"Don't do intraday trading unless you have...": Ajay Bagga's priceless advice
Market veteran Ajay Bagga has spoken the words of wisdom yet again. Amidst the booming retail investor base in the country, Bagga has simple yet powerful advice for young market enthusiasts, especially those eyeing Dalal Street as a means to make a fast buck without the patience of experienced investors.
Are you preparing to try your hand at intraday trading after binge-watching a barrage of free tutorials online? The Securities and Exchange Board of India - the country's market regulator - just released data from a study that highlights the harsh reality of day trading. Barring three, all others out of every 10 intraday traders incurred losses in FY23, according to Sebi. Does this mean that trading is an unreliable method of making money?
It is very difficult to make money by day trading, says Ajay Bagga
It is very difficult to make money through intraday trading, says the market veteran.
Ajay Bagga believes two things can help one make money
Bagga believes that it is "very simple to make money from the markets" provided you have two things. Now, what are those two things?
Any guesses?
First is patience
First and foremost, it's patience.
Second is perseverance
The second quality that one needs to have to bag profits on the Street is perseverance, according to Bagga.
How to make money then, if not by trading? Ajay Bagga has the answer
It's simple. Buy an index fund and just keep holding it for a very long time, says the market expert.
You will definitely make money, says Ajay Bagga
"As Jason Zweig said once: 'Option trading helped me put two kids through Harvard... but they were my broker's children," quips Bagga.
Avoid day trading unless you have 3 Ts: Ajay Bagga
The market guru strongly suggests against taking up day trading unless you have "three Ts".
Now, what are the three Ts?
Any guesses?
First T = Time
The first 'T' is time.
Second T = Training
The second 'T' is training.
Third T = Temperament
The second 'T' is temperament.