What is the secret of the success of the stock market traders of Mumbai city? Can you be successful in the stock market?

Everyone wants to earn money from the stock market, but there are few people who are able to make money. There are 2 things here, one is 'Making Money' and one is 'Making Money'.

 Money is made from long-term investment and earned from trading. Here we will talk about earning money. Meaning, about trading.

There are traders all over the country who want to earn money, for which one learns 'technical analysis', one buys tips, one trades on the news related to the market and one sees the business news channel and trades in the manner described in it is. Some earn money and some do not make money. But, why is it that a few selected traders of Mumbai city are continuously making money?

Now understand it carefully.

Which broker has your trading account? Close to 'Zerodha', Karvy, 'ICICI', Sharekhan or any other broker we all know. But, there are a few selected brokers in our country that no common man knows.

We call them 'Institutional Brokers'. There are some 5–6 Institutional Brokers in India who neither advertise in the TV newspaper nor call anyone to open an account.

To open a trading account with an institutional broker, you will have to put at least 5 crores in your trading account. Now it is obvious that not everyone has 5 crores, and even if it is, why would anyone put it for trading!

And here brokerage is also very high.

An institutional broker conducts bulk trades. If you want to buy or sell 10,000, 20,000 or 1 lakh shares of a company in one go, the Institutional Broker looks for people who have so many shares to sell you or buy from you.

That is why their biggest clients are 'mutual funds'. No 'mutual fund' ever opens trading accounts with Zerodha or Sharekhan as they have to do bulk trades every day which is not the case with retail brokers like Zerodha or Sherkhan.

Now know why a few selected traders in Mumbai make money every day.

You can never go to Bombay Stock Exchange or National Stock Exchange located in Dalal Street, Mumbai, but there you have to stand outside in the crowd of thousands because it is not so easy to get inside the exchange.

Yes, if you are a client of an Institutional Broker, then you will be able to go in comfort because the people of these Institutional Brokers trade from inside the Exchange.

These people have so much power that they can create the entire market because mutual funds, big industrialists, FII, etc. trade with them. Now you are their client, then the news that is not available to the general public will be with you first.

Example: A mutual fund has told its broker that they have to buy several thousand shares of Tata Motor, now this broker will tell their clients that Tata Motors has to buy today because its prices are going to go up.

It may seem that this is legally wrong, but Institutional Brokers are not so stupid, they do all the work within the scope of the law.

There is no need for technical analysis or charts, here only trades on the basis of 'information'. All these institutional brokers keep good relations with each other, and they are aware of all the trades that occur throughout the day.

That is why they also have an idea that today the market is going to fall or grow. And this information is leveraged by their clients who earn millions of rupees every day through trading. Altogether, 1000–1500 such people in Mumbai earn millions through daily trading and rarely lose any day.

If you want to join their league, first you have to open a trading account with Rs 5 crore, then you will have to pay a brokerage of 8–10 paise, and have to trade inside the exchange at Dalal Street in Mumbai.