Ask the following question to anyone.
Are you an average investor?
Majority of people answer “yes”.
What defines an average investor?
Average investors do not study markets. They do not have time. They earn money through hard work from an area of their expertise. They invest this hard-earned money without studying what constitutes a good investment.
They take shortcuts like following news, stock tips or expert advice. They buy and hold stocks. They do not have specific entry and exit plan in the market.
Super Gann Trader Academy provides the best share market courses in Mumbai, brings you the process of learning the trading skill. To understand why an average investor loses money we need to classify investing as a profession.
These two broad categories of professions.
Category 1 profession:
People in category 1 profession get paid by the hour. The higher the skill, higher the pay. The main characteristic of category 1 profession is that having average skill in this category is ok. Average doctor, dentist, accountant, engineer, carpenter, and barber can easily make a living. One needs to give time and effort to get a reasonable income. However, these professions are not scalable. You can not add zeros to the income without adding time, skill and effort.
Category 2 profession:
People in category 2 profession do not get paid by the hour. Here being averagely skilled is very bad.
Example: average cricketer, athlete, singer, writer, an actor cannot make a living easily. These are competitive fields.
These category 2 professions are in which some successful people get the entire wealth and average skilled person gets nothing. These professions are highly scalable. One can add zeros to the income without working extra hours. An actor/writer can get a thousand or millions for the same amount work and time. The same amount of effort is needed to write a book that is read by one person or by millions.
Important to note that average people in such competitive scalable professions lose money.
Similarly, the average investor loses money because investing is a highly competitive profession and it belongs to category 2.
People think that they can read a book on investing over the weekend and start beating the professionals.
If You need to get your heart operation done, who would you prefer? Will you allow someone who just reads a book on heart operation to do your heart surgery?
The investment industry is set up in such a way (purposely) that there is no hurdle in setting up the account for investing and trading. You just need to sign some documents and have money in your account to begin investing. It is because the industry experts/professional want to take your money in brokerage fees and commissions.
Industry experts and brokers want everyone to remain average and hand over money to them to manage so they can extract fees at no risk to them.
Education is the first step to safety in market and building wealth. You can learn to invest and trade intelligently. You can learn to be much better than average.
We train the traders/investors to trade based on our tested trading systems. We help them to become independent in trading.