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Sunday, 30 June 2019

Why majority fail in stock market? Is there any secret to win? #StockMarket #Secret #TechnicalAnalysis

           #Stock market attracts majority of people because it's game of #money. It does not mean that anyone playing this game, will make money or lose money but one thing is sure that majority people trying their luck in stock market will eventually fail. If you analyse, there are two sides of a coin. One may view it as risky proposition as 95% people venturing into stock market fail while remaining 5% (winners) view it as great opportunity to rob bank account of 95% people who are here in stock market to fail. 

           Let's understand the #basics first before terming stock market as risky or place of #opportunity in #abundance. We all know that stock exchanges just create a market where 'buyers' & 'sellers' come to quote the price of various listed scrips on these exchanges and complete their transaction according to their quoted price. Is this so simple? Yes, buying and selling are as simple as this and hardly consume time for transaction in these days because of on online trading platforms. Let's understand what buying and selling means in following para

         It is important to first understand that stock market is a 'Zero Sum' game. what does it mean? Let me explain this in a simple fashion for better understanding even for even #beginners. Once, one decides to buy a share/stock, it's quite obvious that he/she is #bullish (A buyer expects the price to go up). At the same time, he/she is buying a particular scrip/share because someone is there to sell at that price which means, the seller is anticipating a fall in the price. This is all about expectation of traders (buyers & sellers). In this situation, one of the two (buyer or seller) will prove to be wrong in times to come because price will either go up in favor of buyer or else it will fall to see smile on the face of a seller (in this situation, seller is quite happy with his decision to exit /sell the scrip either to avoid more loss or to preserve profits that he has already made). This well explains that winner in stock market gets equivalent money that looser has lost and hence it is a #ZeroSum business. I am not here considering the brokerage or other minor cost like GST etc but emphasis is given that winners get rewarded against failure of losers in stock market. In other words, stock market is authorized mechanism to rob the bank account of losers by winners. I am sure...you got it now.....Let me explain in following para as to how stock market is a place where opportunities exist in abundance if you are on right /winning side.

          Just imagine #billions of #dollars or #INR or #Euro etc  worth stocks being transacted daily on stock exchanges and 95% losers' money get shifted to winners and distributed among 5% winners or even less. Is this not huge opportunity? Should an individual not think as to how I can be on winning side? One thing is now sure that there is opportunities in abundance in stock/commodity or Forex markets and only #challenge (probably challenging challenge) is to be among 5%. Is it easy? No, I won't say for a moment that it is easy. Is it possible then? Here, I would enthusiastically say that it's 100% possible for those who #desire to be among 5% and ready to do whatever it takes to attain this challenging goal. Of course, having burning desire is the first step to take on right path to attain desired goal to be among 5% winners in stock market. So, are you ready? I mean, you are ready to know more only when you have desire to know the secret of winning in stock market. Let me go ahead to explain further to trigger your mind.

      One day, i was sitting and thinking as to why people makes an attempt to do #engineering or #medicine or #law or #management #courses? The simple and obvious answer that comes to mind is that people desire to go for such learning to build #career and #earn money. Am I right in thinking so? Then I further put myself on wheel of analysis that when I was doing an engineering graduation during 1977-1982, I spent 5 years in the engineering institute to learn engineering. Then I passed out in 1982 with #distinction and became an engineer. Did I really become practicing engineer? It was a big question mark. Soon after passing engineering, I got selected for Govt of India enterprise clearing all India selection process. Did I become now practicing engineer? I thought, I did because I got the designation of an Engineer in the biggest corporate house owned by Govt of India enterprise. But, my belief to have become a practicing engineer got shattered when I was posted in the field post induction program. I could experience that translating theory (which I learnt in engineering institute) to practice, was not that easy. It took at least 3 more years to be an engineer where my seniors played significant role to #mentor me to become a practical engineer because they all had similar experiences in their initial career. Why I want to take you through my career in initial days? The reason is very simple. Learning theory & then to translate theory into practice also takes time in stock market because it is also a profession like any other. Let me #caution you here. #80/20 rule applies everywhere. All the institutions in the world on an average produce 20% good practicing professionals in different fields. Does this mean that educational institutions are failing to perform? No, i never meant that. I said 80/20 rules apply everywhere. It means, 20% professionals thus produced by various educational institutions contribute 80% in building a #nation in their chosen fields. In other words, competition is far less than we think. Is it not so? 

           Whatever, I shared in the preceding para, was to explain that trading or investing in stock market as a profession is no different. If we don't learn, we are almost sure to be among 95% but if we learn the subject, there is a probability to be among 20% successful professionals (80/20 Rule) of stock market and find our place among 5% winners. Is that sounds good? Of course, it sounds very sound because there is ultimately no substitute of learning. It is like #learning to drive car. If we start driving a car without learning, one thing is sure that we will meet an #accident. Does this mean, we don't meet an accident when we drive after learning? I never meant this way but I am sure that probability of accident almost becomes negligible. 

           Then why majority of people don't take it up learning all about stock market as career option? The answers are two;

1. Our brain has been trained to learn & earn while emphasis has never been given to learn how money earns money for you which means you don't work but money works for you. This has been well explained by a book titled 'Cash Flow Quadrant' by Robert T #Kiyosaki (Founder of Rich Global LLC & the Rich Dad company) 

2. There is dearth of structured learning program for stock market.

            Now, I have given enough thoughts to trigger your brain and if you have desire to learn to be armed with #knowledge & #skill with clear goal in mind to be among 5% to rob the bank account of 95% through official means called #stock market, following are simple steps that you can adopt and your burning desire will back you to attain desired goal to be successful.

1. Let's understand the subject logically first. Prices of stocks moves up or down. The question only arise as to how we can find when price will go up and when it will fall? Let me take you to school days where we all have learnt that #demand & #supply decide price actions. If demand is more than supply, price will go up and when supply exceeds demand, price will fall. It is that simple. This narrows our focus as to how I can find demand and supply aspects of a particular stock? A good news is that enough research has been done world over in these aspects where one can find demand and supply zones through #price actions & price #patterns on price #charts of specific stock. Such study is called 'Technical Analysis' which is based on initial studies/observations made by Charles M #Dow in 1900 who was founder editor of Wall Street Journal ( #WSJ ) . In those days, such studies was very complicated but with advent of computers and software/#ChartingTools , data on price charts are available in real time seamlessly from exchanges which has made the task very simple. The only thing now remains, is to learn the art of technical analysis on price charts besides methodology to apply risk & money management so that we can minimize the accident causing loss while trading in stock market to be #consistent winner. So, learning technical analysis becomes second step towards our goal (first step, of course is burning desire within the learner). 

2. Now, you have burning desire to learn and also know the topics (#TechnicalAnalysis) to be learnt. Now, very question bothers as to where I can learn when there is dearth of structured program. Also, if you are in major cities, there might be various programs available on technical analysis but you are required to pay heavy fee. If you are from small cities or even tier two cities, you have to even spend more because additional cost (in addition to course fee) will impact you in travelling & lodging to major cities where such programs are conducted. Do you think, I am discouraging you? Not at all....I am making you #aware of all possible options that you might have.  A good news is that I have developed myself about 8 years ago by reading several #books on the subject by prominent authors from all across #world. Another good news now is that situation in last one decade has changed in favor of serious learners because resources are available online which not only saves cost of learning but also provides opportunity to learn from comfort of your home.


            I would like to share with you that when I saw that there is dearth of structured program /course on technical analysis, I as YouTuber could find an opportunity to #launch well structured program on my @YouTube channel titled 'Zero To Hero' which will take a learner from basics to advance level of theoretical aspects first and then several practical on price charts so that learner will be able to translate theory into practice in actual market conditions. To make it easier, I have created a separate playlist on my YouTube channel titled 'Zero To Hero' where all such video presentations would be available and Zero To Hero series will have new video on every Saturday at 8 PM enabling a learner to make bast use of weekends. Zero To Hero has been initially launched in Hindi but it will shorty be launched in English as well.  

             So, there is no secret to find place among 5% winners in stock market. The learner must have only patience to watch each video of 1 hour or so under Zero To Hero Series at least 3 times (#practice to healthy learning demands second or third revision) to have conceptual clarity so that there is no trace of doubts in the mind of a learner. Once all 50 videos have been watched successfully (at the time of this writing, there are only 4 videos and every Saturday at 8 PM, a new video will be uploaded) , it is suggested to start first trading with virtual money before one starts trading with actual money. It is said that keeping doubts in mind is detrimental and so, I would advise learner to keep asking questions in the comment section of video presentation which will be promptly answered. I would like to emphasize here that I am not aware that such a structured program like 'Zero To Hero' exits on YouTube. At least I have not come across as majority of YouTube channel on the subjects focus on promoting their training programs rather than imparting education. 

           If you have read entire article without skipping a word, this is the first test you have passed to be a successful trader or investor in stock market because patience is the best friend of learning and i am sure that people like you with great patience & desire to learn will watch all videos under 'Zero To Hero" series without fast forwarding so that they don't miss out important piece of learning.

           I am now sharing video link of Zero To Hero # 01 (Hindi) which gives overview of the program which might add some values among those willing to find place among 5% winners...

           Happy reading & watching...



Devesh K Sinha 


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