luck based trading

[Newbie Day-Trader]

How a stock market should function

1. Company must issue share at face value say 10 rupees
2. Buyer can enjoy dividend and bonus share and benefits like that.
3. If company is doing extremely good the price of the share based on dividend etc shall be fixed by SEBI/company .
4. if buyer want cash he can sell in exchange for the fixed price as in point 3. ( half of the profit must go to company . means if price fixed as 12 then one rupee to company )
5. If price fixed lower than face value then buyer should bear that loss.

looks weird ?

Nobody can "fix" the price of anything because it's the supply & demand that determine price of anything, & any attempt to try to "fix" prices of things leads to black-markets, bubbles & other economic misallocations. That's what we learned through the REPEATED failure of communist & socialist governments to fix prices of various things throughout the last century.

 

[moneymanager1980]

Nobody can "fix" the price of anything because it's the supply & demand that determine price of anything, & any attempt to try to "fix" prices of things leads to black-markets, bubbles & other economic misallocations. That's what we learned through the REPEATED failure of communist & socialist governments to fix prices of various things throughout the last century.

Say for example the price of company product like a car or anything basically fixed by supply and demand as you said.
but the price of the stock price of that same company fixed by speculation .

 

[moneymanager1980]

looks every where scary news.. but market may not go beyond this level ( may be few hundred points down ) even it goes violently down will come up before end of this year to 11k or above levels ,,
disclaimer : Mkt many time does not listen to me .

 

[moneymanager1980]

Slowly my thought process now a days shifted from What will happen tomorrow to what will not happen tomorrow .. and trades too based on that principle ..

 

[moneymanager1980]

Don't trade the Market . Trade your position .

 

[moneymanager1980]

And after loss of job in 2015 mid ..i was left with some 15 to 20 lakhs cash and 60 lakhs loss in stock market. and u know what would have happened ? yes the left over 20 lakhs too gone in to mkt by end of 2016

but before that got a clue from a guy in some forum ( guess in Traderji only.. really forget where i read ) and went ruthless on that clue in mid 2016 got back my all losses 60 lakhs that time

.whole of 2017 gone simply with some fews lakhs profit and few lakhs loss .. but trading capital is less than a lakh where the total loss stood around 90 lakhs by end 2017..

Summary
when total loss around 50 lakhs in 2014 ..suddenly recovered the whole losses in three months ( only to lose again to mkt )
when total loss mount around 60 lakhs in 2016 ..suddenly recovered the whole losses in one month ( only to lose again to mkt)

nature usually bring thrice to surface before drowning you forever.

then nothing great to add in 2018 .. as no job since 2015 and as cash reserves drained.. so left with no option other than to borrow and trade .. though borrowed few lakhs and traded .. as it gone again to mkt .. but first time felt the heat as borrowing money and being a debitor is very difficult physiology issue and that too every money going in to mkt ur pressure basically manifolded... so sold some part of lands ( which bought during sunny days in career ) and settled debts and traded with rest of the money and only to see the rest too goes in to mkt ..and by end Dec 2018 my loss is nearing 150 lakhs
..
one point to note .. in Nov 2018 start selling options religiously and it works fine for whole month .. but greed catch up in next month ..

 

[moneymanager1980]

A humble request .. if you account not in green from day one then please do not advise .. instead listen ..
i happily and eagerly waiting to listen to clear up this mess from mentor who succeeded and that too specific ideas instead a generalized one like be a seller , or follow discipline etc

 

[moneymanager1980]

Still you are going with less momentum when compared with me..

still?

 

[marimuthu13]

still?

Yes... Why because, you are basically some wealth background. .

Debt amount also not much higher ..



Looks like both are from same age group..1982 +- 3 years

 

[marimuthu13]

@ TJ admin/ Moderate

Please dont moderate his message as he is not doing any harm here...