Dear Friends,

There are various procedures and techniques to do with the financial markets to gain profits.

A relative of mine visited me yesterday.

He told me about his friend's son, who had lost ten million rupees (one crore) while scalping.

Last week, the young man even attempted suicide, though fortunately, he was saved. He is currently under severe mental stress, and my relative asked if I could offer some advice. What could I possibly say? I had a hard time convincing him that I am not a trader. Some people equate the stock market with gambling. I do not offer trading advice; besides, scalpers tend to be somewhat hyperactive.

Back in my hometown, I used to see people lose money on "scratch-off" lotteries during my childhood. That habit was worse than alcoholism. As soon as the shop opened in the morning, they would spend whatever cash they had on lottery tickets and use coins—like ten-paise or five-paise pieces—to scratch off the ink covering the numbers. As the ink wore away, the hidden number would be revealed.

The only strategy I follow in trading is swing trading, and I do it in the cash market without using margin. I use my own capital to buy specific stocks and sell them after a short period to make a profit. It isn't that I don't know about scalping; I am quite familiar with all trading strategies. However, the reality is that no one has ever become wealthy through trading only. Only few trades in a month might yield a profit, while the rest usually result in losses. The emotional oscillations batter everything in trading. 

I see an advertisement on YouTube quite often where a trader was trying to entice viewers by offering to teach scalping based on the "Rule of 72."

According to this rule, if you make a 1% profit daily, your money doubles in 72 days.

The stock market operates for twenty days a month on an average. They claim that by scalping and making a 1% daily profit, your money will double in four months.

A 1% profit sounds easy enough for the first glance. You might even manage to secure that 1% in your initial trades.

However, that is when your psychology shifts and starts playing tricks on you.

Traders—especially scalpers—operate in a high-pressure, fast-paced environment; they have to make split-second decisions.

It is the difference between a Test match and a T20 game.

In scalping, you might have a window of only one to five minutes to act.

Just imagine how much your heart rate would spike in that situation.

While some people do make money this way, I have never personally come across anyone who became wealthy solely through scalping.

Have a great time ahead in the markets!