Why are people loose in commodites or share market ?
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I saw mostlt 90% people loose money in share market .even the market is attracting so many players. i hardly saw anyone who made money from share market.
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Answer:
because of over ambition
Don at Yahoo! Answers Visit the source
Other answers
Investors ALWAYS make money, traders ALMOST ALWAYS lose money. No-one can time the market, but 90% of people genuinely believe they can! Astonishing. My investments have about doubled every 6-8 years for the last 25 years. Buy good stocks, diversify, and hold... It's a no-brainer.
Thin Kaboudit
"share market"... what the hell is that? when commodity contracts expire (one month before the futures contract expires) it settles at a given price..... and all the prices above and below that are either in or out of the money. seeing half of the puts are lower and half the calls are higher..... give or take.... mthen it is roughly 90% losers. You can be the writer instead of the buyer, collect the premium the buyer pays and win 90% of the time..... there is always a catch though lol..... it is limited gain with unlimited potential for loss. If u buy or (sell)... known as Write an option ie sell = write..... then when there is about 2 to three months before the contracts expire, a thing called time decay starts to kick in. ie: the closer to expiration you get. more and more of the premium for the option evaporates.... the part of the premium known as "time value" is a value that reflects a degree of risk in relation to how much time is left in the contract. It decays the most quickly in the last two months. ( There is also "intrinsic value" and a fluctuation in value that can increase or decrease because of volatility) (One rule of thumb is: don't trade thinnly traded markets.... with little volume there is a greater chance nobody will be on the other side of the trade when u want to get out and then you can basically kiss your *** goodbye.) Lots of scenarios to create with options and / or combining them with futures contracts. Many ways to lose ones money. Buy an option = limited risk with unlimited potential for gain. Write an option = unlimited risk with limited potential for gain. I suggest you go to a good library and check out a few books on the subject. It's a bit like laying tile... you will need to take your time and think your way through it all and in the end realize that even though you may understand it..... the markets ARE NOT STATIC... they are fluid. It changes the present and future values. I wouldn't recommend anyone trading futures with more money than they can afford to lose. I do recommend people learn about the commodities market. What dumbfounds me is, one can ask nine out of ten people what commodities are or to name five and they stand there with their mouth hanging open. We use them every day.... grains, currencies, meats, financial instruments, oil, gasoline, metals..... and the point of commodities markets is that there are people who are willing to assume a very high degree of risk for a potential high return / also allows businesses to hedge risk... all so that mr and mrs consumer's prices retain a lot more stability than they otherwise would. If you want to read a good biography, read the story about a guy named Ned Cooke. i think thats how it's spelled. He was a commodities trader I think back in the 1950s.... also read up on the Hunt brothers and how they tried to corner the silver market..... Remember.... the best investment is yourself. If you do trade, don't overtrade. Good luck!
Sparky 55420
Most people I know make money on their shares of stock and mutual funds. The commodities market on the other hand is a zero-sum game. For every winner there is a loser. You need to get to know smarter people - people who can figure out how to invest.
Quixotic
da ppl shud try 2 learn business skill,dey shud b clever enough,dey shud try 2 measure pron & crons of deir status & invest in a established company & dey shud try 2 acquire all sort of details.
thundercope5
When you invest in FDs, some kind of certificates etc. you forget what you have invested till the investment gets matured. On the contrary,, in share market you start following the rates as soon as you take a position. If the price movement appears to be going against your thinking and if you are working with a strategy, you make a stoploss. If you don't ? then you may see the price moving away from your goal while you wish and hope and wait for the movement to reverse. One fine day, you loose your Patience or see some other stock as sure to move in a certain direction and book loss in the previous investment so as to get the capital for the new one. Most people loose their money in this fashion. The solution ? Have a limited goal..........forget about the investment ones it is done, till it reaches the goal. Sometimes it will take months to reach the goal, other times on the same day! or a couple of days!. You will need to average your gains over a time period.e.g. your gains may turn out to be 3% every 10 days!
Sharad
listen for the people around you may be don't know about share market,, they are the majority of the people who doesn't know about the share market at all or the purpose or the way to deal.. to be simple buying and selling of shares is just like buying and selling of urban lands or agricultural properties.. Let it be like this, when you buy a agriculture land you can lend it for some person to cultivate and earn some money and sell when you need it with regular income flowing till you sell it.. a house you can stay or you can give it to lease and enjoy the income from it and sell it when you have to... and you can be the SECOND person a realtor who has very good knowledge in different properties and can mediate sale/purchase of propety and gain the same way first you have to decide which role you have to play and what are you going to invest on...... verify the good and bad of the thing you are going to invest on.... people who have very less income try to play as investment brokers and loose much of their money... when one invests think of the company and its products,, try to estimate the future market and invest smartly there are many people who have invested and enjoying the dividend's or you can call their share of companies profits every year.. you can call them individual investors.. the people who can get the shares for you and mediate between you and the market/companies are investment brokers... they get the comission for that.... a broker can also be an investor.... when we have less capital we should think wisely and smartly about our investment.. then only one can see the profits in it... people who think just buying and selling only means money are fool's who want to see fame by short cut ever loose money in it( they can be called gamblers and not investor's)
vijay reddy
THe main reason is the impatience and greed factor being dominated upto 90% and only 10% people take care of risks
Govindarajan
Hello Don: Send me an email at [email protected] will surely tell you how invest to do it without any risks. At good leverages Dont waste your time looking around Regards
bhaskarkdas
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