One of my friends working in an MNC and making nearly 6 figure salary says that it is very easy for people to earn money through stock market. It seems he makes around 3 lacs per month by investing in options. He even sent me screenshots of the profits he earned.
Another Friend says he invests only in IPO and makes money on listing. He invested in one IPO and was not allotted any shares. Again he applied in another IPO and was allotted. It was listed in discount.
One thing is for sure, in 99% of the cases, If the IPO is going to be listed in premium, you will never get an allotment and if it’s going to be listed in discount, you are the first person to get the allotment. All these real life examples and easy money lure us to stock markets. But in my experience, stock market is a place that is easy to enter and difficult to exist. It can only be a long term money builder and never can be short term easy cash.
In this saga, wealthy found a new way of earning money from retail investors. In simple terms, if you have 100 crores with you, you can make it 100 times in the period of say 5 years. Do the following and you can earn.
Step 1 – Incorporate a company with fancy name
Step 2 – Run it for first 3 months, hire a digital marketing consultant who can build the brand around your company.
Step 3 – Offer discounts. I am apologetic to say this, but in India people want everything free. This method is used by almost all business to attract the customers.
Step 4 – Go to funding Series A, Series B etc. If you are not getting any funds from outside, invest your own money through some trustworthy associates and make sure that funding becomes viral and everyone in social media discusses it.
Step 5 – Once you reach certain amount of losses, now its time to get back your money. Hire a Investment banker and issue IPO. The investment banker will make sure that your IPO is fully subscribed. After all you are paying a hefty compensation to him.
Step 6 – Exit the company and let the investors suffer
I still do not understand why people invest in loss making companies, what value they see in those companies.
My Humble request, Do not invest in any company unless you find their fundamentals are very strong. And never ever come to stock market to earn easy money.
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Disclaimer – This Article is for Educational purposes only and not to defame anyone. Any incidental representation is coincidental and we do not accept any legal liability
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