Brother you may want to sell that formula for doubling, tripling networth in 2-3 years to all those innocent retailers so as to save them from f&o.
check my other replies on why credit is important and serves better than trading.
Credit is leverage only.
Thanks for sharing your experience.
I have been part of multiple forums, only 5% seems to be making profits. the numbers becomes 1% when data observed is for 5+years.
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5% of traders do make profits.
if you observe over a period of 5+years, the number falls to 1%.
Exposure tied to networth is probably a good step.
Hedging needs liquidity, how is liquidity increased in any market. It is only created when traders are willing to risk their capital with the hopes of earning profits. You NEED traders if you want a derivatives market where people need to hedge their positions.
The forum is also filled with stories of people making excpetional profits. People also killed themselves in Harshad Mehta scam, 2008 crash, Covid. These things will continue to happen.
Yes retailers are not responsible for price discovery big funds are, but big funds will only take the risk of entering the markets if there are retailers willing to be the counterparty. Retailers always lose money is a pretty bad claim. I am up 96% this year and just went up 33% in last week so i’m sure not every retailer is losing money. Yes there are scammy courses on the internet but how does that warrant getting rid of derivatives for non hedgers.
Stop with the socialistic mindset of we need to help everyone. The entreprenurship culture should be banned because so many people I know started businesses ended in Bad debt and now can’t even pay for their children’s education. “Country’s productivity” refers to getting rid of an opportunity people have to financial freedom so they can continue to work terrible jobs on terrible positions just because they didnt go to the ideal colleged/ didn’t have the ideal degree under terrible bosses.
It is very simple.
In corporate world,
Focus on acquiring new skills, climb up the ladder, do competitive research proactively, see how you can add value to your customers, research on upsell strategies.
In sales world,
research products from other countries (i have list of e-commerce websites from other countries), look for popular products in those countries, see product fit in your own country, import/make and resell. (This sounds simple, but its not).
look how commerce is conducted in various channels, look for inefficiencies, bridge the gap with technology/better processes with slightly same margin as current businesses.
I know this is generic, but i operate in multiple streams, i can only give generic advice, if you have any specific idea, you want to discuss, i am up for it.
That point about only allowed to trade in options when you have the underlying is not only idiotic but also unviable. Majority of major players hedge through index, but the underlyings are various individual stocks.
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Exposure tied to networth tho better than most terrible ideas proposed by OP is still a bad idea imo. It can kill strateggies which on paper can look over leveraged but with risk management stop loss proper discipline isn’t really going to affect the trader. Also I in general have a problem with any type of regulation that basically restricts market functioning. We need new ideas that try to tackle the problem not make it difficult and difficult for people to get in. Otherwise in a few years you’ll have more brain drain to tax haven countries.
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The same kind of advice can be given for trading also. But the success rate in any other business in long term will be just like trading only…a small minority of companies will survive and majority will perish.
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Very very good point and not only in business but also just as an employee. The chances of you being a CEO are very low, i can sit here and say it’s all luck but that’s not fair to the actual people who came from nothing and became CEO’s because of their skill to turn around or really improve a business. The same thing applies to trading, people love to say that if you are successfull in trading then it’s all luck which is very bad take. Yes luck is a part of it but one needs to have a good strategy and proper risk management to be really good at it.
All your questions about liquidity, loans, entrepreneurship are answered already.
Please read my answers before replying, and thinking you are clever. lol
We already regulate lot of stuff (drugs, alcohol, personal loans, small cap stocks, food quality, driving on roads).
By going your logic, we should remove traffic signals because accidents happen anyway.
Again a stupid reply by you. In an accident there is no winning party. In an options trade there is. Options are a voluntary trade by both parties. Accidents are not…
if my ideas are terrible, propose new ones.
as long as my goal of stopping scams is achieved i am fine.
it’s irony you expect brain drain because of regulations, but you ignore the fact that 95% of people are losing money because of lack of regulations is ok?
We already regulate everything so let’s regulate and give them more power. People like you were the reason India liberalised so late. The worst part is you are a capitalist who invests in stocks but still has socialistic ideas.
I have been saying 2 things in every similar thread -
- Make people give an exam so that they understand how derivatives work
- Completely ban online courses or make it more difficult for people to give courses (i think such rules do exist but i’m not sure)
Rules exist, its unenforceable.
hence my quest for alternatives.
exam won’t solve anything. because all those SEBI registered advisors do need to take an exam to become one, but that won’t make them good any investing stocks.
Its like saying paper trading helps with trading.
Those who went that route, knows, paper trading is totally different from actual trading.
Exams for advisors are not abount making them the next Peter Lynch. It is so that SEBI knows that these people atleast understand the markets and have basic analysis skills. It is not SEBI’s job to only allow people with an Edge.
Sure paper trading is not comparable to trading cause it doesn’t really deal with your emotions involved in trading. But paper trading still does enagage your analysis and how to use your strategy effectively and to make entries properly. Understand risk managemnt concept and use them when you start actual trading.
Before I started trading i paper trade for 4 months and I’m glad I did.
i dont care about your labels, i look at outcomes and decide what is best.
if banning causes good, lets do it. if liberalizing causes good, lets do it.
i pick whatever is good for society based on outcomes.
I support capitalism, free trade, property rights, labor laws because it is proven that they work over a long time scale. but I also support import duties because import duties is needed for growing economy like india from getting overrun by advanced economies.
Same with capital markets, i support & invest in stocks because companies need capital to grow and its a way to build wealth for common folk, it is proven beyond doubt. But I oppose retail trading because 95% of participants lose money.