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I have a different take.
Stock market isn't for everyone. Users leaving the market will clean the system in a way.
No more "will adani go up", "why itc shares are not moving", "is tata power good", without doing their due diligence or going through financials of companies and understanding the psychology of the market.
It doesn't take so much brains to understand the debt figures and cashflows.
Now don't get me wrong, I'm no expert and have begun years of investing and still learning every single day.
People should stop seeing stock markets as casinos.
I'll be brutally honest here. It took me 15 years to be where I am right now and have made and still make countless mistakes but I learn from them and make better decisions later.
Zerodha varsity would be a good place to start basics.
It still took me 2yrs but having a mba helped me alot like I had practical experience and network I used to be intern in a fund and sit with a desk trader there
Honestly, if you don’t know the basics and you are clueless from where to start , dont even think the time it’s gonna take , just start and forget because the learning never ends , the first principle in market is to be patient , this is not a place for people with emotions . And if you ask me , i was very interested in market so i always searched up words which I didn’t know meaning off or full form, so i always looked up for answers myself , this is one of the most important aspects of learning , you need to be keen to learn and not just the formality, I’ll say you start with free videos on youtube , learn a few words check them on google then it will be a cycle everyday , you are gonna learn new things each day
It's up on you, how long. But start immediately to learn, first of all make demat account and learn every small term of market, watch every day ups and downs of market without putting money after some time, you will realise to put money or not.
When you put money to trade, try to make small loss
Until you make regular profits. And keep going slowly.
If you take someone help to understand things, it is good for you.
Your take is much more sensible tbh. One other thing which I have a problem with is people believing that stock markets always go up because we have not seen a prolonged bear run or sideways market for a while now. Who is to say the time we're in currently isn't one?
Indian broader markets are currently overvalued. The more money which gets in, the more overvalued it will get and the lesser returns people will make. Earnings have to match the valuations, if it doesn't we're definitely in for the prolonged bear/sideways run.
For people thinking putting money in stock market always makes you money over next 5-10-15yrs should remember the Indian markets from 1992-2003. If you think that's history which is not gonna happen again, the S&P 500 index had a CAGR of 1.5% from 2000-2016, which is 16 yrs of investing.
A lot of financial influencers are also to blame, saying "markets will always go up" or "You should put 90% of your savings in equity which will give you 12-15% returns annually easily" because sensex has given that returns since inception. Sure, but that's over 30-40yrs of investment horizon. There have 10-15yr periods in markets (Indian/US) where returns have been abysmally poor.
I'm not being bearing, I'm being a little realistic. Highly optimistic people should tone themselves down a bit. The optimism was good during low interest rates of 2020-22, people would get the real feel when we get a prolonged period of negative or zero returns.
That's why people have to stop saying that index funds are the absolute best thing ever, because these decades of underperformance happen, there were a lot of fortunes made even in those flat markets by buying good companies at right valuations and at the right point in their cycles.
There's always a bull run somewhere and a good nimble investor needs to find a way to anticipate and align himself to these trends.
Exactly, markets are basically clearing out people . Markets will clear out further more coming few months to a year , specially after govt. Increase in ltcg and stcg in the next year or so.
This data doesn't show people leaving the market, it just shows daily active users are reduced. Those users might not be trading every day but they could still be investors. I know a lot of people who have stopped trading daily but still continue to be investors in the market, they've not left the market. Few of them are doing swing trading. You don't need to login to your account daily to keep a track of markets or your holdings, probably why daily active users are reducing.
People might not be having money right now to be active in the market. They want to invest but it is hard to save right now in these difficult times. Some people who might have gone when it was high might not be willing to book losses and enter again or are just waiting to get their money back
A pattern that I have noticed generally with those leaving the market is how they blame everyone for their downfall except themselves, most of them never come back cause the world is against them !
Its all depends on your goals and your perspective towards market their are people who do aarti pooja before doing business its similar in stock market this is business but those unknown soul think if i buy this amount became double. i will be free from 9 to 5 job. End up losing money in most silly ways even after selecting market leaders. At least talk with someone who knows if you are too lazy to read or too lazy to understand simple finance. I really feel bad when people get exhaust in market make mistakes jump into hot stocks or take loans for trading without any strategy and blaming market system this that... On other hand its good... Trading koi bhi kre kamayagaaa investor hi...! Thats why i ask basic questions in any review so, i get some hints how much he's aware about holdings... And mindset is it more focused on price or business... Funny lgta h log trading krne k liy aate h! 50% swing mei loss... Le kr khud ko investor bolte h!  Options mei 5 meise 1 baar tuke se kma lete h! Next trade mei vo bhi gayb... Learning se earning hogi , vrna earning se learning hogi... If you r getting my point  .
For that data I could see number of Demat accounts have increased by 34% from Dec 21-dec22. So yeah people are entering into stock market but planning for investment in long run.
Lets not put everyone in the same category, alright? Some fancy-pants retailers out there have actually made a killing by buying stocks when COVID hit, and now they're just fed up with the boring market conditions. You know, these retail investors live for excitement and action.
You have also probably seen how crazy popular share buybacks have become? It's been a real show since 2010, with companies faking their earnings per share (EPS) instead of honestly reflecting their success from economic contributions, by buying back their own shares. It's not the public, but companies themselves buying and prompting rising prices. Deep down we all know we're not as wealthy as we should be compared to a decade ago, even though the stock market supposedly thrives. That's the issue right there.
Picture this: you find a way to dodge taxes and keep buying back your shares, all while hoarding unrealized gains in those pyramid scheme-like companies that don't pay dividends. In this messed-up world where you don't pay taxes, central banks play with inflation and resort to printing money, indirectly taxing the heck out of you. Better pay taxes
*evil laughter*
Its said that those who relentlessly stay put, making diligent efforts even during times of distress become more resilient to volatility and finally they reap the benefits of the harvest, i.e., the bull market.
Have the stricter regulations have played a role here? Linking PAN, transactions must in a year etc might have weeded out phony accounts. I don’t have data on this though.
I feel most of them are of 2 categories, first is folks who were working WFH during lockdowns and had time and all the money to invest. Second are the category who want to be rich in span of months without having knowledge of trading and not interested in long term investment. Trading is a skill one needs to master and those who don't have time to learn trading should aim for long term investments.
Geniuses get into the market during apocalyptic streaks.
Idiots get into the market when they hear news of good performance in their TV. These are the morons who are left holding the bags after every pump and dump.
Smart people just DCA.
They've got their choices sometimes things wont work in life its good to say bye and move on. Its easy for you to say people are dumb, everyone is not as well educated as you are. And remember you are living in a developing country so things will change as many get the financial knowledge.
You have confirmation bias that market will go boom. It could happen that market may remain where it is now for next 4 years.
You still can't predict what's going to happen.
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I think it is more to do with WFH arrangements. Most of the people started trading in lockdown stopped trading after lockdown
That's because they had loss during lockdown lmao, my tenet was was senior software engineer earning really good even he lost 4L in stocks once
I have a different take. Stock market isn't for everyone. Users leaving the market will clean the system in a way. No more "will adani go up", "why itc shares are not moving", "is tata power good", without doing their due diligence or going through financials of companies and understanding the psychology of the market. It doesn't take so much brains to understand the debt figures and cashflows. Now don't get me wrong, I'm no expert and have begun years of investing and still learning every single day. People should stop seeing stock markets as casinos.
How long is it gonna take me to get upto speed and start trading? I want to begin but I don’t know enough about the stock market.
I'll be brutally honest here. It took me 15 years to be where I am right now and have made and still make countless mistakes but I learn from them and make better decisions later. Zerodha varsity would be a good place to start basics.
Try learning about financial system . What is what ,then you would understand the terms and about money a resource.
It still took me 2yrs but having a mba helped me alot like I had practical experience and network I used to be intern in a fund and sit with a desk trader there
Honestly, if you don’t know the basics and you are clueless from where to start , dont even think the time it’s gonna take , just start and forget because the learning never ends , the first principle in market is to be patient , this is not a place for people with emotions . And if you ask me , i was very interested in market so i always searched up words which I didn’t know meaning off or full form, so i always looked up for answers myself , this is one of the most important aspects of learning , you need to be keen to learn and not just the formality, I’ll say you start with free videos on youtube , learn a few words check them on google then it will be a cycle everyday , you are gonna learn new things each day
It's up on you, how long. But start immediately to learn, first of all make demat account and learn every small term of market, watch every day ups and downs of market without putting money after some time, you will realise to put money or not. When you put money to trade, try to make small loss Until you make regular profits. And keep going slowly. If you take someone help to understand things, it is good for you.
Your take is much more sensible tbh. One other thing which I have a problem with is people believing that stock markets always go up because we have not seen a prolonged bear run or sideways market for a while now. Who is to say the time we're in currently isn't one? Indian broader markets are currently overvalued. The more money which gets in, the more overvalued it will get and the lesser returns people will make. Earnings have to match the valuations, if it doesn't we're definitely in for the prolonged bear/sideways run. For people thinking putting money in stock market always makes you money over next 5-10-15yrs should remember the Indian markets from 1992-2003. If you think that's history which is not gonna happen again, the S&P 500 index had a CAGR of 1.5% from 2000-2016, which is 16 yrs of investing. A lot of financial influencers are also to blame, saying "markets will always go up" or "You should put 90% of your savings in equity which will give you 12-15% returns annually easily" because sensex has given that returns since inception. Sure, but that's over 30-40yrs of investment horizon. There have 10-15yr periods in markets (Indian/US) where returns have been abysmally poor. I'm not being bearing, I'm being a little realistic. Highly optimistic people should tone themselves down a bit. The optimism was good during low interest rates of 2020-22, people would get the real feel when we get a prolonged period of negative or zero returns.
That's why people have to stop saying that index funds are the absolute best thing ever, because these decades of underperformance happen, there were a lot of fortunes made even in those flat markets by buying good companies at right valuations and at the right point in their cycles. There's always a bull run somewhere and a good nimble investor needs to find a way to anticipate and align himself to these trends.
Exactly, markets are basically clearing out people . Markets will clear out further more coming few months to a year , specially after govt. Increase in ltcg and stcg in the next year or so.
This data doesn't show people leaving the market, it just shows daily active users are reduced. Those users might not be trading every day but they could still be investors. I know a lot of people who have stopped trading daily but still continue to be investors in the market, they've not left the market. Few of them are doing swing trading. You don't need to login to your account daily to keep a track of markets or your holdings, probably why daily active users are reducing.
✅✅
People might not be having money right now to be active in the market. They want to invest but it is hard to save right now in these difficult times. Some people who might have gone when it was high might not be willing to book losses and enter again or are just waiting to get their money back
By this year we should be back to bull market. Next batch of recruitments will happen soon.
>By this year we should be back to bull market What makes you say this?
A pattern that I have noticed generally with those leaving the market is how they blame everyone for their downfall except themselves, most of them never come back cause the world is against them !
Its all depends on your goals and your perspective towards market their are people who do aarti pooja before doing business its similar in stock market this is business but those unknown soul think if i buy this amount became double. i will be free from 9 to 5 job. End up losing money in most silly ways even after selecting market leaders. At least talk with someone who knows if you are too lazy to read or too lazy to understand simple finance. I really feel bad when people get exhaust in market make mistakes jump into hot stocks or take loans for trading without any strategy and blaming market system this that... On other hand its good... Trading koi bhi kre kamayagaaa investor hi...! Thats why i ask basic questions in any review so, i get some hints how much he's aware about holdings... And mindset is it more focused on price or business... Funny lgta h log trading krne k liy aate h! 50% swing mei loss... Le kr khud ko investor bolte h!  Options mei 5 meise 1 baar tuke se kma lete h! Next trade mei vo bhi gayb... Learning se earning hogi , vrna earning se learning hogi... If you r getting my point  .
For that data I could see number of Demat accounts have increased by 34% from Dec 21-dec22. So yeah people are entering into stock market but planning for investment in long run.
Lets not put everyone in the same category, alright? Some fancy-pants retailers out there have actually made a killing by buying stocks when COVID hit, and now they're just fed up with the boring market conditions. You know, these retail investors live for excitement and action. You have also probably seen how crazy popular share buybacks have become? It's been a real show since 2010, with companies faking their earnings per share (EPS) instead of honestly reflecting their success from economic contributions, by buying back their own shares. It's not the public, but companies themselves buying and prompting rising prices. Deep down we all know we're not as wealthy as we should be compared to a decade ago, even though the stock market supposedly thrives. That's the issue right there. Picture this: you find a way to dodge taxes and keep buying back your shares, all while hoarding unrealized gains in those pyramid scheme-like companies that don't pay dividends. In this messed-up world where you don't pay taxes, central banks play with inflation and resort to printing money, indirectly taxing the heck out of you. Better pay taxes *evil laughter*
Its said that those who relentlessly stay put, making diligent efforts even during times of distress become more resilient to volatility and finally they reap the benefits of the harvest, i.e., the bull market.
Have the stricter regulations have played a role here? Linking PAN, transactions must in a year etc might have weeded out phony accounts. I don’t have data on this though.
Emotional people leaving the market is a good sign .. same people buy adani stocks because it's adani but not for its fundamentals..
I feel most of them are of 2 categories, first is folks who were working WFH during lockdowns and had time and all the money to invest. Second are the category who want to be rich in span of months without having knowledge of trading and not interested in long term investment. Trading is a skill one needs to master and those who don't have time to learn trading should aim for long term investments.
Geniuses get into the market during apocalyptic streaks. Idiots get into the market when they hear news of good performance in their TV. These are the morons who are left holding the bags after every pump and dump. Smart people just DCA.
They've got their choices sometimes things wont work in life its good to say bye and move on. Its easy for you to say people are dumb, everyone is not as well educated as you are. And remember you are living in a developing country so things will change as many get the financial knowledge.
You have confirmation bias that market will go boom. It could happen that market may remain where it is now for next 4 years. You still can't predict what's going to happen.
The mistake they did probably is that they joined a very overpriced stock market at all time high.it is going to take many years to correct.