...looks to be a big mountain to climb, for the people who fancy for creating wealth by investments.
When looking at the people like Mr Rakesh Jhunjhunwala , who is called Warrent Buffet of India, Like Buffet, Jhunjhunwala created his Financial Empire just by Right Investments at right times and thereby creating wealth for himself.
The wealth these people created through Stock markets helped them to turn into Venture Capitalist, which has driven them to create further wealth for their VCs along with the entrepreneurs who executed their new Ventures with the support of these VC.
Sometimes these people are termed as People with MIDAs touch.........
Probably with their perseverance and efficient efforts with some good luck they managed to turn the tide in their favor.
The other side of the coin
..there are people like Harshad Mehta and Ketan Parekh, where the greed took over the better senses and resulted into some nasty scandals, which infact resulted into huge losses for the small time investors (retail investors), not only money losses but also the huge depletion of the investors confidence in the stock markets.
One example I would like to Quote - One Nick Leeson of Barring Bank ( a bank founded in 1762 and survived all the world economic recessions) brought down the bank to nadir in 1995, and this all he did while trading in derivatives sitting in Singapore. One example where the person responsible for Banks doom was not a retail investor but a seasoned professional involved in Stocks trading business !!!!
Now then, one question arises, if there are so many risks involved,
WHY stocks trading still exists and people still flock there ????........
the above examples leads to our answer - High Returns from the Stock markets;
but how ??? - probably with CAUTIOUS APPROACH INVOLVING SOME RATIONAL THINKING
but decisions should not be driven by GREED........
in subsequent posts, I will try to explore more about these markets then taking dive into the big ocean of trade, obviously with the help of your comments and feedback, to make it a lively discussion....
With my best wishes for New Year 2011.