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Dear sir, thank you for giving a true picture behind this gilded mirror called stock market. It is not quite shocking to note that most of the participants who loose many are speculating(trading) almost 95-97% of the traders looses money and less than 1% makes profit. Looking into the behavior of this traders tells a bigger picture than the number themselves. Most of the traders loose money because they follow herd mentality, stock tips and don’t understand the underling instrument in which they are trading. Understanding why someone who has little experience investing wants to get involved is because everyone else in their social circle is, advertisement are all over tv and even their favorite show on news channels is talking a lot more about how the market is so good. In such environment you can be certain there will be lots of “helping hands” to welcome this investor to the crowd, teach them to be a part of the crowd and initiate them into the world of the blind leading the blind. As John Maynard Keynes says “Market can remain irrational longer than you can remain solvent” the market is unlikely to reverse to any significant degree until almost everyone is on one side. That means almost everyone who joined the party late is going to lose. However, a bunch of people those 1% may decide to wait, but so will the market. People are the catalyst in the process of boom and bust and without people to create an extreme the market won’t hit an extreme and reverse–remember the market does not act on its own, we the people are the market. In other words, the boom and bust cycles will not end. We progress and regress and then progress again. It is true that historically equity market has been money minting machine Given its track record with investors. However, here we should understand that stock market rewards hard work and discipline, day trading is speculating which involves neither of the qualities mentioned.

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