The problem

Why financial-market education is necessary

A large number of people enter the stock market without adequate knowledge. Tips replace process. Leverage replaces understanding.

SEBI study

About 90% of individual F&O traders lost money

SEBI's analysis of individual traders in the equity futures and options segment found that about nine in ten incurred net losses. The problem QISM is built around is entering derivatives without knowledge and trading experience. We teach the instrument and the risk. We do not give tips.

The broken loop

Hear a tip. Put money. Hope.

The QISM loop

Learn → Understand → Practice → Manage Risk → Implement

Broken loop

Hear a tip → Put money → Hope for profit.

QISM loop

Learn → Understand → Practice → Manage Risk → Implement

Why people lose money

Lack of financial-market knowledge
Following tips and recommendations blindly
Lack of risk management
Emotional decision-making
Overtrading
Excessive leverage
Lack of a defined strategy
Not understanding market cycles
Poor understanding of derivatives
Unrealistic return expectations
Investing without understanding the underlying asset
Treating trading as gambling
Implementing strategies without testing them

Stock markets, derivatives, and how funds are managed.

Stock markets

“The investor's chief problem — and even his worst enemy — is likely to be himself.”

Benjamin GrahamThe Intelligent Investor

Derivatives

“Uncertainty benefits an option.”

Nassim Nicholas TalebOn optionality, 2011

Fund management

“Know what you own, and know why you own it.”

Peter LynchOne Up on Wall Street

Quoted for study. Not a tip, a call, or a promise from QISM.