Lamb and Man brothers in hand

  Modern day financial system had its roots from the day man depended on others for its basic requirement  . Gradually with the growth in the complexity of requirement helped in development of different form markets . It changed the way we live , eat , travel  everything . From last 200yrs the change has been rapid and no one knows what will finally evolve out of it . But one basic thing had remained same , human behavior in financial market resembling to that of a group of lambs .

     Though I do not how many genes of both spices will  match if compared .  We all notice a financial  model only after one man becomes successful in it and tries to replicate it and follow the path ..Financial health of a  person is directly related to his social life so every try to follow the safest possible path . In this process of following others many time human behavior resembles to that of a lamb where one follows the other .

     Price of particular stock goes up with many buyer trading at the same time  , many people even don't bother to know why others were buying a stock . While selling also the situation remains unchanged . A property price touches the sky with a simple whisper that of news associated with the property .

    Where as the fact remains that in business or investment one gains profit only after selling the product at a higher price then the purchase price . One who is able to sell the product at the time others were mad to buy it ,ends up making a hues profit not one buying it  . So identifying the financial opportunity earlier and making an investment can only give hues profit  .New buyer of that product had to wait for his investment to mature and give him return .

      A financial path successful for one person may turn out into a trap for the other as two person may go to a same destination in two different path . Mostly we were interested in story of a successful man then a failed one , but every failure also had many things in it to learn from .

I learned as I am a good looser

 I learned as I am a good looser

 

 The stock exchanges and money involve in it has all ways worked as a mermaid to attract all . Just like a wife any one not invested in it loves to fall , where as one in the market wants a way out . Is it really such a bad place that we all should avoid ? where as there are persons like Warren Buffet of Berkshire ,Jim Roger , Rakesh Jhunjhun Wala (India ) who were able to make a big buck out of it .

      

        In the age where paid news , paid lobbying this market has its own paid services which is complected enough for a common man   . We can rarely trust a broker or TV analyst as we do not know what that person may be gaining by preferring a particular stock .As recent indecent in USA and around the world where the valuation of a stocks were manipulated with vested interest . In commodity also the picture is not different with every move of currency , govt policy , geopolitical situation , interest rate , iip and other data , the prices goes up and down word before a small investor  could understand any thing market makes its move and the investor becomes a gambler by either loosing or gaining money but he rarely becomes a investor . Is there any secret formula for it to be successful  ???

  

                The formula for is there but it depends on the person who wishes to be in the gang and he only can write it no common  formula works hear . First we need to understand self better to score high . Every person have there own area of competence . For example in equity , a doctor who knows about medicine better then a cement , IT or manufacturing company , so he should remain in that sector as his first love . When a farma company is going to lunch a new formula , which brands medicine had better market response a doctor is the master excluding the balance sheet part of the company . For this part any one who wants to make few extra bucks had to watch it himself . The technology has come of the ages and now with little help from software one can do it more easily then it use to be .

       For commodity we need to be specific on 2-3 products only , unlike equity where mostly national factors have an impact on the chart , commodity is completely international in nature . So again we have to closely watch many more data . But it has its prize also for the investor.

  

        Most people in this field have one thing in common when they gain money they behave like a master of the trade and start gambling blind shots , where as one need luck in gambling in trading one need time , patience and market education . On the contrary on loosing money they blame it entirely on game not admitting their lack of knowledge and leave the market for ever and tell other never to invest in it . But in this loosing also they learn many thing about market which goes in vein when they leave the market  .so be a good looser