Facts About Stock Market for Beginners

Facts About the Stock Market for Beginners

If you are a beginner in the stock market read this blog very carefully. This can be an eye-opener for you. It is hard to believe but the truth is the truth. In this blog, we will share the knowledge and information that retail traders never ever figure out they have no understanding of the trading and portfolio industry from the inside.

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Facts About Stock Market for Beginners - nitin bhatia

The 90/90/90 Phenomenon

The famous line of your broker is 90% of the retail traders lose their 90% capital within 90 days, therefore, the broker provides you the leverage of 40x or 25 or 10x
If you lose 2.5% with leverage you will blow your account by 100% in a single day.
Retail traders always lose the money, therefore, the broker always takes the opposite side of your trade and earns profit a 90% success ratio.
Broker builds the infrastructure to take the opposite trade against you built not for your benefit. It is built for the broker benefit
The broker always wins with a 90% success ratio.
Your objective is to make money but the broker objective is to take your money

Brocker vs Retail investors

Let say a broker has 10,000 retail clients and out of this 90 % lose all their money within 3-4 month how the broker can grow. With administration cost and advertisement costs, the broker will never grow and earn a profit. How can he earn money? A broker can make a profit if he filters 10 % of traders and trade against the other 90% Broker winning percentage will be 100%. There is always a conflict of interest if you are doing trading short term.

How the broker earn money?

Brocker Revenue =(Spread+commission)+(financing+OTC gain)
Brocker Spread and commissions increases when a client trade regularly and take bigger size trade.
OTC is called over the counter: made by taking the opposite position of retail traders
Financing: Money made from the % difference borrowing from a creditor like a bank or investors to finance leveraged trading and % charged to the client
Therefore the broker always wants you to trade as big as possible to earn the commission and take the opposite trade against you.
Investment bank provides credit line at low cost to the broker
The broker provides leverage to the retail traders at a higher cost than an investment bank
The difference is the profit for an investment bank
The risk-taker is an investment bank for leverage, not the broker
When you deposit money in your trading account
You are sponsoring your broker to borrow more money
Therefore by depositing money in your trading account you are not only sponsoring the financial turn, but you are also sponsoring the broker to have the option to use the same credit to make money by taking the other side of your trades if you lose.

Why Brocker provide 40x leverage on your trading account?

What it takes to open a trading account?
ID card-address proof-Bank account
When you add 1,00,000 in your trading account why broker allows you to trade with 40x money? Can banks lend you the same amount of money if you take a loan?
The bank never provides you the 40x money but the broker does.
Because the broker has 90% winning trades. They promote you to use leverage and take big trade as much as possible.

Myth spread by the stock market educators to retail traders

Day trading always works but it is not true they teach you this because it will provide guaranteed trading volume every day to the broker and commission to the educator who introduces you to the broker. Conflict of interest.
It is better to not have overnight risk close to your position at the end of the day but the truth is it will double their commission if retail traders follow this.
You can earn monthly income from trading in the stock market - educator teaches you this because they want you to trade daily and generate guaranteed monthly income for himself because you trade daily educator will get commission daily.
Trading is easy you just need to follow these lines in the chart or follow this candlestick - the educator will teach you this you take the trade which guarantees the commission to the educator. He never teaches you the checklist, process of buying and selling, they will never tell you the risk in the stock market they don't know anything about it because they never trade in their entire life. If this simple method works why he is teaching you, Why he doesn't trade and make huge money.
Psychology is the most important thing in trading the educator teaches you this because if you start losing money, of course, you will lose the money you will start blaming your mind not his education.
All you need is trading software to earn profits in day trading - the educator is selling the sponsored software to you. If he sells the software he will get the commission from the software company. If the software works that good why the software company is selling the software to you. Why they are not using the software to earn profit from the stock market.
You will earn easy money from the stock market and live a lavish lifestyle - The educator tells this because it will distract your attention from reality and you will start living in a dream far away from the reality. When you lose all the money, jobs then you realize the truth and follow the reality.
Join my educator forms or group to earn money - the educator provides broker advertisement on his website to earn the commission from the broker they give free trading tips to the retail traders to provide the entry or exit to the professional traders or to create the trading volume for the broker to earn the commission.
You can make money if there is volatility in the market. Day trading only works 20% of the time in the last 15 years 80% of the time it doesn't work they will never teach you this. If they teach you this you will stop day trading - the broker will never earn the brokerage and the educator will lose commission.

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