STOCK MARKET: MYTH AND TRUTH

When ever stock market comes into discussion, the first impression of majority is "It Is A Gamble....Game of Chance".

One can hear innumerable stories about people going bust and how no one has ever made money from the stock market.


But how much of that is true...and is it the complete truth?


NO........not at all.


Let us see why........


Yes, we agree that majority of people loose money.....but where does that money go?

One would say .....Obviously to the winners.....Very true.
And who these winners are..........they have many names in the common parlance....Market Operators, Big Traders, Trading Cartels etc.

Common notion is that these winners know how to turn prices in their favor....and somehow they manipulate markets.


THE TRUTH IS....


  • Market has a very large number of participants and is too heavy to be moved by few people.....it is actually played out by the net effect of psychologies and perceptions about the price which all participants have...
  • Market therefore has no consideration for the individual traders or a particular group of traders...
  • People who make consistent money are those who are on the right side of the market.....
  • The thinly traded securities with low overall participation are of course an exception....

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