Stock Market and Traders
A few days ago, I shared this story on my Facebook page. But read till the end for a meaningful takeaway.
Once upon a time in a village, a man announced he would buy monkeys for Rs 10. The villagers, seeing many monkeys, went to catch them. As the supply decreased, he increased the price to Rs 20, then to Rs 25, and eventually to Rs 50. The villagers caught monkeys eagerly, but soon, the man’s assistant appeared, offering to sell them monkeys at Rs 35, promising they could sell to the man for Rs 50. The villagers, using their savings, bought the monkeys—but the man and his assistant vanished, leaving the villagers stuck with monkeys everywhere.
This is how the stock market works today. If you're still in the market, you're likely recovering your losses because you're holding onto non-performing stocks, hoping someone will buy them at higher prices. The man won’t return. He’s now fooling others in another village, and if he comes back, it’ll be for donkeys, not monkeys. You’ll probably make the same mistake again.
Can we change this system?
Unfortunately, as a common trader, we can’t directly change it. But we can fight back by becoming smarter. How? By following the strategies of the man and his agent in the story.
You don’t need to become friends with them, but you must observe and follow their actions. In the market, they won’t make announcements, but here’s what you can do:
- Get involved and develop an interest in the market.
- Stay positive and maintain a winning attitude.
- Learn technical analysis. This will help you understand the man’s strategy and guide your actions.
- Don’t rely solely on news, but don’t ignore it either—news often comes from agents.
Stay tuned for more insights on technicals and their implementation on YouTrader in upcoming blogs.
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