trading!

The core purpose of stock market is LONG TERM INVESTING where it will Connect companies with investors so that:

  • Companies can raise money to expand
  • Investors can earn Profits through capital appreciation & dividend income

Unfortunately, Stock exchanges found other few Games over they years known as:

  • Day Trading
  • Margin Trading (another version of Day Trading)
  • Futures & Options
  • Short-Term Investing (buying for selling after few weeks)

This is just working over the price-movements.  Mostly they are good for the Masters except the Trader:

  • Stock Broker earn more income & margin fee interest through Day Trader
  • Youtube Host generates more income through Selling Day Trading videos
  • Government gains service tax of 12% & capital gains tax of 30% (if you win)

Unfortunately, 99% traders took this wrong way of multiplying wealth as it seems quicker.  They expect 100 to 1000% returns in a trade leveraging high & with no money management skills.

Only 1% Traders makes Profits 

But 100% Value Investors make Profits

Which one you choose?

 

Traders are like Scientists

These traders are like Scientists as the trader-world require them to Think a Lot on activities like below:

  • Simple Moving Averages, Exponential Moving Averages, Candle Sticks, Fibonacci Series, RSI etc.
  • Futures & Options, Calls & Puts etc.
  • Local News Focus – Budget, Note Bandi etc & International News Focus – Chasing Trump, Oil Price etc.
  • Accounting, Budgeting & Risk Analysis etc.
  • Think during market time for current moves
  • Think after market time for next day

All these work requires No less than a Professional & It Tax your brain like a Scientist!  But, Are they gaining profits from this? NO! Even after explore trading with good amount of passion & dedication, I have seen 99% Traders won’t make profits & make losses – that is the reason we are not seeing any rich person around us.

TRADING IS A TRAP!

TRADING IS YOU WORKING FOR MONEY | INVESTING IS MONEY WORKING FOR YOU

Few things to note for Traders are:

  • 99% Traders lose money in Day Trading, Futures & Options
    • But in Long Term Value Investing 100% Profits LINK
  • The 1% Winner Traders will NOT share you the Strategy too as It will make them Fail
    • But Long Term Value Investor Strategies are Shareable & Amplify their Winnings too
  • Trading is one of the brain-storming job during core working hours affecting their regular job
    • While Investing does not take too many hours & mostly free-time research gives peace of living
    • If an Investor have more time available then they will do Part-time Job/Business & Gain more Predictable Profits than Trading
  • Traders are DUMP price chasers – they are NOT Real Investors – they don’t analyze company, sector Or read annual reports
    • Even after lot of Technical Analysis A News can Bust all their calculations
  • Traders seldom use Power of Compounding & Works with Fixed Capital
    • Investors automatically gain advantage of Power of Compounding
  • Trade Tips providers do not actually use them – but sell them to earn money
    • Tips Advisors, YouTube Channel Runners makes Monthly Rs. 5 Lakh from Viewership & Brokerage Share
  • You cannot see Trade Millionaires
    • But Long Term Investor Millionaire exists like Warren Buffet, Ramesh Damani, Dolly Khanna etc.
  • Most importantly, Traders are loosing the Opportunity
    • As they are not Leveraging the Growth Economy

Simply, If you are a Trader, then you are Taxing your Brain like a Scientist & Making others Rich!

So, if the BHOOT of Day Trading gets into YOU, it will take Years to Exit out of it!

In my Guru words, Day Traders are those Greedy People seeking Short-cuts in Stock Market!

Who are the 1% Successful Traders?

I can show you Successful Traders who make 500% per year, but they play with Low Capital & It is a Full-Time Profession for them taking day & night efforts.  Neither they will NOT share their original srategies as they are dynamic & sharing will hurt their profits. 

Yet in last 20 years NONE of the 1% Successful Traders are the Top Riches! Why?

It is because they are NOT really making profits – see the Calculation below.

If a 1% Successful Trader says he make 50% Profit for a Rs. 10 Lakh Capital then:

  • 50% Profit will attract 33% Short-Term Capital Gain Tax – So it is really 35% Profit
  • They will pay brokerage & margin money = Actually 30% Profit
  • They use their day-time, electricity, internet, advisory fee = 25% Actual Profit
  • They don’t do Power of Compounding on Capital = Another 5% Loss = 20% Actual Profit
  • They loose Opportunity Cost of Capital where these Enormous Trading Hours can be used for Part-Time/Business Work Cutting another 10% = Remaining Profit 10% Only!

So the Trader max earns only 10% Profits – See the Total Big Picture!

[Instead they could put money in a Long Term Corporate FD and earn 10% Interest too]

This is why I would suggest any Trader > Don’t waste time in Trading > Instead do some Extra part-time work & Earn more money than Trading.  Then Invest them in Long-Term for Multiplying your Wealth! This is the Path of all Top Riches!

How much Trader Loose?

Also depends on the Capital & Opportunity Cost of Capital.

For example, if the Capital is Rs. 10 lakhs and the Trader decides to Stop Trading & Switch to Direct Stock Investing of 20-30% Compounded Returns then in 20 Year he will be earning 4 Crore Rupees!

Plus, he can make more money from other part-time work which is another 1+ Crore.

how much trader loose

So a 10 Lakh Capital Trader is actually loosing 4+ Crore in 20 Years without choosing Direct Stock Investing!

 

Cutting the Weed out

We just saved you Crores if you are INTELLIGENT! Else you will continue Trading to allow yourselves to be looted.

It took years for me to understand that Trading is a Trap. I then learned the right way of Investing by following Warren Bufett.  Then in few years I recovered all of the 2 Lakh Trading Losses & even made 10X profits.  Proof Link.    Now I am heading for Crores!

If you wanted to recover your Trading Losses as well & that too with Stock Market then you have to Align with the right way of Value Investing – Value Investing 100% Profit Only – We have a course for same which is trading at 50% discount .

MASTER MIND EDUCATION LINK

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VALUE INVESTOR 100% WINNERS | TRADERS 99% LOOSERS | Which one you want to be?

STOP TRADING | STOP F&O | START LONG TERM INVESTING | THAT IS THE PATH OF WARREN BUFFETT!

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LEARN VALUE INVESTING | It created all Top Riches of World including Warren Buffett, Mukesh Ambani etc.

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Categories: Blog, Uncategorized

3 replies

  1. I am holding R System international since your recommendation… I see some promoters are selling stocks in open market and that concerns me… what is your opinion?

  2. Well said and summarized!!
    Actually it will be nice to do a study on the traders in bse or other exchanges over a year or two and have a evidence based result showing the case that you have outlined. Am sure these studies may exist somewhere…..
    thanks for the post!
    george

  3. Thanks Paul! As you said I evaluated my last 2 year Trading P&L and cannot find any profits – not even 10% + I lost lot of brokerages & my youtube channel advisor suggested to join upstox where they were earning commission from me too. I realize that I see Warren Buffett to enter stock market & got mis-directed by the frauds of stock market.

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