Traders are like Albert Einstein – Thinking like a Scientist but making Losses!

As an ex-trader who made 1000% Profits before, Let me tell you one thing bluntly – 99% Traders are Losers!!

Yes, even after Running complicated calculations – full day & night thinking – like a Scientist – they are Losers! So be careful about Day Trading!

Let me tell you – I have made Rs. 40 Thousand Profit through Trading & Rs. 40 Lakh Profit through Investing!  So I know both the subjects!

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:

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

Unfortunately, Stock exchanges found another game over they years known as:

  • Day Trading
  • Margin Trading (another version of Day Trading)
  • Futures & Options

This is just working over the price-movements.  Mostly good for exchange and government as they:

  • Earn brokerage as more transactions occurs through Day Trading than Investing
  • Margin fee they earn interest on margin (high margin is high profit & high loss too)
  • Service taxes where government is also happy that Day Traders give them daily income
  • Capital Gain Taxes of 30% the profit earned – but don’t worry – 99% will not pay this

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.

Brokers lure you for Trading & Not for Investing

Brokers lure you for Trading & Not for Investing

Albert Einstein

These traders are like Albert Einstein as the trader-world require them to Tax a lot on their Brain 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.

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.

Few things to note for Traders are:

  • 99% Traders lose money in Day Trading – But in Long Term Investing No Loss LINK
  • Trading is one of the brain-storming job where the investor works hard to destruct wealth
  • A News can bust all your Technical Analysis calculations
  • To make 1 rupee in 1 hour they have to be smarter than the 99% rest
  • Trading is not passive job & You will destroy your Regular Job by doing Day Trading
  • The tips providers sell tips for living, instead of trading-compounding 1000% every month and becoming rich person in the world
  • Margin money is double-edged sword – it can make you rich quick & poor also quicker
  • Options are good way like Day Trading – but it is having a Theta factor which destroy value
  • Once in a while Trader makes hefty profits – but he reapplies the Logic and loose money too
  • You will see More Celebrity Investors like Ramesh Damani, Dolly Khanna etc who made Thousands of Crores of Profits – but you will not see any Day Trader with such order of profits
  • Also note that most of the Tip Providers are not real traders – otherwise they would have traded their tip & compounded money becoming richest person in the world in a matter of few months.
  • Real Profitable Traders don’t sell Tips!

A Real Trader will not Disclose their Secret as it kills their Profits!

Simply, If you are a Trader, then you are Taxing your Brain like Albert Einstein & Making Losses!

So, if the BHOOT of Day Trading gets into YOU, it will take Years to Exit out of it & Mostly after enumerated destruction of Time, Capital & Confidence!

In my Guru words, Day Traders are those Greedy People seeking Short-cut to Wealth!

Who are the 1% Successful Traders?

We have seen successful traders though.  They undergo months of training, use big money, write options, use sophisticated applications, have free day-time & solid money management skills.  Most of them are Investors too & Trading is part of their Hedging strategy.

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2 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

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