How stock market works

A funny way to understand how stock market works…. read on to know
Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs 10.
The villagers seeing that there were many monkeys around, went out to the forest and started catching them.
The man bought thousands at Rs10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
The man now announced that he would buy monkeys at Rs 50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.
In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell it to him for Rs 50.’
The villagers squeezed up with all their savings and bought all the monkeys.
Then they never saw the man nor his assistant, only monkeys everywhere!!!
Welcome to the ‘Stock’ Market!!!!!

GOLDEN RULES FOR INVESTING IN SHARE MARKETS

The First Major Axiom: ON RISK

Worry is not a sickness but a sign of health.If you are not worried, you are not risking enough.


The Second Major Axiom: ON GREED

Always take your profit too soon

The Third Major Axiom: ON HOPE

When the ship starts to sink, don't pray. Jump.

The Fourth Major Axiom: ON FORECASTS

Human behaviour cannot be predicted. Distrust anyone who claims to know the future, however dimly.

The Fifth Major Axiom: ON PATTERNS

Chaos is not dangerous until it begins to look orderly.

The Sixth Major Axiom: ON MOBILITY

Avoid putting down roots. They impede motion.

The Seventh Major Axiom: ON INTUITION

A hunch can be trusted if it can be explained.

The Eighth Major Axiom: ON RELIGION AND THE OCCULT

It is unlikely that God's plan for the universe includes making you rich.

The Ninth Major Axiom: ON OPTIMISM AND PESSIMISM

Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic.

The Tenth Major Axiom: ON CONSENSUS

Disregard the majority opinion. It is probably wrong

The Eleventh Major Axiom: ON STUBBORNNESS

If it doesn't pay off the first time, forget it.

The Twelfth Major Axiom: ON PLANNING

Long-range plans engender the dangerous belief that the future is under control. It is important never to take your own long-range plans, or other people's, seriously.


HOPE IT BENEFITS ALL...MAYANK

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REGARDS,
MAYANK BHARDWAJ(max)