Posted by: Babu Suresh | January 6, 2009

Stocks Trading – Yet Another Business

I am somewhat baffled to note, most of us fail to recognise Trading or Investing in Stocks, is purely a business.

Having been in various businesses since the age of 20, faced various failures, and have been a business and marketing consultant, I am yet to see a business which offers instant reward with extraordinary profit without any investment. Investment does not only mean putting just money and concluding there ends the role and the reward will start flowing into our bank accounts yesterday.

In the recent past, we have witnessed some fundamentally strong Stocks like Reliance, Unitech to name a few made millionares but, not over the night.

The fundamental conflict that all of us face while dealing with stock market is, we fail to recognise, establish our identity and treat it as a business. Very rarely I have seen a man being able to perform dual role – trader as well as investor.

When I read in the forums and hear in broking houses, people expressing their frustration, anguish, passing the buck on various factors for their failures (read Loss), I am flabbergasted to note that they still refuse to accept the most fundamental and very basic fact, they must first learn trading and treat it as a business.

Even today, after all these chaos and mayhem that we all witnessed and experienced due to sustained downtrend, these desperate people still believe those who promise to double, triple their money within a short period. Some half-baked ones call stocks trading a gambling. So what is there? Why don’t we start learning gambling and do it properly if we want to do it?

Whenever I meet prospective clients, the first question they ask is what is their ROI. I say 18 to 24% per annum subject to not only market conditions but various other factors. Thay laugh at me saying they heard in stock market one can double, triple their investment in a short period. I simply reply saying, please go to them, I am not the right person for them. I am sure any sane person would agree with me.

As every wise man said, there is no age bar for learning but one should have the inclination, interest, involvment and patience. Why don’t we start now?

There is no short cut to succeed in any business, stock market is not an exceptional to it. Lets learn to change our paradigm of stock market.

Healthy And Wealthy Trading

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