You have often heard the expression “99 out of every 100 who go into share market lose.” Then one man out of every hundred must win. Therefore, my answer is that Dalal Street can be beaten and that you can make money by speculating and investing along conservative lines and by trading in a few selected stocks.
Nothing can replace experience!
How are you going to do it? You must have knowledge and science. Know! Know!! Know!!! More than the other fellow or the common trader. Find out how successful men in share markets have made their fortunes; then go and do likewise. Remember that “Knowledge is Power.” Statistics show that 98 per cent of business men fail sooner or later. Then why do men go into business? Because 2 per cent of them makes fortunes out of general business and keeps them.
Don’t follow the crowd!
Just ask yourself the question, “Who gets all the money that is lost in share markets?” It does not evaporate; for every dollar lost someone makes a dollar. Then the way to make it is to trade the same way the fellow does who gets what you lose. Remember that every time you buy some one sells and every time you sell someone buys. The majority of people who buy stocks lose money in the end. Why? Because they guess, follow newspaper dope, fake tips or inside information. They do not mavestments; they gamble on 10 or 15 points’ margin. They nearly always buy near the top, and of course, nothing can keep them from losing.
What a difference an idea makes!
The general public does not sell stocks short; therefore they are always wrong in a Bear market. When a man loses money buying stocks and refuses to sell short, he can always look back and say “if I had only sold when I bought, look how much profit I would have made.” Then, why doesn’t he learn to sell short? At the present time, there are over 1500 stocks listed on the NSE Exchange, and if you group them under their proper headings, there will be over 20 different groups. If you study the action of all the stocks in one group and watch them on the tape, you will find it is too much for you, and that you cannot make money trading in all of the stocks in any one group, much less by trying to trade in several groups.
Win Small Approach to Trading!
Share Trading requires patience, and the essence and value of it is concentration. There is no such thing as a man being born with a mind that can concentrate on 10 things at one time, much less 1500. Then success depends upon selecting a few stocks and concentrating upon them.