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Why Markets are Taking Time To Recover

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You see markets are struggling to recover. The reason is pretty simple.

Traders are still confused. One is the Donald Trump win, and, the Second is the demonetization of the 500 and 1000 notes.

Some media people say, people supporting but economy crumbling as retail shopping is getting sluggish sales, and some media people say, people not supporting but over the long term economy will get a boost. It is matter of just a few months of inconvenience.

Fact is media is media and reality is reality. Fact is traders are currently uncertain about the future and when traders are confused markets usually falls.

As you can see it is falling but not like sudden fall. Confusion arises greed as well. Opportunistic traders with lots of cash waiting for a fall, actually come into action when markets sees a 10% fall. This is the time they enter into the markets and buy good quality stocks.

Through my newsletters to my course subscribers I have been telling this since last one week. I am sure the ones with a lot of money must be buying the stocks.

Let me also give you some more real facts which will explain the situation.

For this month of November till now FIIs (Foreign Institutional Investors) were big sellers in the market. Till now they have sold more than Rs. 12,000 crores worth of stocks in equity cash market.

On the other hand DIIs (Domestic Institutional Investors) were actually net buyers. Which means they bought more worth of stocks than they sold.

Even though a lot of money in Indian stock markets is invested by FIIs (Foreign Institutional Investors), if you go back and track performance history in Indian stock markets, the DIIs (Domestic Institutional Investors) have performed much better in terms of returns than the FIIs (Foreign Institutional Investors).

Why?

Because in India DIIs (Domestic Institutional Investors) are mainly the people’s money invested in Equity or Hybrid mutual funds. Someone gets in, someone gets out, but overall the investments in mutual funds in India has seen a tremendous growth especially after the stock and shock meltdown of 2007.

Hope you remember that the world over stock markets crashed by almost 40% in 2007. A lot of investors and derivative traders lost money in that fatal year. Hey, even I was one of them. Unfortunately year 2007 was when I started trading and lost heavily.

Unlike a lot of other people, beginners luck did not support me but with God’s grace I am still here because of knowledge, dedication, persistence and patience to make money from the stock markets. Out of the above four, it is knowledge which has helped me a lot.

A lot of people have asked me if there are videos in my course. It is strange people think videos can teach trading.

Name me one person in the history of the world who has become a great investor, trader or a great businessman watching movies and videos? NONE.

Name me person(s) in the history of the world who have become a great investors, traders or a great businessman reading books and applying knowledge. MILLIONS.

In fact almost all of the great businessmen and investors have read hundreds of books and still keep reading. They never go to YouTube to watch videos on how to improve their business or become great traders. All they do is keep buying good books.

Another example is if videos actually gave knowledge, then why schools and college going students are given books to read? Why they are not given a mobile and asked to watch videos? They can even do away with teaches and their salaries and make more money. Fact is they know very well videos cannot impart knowledge. They can only help, but real knowledge comes from reading books. I can tell you with guarantee that even hundreds of years from now videos will not be able to take over from books in schools and colleges. They will be kept as helping tools only, the main source of knowledge will still be books.

If you want to know about me. I HAVE NEVER WATCHED A SINGLE VIDEO till now on trading. If I do watch videos it is mainly to understand a subject (which I already know) well, or to teach my kids or interviews of great personalities, listening to their speech etc. When I find something interesting, I pause the video and write it down on a piece of paper.

But, I can understand why people ask me if videos are available in the course, because its is a leisure to see them, whereas reading is hard work. Which one brings better results? Hard work or leisure? I hope you know the answer.

Conclusion:

  • Traders are a bit confused therefore markets are falling but the confusion is temporary. Once things will get clear bulls will take over and markets will see a sharp recovery.
  • Long term traders like DIIs perform much better than short term traders like FIIs. That’s the reason positional traders make more money in markets than the Intraday traders. In real world also Intraday workers are known as labours and are paid one of the lowest salary in India. The same applies to stock markets as well.
  • Therefore get education, plan well and trade for a medium and long term. Stop Intraday trading.
  • Watching videos is a leisure which does not give knowledge. Reading books is hard work which gives knowledge and results as well. Please read if you are really interested to become a good trader.


    If you have any question you can contact me.

    You can read about me here and my trading mistakes here.

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  • About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

    { 2 comments… add one }
    • Nilesh

      Can provide the name of good books for traders?

      • It depends on what you are looking for. One book does not have all. So please Google exactly what you want to read. Then make a list and then buy the best one or two. Thanks.

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