Is it easy to earn easy money ? -- Realty of Stock Market

 Before answering this question, let's find out the answer to other question

1.  Why do other professionals like doctors, engineers, and scientists work hard for their profession?

2.       Why do people do real business such as manufacturing, agriculture, transport, etc.?

3.       Why are employees in MNC companies - Reliance, ITC, TCS, HDFC working day and night?

All these personnel involved in the above question are working hard for their economical and social development. Moreover, most of them have the sole purpose of economic concerns. In other words, they are working for money.

So, if earning in the stock market is easy, why are they not earning through it. If fact, they are much more capable compared to most of the traders or investors involved in the market.

Do you know what is the basic difference between the stock market and other businesses or jobs? It’s the level of uncertainty involved. The Jobs are more secure as compared to real business and the business is more secure than the stock market. In Jobs, we know, that at the last of the month, we will be credited some amount of money, also in business we believe that if we work hard, surely our business will run and give profit. But in the case of the stock market, even if you work hard, there is no guarantee of return and this is the thing, which makes the stock market difficult.

Now we will talk about some fundamental aspects of the stock market. Before let’s create an analogy, consider there are two wrestlers belonging to India and China, and both are unbeatable in their countries. If there is a wrestling match between these two, who do you think will win? Well, it's uncertain but one thing is certain one will lose. One has lost the match that doesn’t mean he is incapable, instead, it is the nature of the game that one has to lose. Yes, the looser wrestler was slightly incapacitated compared to the other.

In this analogy, there was a fight of body, and in stock market there is a fight of mind, intelligence, patience, etc.

Now let’s see the participant of the stock market – FII, DII, Retails, and HNIs and all these members are here to earn. As we saw in the wrestler analogy, here also one has to lose. It is theoretically impossible that all will win. This is an “Efficient Market” which means here everyone knows everything. So, if you are buying using some profitable strategy, still there is someone who is selling. What do you think, you are more informed or more intelligent than the seller?

Here, money is not being created, just the rotation of money. Money is exchanging the hands only. Ask yourself,  Is your hands stronger to snatch money from others? Ask yourself, how you are better than others.