Do not believe in Trading —- If you are a Trader, Believe me eventually you will go from here losing all your money and confidence…….. Invention of trading is done by Selfish big brokers……. When they say `Buy Reliance @ 950, target 1000, Stop loss 900`…… all the greedy traders buy Reliance and BECAUSE OF THEIR BUYING , price becomes 1,000 and they think Wow ! ….. That broker is genius! And if the price comes to 900, Stop loss is triggered and they start selling as per broker`s instruction and price falls further BECAUSE OF THEIR SELLING…. They again think that broker was genius in giving Stop loss…… he saved them from further loss!! This way those selfish brokers can exploit the traders and make them buy any bullshit company………. there is a reason behind giving a TARGET……. Because traders wants to know HOW MUCH they will earn in HOW MUCH time…… They cannot wait for one year in these times of everything INSTANT…… Instant Coffee, Instant Pizza…….. And when demand from traders is there for these kinds of TARGETS, obviously supply will come from somewhere……. Simple rule of economics…… I see here that out of 10 questions, 8-9 questions include the word TARGET……….. And famous advisors also with lakhs of followers are giving the same bullshit advice of TARGETS and STOP LOSS.

You must have heard about Paradox of life that if you will not run behind money, money will come behind you…….. This perfectly applies to stock market………. Only Patient investors who are not in any hurry for their shares to go up can earn money here……. But to get that patience, you need to understand Fundamental investing……. All the legends like Warren Buffett, Benjamin Graham, George Soros and everybody are against Technical Analysis…… If we could tell the future of a share just by reading charts, richest persons would have been Geometricians……. But you can argue that Technical Analysis also works and share price and markets moves as per charts……… There is a reason behind this…… Because majority of investors are investing as per charts and price moves according to majority………. So they think that chart is working…. No, chart is not working…… It is their COMBINED BELIEF over charts which is working!!! When the price comes to so called SUPPORT, all starts buying and price rises and they think WOW! What a great support share has at a given level.

And because of their this foolish behavior, we fundamental investors get benefitted…….. If all the shares start trading at their fair value, there will not be any need to do any research….. You can just pick any share randomly…….. But No, shares are not trading at fair value….. Because of crowd behaviour, some are overvalued and some are undervalued………… Mr. Buffett has said one statement which I like very much – “ had the market been efficient, I would have been a Begger in the street with a Bowl in my hand!!“………. So, in one way, by telling you the above secrets of trading, I am doing big loss for myself……….. Because if everybody starts doing fundamental investing, shares will trade at fair value and we fundamental analyst cannot make money……… But I do not care for money…….. I have as much as I need.

So, bottom line is that STOP TRADING and learn Fundamental Investing before coming to stock market……… And if you cannot learn Fundamental investing, then I will advise you to invest in some other business………. It is better to earn less instead of losing everything…….. Happy investing..!!!

How Crowd Behaviour works in Stock Market