Technical Analysis of Indian Equities by Nooresh

Small Investor …………….or the Greedy trader….

After a long time i would like to write a post on some general thoughts ..

I have seen many of the people i meet calling themselves so called ” small investors ” ..How do we quantify the word ” small ” …Coz someone who has lost 5-10 lakhs in FNO calls himself a small investor and a guy who has invested 40k is also a small investor…Well the guy who lost might not be having gr8 deal of money but really has the guts to lose that much and take a leverage of lakhs or crores …Coz the money doesnt become zero in stocks like in casinos…If u bet with higher leverage and margins then maybe u can make gr8 efforts to lose that much ..

The other day i met couple of people online and elsewhere who said i m a small investor and have been reading ur blog for a long time…I am somehow not able to make a good deal of money or rather losing …. The next answer from my side was do u hold any of the long term stocks i recommended like alph geo , Aptech , Niit , educomps etc etc…he said no …Well the next question i asked him do u trade intra day he said yes….there is where the entire thing gets cleared up…

Majority of the so called small investors and the people whom i meet basically are professionals who just trade for the thrill they get out of it …..And a feeling of winning somewhere… All they wanna see is a +++++++ on their portfolio … with a good salary and all the money what it comes from there doesnt give a support ………….But when this real money slips of from the salary it does give a pinch which is a little too hard to take……

Intra day trading has become a habit for many so called small investors who feel reading some sites , recommendations from brokers , blogs , trading in FNO and options is an easy way to make money ( or rather easy way of losing money ) ….. We check a 100 features like battery time , ram , etc etc… before buying a new laptop worth less then a lakh but never justify taking big positions in the stock or the market without seeing in the risks involved and also the rewards expected … ………………Be equipped and knowledgeable enough or lucky enough or pray to god … 🙂

Its plain mathematics a 500-1k loss to a professional or a small investor seems nothing but 15 such bad days which u say aaj 500-1000 minus tha ….

But they love to brag about 3-5 days of 1-2k plus position to all their buddies… In the end its 8-10 k down for the month which is a substantial percentage of their salary …so guys is the thrill and kick worth it ????…The rationale this people play on 1-2 % gain on 1 lakh for 30 days i can make 20-25k easily isnt it …. Well if it was this simple why would not everyone do only this and stop working …..THIS IS SERIOUS BUSINESS MY FRIENDS>>> or rather as my uncle puts it ” Business of businesses ” …………

Small Investors or some of these suckers have never understood the word investing …Investor need not see the daily price or the market … Buying a stock and selling it in 2-3 days is not investing my friend…

Some of them invest in mutual funds …Personally i am averse to paying the salaries to people before they have started working for me… You can be ur own money manager …Invest on regular basis in good stocks for a longer term and u would be astonished to see the returns… Aban Lloyd was 1200 some months back …Aptech was 150 …This is just a span of 6 mths the money has doubled and no doubt these companies were so good that they were never gonna go down by 10-20% in the worst conditions….So learn to manage ur money …

Best Regards,

Nooresh

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Article by Nooresh Merani

Nooresh has written 2745 articles.

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