Friday, 18 March 2016

Monkey Story of Stock Market Dynamics

Beautiful Monkey Story explaining Stock Market Dynamics.. Excellent Read !!! Read on...



Dear friends & investors,

Hope you are had a great week and enjoying your weekend. Many of us have been trading or investing in the stock market (Click here to find out your type

Some of us are yet to start and still thinking of the right time to begin (Is it the right time to invest in the stock market? Click here).

Today, with lots of technology, there are tons of experts and advisers who flood the market with their opinions and suggestions. There are multiple Whatsapp groups, Facebook communities, Twitter & many platforms with stock gurus claiming 100% success rate for their stock picks. Stock Brokers send sms time and again giving Fundamental and Technical tips for short, medium and long term. Many experts change their stand based on the market movement. Big big technical words are used and poor retailers get even more confused.

I have seen countless people who enter this dynamic stock market without understanding its dynamics. And let me tell you friends, almost everyone get trapped. Do you know why? Read on... 

Here is a nice small story which can set you thinking of the dynamics of the stock market. I read it long time back and I'm sure you also might have come across the same. But it is a wonderful thing to read and it will bring you to the reality of the Stock Market. Enjoy the read.



Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs.10 each. The villagers were ecstatic since there were tons of monkeys in the nearby forest.

The villagers, sensing this unique opportunity, went out to the forest and started catching the monkeys with ease. The man bought thousands at Rs.10 and as supply started to diminish, the villagers stopped their effort.

After a month, he further announced that he would now buy at Rs.20. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms.

The offer increased to Rs.25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at Rs.50. However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers; “Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs.35 and when the man returns from the city, you can sell them to him for Rs.50 each.”

The villagers rounded up with all their savings, took heavy loans and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!

The monkeys had to let out and they went back to the forest. The villagers were left high and dry and they lost complete trust in life. They had huge loans to pay and they had absolutely no idea how meticulously they got trapped.

Now, please remember friends.. Greed can take you for a ride. Think about this story...

If Stock market experts were so expert, they would be buying stock, not selling advise.

But this is the reality.. Welcome to the Stock Market...

Have an amazing weekend ahead..


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Good luck,
Fundamental Investor

3 comments:

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Our aim should be to learn and share the art of investing in the Indian Stock market. With right perspective, understanding of stock market basics and a sound attitude, we can all identify Multibaggers and evolve towards Wealth Creation. Are you ready to own businesses? Welcome aboard !!! Lets learn, serve and grow together !!! 
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