In the world of Investing, people gets motivated by Warren Buffet, but ends up with a Trader who runs a Bajaj Chetak scooter!! 🙂
Trading involves Day Trading, Margin Trading, Futures & Options which takes long hours spent in stock market.
If you are a Trader, you MUST read this as a PROFESSIONAL SHOULD UNDERSTANDS ALL ASPECTS OF THE JOB!
My Interview with a Trader
A guy from Delhi approached me for Investing, who was a Trader too – So I asked him to Quit Trading but he was Reluctant – I am posting this Interview after Permissions from him!
Me: What is your ROI on trading?
Trader: What is ROI? [Bechara doesn’t know ROI & doing trading for past 5 years]
Me: ROI means Return on Investment. In a trading year, if you put Rs. 10 Lakh as Capital & you received Rs. 5 Lakh profit then your ROI is 50% per year. You can generate this from Broker for Tax Purposes as there is Short-Term Income Tax upto 30% on the Trade Profits.
Trader: I did not calculated it. But may be around 50%[It means he is Lying as there will be Income Tax overheads if not reporting it correctly. Anyways let us proceed believing the 50% profits]
Me: Okay – So let us take the 50% & Deduct Tax on it of 30% = So your Real ROI is 40%. Now wait! You are spending lot of time, energy, tips fees, electricity, internet, computer hardware depreciation for this trading activities. You can even work on another part-time job Or business with this capital & gain more income than this. Right? So can I deduct another 20% from this making it 20% your real gain?
Trader: Ah! Okay – So 20% is my Actual ROI! I agree
Me: Now tell me whether you can apply Power of Compounding here like Investing. eg: Rs. 10 lakh to 12 lakh > 15 lakh > 18 lakh & so on?
Trader: Not possible as few years I may go 100% loss also!
Me: Oh! That means your actual Risk is 100% and Returns is only 20%! So Power of Compounding not possible!
Trader: Agree that.
Me: So let us talk Opportunity Cost of Capital – You can park the same money in high yield bonds of 15% interest which does not have a risk of going to 0%. So you are actually gaining only 5% better returns through Trading!
Trader: Yeah – that makes sense.
Me: Now you agree that why I said you should quit trading & start Investing.
Trader: Yes, so I only make 5% extra through trading & there is a Risk of 100% capital loss too. But how much ROI I can make through Investing.
Me: Investing is Passive & Compounding with Average Yearly Returns of 50%. There is NO 100% Capital Risk as we focus on Growth Stocks with a Portfolio. This is the reason Warren Buffet & Celebrity Investors choose Investing!
Trader: So there are NO real top riches in the world from Trading?
Me: No! All Top Traders are Tips Providers & Trainers – they earn money through advisory & not trading – since they don’t compound they will Not become super rich – that is the reason all top riches in world are from Investing only! Also, Investing is the Right Purpose of Stock Market
Only greedy amateurs who wanted to make quick money without properly learning stock market ends up in trading & that too with a Fraud Trade advisor. Then they will continue with trading thereby killing their 50% compounded investment returns with just 5% flat returns & ultimately destroy their capital too.
Also Investing is Passive too – So you don’t have to spend long hours in stock market – Our investors spend less than 1 hour per month & still earn 500% returns in Tata Elxsi, 5000% in Bajaj Finance etc. The long term average is 50%. See Performance.
In our Investing Experience above 2 Years NO LOSS! Above 5 Years 500% Profits!!
SUMMARY: A trader for 5 year & 10 Lakh capital is actually loosing Rs. 50 Lakh of Investment Profit & Another Rs. 50 Lakh of Opportunity Cost of Capital (doing another part-time job through the freed up trade time)
My advice: Quit Trading & Learn Investing
You just saved you Rs. 1 Crore for next 5 Years If you are Intelligent to Understand this 🙂
How to Identify a FRAUD Trading Tips Provider?
- Just ask them the yearly profit % they make
- Then ask them to provide the proof
- If they escape, they are FRAUD!
If the Cook does not eat their Dish – it could be Poison!
Investing is the right path of stock market & made for. It is Passive, It generates Wealth for you!
Learn Investing starting here Value Investing
|Oct 2021||Steel Machine Manufacturer with 80% Intrinsic Value Discount||20% [Holding]|
|Sep 2021||*** Future Bajaj Finance 50X Multibagger Proof||70% Up [Holding]|
|Aug 2021||*** Metal Sector Multibagger||-10% [Holding]|
|Jul 2021||*** Building Material Multibagger||20% [Holding]|
|Jun 2021||*** Insurance Sector Multibagge||15% [Holding]|
|May 2021||HG Infra||200% [Holding]|
|Apr 2021||Jubilant LifeScience||250% [Holding]|
|Mar 2021||Shree Pushkar Chemicals||100% [Holding]|
|Feb 2021||Likhitha Infrastructure||150% [Holding]|
|Jan 2021||Titan Biotech||200% [Holding]|
|2020 Multibaggers||Peak Returns|
|SRG Housing Finance||500% [Holding]|
|Tata Elxsi||600% [Holding]|
|Manappuram Finance||100% [Holding]|
|IOL Chemicals||300% [Holding]|
|Goldiam International||500% [Holding]|
|Associated Alcohol||200% [Holding]|
|Gujarat Ambuja Exports||200% [Holding]|
|*** Call Open||60%|
|*** Call Open||50%|
|*** Call Open||50%|
|2019 Multibaggers [Only 5 during time]||Peak Returns|
|Caplin Point||400% [Partial Exit]|
|Bhagaeria Industries||200% [Holding]|
|Maithan Alloys||250% [Holding]|
|BCL Industries||100% [Exit]|
Past years are below.
- 2010-2012 Top Performance given below through Old website
- V-Guard 3000% Returns
- Yes Bank 1000% Returns
My aim is to show you the True Picture & Help you. If you have any clarification you can ping me.
If you & your fellow traders need to join the real path of Investing – let us know – we have Team Plan with reduced cost.
Multibagger with Expansion Plans | Low PE Ratio | Low Book Value Ratio | Intrinsic Value Discount 70 % | PLUS Free Value Investing Education
Past Multibaggers Bajaj Finance gained 5000% in 10 Years