Thank you for concern about intraday traders who lose their capital investing in share market
I agree trading is pure gamble where you try to make money using your skills.
Even though we have same view about share market I differ from your stand on retailers ban from derivatives
Following points may not relate to this thread but it is my reply to @trader_dude about SEBI move to ban retailers from derivatives segment (i dont care about futures, I talk only about options below)
I agree that intraday trading is risky and people do lose money due to greed in intraday trading
But why SEBI should ban derivatives trading if retailers are losing money in intraday equity trading ?
I also agree there is a 50/50 chance in all trades and it may go in either direction. Stop loss is there to limit the loses. There is BO and CO orders where we can predetermine the max loss or profit.
I also agree options trading can easily wipe out your entire investment if you start trading without stop loss or without learning about options strategy. This is applicable for both retailers and those trading with huge amount of money
My point is if the trader is greedy they may lose their investment whether it is retailers or big shots.
Why there is partiality between retailers and big traders by SEBI ?
This move does not stop retailers from losing money in intraday equity trading.
From my point of view, this move encourage more intraday trading that provides more leverage and more people will fall victim to loses and lose more money on revenge trading
On the other hand there is no intraday trading in options buying. The trader has time till expiry to square off their position.
Implementing an option strategy allows them to make predefined profit or loss with low risk than intraday trading.
Trading is news based gambling. Look at tips provided by business channels early in morning everyday. These tipped stocks opens high and there is no scope for retail investors. Positional trading with trend can make some money consistently for you.
milind
@SurajM
SurajM Yes it definitely is contradictory. But read it in its context, what the OP asked :
It is a well known experiment in probability. And I was giving an answer to his observations. His Q basically revolves around probability !
Now back to this thread. How does this 50:50 probability become 60:40 or 70:30 ?
From a bag containing 50 red and 50 green balls, what is the probability that you will end up with a green ball in first attempt ? = 0.5 !!!
Now while preparing this bag of balls, add more green balls (70) and less red (30) and repeat the experiment. THE PROBABLITY OF YOU SUCCEEDING IS HIGHER NOW.
Now I hope you are not finding them contradicting. And also I hope its has convinced you that trading is not gambling. If still you consider it that way then I would say even a chicken laying eggs does gambling and lays multiple eggs for higher success rate. Nature follows this principle. Even a kirana shop owner stocks his shop with multiple products. We are no different.
seems like gambling if going by statistics only 5% make money trading for a living…plus there seems to be no formal education…just going by youtube videos I don’t think one can make money trading
Also, in my humble opinion people get into trading for a living is when they are unable to secure jobs for themselves or are stuck in their professional growth
NO Friends…this is 1st time I am joining the chat…after seeing all ur desperation to know what exactly happens in the share market… see every thing in this world works on some mechanism…like that share market also works on some mechanism… if you want i can tell you that (strategy in ur language) mechanism…but as someone told {there r no free lunch}.
@sk669, i would love to learn something if you can atleast highlight your strategy…these blogs are for learning & am sure experts may be able to refine it further. there would always be some guys who would criticize or talk rubbish but we can only ignore them…
In trading unlike other careers the results are instant - good or bad, unlike in other walks of life where it is delayed. I can gamble with anything in my life, from my education to work to my relationships, but the results of it are delayed. In trading since the results are instant, people call it gambling.
What you need to understand though is that like everything you do in life, you need special skills to be on the top, the only difference is that in trading only the people who are on the top can survive while the others perish. These special skills, some of it what you are born with, and most of it is what you learn over time based on your hardwork and experience.
