Always Perspective Matters!!!

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👊Rome wasn't built in a day -  As if Your CA Empire🏛️


Each 📖 Chapter is a 🧱 Brick, Lay Them Solidly for a 🏯 Glorious Future.


1️⃣ 🧱 Fundamental Fortitude: Master the basics; a sturdy foundation is key.


2️⃣ 📐 Structured Approach: Break down each chapter methodically, brick by brick.


3️⃣ ⚒️ Diligent Dedication: Lay each conceptual brick with unwavering commitment.


4️⃣ 🔭 Big-Picture Vision: Envision your grand CA empire as motivation.


5️⃣ 🚧 Strategic Planning: Construct a well-designed blueprint for your studies.


6️⃣ 🧭 Adaptive Mindset: Be flexible to integrate new learnings seamlessly.


7️⃣ 🔑 Conceptual Mastery: Unlock each chapter's depth for unshakable understanding.


8️⃣ 🛡️ Resilient Resolve: Fortify your mind against obstacles and setbacks.


9️⃣ 🌉 Bridge the Gap: Connect theories to real-world applications flawlessly.


😇Bonus words: Approach each chapter as a solid brick, meticulously laying the foundation for your grand CA empire, destined for a glorious future.

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Dear CA Students,

Embarking on the journey to become a Chartered Accountant is not just about acquiring a professional qualification; it's a commitment to excellence, integrity, and continuous learning. As you navigate through the rigorous exams, countless hours of study, and practical experience, it's essential to keep your motivation burning bright.

Remember, you are not merely pursuing a career; you are investing in your future and paving the way for boundless opportunities. Each lesson learned, each challenge overcome, brings you closer to your goal of becoming a trusted financial expert.

In the face of adversity, when the workload seems overwhelming, or the exams appear insurmountable, it's crucial to remind yourself of your purpose. Visualize the impact you will make in the world as a Chartered Accountant – the businesses you will help thrive, the financial strategies you will craft, and the lives you will positively influence.

Stay focused on your studies, but also remember to take care of yourself. Balance is key; ensure you allocate time for rest, relaxation, and rejuvenation. Surround yourself with a supportive network of peers, mentors, and loved ones who uplift and inspire you during challenging times.

Embrace each setback as an opportunity for growth, for it is through adversity that we truly discover our strength and resilience. Celebrate your victories, no matter how small, and use them as fuel to propel you forward.

Above all, never lose sight of your passion for accounting and your unwavering dedication to excellence. The road to becoming a Chartered Accountant may be long and arduous, but with perseverance, determination, and a relentless pursuit of your goals, success is inevitable.

Believe in yourself, trust in your abilities, and never underestimate the power of your dreams. You have chosen a noble path, and the world awaits the exceptional contributions only you can bring.

Keep pushing forward, for greatness lies ahead.

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Everyday life, but the enemy? Our own minds.🧠

💪No Surrender: Ups and downs, but giving up is never an option!

🙏🏻Confidence, patience, and the spirit that whispers, “I will make it happen!”

💪Our Biggest Fight is Internal: Against fear, doubt, and laziness.

🔥Every Day a New Arena: Responsibilities, expectations, but most importantly, conquering ourselves.

💪Win Some, Lose Some, But Never Stop: We learn, improve, and keep moving forward.

❤️Solitude is Our Strength: Talk to yourself, identify weaknesses, and grow stronger.

💯Small Steps, Big Impact: Daily progress, even incremental, leads to a better version of ourselves.

🔥This Fight Ain’t Easy, But We Ain’t Easy Neither!

So Rise Up, Face Yourself, and Fly the Victory Flag Every Day! 🔥❤️💯

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The Marathon of Success🏃‍♂🏃‍♂

Once upon a time, in a bustling city, there were three aspiring Chartered Accountancy (CA) students: Maya, Rahul, and Aarav. They were all preparing for their final exams, each with their own dreams and aspirations.

Maya was determined to become a successful auditor and make her mark in the corporate world. Rahul dreamed of owning his own accounting firm and providing top-notch financial services to businesses. Aarav wanted to specialize in tax consultancy and help individuals and companies navigate the complex world of taxation.

As the exam date approached, they found themselves buried under a mountain of textbooks, notes, and practice papers. Doubts and fears crept into their minds, but they refused to let negativity hold them back.

One evening, as they were studying together, Maya came up with an idea. "Let's imagine our journey to success as a marathon race," she suggested. "We're all running towards the same goal of becoming CAs, but like in a marathon, there will be challenges and obstacles along the way."

Rahul nodded enthusiastically. "And just like in a marathon, we need to pace ourselves, stay focused, and never lose sight of the finish line," he added.

Aarav smiled. "And most importantly, we need to support each other. In a marathon, runners often encourage each other to keep going, and that's exactly what we should do."

With renewed determination, they continued to study, pushing each other to do their best. They tackled difficult concepts together, shared study tips, and offered words of encouragement whenever one of them felt overwhelmed.

Finally, the day of the exam arrived. As they sat down to tackle the papers, they remembered their marathon analogy. They approached each question with confidence, knowing that they had trained hard and were well-prepared for whatever challenges lay ahead.

Months passed, and the results were announced. Maya, Rahul, and Aarav had all passed with flying colors, achieving their dreams of becoming Chartered Accountants. They hugged each other tightly, knowing that they had crossed the finish line together.

But their journey didn't end there. As they stepped into the professional world, they faced new challenges and obstacles. Yet, they knew that with the same determination, teamwork, and support that had carried them through their exams, they could overcome anything that came their way.

And so, Maya, Rahul, and Aarav embarked on the next phase of their journey, confident in their abilities and ready to conquer whatever challenges lay ahead. For them, success wasn't just about passing exams; it was about facing challenges head-on, never giving up, and always striving to be the best versions of themselves.

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Motivational Journey of Two CA Aspirants 🧑‍💻👨‍💻

Once upon a time in a bustling city, there were two friends named Akash and Navin. They both shared a dream of becoming Chartered Accountants (CAs) and making a mark in the business world. With relentless determination, they embarked on their CA journey together.

As they progressed through their studies, Akash seemed to effortlessly glide through each exam, while Navin faced struggles and setbacks. Despite Navin's best efforts, success seemed elusive, and frustration began to weigh heavily on him.

However, Akash never let Navin falter alone. He stood by his friend's side, offering encouragement and support every step of the way. Together, they faced the challenges head-on, turning every setback into a lesson and every failure into motivation to strive harder.

Finally, the day arrived when Akash received the news he had been eagerly waiting for - he had passed his CA examinations with flying colors. It was a moment of immense joy and pride for both friends. While Akash celebrated his achievement, Navin couldn't help but feel a pang of disappointment at his own inability to clear the exams.

But Akash reminded Navin of their journey together, emphasizing that success was not a destination but a journey filled with ups and downs. He assured Navin that his time would come and that he would always be there to support him.

True to his words, Akash wasted no time in establishing his own successful CA practice. Meanwhile, Navin, undeterred by his past failures, decided to pursue a different path. With sheer grit and determination, he took a leap of faith and started a small business with a loan.

The road was tough, with numerous hurdles and obstacles along the way, but Navin refused to give up. His relentless perseverance paid off as his business began to thrive, gradually expanding its reach and influence.

In a remarkable turn of events, Navin's company flourished to such an extent that it caught the attention of industry veterans, including Ashneer, a seasoned entrepreneur. With his guidance and mentorship, Navin's company soared to new heights, eventually getting listed on both the NSE and BSE.

As Navin basked in the success of his endeavors, he never forgot the unwavering support of his friend, Akash. When Akash reached out to Navin, seeking opportunities to collaborate, Navin welcomed him with open arms, acknowledging the pivotal role Akash had played in his journey.

Together, Akash and Navin forged a partnership that exemplified the true essence of friendship and resilience. They proved that success knows no bounds when fueled by determination, perseverance, and the unwavering support of a friend. And as they embarked on this new chapter together, they knew that their bond would continue to be their greatest asset in conquering new horizons.

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💰The funds that almost nobody can invest in.📌

Norway does not have ATMs that give out gold.

It is not famous for selling homes on man-made islands.

It does not come to mind when we think of Rolls-Royce, sky-scrappers, or lavish people.

All of those are associated with Middle Eastern countries – because they have oil.
A less-known fact: Norway has lots of oil too.

Anywhere between 40 and 70% of their exports are oil and gas. But this was not always the case.

Towards the end of the 1950s, Norway was like any other European country.
They were not poor. But they did not produce oil.
And then, they found oil and gas – lots of it.

By the 1970s, they were commercially extracting oil and gas. They began exporting it.
And with that, the money started flowing in.

The Norwegian government had structured their oil and gas exploration in a specific manner.

Licenses were given to private companies to explore and dig.

It was all done in a manner in which the government of Norway would earn profits.

This allowed the Norwegian government to get a new source of income.

Lots of income.
This was a problem.
Yes – a good problem.

They knew that oil and gas would not last forever. Some day, it would finish. They would not be able to earn money from oil forever.

Norwegians did not want to blow away all their money in the present.
They wanted to save it so that future generations of Norwegians would benefit from it.

They set up a fund.
This fund would invest the money – just like a mutual fund.

Thus, in 1990, the government set up the Government Pension Fund. In 1996, money was first deposited into the fund.

Investment💵💴💶💷

Norway’s oil earnings are invested by the Government Pension Fund.
They invest in stocks, bonds, and real estate.

Just like a mutual fund, it has a team that decides where the money will be invested. There is a team that audits the fund.

There is a team that researches new investments, and which holdings to sell off.

And there is a person who heads this – like a fund manager.

But there is one giant difference between a mutual fund and the Government Pension Fund.

Anyone can invest in a mutual fund.
The Government Pension Fund has only one investor – the Government of Norway.

This fund is immensely successful.
Today, it manages assets worth about $1.5 trillion – or $1,500 billion.

This makes the Government Pension Fund the biggest fund of its kind in the world.

To give you some context, India’s biggest mutual fund company (SBI Mutual Fund) manages assets worth $86 billion only.

About 70% of the Government Pension Fund’s money is invested in shares of over 8,500 companies across 70+ countries.

About $22 billion of this fund’s money is invested in India.

Of the $1.5 trillion assets, only about half have come from direct contributions from oil profits.

The rest is the return from investing. The fund is performing well.
Last year, the fund made a gain of $213 billion.

Sovereign Wealth Funds💸

These extra-large mutual funds that serve governments are called Sovereign Wealth Funds (SWFs).

They usually have only one customer – their government.
Norway’s sovereign wealth fund is just one such fund. It is indeed the world’s biggest SWF.

But there are many others like it.
Abu Dhabi Investment Authority is the biggest SWF in the Middle East with holdings of over $800 billion.

China Investment Corporation reportedly has assets over $1.3 trillion.

Kuwait Investment Authority has assets over $900 billion.

Government Investment Corporation (GIC, Singapore) has assets over $700 billion.

There are SWFs based in Saudi Arabia, Hong Kong, Oman, Alaska (USA), Dubai, Turkey, South Korea, and many more.

Norway’s SWF is famous for being incredibly transparent. All details about its holdings are publicly available.

Read more...

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Read Part 1....

But this is not the case with all SWFs.

Since these are government-controlled and operated funds, many SWFs choose to not reveal their holdings.

This makes it difficult to estimate how much money they have invested.

Like any mutual fund, they also have specific goals with regards to their investments.

Some invest more in technology stocks. Some put a lot of focus towards renewable energy companies. The goals are varied.
These funds control vast amounts of money.

Often, these amounts are so large, they can affect entire stocks and stock markets.

SWFs have been investing in India heavily. With time, they have only increased their investments.

In 2023, SWFs had invested a total of $43 billion (Rs 3.65 lakh crore) in India. 5 years ago, this was only Rs 1.62 lakh crore.

Singapore’s SWF is one of the biggest investors in India – around Rs 1.7 lakh crore invested.

Norwegian, Saudi, and Kuwaiti SWFs are also big investors.

When you read the news that ‘foreign institutional investors invested XYZ amount’, you should know that a part of those investments is usually made up by SWFs.

Reliance, ICICI Bank, HDFC Bank, L&T, Bajaj Finance, Infosys, Axis Bank, and Mahindra are some of the stocks SWFs have invested heavily in.

SWFs have also invested in upcoming start-ups in India. Some names are Delhivery, Zomato, and Lenskart.

They are quite unique.
They basically invest tax-payers money. In a way, this money belongs to all the people of that country.

The idea is quite new to many of us.
And yet, they have more money than most other kinds of funds.

Sovereign Wealth Funds are huge.
As they get more bullish about India, we will hear about them more often.

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I hope now u understand about FII & Sovereign wealth funds. Etc..

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Chartered Accountant – Astrological Combinations

The horoscope tells a lot about an individual’s life from happiness to sadness, friends and enemies, partnerships or education to career. By examining a horoscope one can plan for future events and increase the chances of success in one’s life. Talking about career, the 10th house of the horoscope is related to profession and is analyzed in combination with other planets and houses to come to final conclusion.

Chartered Accountancy is a high educational qualification and it is not a designation or post. This qualification is considered a tough and very important one and takes a certain amount of strength in one’s horoscope to materialize the prediction into reality. The native who acquires this qualification earns an extremely handsome income and has bright future prospects. A chartered accountant(C.A.) can work at any place where finance is involved for example; banks, industries, income tax, or any financial institution. They may also work as consultants or lawyers. In simple terms, if the horoscope of an individual indicates education of accounts, then pursuing chartered accountancy will prove beneficial rather than pursuing engineering or medical profession.

Now, we will look into what planets, signs, and houses are involved in promising the chartered accountant career. The most important planet to look for is Mercury. The placement of Mercury must be strong in the birth chart and this Mercury should influence the 10th, 2nd, or 5th house, in one way or the other. Mercury represents intellect, logical thinking, planning, conversation, etc. and clearly, when this Mercury is strongly placed in the horoscope, it will make one extremely skillful in the art of planning and organization. This Mercury also gives the ability of deep analysis. So the foremost requirement here is to have a well-placed Mercury. The houses 10th, 2nd, and 5th represent the profession, income, and education in the horoscope and are thus important to be considered.

Another essential planet here is Jupiter that should jointly influence the aforementioned houses along with Mercury. Jupiter is a knowledge, philosopher, thinker which when in good dignity, makes you honest and sincere and works systematically without any diplomacy or manipulation. Mercury and Jupiter go along in that you need a sharp intellect to gain knowledge. In order to become a successful C.A., both these planets should have their influence on the concerning houses, which would be 10th, 5th, 2nd, or 11th as well, which is the house of gains. Here, the overall effect of Mars is also considered for building the career of the native. We have seen the planets and houses that signify a successful Chartered Accountant and now we will have to look at the signs which is another important aspect when making a prediction. It has been observed that out of all the signs Gemini, Libra, and Aquarius, which are all Airy signs, are more likely to influence the native to pursue this educational qualification and the native then earns his livelihood by working in banks, income tax, audit or legal profession or as a consultant. All these conditions if fulfilled can make a successful Chartered Accountant.

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Planet combinations for Chartered Accountant!!!!

Chartered Accountancy is a professional degree course and opens many career opportunities giving you flexibility in your career. It is also one of the toughest exams to crack with only 5-10% people passing out on average per year.

🤝 Which yogas in horoscope make one a Chartered accountant?
🤝 What are the planet combinations for Chartered accountant?
🤝 Do You have planet yogas to become a Chartered accountant?

Read this article to know more about planets responsible for making you a CA.

A chartered accountant has wide scope and flexibility to choose many options as career.

A list of career options for CA are as follows:-

Auditing
Management accounting
Banking & Finance
Financial accounting
Taxation
Consultancy services
professional practice.
Teaching

This career provides endless opportunities and flexibility to choose from many options, it gives you a lot of respect and prestige in the society as well.

Planet combinations for Chartered accountant

👉 Planets Jupiter, Mercury combined with Venus are responsible for making one a chartered accountant.
👉 The signs of Mercury and Jupiter Gemini, Virgo, Sagittarius and Pisces can play instrumental role in making one a Chartered accountant.
👉 Airy signs Gemini, Libra and Aquarius along with Earthy Signs, Tauras, Virgo and Capricorn also play a role. Scorpio being a secret sign can also be helpful.
👉 Mars involved can make one an a practicing Chartered accountant, Saturn involved can make you take a job.
👉 8th house is important in horoscopes of Chartered accountants along with 2,5,10,11 houses.
👉 10th lord in 8th house of a chartered accountant is good as work of professional chartered accountants involves saving money of clients through various means like money laundering, tax evasion, advising investments to save money on taxes under various sections thereby helping clients save money, helping business to grow and maintain financial records.

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👱‍♂Arun and 👱Madhumita were two souls drawn together by the shared intensity of their academic pursuits.

Arun was a Chartered Accountant👨‍💻 student, meticulously balancing sheets and scrutinizing financial records, while 👩‍💼Madhumita, a Company Secretary student, navigated the intricate world of corporate governance and compliance. They met at a mutual friend's birthday party, where Arun's reserved demeanor and Madhumita's lively spirit created an instant, if unexpected, spark.

Their relationship began with a serendipitous exchange of notes in a coffee shop. Madhumita had been struggling with a section of her corporate law studies, and Arun, sitting at the next table, couldn't help but overhear. Without thinking, he offered his help. That simple act of kindness blossomed into late-night study sessions, shared meals, and whispered dreams of a future together.

👱‍♂Arun admired 👩Madhumita's determination and her ability to untangle the most complex legal regulations, while Madhumita was captivated by Arun's analytical mind and his unwavering dedication. Their connection deepened as they supported each other through the rigors of their demanding courses. They talked about everything, from their career aspirations to their favorite books, creating a bond that felt unbreakable.

However, as time went on, the pressures of their respective courses began to mount. Arun's CA exams loomed large, requiring intense focus and long hours of study. Madhumita was equally consumed by her preparations for the rigorous CS exams. The stress began to take its toll, and their once frequent, carefree interactions became hurried and strained.

One evening, as they sat in Arun’s tiny apartment, the weight of their unspoken worries hung in the air. Arun had been buried in a mountain of textbooks, while Madhumita typed furiously on her laptop, preparing for a presentation. The room was filled with the sounds of flipping pages and keystrokes, a stark contrast to the laughter and conversation that once filled the space.

“Arun, we need to talk,” Madhumita said, breaking the silence.

Arun looked up, the exhaustion evident in his eyes. He had sensed this moment was coming but had hoped against hope that they could push through.

“Yeah, I think we do,” he replied, his voice heavy with resignation.

Madhumita took a deep breath, tears welling up. “I love you, Arun, but it feels like we’re slipping away from each other. Our lives are so consumed by our studies that we barely have time for us.”

Arun reached out, taking her hand in his. “I love you too, Madhumita. More than anything. But you’re right. It’s like we’re two ships passing in the night. I don’t want to be the reason you don’t achieve your dreams, and I know you feel the same.”

Madhumita nodded, her heart breaking. “Maybe we need to take a step back. Focus on our exams and our futures. If we’re meant to be, we’ll find our way back to each other.”

Arun’s grip tightened on her hand. “I don’t want to lose you, but I don’t want us to be unhappy either. Let’s give ourselves the space we need to grow.”

They sat there, hand in hand, their hearts aching with the weight of their decision. The love between them was undeniable, but so were the challenges they faced. They knew this was the right choice, even if it was the hardest one they had ever made.

As they stood to leave, they embraced, holding each other tightly for what felt like an eternity. “Take care of yourself, Madhumita,” Arun whispered, his voice choked with emotion.

“You too, Arun. You’ll always be in my heart,” she replied, tears streaming down her face.

They walked out into the night, each step taking them further apart, yet each carrying a piece of the other with them. The journey ahead was uncertain, but they knew they had made the right choice for themselves and each other.

1/2

Read part 2 from here...

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In the months that followed, both Arun and Madhumita threw themselves into their studies with renewed vigor. They achieved their goals, becoming successful in their respective fields. They met new people and formed new relationships, but the memory of their love remained a cherished part of their past.

Years later, they would occasionally think of each other, wondering what might have been. And in those quiet moments, they smiled, grateful for the time they had shared and the love that had shaped their lives.

2/2

Read part 1 from here...

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👨‍💻Approaching someone you're interested in, regardless of their academic background, involves being respectful, genuine, and considerate.

🙋‍♂Here are some steps to approach a girl studying commerce:

👉1. Be Respectful and Considerate
Respect Her Space: Ensure she is comfortable and not busy with something important like studying or in a hurry.
Be Polite: Use polite language and manners.

👉2. Find Common Ground
Shared Interests: Look for common interests or activities that can be a conversation starter.
Academic Connection: If you're also studying commerce or a related field, use that as a topic to initiate the conversation.

👉3. Start with a Friendly Conversation
Introduce Yourself: Keep it simple and straightforward. For example, "Hi, I'm [Your Name]. I've seen you around and thought I'd say hello."
Ask Open-Ended Questions: This can help keep the conversation flowing. For example, "What do you think about the latest trends in [a subject related to commerce]?" or "How do you like your courses so far?"

4. Show Genuine Interest
Listen Actively: Show that you are genuinely interested in what she has to say.
Engage in Her Interests: If she mentions something she’s passionate about, ask more about it.

👉5. Be Yourself
Authenticity: Be genuine and true to yourself. Authenticity is attractive.
Confidence: Approach with confidence but not arrogance. Being yourself is key.

👉6. Respect Boundaries
Read Cues: Pay attention to her body language and responses. If she seems disinterested or uncomfortable, it’s important to respect that.
Give Space: Don't push for personal details or insist on spending time together if she isn’t reciprocating the interest.

👉7. Build a Rapport Gradually
Consistent Interaction: If the first conversation goes well, look for opportunities to chat again. This can build a natural rapport over time.
Friendship First: Often, starting with a friendship can be a great foundation for something more.

👉8. Compliment Sincerely
Genuine Compliments: Compliment her on something you genuinely appreciate, like her ideas, style, or an accomplishment.

Example Approach

"Hi, I’m [Your Name]. I noticed you’re in the commerce program. How are you finding the coursework? I’m really interested in [specific topic related to commerce], and I’d love to hear your thoughts on it."

By focusing on mutual interests and being respectful, you increase the chances of a positive and meaningful interaction.

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🧅What Onion teach us about Stocks📈

Tendu Police Station, November 2019.

Police found an empty truck in their area.

A trader from Nashik had complained to the police about not being able to track his goods.

On Nov 11, a truck had left from Nashik, Maharashtra with his goods.
It was supposed to reach Gorakhpur, Uttar Pradesh on Nov 22.

The trader from Nashik had sent 40 tons of onions to a wholesaler in Gorakhpur.

The 40 tons of onions were said to be worth around Rs 22 lakh.
All of it had been stolen.

Onion was selling for around Rs 100 per kg (vs Rs 16 per kg only a few months earlier).

The government explored the idea of buying onions from countries like Egypt and bringing them to India using airplanes.
Onions are an integral part of the Indian diet.

Why were onions so expensive?
India exports many agricultural items. Onions are exported too.
It is believed that in 2019, traders sold too many onions outside India. This led to a shortage of onions within India. And that caused the prices to shoot up.

We have all heard about it – supply and demand.

But how does it happen?
When there is a shortage of items, how does the price shoot up? Who is controlling it? Who decides the new price?
The answer to all of those questions: the market.

Simple Supply and Demand

Let’s say you are trying to sell your house.
Your house has something that most other houses don’t. Maybe a corner plot or a good view.

You put it up for sale for Rs 50 lakh.
Someone comes and offers you Rs 52 lakh. So you’re ready to sell.

But then someone else comes and offers Rs 55 lakh. So now, you will sell the house for Rs 55 lakh.

So just because of the buyers’ willingness to pay a higher price, the price of your house is Rs 55 lakh.

Now, imagine the opposite.
You put it up for sale for Rs 50 lakh. But most buyers want a newer house.

You get one buyer offering to pay Rs 45 lakh. Another one comes and makes a slightly better offer: Rs 47 lakh.

You really need the money. So you sell the house for Rs 47 lakh.
Now, the price of your house is Rs 47 lakh.

The Market

So far, this is quite simple to understand.
It gets more complicated.

When you’re selling a house, it might be very unique. So there’s only one such house on the market.

But what happens when you’re selling something that is not unique? What happens when you are selling something like onions?

There are many sellers. There are many buyers. And there’s competition among them.

Let’s say you are a big buyer. You run a big restaurant chain. You have to buy 50 kg of onions.
You go to the seller who was selling at Rs 20 per kg.

But he only has 30 kg of onions.
You buy 30 kg of onions from him for Rs 20.

But you need 50 kg total. So you still have to buy 20 kg more. You look for the next cheapest option.
There are many sellers but they all want Rs 22.

They know you need more onions – they know you are desperate. So they keep their prices high.
You find another seller who is selling at Rs 21 – and he has enough stocks to sell you 20 kg.
Done.
You bought 50 kg of onions:
-30 kg onion for Rs 20.
-20 kg onion for Rs 21.

Now, let’s make this more interesting.

That same day, news comes in that it has been raining non-stop in Maharashtra. Many fields are flooded.

This means that less onion is going to be produced.

Fearing a shortage of onions, buyers feel like keeping some extra onions at home.

So people start buying more onions.

Sensing this, one shopkeeper raises his price from Rs 21 to Rs 25.
His thinking: ‘People are buying more onions than usual. I am sure people will buy these onions even at a slightly higher price’.

On the other hand, buyers are thinking: ‘Onion prices will rise in the future because of the shortage. Let’s buy as much as possible while it is still relatively cheap’..
This sets off a chain reaction.
Seeing demand, more sellers increase their prices.

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Fearing even more price increases, buyers try to buy more at present.
Price rises and falls don’t happen on their own.

There are external factors.
When the price is rising, some external factor – like news of new supply – can cause it to reverse.
This happens all the time.

It happens in seconds, minutes, hours, days, weeks, months, and years.

When there is a shortage of onions, prices rise.
When there are extra onions, prices fall.

Let’s take the case of a small city. It needs 1,000 kg of onion every day – so trucks bring in 1,000 kg of onion every day.

What can cause a shortage?

It can happen in two ways:

First: less onion is available – instead of 1,000 kg, only 700 kg comes on trucks.

Second: more onions are in demand – instead of 1,000 kg, people in the city try to buy 1,200 kg of onions.
In both cases, the price will rise.

Stocks Markets

This is how supply and demand affect prices.
This is why people who buy large quantities of onions have a harder time getting their desired price.

It is also why sellers who sell large quantities of onion have a harder time selling at their desired price.

Now, all you need to remember is that in the stock markets, you are both the onion seller and the buyer.

When you invest money in stocks, you’re a buyer.

When you take out money from stocks, you’re a seller.

For everything else, you can replace ‘onions’ with ‘stocks’.

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