Have you bought a stock on someone’s advice to make quick profits and then waited for months, maybe years, to recover your capital?
90% of retail investors fall to that trap and lose money in the market. Just by reading this article till the end, it will change your perception towards market completely. Understand WHY YOU ARE LOSING MONEY IN THE MARKET. How can YOU move out of that 90 % of people who are losing money to 10% who make money?
Revealed on this page:
- Why 90% of investors lose money in the market: How you can make a move to that 10 % of investors who profit from the market.
- The long term investor misconception: Just being a long term investor in the market is not enough.
- The market secret that Foreign Institutional Investors or FIIs don’t want you to know: How knowing those can change your perception towards the market.
- DIYTechnicalAnalysis – My book is transforming hundreds of retail trader and investor to a pro trader and investor.
- YOURS FREE – Lifetime access to private members only forum: Discuss trading and investing ideas with me and other like-minded Indian retail traders and investors.
You’ve tried tips from experts on TV. You’ve started and stopped dozen’s of different stock tips services, perhaps attended various investment seminars, and have read the best books on technical and fundamental analysis but the truth is you can’t seem to be consistently profitable in the market.
Perhaps you are feeling a little disgusted with yourself and your inability to make a profit in the market. You feel like no matter what you try, and it’s not going to work.
If you have tried everything and still nothing seems to be working, and you are just compounding losses, you have come to the right place, and you are about to read the letter you’ve been waiting for all your life.
Do you know Indian retail investors need to lose money in the market?
Yes, it’s quite an eye-opener truth that you need to know.
Let me try to explain.
Money is neither created nor destroyed in the market. It is a zero-sum game (excluding the brokerage and exchange costs) which means someone has to lose money if others are making a profit in it because the total of all the money in the market is the money invested by all investors.
In simple terms, it means investing in the market does not print money for people making a profit from the market. If someone is taking the benefit out of the market, it is at the cost of someone else losing the same amount in the market.
But because there are millions of participants in an exchange, you don’t realize it as a zero-sum game.
You invested and made a profit. It means you purchased a stock at a lower price and sold at a higher price. The person who brought it from you is anticipating it will go even higher (like you expected when you purchased it) and the person last in the chain which is more often a retail investor will have to either remain invested for an elongated period of time to break even or get tired and eventually book a loss.
If large investors or FII’s want to be making big profits in the market, hundreds of thousands of small investors need to lose money and remain invested in the market for those big investors to consistently make profits.
Will you allow those large investors and FIIs to snatch away your hard earned money without you doing anything about it?
I did not permit it.
Let me share with you how I got started.
I am Shabbir Bhimani, and like any other investor, I also started to look at the market as a money-making opportunity. When the markets were booming in 2007, I made my first trade on 22nd June 2007 and purchased MAN INDUSTRIES (INDIA) LIMITED. In a day or two, I was richer by Rs 300 on an investment of Rs.50,000.
I started multiplying numbers. Daily 300 Rs could mean I can easily make more than my job. Hurray !!! I was on top of the world and wanted to invest a lot more and started to look for more source of funds.
Soon reality kicked in, and I realized that it is not as easy as it was for the first time. I had some decent gains, but I also realized that those were one time gains, and I am not able to repeat them regularly.
I tried hard to repeat my gains without much knowledge back then, but not only I lost my earlier profits but even quite a bit of my capital.
As famous quotes say “You Learn More From Your Losses Than Your Wins” and the same applied to me.
Despite my losses, I knew there’s money to be made from the stock market, but there is something that is not transparent to me. If one can’t make money from the stock market, why are so many big investors keep investing in the market and why the turnover in the exchanges all over the world is ever increasing.
This was when I started to study the market from various aspects, and it helps me understand
- How to spot the right stock from thousands of trading on the exchanges?
- Determine the right price of the stock where it has a complete margin of safety?
- How to find the right time to exit the investment?
- Conquer market fears
- Control market greed
- How to book a loss and yet be profitable in the market?
- How to not over diversify in the market and invest with the focused approach?
I am B.Tech in Information Technology and have no financial education and always wanted to be in equity market more as an investor and a personal hobby, but I found that there is so much of crap information to loot Indian retail investors.
The amount of noise in the finance domain leads me to DIYTechnicalAnalysis (Do It Yourself Technical Analysis), which is the fastest, easiest, best and the only possible way of making money from the market.
If I can, you can because now you have the proof it can be done without those financial degrees.
Why and how we are manipulated?
Remain invested, and you will ultimately make a profit.
You are constantly reminded to be a long term investor, which means you make loss initially and then compound your losses over an elongated period and yet remain invested.
We know the market is a zero-sum game. If Indian retail investors start to make money from the market, FII and mutual funds will not be able to make profits. So they want Indian retail investors to participate in the market and remain invested for an elongated period without making any profit out of it.
- Any long term investor can make money in the market – Wrong.
- You cannot time the market, so stay put and remain invested – Wrong.
- Fundamental analysis is about ratios like earnings per share or EPS, Debt equity ratio – Wrong.
FIIs have a systematic approach to manipulate our views of the market.
Have you ever wondered why big investment houses share their views about particular stocks on news channels? Why do they share their research about outperform/underperform for any specific stocks? What do they gain out of it?
How being a long term investor in even the best-est of stocks for an elongated period is not enough?
Sensex chooses the best stock in the business. So let us take all the Sensex listed companies. Take their price in 21st Feb 2011 (Random date in 2011) and compare them with 2016 (21st Feb 2016). The price is as follows.
If you invest in the best stocks in emerging India in the best era for the market (2011 to 2016), your probability of just being profitable after remaining invested for five long years is mere 18 out of 30 or 60% (Probability of 0.6).
It can also mean 40% chances are if you select the best stocks in the business from India’s best index and remain invested for an extended period of 5 years you can still be making a loss.
In 5 years only 8 (Maruti, TCS, Sun Pharma, Lupin, L&T, HUL, HDFC Bank, Dr. Reddy’s Lab) out of 30 stocks doubled and if we become slightly lenient in calculations 11 (ITC, M&M and HDFC included) out of 30 shares doubled. So there are only 35% chances you will double your money in 5 years investing in blue-chip stocks.
Do you still prefer to be a long term investor in any stock or you want to be investing in the right shares?
Real Testimonials of Real People
Let me share what others are saying about the DIY approach. Note these are real testimonials from actual members in our DIYTechnicalAnalysis members area that you can verify as soon as you have access to the members’ forum. If you find even a single discrepancy in it, you can ask for no questions asked a refund.
An eBook that can convert you from a retail investor who falls in the trap by others to a pro trader and investor. If you buy the Right stock at the right price for right time book now, you also get a bonus lifetime FREE access to a private members-only forum where you can ask me any questions that you have about any trading or investing opportunities.
Here are the sample chapters from the book. Use the arrow keys to navigate.
DIYTA comes with Amazon’s money back guarantee. So you know you are safe.
NOTE: After you have the book (eBook, Paperback or free version for Kindle Unlimited subscribers), Get in touch with me with the details of your order. I will send the lifetime free access to the DIY members only forum.