I wonder sometime that in discussion forums, broker's chambers and bi-lateral/common discussions, why we love to talk about news, views and regulator's/government policies? When we talk always about companies still in that time we relate them with current news/rumors.
Why so? We know already the details about companies? May be, a few among us that is true. But for a big number company is not relevant. Why so? The news if that is worthy to affect, still that effect would be temporary and thus peripheral. The fundamentals of a company and financial parameters are more important. But, only a few among us care about these factors.
What factors rule
the Nepali market then? The primary factor is trend. Trend is the
companion of traders. Going by trends, the traders use news, short term
policy changes or even procedural shifts as raw materials to influence
market processes at least for a short term. Moreover, they
manufacture/discover rumor and use it as good looking cosmetic. All
these attempts, they believe, will work for their speculative advantage.
Now, when big investor like Nirmal Pradhan have turned to being a speculator, it is natural that the portals of national repute create speculative framework by declaring that that very day market could have 30 points up. The market starts behaving like a mad and drunken Bhakkuko Rango (a mad and drunken he-buffalo) and moves up to everybody's surprise. When big speculators finish executing their sell order, the market gradually moves to its normal range. Deceived traders stay out of market and the market comes down. Anyway, it is traders profession to buy and sell, hence, they come back and market starts vibrating once again.
Therefore, I have concluded that in Nepali share market, only investors are concerned about the company as they put money for a long time but their number is too small. Many among them are institutional investors who never come to discussion forums, broker's chambers or any other discussion platforms. Hence, always we see traders active in these areas and there news, views, change in policies/procedures and rumor got high value. This is, perhaps, normal and natural for trading behavior.
But, if we invest, we should have a different temperament and trait, and thus, we should focus on companies, which pay us back.
.
Now, when big investor like Nirmal Pradhan have turned to being a speculator, it is natural that the portals of national repute create speculative framework by declaring that that very day market could have 30 points up. The market starts behaving like a mad and drunken Bhakkuko Rango (a mad and drunken he-buffalo) and moves up to everybody's surprise. When big speculators finish executing their sell order, the market gradually moves to its normal range. Deceived traders stay out of market and the market comes down. Anyway, it is traders profession to buy and sell, hence, they come back and market starts vibrating once again.
Therefore, I have concluded that in Nepali share market, only investors are concerned about the company as they put money for a long time but their number is too small. Many among them are institutional investors who never come to discussion forums, broker's chambers or any other discussion platforms. Hence, always we see traders active in these areas and there news, views, change in policies/procedures and rumor got high value. This is, perhaps, normal and natural for trading behavior.
But, if we invest, we should have a different temperament and trait, and thus, we should focus on companies, which pay us back.
.
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