I read a fascinating tweet from https://twitter.com/suru27 and therefore I decided to RUN an interesting poll on twitter.
Now, my entire premise is based on the assumption that since this is a anonymous poll, people would have no incentive to lie (boast off) and hence the results could be as real as one could get on social media.
Here are the results (so far)
To be honest, the results did not startle me. I have a friend, who is a NSE broker and his findings are a lot more pessimistic than this poll. He says,
“finding a consistently profitable retail trader specially in derivatives market is a six sigma event”.
Ofcourse, a lot has been written about the “Why” of it, so I am not diving deep. Typically, majority of losses can be attributed to Over leverage and under capitalization. (they are the same thing actually, more or less)
and as if these 02 are NOT devil enough, we have a third factor of sheer casualness. People do not treat it as business and don’t even document what they are doing. And as Ed seykota said,
YOU CANNOT CONTROL WHAT YOU CAN’T/DON’T MEASURE.
But what intrigues me in this puzzle is NOT the WHY ….(people lose money)
I am totally fascinated by addictive power of this Sucker game. After looking at your PNL, day in and day out, month in and month out, year in and year out, the WRITING SHOULD BE ON THE WALL that YOU SUCK and its time to throw in the towel.
Its like playing Poker with Daya. You play for fun and not bet any serious money or may be a more daunting example, You can play chess with https://twitter.com/RaahilMullick Rahil Mullick for kicks, but you have to be a certified idiot to put a wager on it.
But Stock market is a devious form of these players. Its like Raahil losing on purpose, once in a while to lure you in.
That streak of lucky breaks here and there keep you glued for the rest of your miserable life
This is just unbelievable, Stock market derivatives market is like smoking habit’. Its like a pitcher plant, Once you get in, it will suck you dry until you die.
This is NOTHING NEW BTW, thats how casinos work. If it was not for few wins and near misses, no body would crowd around a slot machine.
And as if this is not enough to hook you for life, we have self help genre filling the gap and giving you a final shove to your grave with Words like, NEVER GIVE UP , PERSEVERANCE, WHEN THE GOING GETS TOUGH, THE TOUGH GETS… blah blah…
And ofcourse, Twitter Screenshots of 1 Cr profits keep the hope alive that ,”IT CAN BE DONE”.
Ofcourse it can be done. Banknifty gyrates 400 points on a quiet day and you need just 75 points in a whole month to hit 15% return. This kinda lure keeps you glued forever.
If you are not doing it as a Profession, You have no business in dealing with FNO. You are demeaning a full time vocation and it doesn’t like insults and HITS back where it hurts most.
If you are consistently losing money and still AT IT. You are an addict and like any other addiction, you need intervention. Get clinical help before it ruins you.
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