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Excel and Fairy Tales Part 2

If you're on social media, you can't help but see the ads by various 'trainers' and finfluencers promising to teach you the mantras of successful stock/option trading.

A recent one promised a 'modest' return of 1% every trading day. With leverage and all, it's easy enough to demonstrate on an Excel sheet as something that is very doable.

But let us use the same Excel sheet to see what a 1% return on every trading day translates into.

With this return, and assuming 200 trading days, your money becomes over 7 times in ONE year.

So if you start with 10 lacs, you will end up with 70 lacs at the end of the first year. 4.9 crores at the end of 2 years. And it gets better!

You will nearly have nearly 1700 crores in 5 years and in 8 years' time you will be the richest Indian by a wide margin.

Now think.

If anyone has this magic formula why are they hawking it around for 5000 and 20000 Rupees? You have your answer.

Plus, as SEBI has been telling you, 90% of option traders LOSE money and even the balance 10% make only about 5000 rupees a month.

This is the data...the rest are fairly tales.

As an aside the chanting and dancing in some of these 'training programs' make them look like more cult than course.

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