Perception:- Your knowledge of Equity Market is incomplete if you are not aware of Derivative (Futures & Options) market.
Reality:- A value investor, a long term investor doesn't need to know about future and option. Future and Options help in management short term risks within the stock market.
Morality:- Truth must be told. Derivative (Future and Options) is part of this course, but I must admit that it is a weapon which will mostly work against you. It is a tool of wealth destruction and not wealth creation. (For long term value investors)
Now, I will take your another 10 mins to explain it through my real-life story.
I have been taking webinars from the last five years. Free webinars. Webinars on mostly one topic - How to not lose money in the stock market. I had only one intent. Build an excellent reputation for the stock market in India.
Be it a webinar or talk or guest lecture or personal one to one - if I would ask the audience to chose one topic which I can explain to them, they want me to cover. It would be always Futures and Options. In 95% of the time, students would be interested in learning future and options.
In the way back in 2010, I developed one skill set - I used to forecast the Nifty range and VIX range using one AI model. Test results on SVM (Support Vector Machine) would show an accuracy of 93% for Nifty range forecast and 95% for VIX range.
Having confidence in my model and knowledge, I traded between 2014 to 2017 in options for myself. So ethically, if someone would ask me to explain derivatives, I could never say no (As I was doing it myself). I introduced derivatives (Future and Options) to many people who came to me to learn about it.
And, this is the biggest regret of my life.
Many times, I feel like, I should have never taught them the trading techniques because most of them have only lost money in this market. Most of them are still loosing.
In a few days, all of you will have access to derivatives, option trading strategies and technical analysis. These chapters are only for traders.
A course made for retail investors should not have chapters like derivatives, option trading strategies, technical analysis. However, I have included it in this course. And, I want to give you justification for my actions. My action to include this chapter in this course.
My Justification:- I wanted to make just one course for all. Be it investor, trader and career seekers. I firmly believe awareness and knowledge among common people will only fix the problems with the stock market. And knowledge access should be there for all.
But, courses offered by many people were expensive. An ordinary person in India wants to invest maybe 20k rupees for the first time. And, his education will be done by the broker. A broker will insist him to invest more or trade. And his journey for investing gets corrupted at the very first level.
Some aware people want to learn first, but when they try to reach out to the right people, they demand 20k or more to teach even basics. I have seen the data of one of the leading stock market online course provider. Their website claims approx 7000+ students. And, they have made 20 different courses. To make sure they have enough products to showcase on the website, they have forcibly designed courses and priced them high.
Mutual Fund Sahi Hai was a campaign launched by AMFI (Mutual fund association). The budget for investor education became an advertisement budget.
And in this scenario, I finally decided to launch one course accessible to all and allocated 25 lac rs just for advertisement. I took one course on Digital Media Marketing and learnt to advertise on Quora, FB, LinkedIn and Google. I also learnt graphic and video designing. Many of you are reading this email or blog would have taken this course only by seeing the advertisement.
In the last three months, I have been called scammer, fraud and a cheater for more than 1000 times on different social media platforms. :-) In my 35 years of life, I don't remember anyone calling me by these names ever. However, due to these advertisements, if one person would take the course, I would be called a fraud by two people in initial days. It used to hurt; it still hurts. And, all I do is now a day is that I delete those comments. I am a little tired now giving justification on a social media platform. I do have a family. Wife, brothers, sister, parents, in-law. All of them are on social media. And they follow my personal accounts and pages. In the daytime, I check these account 50 times to clean up such comments.
Those people who comment negatively have not taken my course. I have not received a penny from them. They generalise and I have no grudge against them.
This email/blog is not for gaining your sympathy. There is a reason why I mentioned the above factor.
I have taken money from you—fees for this course. What would be a nightmare for me is that - if even one family loses their hard-earned saving in the market because of me introducing them derivative trading.
I am writing this to you to explain to you one thing. I will be a real cheater/fraud/scammer if I don't tell you the dangers of a few of the section of this course.
I have included sections like Derivatives, Option writing strategies and technical analysis for the trading enthusiast and career seekers. I didn't want to create many courses and price them higher. I just wanted to share all my knowledge through one course.
But, my request to all retail investors who are going to invest their hard-earned money to plan their retirement, marry their son/daughter, want to save and invests for their kids higher education.
- Please ignore three modules (Future and option, Option trading strategies and technical analysis) and stick to long term investing. Stick to practice to identify good companies to invest and invest little for the long term.
You knowledge without these sections would be not incomplete as a value investor. You have limited time. You have to focus on your core job. And trust me, you don't have to trade or think that you need a second income through trading. Investing wisely will solve that purpose. Trading is a full-time job.
My dear traders:-
Please don't make any assumption about me or this course "A complete course on Indian Stock Market". If I am warning investors with the dangers of trading techniques and derivative. That is my morality.
But, my work ethics is to teach you these modules in the best possible fashion. And, I would not compromise with my work-ethics. My promise is that I would include more trading techniques than what is promised in the curriculum. Once locked down is over - I'll teach Maths and Statistics enthusiast Statistical Arbitrage via live webinar.
Please don't forget to comment below this article. All kind of comments is welcome. What I would love to hear is your thought on the above piece. Thank You !! Thanks a lot for your time.