Interesting story – This is how stock markets work

A cold winter

It was autumn, and the Red Indians asked their New Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn’t tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared.

But also being a practical leader, after several days he got an idea. He went to the phone booth, called the National Weather Service and asked ‘Is the coming winter going to be cold?’ ‘It looks like this winter is Going to be quite cold indeed,’ the weather man Responded.
So the Chief went back to his people and told them to collect even more Wood. A week later, he called the National Weather Service again. ‘Is it going to be a very cold winter?’ ‘Yes,’ the man at National Weather Service again replied, ‘It’s definitely going to be a very cold winter.’

The Chief again went back to his people and ordered them to collect every scrap of wood they could find.

Two weeks later, he called the National Weather Service again. ‘Are you absolutely sure that the winter is going to be very cold?’ ‘Absolutely, ‘ The Man replied. ‘It’s going to be one of the coldest winters ever.’

‘How can you be so sure?’ the Chief asked. The weatherman replied, ‘The Red Indians are collecting wood like Crazy.’

This is how stock markets work !!!

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Doesn’t this story resemble to the way Indian stock market works? Like, I remember, I jumped into stock market when it was on hike and sensex was touching the mark of 21,000 points. I used to call up Indiabulls agent every morning about the position of market. He used to give me tips on few companies.

Now I also had other friends who I believed good in this bizarre guessing market.They themselves had their money invested, so that way too, their tips were a bit of faithful.

Sometimes, what used to happen, they would just give the opposite perception on the particular share, that was earlier given the Indiabulls agent.

But I was like the chief of Red Indian, call up both the guys and take my decision. Little did I know that, stock market keeps changing because of amateur buyers like me only!

Of course, some regular and experience people play a big role in some particular stock’s price, but for most of the cases, amateur like me buying some particular and new company’s share, would hike its price and then everybody will feel that, it’s a good stock to buy, without knowing the basic reason for it, that the company’s profit is not increased but merely buying of their shares have increased.

This is really an interesting and funny story I have come across.