After a long time i would like to write a post on some general thoughts ..
I have seen many of the people i meet calling themselves so called " small investors " ..How do we quantify the word " small " ...Coz someone who has lost 5-10 lakhs in FNO calls himself a small investor and a guy who has invested 40k is also a small investor...Well the guy who lost might not be having gr8 deal of money but really has the guts to lose that much and take a leverage of lakhs or crores ...Coz the money doesnt become zero in stocks like in casinos...If u bet with higher leverage and margins then maybe u can make gr8 efforts to lose that much ..
The other day i met couple of people online and elsewhere who said i m a small investor and have been reading ur blog for a long time...I am somehow not able to make a good deal of money or rather losing .... The next answer from my side was do u hold any of the long term stocks i recommended like alph geo , Aptech , Niit , educomps etc etc...he said no ...Well the next question i asked him do u trade intra day he said yes....there is where the entire thing gets cleared up...
Majority of the so called small investors and the people whom i meet basically are professionals who just trade for the thrill they get out of it .....And a feeling of winning somewhere... All they wanna see is a +++++++ on their portfolio ... with a good salary and all the money what it comes from there doesnt give a support .............But when this real money slips of from the salary it does give a pinch which is a little too hard to take......
Intra day trading has become a habit for many so called small investors who feel reading some sites , recommendations from brokers , blogs , trading in FNO and options is an easy way to make money ( or rather easy way of losing money ) ..... We check a 100 features like battery time , ram , etc etc... before buying a new laptop worth less then a lakh but never justify taking big positions in the stock or the market without seeing in the risks involved and also the rewards expected ... ..................Be equipped and knowledgeable enough or lucky enough or pray to god ... 🙂
Its plain mathematics a 500-1k loss to a professional or a small investor seems nothing but 15 such bad days which u say aaj 500-1000 minus tha ....
But they love to brag about 3-5 days of 1-2k plus position to all their buddies... In the end its 8-10 k down for the month which is a substantial percentage of their salary ...so guys is the thrill and kick worth it ????...The rationale this people play on 1-2 % gain on 1 lakh for 30 days i can make 20-25k easily isnt it .... Well if it was this simple why would not everyone do only this and stop working .....THIS IS SERIOUS BUSINESS MY FRIENDS>>> or rather as my uncle puts it " Business of businesses " ............
Small Investors or some of these suckers have never understood the word investing ...Investor need not see the daily price or the market ... Buying a stock and selling it in 2-3 days is not investing my friend...
Some of them invest in mutual funds ...Personally i am averse to paying the salaries to people before they have started working for me... You can be ur own money manager ...Invest on regular basis in good stocks for a longer term and u would be astonished to see the returns... Aban Lloyd was 1200 some months back ...Aptech was 150 ...This is just a span of 6 mths the money has doubled and no doubt these companies were so good that they were never gonna go down by 10-20% in the worst conditions....So learn to manage ur money ...
Best Regards,
Nooresh
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