Stock Market - An Electronic Casino - Guest Blog

"Stock Market !!! .The first few words that comes to my mind after hearing this is; Economics , Finance , Companies and Profit. Yes Profit !!! It comes to mind , but it never reaches my pocket. Everyone is talking about the profit, but Why don't I make any? All my friends are making money but Why don't I? All Analysts on Media are talking about profits and even their followers, but Why don't I ?"

The real problem is the way you see it. It's actually not, How you see it !!!
It's an Electronic Casino. Yes, You heard it right !!! Its an electronic Casino, and it follows all the rules of casino.   

Names like Harshad Mehta,Ketan Parekh are still fresh in people's mind but nobody knows What they used to do. "Yeah I know they were stock operators !!! but what do stock operators do ?" 

They own the casino; but without any registration, Audit or Balance Sheet. People Who have been to Vegas and Macau can better tell you who makes the real money in the business -

'In the casino, the cardinal rule is to keep them playing and to keep them coming back. The longer they play, the more they lose, and in the end, we get it all.' - The movie "Casino" ( 1995 )

In Casino, You always get lesser multiple money than the probability of Win you have. For Example - Roulette ( spinning wheel ) has 38 slots whereas Casino Pays you approx 30 times on a Win.  Having some understanding of Mathematics and Probabilities, I can make out the reason of above quote.

"But Why do I loose in stock market ? I have a better probability as i know fundamental and technical analysis, I know finance and economics, I get the real time news, I follow the market top shots and I am friend with many brokers in the markets."

If Casino was forced to pay you better multiple than your probability, How would it had those lavish ambiance, Glittery looks and beautiful girls. 

"Doesn't seems like any Casino can make money that way."

Even then Casino would have managed it; but, the dirty Way !!!

How about if I can manipulate the ball of the Roulette and ask everyone to opt anything except 13 which being the unlucky number and once the house is packed, I get it into the 13th hole.  

Oh My Goodness !!! Nobody thought of it and it happened. 

Don't feel surprised. It always happens with you !!!.

"October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February." - Mark Twain

The four most dangerous words in investing are "This time it's different". - John Templeton