This question comes up with an unmatched regularity.

Let us have a look at these pictures. These people are also traders. They earn their livelihood from trading.
And they do not ask such questions.

This guy sells peanuts –

A very low end snack. In North India, it sells mostly during winter season. In summers this person would be selling something else.


A Flower Vendor –

What do you think this man does?

He is a trader. He buys and then sells flowers. That is his source of earning.


The Vegetables Shop –

A very familiar sight.

This is a perfect trading examples. Here the portfolio is diversified in various vegetables (stocks in case of stock market trader). Did you ever see a small vegetables vendor shutting down?

It is rare because these guys know how to ply their trade.


Money can be made from trading :

The reason for quoting three examples of the same kind is that we forget that trading is simple.

The only requisite for making money from trading is:

Sell at a price higher than buying price.

Learn the skills required to trade.

Know your market.

Try something more complicated and you will be chasing a mirage and ultimately end up blaming the markets.

We find that small vendors ( traders ) never shut shop but the big stores with Management Graduates looking after their supply chain management go under with great regularity.

To earn a living from stock market learn the essentials of trading.

Practice the risk management with perfection.

Do not use a sledgehammer to drive a nail.

(do not get too bogged down with research)

Keep it simple.

It can be done.

If these guys could earn their livelihood why anyone else can not ?

We do not have to shout to attract customers. We do not have to worry about what bargain a customer would ask for.


This was posted initially at –