Every morning J.P. Singh gets ready by 10 am and leaves for an internet share trading centre. Till about 3 pm he is glued to the computer screen. He can reel out stock prices and figures at the drop of hat. People around him admire his knowledge of shares and stocks. He indulges in some trading. The rest of the day is usually free. So you may ask, what is wrong with that? It looks like a good routine and time well spent. Probably, you too admire a person who is knowledgeable and plays the share market. You may also wish you could make some money in shares. The only problem is that J.P. or Joginder is 35 years old. From the age of 19, share trading is his addiction, an addiction as bad as gambling. Initially, he used to make some attempts at seeking jobs. But, as days passed he would resign from the jobs giving one reason or the other. Since there was opposition from home, he started indulging in share trading on the sly. Only when the losses mounted and creditors banged on the door, would the family come to know of it.

Every downturn, he makes losses but at every upswing, whatever profit he makes, is not booked out of greed, and lost again.

The plight of many retail investors is similar to that of J. P. They think they can play in the market if they are good at statistics and can remember the share prices of a 100­odd companies. They make small profits and huge losses but still believe they will succeed one day and beat the market with their knowledge.

The truth is – many factors work to move the stock market. Sadly, most of them are beyond the control of small investors. It is no exaggeration to say that even the Government is helpless at times. Fund managers who are paid lakhs of rupees to managing mutual fund money could not show their magic when stocks tumbled. When FII (foreign institutional investors) pull out money or pour money into our stock markets, stock indices dance to their tunes. The lay person has a very sketchy knowledge of financial figures. He or she is not able to decipher the window dressing (manipulation of figures) of balance sheets. Many            successful business persons and professionals have neglected their businesses or professions after being bitten by the stock trading bug. A doctor instead of reading medical journals plays in the stock market. At the time of preparing his tax returns, he finds his net income from share trading is negative or only a few thousand rupees.

A wholesale merchant virtually closed his business and indulged in full-time share trading. Fortunately, he realized his folly and now he is back at his business and making roaring profits.

I am not against share trading. We do need stock markets for the development of our economy. Many people have been successful in the market. But it is a place only for serious investors and experienced players. Though it looks like an easy and quick way of earning money, it is not so. This is where the lay­person’s understanding is misplaced. Just because one is good at acting, one does not become Shah Rukh Khan. A beautiful woman needs not to be recognized as a world beauty like Aishwarya Rai. “Don’t play in the stock market. Whether you lose or gain, money is immaterial. But don’t lose yourself in shares and stock”.