Saturday 20 June 2020

To all the new traders of the stock market

Hello new Trader/Investor,

I hope you have learnt the nuances of trading now.

Last month a report published in an Indian newspaper showed that around 1.2 million new traders joined the market and there were many more across the globe.

You are a part of the new growing tribe of retail investors who can change the fate of even Bankrupt companies.  It must feel great to make money at a click of the button and in the process change the fate of the companies.

Easier said than done however it won't work like this forever and there will be a time when you will have to start choosing between the real value, intrinsic value, spread and margin etc.

The reason most of you are making what you are making is coz even a 2% incremental change in the market can drive your stocks and bonds to a higher return.  Most importantly it's time to decide whether you want to be a trader or an investor or choose the hybrid model.

Something that has been bought at a 15 year low will obviously break all thresholds once it starts gaining traction and reaching back to it's pre-covid market rates.

I am happy that you have chosen the right stocks to start you journey in this sector and I am happy that you have realised the potential of the market. It's time that the retail investors need to return back to the stock market and start playing a dominant role. The time has arrived when retail investors will have and hold more power to change the course of the markets.

Lastly, i would advice the investors to be patient and not change their positions on a daily basis whereas the new traders immediately need to learn the meaning and implications of a stop loss.

In any case I would be happy to help with my knowledge and experience of over 12 years being a learner and explorer of wealth making.


To all the wealth makers...
Cheers.

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