Market Dynamics

Understanding the dynamics of market and meaning of investment :

It is always said that stcok market is driven by greed and fear.Common people (i mean retail investor) invest in stock for creating wealth which they think that it will fullfill their financial goal.But this natural desire for creating wealth ends in loss when they sell their holding in the fear of loosing their investment. It happens often when price start going down below the purchased price.This is what the dynamics of market is all about.

The word "greed". Greed defines the dynamics of market from Dalal street to wall street.

Money is definately a motivational tool but it can not solve all our problems. At the same time if we don't have passion for money we can loose our hope to achive ambitious GOAL . We need to have balance between "greed for money" and "motivation for money" in order to achieve our GOAL.


It is important to understand that Greed can be motivator but also a barrier. This can distarct our concentartion from focusing on our investment Plan. We can cosume so much of our time in persuit of money that we fail to appreciate the inherent rewards of value investing.
Investment is not just about puting your money in stock.It is about giving yourself a intellectual challange Physically, Emotionaly and Economically.You can develope your investment skill by practicing it in your life. Never focus all of your energy on money and the profit/loss. Instead, you should focus on develoing these skills and enjoying the process of learning irrespective of the fact that you made a profit or loss. because loss incured by you in your early days gives you lots of learning.


In the long term you will always enjoy your investment process and it will always give you a great feeling.

"A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price"
..The Intelligent Investor
by: Benjamin Graham

This is what mr. benjamin agrahan said 50 years back.but In today's world in spite of so much of information available around us,People are not ready to understand the meaning of investment.


"The secret to your financial success is inside yourself. If you become a critical thinker who takes no Wall Street “fact” on faith, and you invest with patient confidence, you can take steady advantage of even the worst bear markets. By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave"
..The Intelligent Investor
by: Benjamin Graham


People wants return, which are historically annual, over a span of months or even weeks. This is what make them "greed", the word which defines the dynamics of market.

..Contributed by -
Prem Ranjan Singh
Stock Analayst & Investor