Mr. Alok Daiya on ‘Facts and Myths of Stock Market’
Institute of Management Technology (IMT), Nagpur had the privilege of hosting Mr. Alok Daiya, Founder - Edification Academy on November 10, 2020. He has an experience of over 18 years in the field of the stock market. He delivered an insightful lecture on the topic ‘Facts and Myths of Stock Market’
The following is an excerpt from the interview with him-
Q1) What motivated you to start Edification Academy? How do you plan to promote financial literacy through the same?
Ans. Being a faculty of the Financial Market at St Xavier's college and working in the stock market from 2002, the overall experience added up for the idea of a start-up that is Edification Academy. In Edification Academy Financial Market is taught in a very simplified way. The business counselor would give a solid formation and tentative structure of the plan for implementation.
Q2) It is said, "The best time to invest was yesterday, the second-best is today and the worst time is tomorrow", would you agree with the statement? Does it put pressure on novice investors to invest with half-knowledge?
Ans. The most important thing is money management, decision analysis, and discipline analysis. Financial behavior is becoming popular nowadays, often the candlesticks chart is called the Indian sentiments chart. The management of risk analysis and responding according to the ups and downs of the markets should not affect the amount for investment. Many webinars are being conducted and videos are available on YouTube and other sites. A proper risk analysis of the company should be prioritized before investment.
Q3) How does one go about evaluating one's risk appetite?
Ans. One should know the limit of investment. Proper client profiling should be done and expectations from the market and prior knowledge of risk management should be thoroughly known before investing the hard-earned money. It is more about emotions than profit-making when it comes to sharing market investment. Emotional control should be properly managed.
Q4) Harshad Mehta scam series refreshed the memory of investors, about the vulnerabilities of the stock market and how one can make a cartel and manipulate prices. Why is Government slow to react to such problems and can they be pre-empted in the future? How can a normal investor build trust in the system and invest again?
Ans. Harshad Mehta tried the benefits of the loophole in our system. Harshad Mehta was the father of CB. The biggest audience for the investment market is the common people. There have been many scams in the past also like National Spot Exchange Limited (NSEL). The Bottom-Top approach should be preferred for common people and not the Top-Down approach. Brokerage charges and inappropriate charges should be checked as there are no other options for the common people.
Q5) With everything now being conducted online, how has your experience been with IMT Nagpur?
Ans. It was a very good and interactive session as the vibe of the crowd was very positive. The quality and professionalism of the students were good. The webinar process was smooth and the overall experience was very good when compared to other colleges.