By Deepak Vekaria
Old generation always thinks that trading in share market means speculation and in speculation no player can win. But friends – time has changed. If we want to progress then we must move with the time. Now trading in stock market is not speculation if you have to use your skill. It is not easy money which old generation used to think, lots of research study and hard work goes into it before you play in this market.
There was the time when people used to refuse to give their daughter to a boy working in stock market. Then Mr. Harshad Mehta changed the entire capital market concept and all daughters were after the boy working in share market. Yes it is a speculation if you play without using your brain, skill and work only on tips of others. Definitely you will lose if you used tips to play in this market. In this market, “winners win not because he knows how to win but he wins because he knows how not to loose from this market”. Which is very important to learn if you want to play in this market
Stock market is game based on figures figures and figures only. The rates of stock-scrip speaks the language but the general people goes after news, rumors and tips which is the result of the spoken language of figures. The rates of the share talk first and then news and TV talks start talking where general public follows and are trap in the market and later on blame the market by telling it speculation instead of blaming themselves. One message you keep in your mind that price has got all the information and if you want to succeed in this market then follow only rates rates and rates of the scrip only.
In this stock market 95% loses money because of speculation and playing on tips and news and only 5% makes huge money so this means that as share market is a zero game – stock exchange does not make money its investor only who makes and losses money. So to be in 5% you must be discipline, sincere and patience. You must not be emotional in this market.
If you know how to cross the road and what are the signals –red, green, yellow and their importance you will not meet with any accident –same way if you know how to play in this market –what are the rules and regulations and when to enter and exit – you will never meet an accident of losing money and then you will realized that it is not an speculation game but a skill game – lots of research hard work and sincerity goes into this study of share market. There is no gain without pain in this market. But if you know the pains then there is gain gain and only gain and it is not at all speculation because the concept has changed , time has changed but thinking is still the same “not to enter stock market –it is speculation”.
(Analyst is a Chartered Accountant in Mumbai, +91 9892947443 email: firstname.lastname@example.org)