War between Price & Value

Are you a trader or investor?

Love for VALUE or PRICE?

Before making an entry into a market, we need to realize 1 thing, Are we a trader or an investor?

Just entering the market looking into Instagram/telegram profits of someone & not realizing is it trading or investing? Kuddos to those who really make money.

Zerodha in its recent study told that only 1% of the traders make money.

Do you know video editing? Can’t these Instagram/telegram videos be edited to lure you into this?

Here I am not against any traders, I respect both the traders as well as the investors. But as a beginner, you need to know that a person who has entered trading might have failed multiple times before becoming a genuine profitable trader. That specific guy/community might just put a screenshot/video of that specific profitable trade to lure you into their community, further take money from you, guaranteeing you to make it double or triple or even 100 times, might even make money for you, return you after charging some commission or in most cases take years and years trying to manipulate you since he/she is unable to make profits or has lost your money in market, in worst scenarios ran away.

Therefore, to all my financially educated friends who want to become a trader or investor, need to understand the market first. Try understanding the the different product types, nature of market, Macro trends, financial ratios, annual report, valuation, financial modeling, creating a portfolio, risk management strategies and much more. It is good to enter the market, there is no good/bad time to enter the market, but entering the market with right knowledge is important. Looking at other’s profit and stories and then making an entry might turn out to be nightmare. Entering into the market has its advantages, giving more returns than inflation of course, but there are many people who still resist.

Some of you might disagree, My view is, it is good to be resistant to not to enter the market if you lack knowledge, go and invest in FDs or other non-risky products, but entering the market without knowledge is a sin.

Also, traders give more weightage to price but investors give more to value. A stock might be fundamentally weak, a penny stock or literally a bankrupt company: Trader might make a profit over it over a swing/scalp trading irrespective of the price moments using oscillators, RSI, MACD, Bollinger bands, candle sticks and many other indicators. (Note: Not always the indicators give u the right call, it can be vice-versa as well). An investor might never buy such a stock.

The war between a trader an investor is a war between value & price. The idea is, both the trader & investor should respect each other’s skills & knowledge and work independently.

Also, Before enrolling into investment courses, beginners should focus on the trainer’s background. Is he an investor or trainer? Not trying to demean anyone, but if you are opting for a valuation/investing course, learn from a trainer who is an investor but if you want a trading career, learn from a technical trader. Here, I do not mean that a trader cannot be an investor or an investor cannot be a trader but one has to chose supremacy, cannot put your foot into 2 ponds.

I do trading, But I am a long-term investor. I am proud of being a long-term investor. This is the reason I am happy teaching more than 20K+ students in investment banking and helping them being confident in the field.