There was an old saying that whosoever may be the king what difference does it makes in my life. Same is the case of capital markets in the life of a common man on the street. A man who is working hard from morning to evening to earn his livelihood, is there any time , interest, inclination or even any reason whatsoever to look at what the NIFTY and SENSEX are doing during the day. Is it the game of rich people or elite class or the corporate world having the deep pockets or to some extent for the well qualified financial experts having the knowledge of complex mathematical equations and financial formulas. Is it not quite similar to the game which Indian people play on the occasion of Diwali with cards and currency. Is it not gamble ? How is it different from that. There are so many stories in the market about how someone has lost all his wealth in the capital market. How can one put a blind eye towards these stories.
The answer to all these questions are no, no and a big NO.
There are two kinds of people in the financial world. One having surplus money with them and they are constantly looking for the better opportunities to invest their money for the purpose of growth. They are constantly evaluating the risk reward ratio to analyse their decision with a very critical view point. Other category is of the people who are ready to gather all resources such as land, building, staff and legal compliances and start their business operations with their own or borrowed money available to them. Whenever and wherever these two different groups of people meet and transact with each other, the platform thus provided is called financial market. Hence, we can say that financial markets provide platform for interaction of investors and borrowers; they provide pricing information of financial instruments to everyone; and they provide liquidity and security framework for the dealing of financial assets. Thus it may be concluded that in financial markets money, by its very nature, lands into the pockets of its most efficient users. This is not a place for charity but a ruthless marketplace without any kind of emotions and diplomacy. To take advantage of this huge monster one has to observe and learn the behavior pattern of it under different circumstances, how it moves . One has to dig deep in to the surface to know what are the different opportunities available , what are the various options available and what kind of different financial tradable products available in the market. As they say if you have vision to identify them, courage to buy them and the patience to hold them till an appropriate time to exit you are at the right place.
If you are not in the Indian capital market as an investor at this juncture I can firmly say that you are missing something.
