I often read advisers saying that stock markets are risky and making a sound risk-free return from share markets is almost impossible. Then there are some other experts who charge you for many fancy things and then say that your investment bears the market risk. On the whole the share markets are made to look like a black hole from where an investor cannot come out with his capital intact. This is not true at all. Making a healthy 30-40% per annum is not a difficult thing. But this has to be done by experts. Those who are full time into share markets. This is not a part time job for sure. If a so called expert says that making 30-40% per annum in share market is impossible then i don’t know why he is considered an expert? Why would anybody pay an adviser a fee if he is as good as the customer only. The service provider has to be a step ahead than the customer otherwise there is no sense.
Making profits in share market is not an easy thing i agree. But this is not an impossible taks either. All it takes is practice and discipline. In one of his seminars Alexander elder talks about trading becoming “muscle memory”. That is how much practice it takes. Discipline is about your character becoming used to the environment of share market. Buying an Audi doesn’t make you a great driver. In share market it is not how much capital you have but your character that defines your success. Those who have a big enough corpus get services like PMS and other such high fashion things. Even in those services the service provider says that your investments are subject to market risk. I wonder if he can not manage the market risk then why is he charging you a fee? If he is as good as you then why pay him? Rather do it yourself. Atleast you will be saving his cost.
Making money from share market is a possibility. Only it takes some hardwork. But then making money from anywhere takes hardwork. The important thing is whether you are doing your share of hard work or not. If you do it properly then share market is right out there to give you good returns. The next time some one starts talkin about share market being highly risky and such stuff just ask them if they really know what they are doing in share market. I have met some sub-brokers who don’t even know the difference between futures and options. All it takes for you to open a sub-brokership is some capital and nothing else. They don’t even check what is your educational background. This means that people who are becoming share brokers are not even qualified enough to do this. Then they start providing tips to the customers. Customers think that the share broker knows what he is talking about and they trade on those tips. Broker ends up making money through brokerage and customer is left wondering what just happened. I particularly remember a case where one person liquidated all his real estate assets to invest in share market. He comfortably invested almost 20 lacs in his demat account. The relationship manager of the broker company started telling him things and within a year the customer was left with peanuts in his demat account. He lost almost every single rupee of his capital. And even then he was not angry because the relationship manager has cleverly convinced him that share market is one place where you might double your money or lose all of it. So keep trying unless you double your money and don’t stop if you lose all of it. Arrange more and invest again. That customer who had lost this much was still ready to liquidate more of his assets and invest it in share market.
Even those who don’t want to actively participate in share market must know that this is not a gambling place. This is not an illogical place where no one can predict what future holds. Share market is run on finance and economics. Share market is a place where some of the sharpest brains in the world meet together and compete against each other. If you enter the market and you are not trained enough those sharp people are going to rob you off everything you have. But if you are trained enough, if you have the characteristics of a trader and if you have the willingness to do the hard work then share market gives you rewards. The next time your broker or adviser tells you that there is no guarantee on share market investments you should ask him why? Ask him on what basis he gives you those trading tips? What is his educational background? Share market is not a black hole.
I WRITE 