"30% festival off!"
"upto 50% off!!!"
"50+30% discount"
"Buy 1, Get 1 free"
"Buy 2, Get 3 free"
"upto 90% off!"
These are some of the funniest and most amusing lines I see in the markets!
Everyone asks for discount before buying!
Every shop worth his trade ensures that he gives discount after some tantrums!
Before even that he ensures that he has changed 400 price label with 500!!
Abraham Lincoln was probably wrong when he said - "You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time...."
Discount culture has been fooling all of the people all of the time!
Or, put it differently, all of the people have being deliberately yearning to be befooled all of the time.
In still other words, all of the people have been befooling themselves all of the time!
It is a mirage we all know but we all love to ignore!
Afterall, what does a 30% or 50% or 80% discount mean?
Why should anyone expect a discount and why should one give a discount?
Why not price it fairly?
A discount can mean one of the five things:-
1) Either you were being overcharged earlier, or
2) There is a problem with the product or service being sold now, or
3) They have jacked up the price before window dressing it with "discount" or
4) They are selling it now at a loss, or
5) It is a distress sale.
Distress sale doesn't happen everyday, everywhere and with every product or service!
Also, obviously, nobody sells at loss unless it is a distress sale!
So, the truth lies somewhere in the first 3 lines.
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The same logic applies to stock prices
1) Either it was earlier overpriced, or
2) There is some fundamental problem with the company or sector or economy, or
3) The "insider" brokers along with the "friendly" media create an impression of a "discount" after a jacked-up price!
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An aware trader or investor should be sharp to spot the reason and call the bluff!
Majority of the trades in the market are bluffs
Learn to know the real worth of a stock, catch every liar on the dalal street!
Disclaimer: This content is not mine. Credit goes to the original creator.
