Dear Readers,
Common sense means paying attention to the obvious. This is not as easy as it sounds. We all have vivid imaginations, and we tend to get lost in our fantasies.
When fantasy replaces common sense, life becomes farcical and even tragic. Life is a series of ordinary events that follow the laws of logic and probability. These ordinary events are indifferent to our fantasies and require the careful, accurate navigation of common sense.
It’s easy to get lost in all kinds of fantasies in stock markets and therefore it’s all the more important to apply common sense when taking a plunge into the world of investments and trading.
Let’s learn the lessons of common sense w.r.t stock markets:
Did you ever realize when your broker asked you to trade intraday and guaranteed that you can manage a daily return of 0.5-1% or let’s say 10% per month by trading in equities then why did he himself not trade?
Did you realize that if he’s so sure about 10% monthly return, why did he himself not get a loan of 5 Lakhs from the bank at 1% monthly interest and traded with the same for 9% effective return and thus pocketed 45,000 each month.
Did you ever ask yourself that why do 98% of the intraday, short term, momentum seeking, and F&O traders lose and why does the world’s third richest person advises you against trading?
Well, if you had asked such basic questions and applied common sense you could have saved many Lakhs that you may have lost in your greed for quick and easy money.
It’s time for you to introspect and find out if you are one of the above poor investor who is always at the losing side or you are one of the smart ones.