Stock markets are zero sum game!by Rajendra Gupta

Stock markets are zero sum game!by Rajendra Gupta

One looses then other gains.All ppl gain only thorough genuine profits earned by companies by their hard work and expected growth in profit raises the speculative component of price.It is all money chasing wealth.If there is more money chasing shares(limited quantity only) like FIIs coming, the scrips go up.Same way they may go down.The only assurance one has it that if you buy top companies having long term record of performance,updating their business model and have strong brand names, well they may earn at least 15% ROI and that reflects in rise in share prices slowly as money value also goes down by inflation.There are peaks and valleys around profit trend line where ppl loose money and make money.It is all probability.You may earn for months and then suddenly loose and reverse may happen with some one else.It is zero sum game.Probability wont work for you always in favor.Just have a reasonable part of your investments in stock markets or else you may get ruined in scandals and crashes.Just invest in good companies like A group which are there because they are good and consistent performers in environment.What is point of experimenting?Churning of shares makes money for experts and broker firms not for you.Greed has to be controlled and natural course of profits that companies earn should be long term objective.That also is better than FDs. At least for 5-7 years period.For day traders, yes, volatility is only was to earn or loose,whatever way you look at.

Prof RKGupta