TubeSum ← Transcribe a video

Why You Lose Money in Stocks: PSX Reference Points Explained

0h 19m video Published May 19, 2022 Transcribed Jul 28, 2026 Easy Stock Exchange Easy Stock Exchange
Intermediate 14 min read For: Beginner to intermediate stock traders, especially those on the Pakistan Stock Exchange (PSX), who want to understand market psychology and avoid common pitfalls.
AI Trust Score 45/100
🚫 Clickbait / Waste of Time

"Delivers on explaining reference points but is repetitive and heavily padded with self-promotion and vague advice."

AI Summary

This video explores why stock traders often experience the opposite of their expectations—stocks drop after buying and rise after selling. The speaker attributes this phenomenon to 'reference points,' mental benchmarks based on past prices, which professional market players exploit to manipulate prices against retail traders.

[00:18]
The Trader's Paradox

When traders expect a stock to rise, it often falls, and when they expect it to fall, it rises. This common frustration is the starting point for understanding market manipulation.

[01:15]
Definition of Reference Points

Reference points are mental benchmarks formed by past price levels. Traders use these to predict future movements, but professional players know these benchmarks and trade against the crowd.

[02:12]
Market as a Battle of Transfers

The market is a continuous exchange of shares between buyers and sellers. A price drop does not mean shares vanish; they are merely transferred, and the total supply remains.

[04:05]
Example of a Resistance Level

A stock that repeatedly touches a certain high creates a reference point. When it approaches that level again, many buy, but professional players sell, causing the price to fall.

[06:45]
The Self-Fulfilling Prophecy Trap

When a popular tip or video reaches many viewers, professional players use that knowledge to manipulate the stock, causing losses for those who follow crowd signals.

[10:32]
Manipulation with Futures and Cash Markets

A detailed example shows how a player with 2 crore shares uses both the regular and futures markets to create false trends, profit from price dips, and accumulate shares at lower prices.

[15:10]
Common Mistake: Selling Winners, Buying Losers

Traders often sell stocks that are rising to buy those that are falling, missing out on gains and locking in losses as the originally sold stock continues upward.

[17:18]
The Key Advice

Instead of following news or crowd behavior, traders should conduct their own research and stick to a personal strategy to avoid being manipulated by reference points.

The video emphasizes that market losses often stem from predictable human psychology and manipulation by large players. The only way to avoid this is to understand reference points and trade independently.

Mentioned in this Video

Study Flashcards (6)

What is a reference point in stock trading?

medium Click to reveal answer

A mental benchmark based on past price levels that traders use to predict future movements.

01:15

How do large players exploit reference points?

medium Click to reveal answer

They observe common reference points and trade against the majority, causing retail traders to lose.

06:45

What does the vegetable market analogy illustrate?

easy Click to reveal answer

Shares are continuously bought and sold; a price drop does not remove shares from the market, just as a vendor's leftover vegetables are still available.

02:12

What common mistake do traders make according to the video?

medium Click to reveal answer

They sell rising stocks to buy falling stocks, missing out on gains and incurring losses.

15:10

What advice does the speaker give to avoid losses?

easy Click to reveal answer

Conduct personal research and follow your own strategy instead of acting on news or crowd behavior.

17:18

How can a player with 2 crore shares manipulate the price?

hard Click to reveal answer

By buying in the regular market to raise price, selling in futures to push price down, and repeating to accumulate profit.

10:32

💡 Key Takeaways

💡

The Concept of Reference Points

Explains a key psychological bias that causes traders to misjudge market movements.

01:15
📊

Market as a Transfer Mechanism

Clarifies that price drops are transfers, not value destruction, countering a common misconception.

02:12
🔧

Detailed Manipulation Example

Provides a concrete trading strategy used by large players to profit from retail traders.

10:32
⚖️

Behavioral Error: Selling Winners

Highlights a widespread behavioral mistake that leads to poor trading outcomes.

15:10
⚖️

The Advice to Do Own Research

Summarizes the video's core solution to avoid manipulation: independent analysis.

17:18

[00:02] today's video is going to be very interesting because in today's video we will talk about because in today's video we will talk about when we feel that this stock will go up, we should enter it.

[00:18] As soon as we enter it, what happens is that the stock starts going down and when we feel that this stock is going down, we should exit it. As soon as it comes out of our mouth, we sell it, then what

[00:32] happens is that on the second or third day we see that the stock goes up significantly again. What is the reason for this? We will talk about all three things in detail. So let's start. The first thing that will come to your mind will be this question that when it

[00:47] always happens that when we are thinking that the market will go up, when we think that the market will go down, then does it mean that our thinking is wrong? So the first thing is the answer to the question that our thinking is not wrong.

[01:01] thing is the answer to the question that our thinking is not wrong. Now, now our thinking is not wrong. If it were so, then why does the market not perform as we think, as we feel, what is the reason for it, the reason for that is those reference points,

[01:15] make a reference point of the market and what is the response, that the market is in relation to our reference points, the share war, like this whenever I will mention the market here, it will mean that the players are the vipplayers because they are the ones who are

[01:30] running the market, 90% of the time you have mercy on them, when they want they take someone else to the top and if they want a flat, they take any stock down, now those players are playing with our reference points, now the

[01:43] question will arise in which direction the reference points are appropriate, to understand the reference points, I will give you a small example, as you have seen that in the past days, you will see that on 19th April, the market was standing at 46,000

[01:57] and then you will see that in Chola, 126 Das had given 42 Thousand six hundred rupees charge and points market you have seen that in just one month it has fallen, this situation has happened since the government came, now it has become your reference,

[02:12] that points demand, that the market is going down, going down till now, everyone should share, but always remember one thing, I have told you all this before, I have told you many times that in the stock market and in all the markets in the world, there has been a

[02:26] in the stock market and in all the markets in the world, there has been a fight over the marksheet and matter of vegetables, okay, whatever you buy in the world, look at this thing a little, first of all, he brings 10 kg of vegetables, out of which some

[02:40] take 1 kg, some take 2 kg, then in the end, he has 2 kg left, this vegetable writing gets finished, remember one thing that in the duty house I am telling you from here that earlier today if you see that today there was a trading of 82 million shares,

[02:54] it does not mean that these 82 million shares have been sold. First of all, you should sell RCF shares and then you should buy them without anyone buying them. Now, if

[03:06] the market has fallen by 4000 points, it does not mean that these people have taken the shares and gone home and they have taken these shares out of the market. If one is buying and the other is selling, if 10 are buying and selling, then what is happening is that those shares are coming back into the market. So,

[03:22] you should think about one thing that if I am selling and people are selling, if there is someone who is buying, if he wants to buy, then why has he bought, he is buying in such a systematic way that if the price is going down, then he is buying. The first thing is that

[03:37] you have to call these things a little so that you can understand a little. Let me give you another example, this was a falling market, so the lovers will see now, what happens is that we are seeing something, actually some meaning, like I just

[03:51] closed the record and saw that the demand for Delhi is up to 25. Now, among you people, it has become clear that it is stuck at a certain place. It goes later its super then the news spread that it will develop your thing, now this avatar, this reference point is established

[04:05] in your city, it has already reached this high in the past, it has reached this high, only the telecast comedy that you see is of juice or as far as you have seen, it has touched it two or three times, you think that from here if you see the report of 9-6 months, then

[04:19] you have seen that after October it is of 19th but down or till 15-16 Peetharam went down on 19th till Diya Dhanteras, then it went up to 19th, now it has been added in the hearts of the people that this entire thing definitely goes up to 19th, then you see here in the past it was

[04:32] till 19th, okay it had come down below 10th also but then it was there till 16-17, so now what happens is that it gets in the train of people that it will go up to 18th, this fixed reference point as you see is situated here, what did it do, 322 has gone above 18

[04:48] when it is below here, so when it is above A good number of people started going to schools to buy it and then after that it came down, now you can see here on the stock exchange, whenever you want, the next day I telecast this small to big profit to you, I had

[05:03] next day I telecast this small to big profit to you, I had you should buy it with your eyes closed, so yesterday you saw that it was done yesterday, yesterday on 18th May, you got less than that, now when you look from here, you must be thinking

[05:18] that on 18th May it reached 11 pacific, so here I will show you the other closing price from here so that you can get a little idea whether what I told you has come true or not and in just one day,

[05:32] what percentage profit have you made, well you can see that yesterday when it went up to ₹10 15 CPI, it had reached 1118 paise, but it had come back to Noor Pet Khare paise, you can see that it was 18 paise on this note

[05:48] So that whatever it is, it was low, so when it is closed at 15 paise, then let's cut in this video I told you what you have to do, that whenever you get ₹10 in coins, even at ₹10 you took out money and if you get some money then you have to buy it,

[06:03] why what was the reason for that and first of all you have to see that if a person had struck nine plateaus, if someone bought nine for 25 paise and this close is specific on eleventh then you see, in just one day he has made nineteen percent profit, which

[06:19] I had recommended to you, I always try that the first app, 10 days, 15 days in advance, I tell you some such remedy, because you had to deal with it immediately, otherwise it is that today your reference points will increase, this thing will go from here to there

[06:32] and then what will happen, then players will play with you, so that is why I try that whenever something is given to you, in between someone tells you one more thing in this video so that you can take profit from it And if I have made a video for you here,

[06:45] now let me tell you on record that it was telecast, like right now I am making this video, then more than 3000 people saw it, due to which it was telecast and it went below 10, if every person starts buying it below 10, then

[06:59] what will happen to you, your players will start playing with you, what will they do, in the future they will put it on the exchange and sell it and its price will come down to 26 and then you people will be left rubbing your hands because

[07:12] your scene will be set, well one thing has happened that whenever something goes up, it is related to you, like here it comes down, when I told you why, when it goes below 10, you should buy it, the reason for that was that you will

[07:26] see, this had happened here also that on 15th March, you are seeing it at 1136 paise, even before 15th March, it went below 125, everything went on 15th March, I will show you and after that you will see That this Siddh Siddh, one day it fell below 10

[07:42] and what happened after that, here also I commented to you that when you get 10 inches, you should take it, then you saw that in just 15 to 20 days, it has given 60 percent from here, I will show you from here, especially till 15th March, the usage is of 1136 paise,

[07:56] well the special thing about it is that it shows for the month of March that on the shows for the month of March that on the day it gives you 15 to 20 percent quickly, from here you can see that on 15th March

[08:09] this ₹10 20 percent was opened, that on the basis of the basis it will come up to 41 paise, have no money in the PAN card, so this was ₹10, see as soon as it comes down, friend, you should also see 36 paise

[08:21] on ₹10, if any person took it and on the 11th it has sent 36, your recent 1307 percent, you got it done on that day only at the app From what I have 15th March, after that look here, I saw it here and after that it is 100

[08:37] percent above that you will get it in 15 days, so by making this video, you don't have a clear cut on everything, but in today's video, when the clear-cut is ready, if more than 3000 people have seen it, then it increases the salary, my video is also seen by your big players, so what

[08:50] they will do is that it will come in their mind, every person has seen reference points, when a similar thing comes in the city of many people, such a thing is formed, then it becomes a reference point, as you will see that

[09:05] friend, you will see the G-20 application, from the last few days, when it is touching 17, from here you see it is coming close to 70 and when the constellation is fast, then it is coming back to Taurus, so it increases in the people's mind, which

[09:21] we will take here with strong support, so now your players always go against it. Whatever news is going on, when there is a news that in this city, the floor thing, the government employees thing, they have given you sports in it, this

[09:37] tax has been abolished, then the news is that it will go up a lot, but you see that the next day it does not go up much, it goes up by one or two rupees, but whatever it is, it is taking a lot of money from there for you every day, so now,

[09:51] what is the reason behind all these things that the market does not move with us, rather it plays with reference points, it is

[10:03] thinking of the platforms becomes similar, then it forgets the reference points, the market comes to know that so many people are thinking about this face, so what does your place do, its gas runs, my

[10:17] powers are making profit from them, let me give you a small example of that here, but the channel is not an issue, at least give an example or give you some example here. Suppose there is a player, any player, he has a stock at 2 crores,

[10:32] now the share price is ₹100, what is the share price doing, ₹100, okay, remember, he has kept it at 1 crore for the regular market and at 1 crore he has kept it in the future market, okay, now what he does is that if

[10:47] any news comes that this stock is going to perform well, then now see, what he will do with you is that he will buy the stock at ₹1 crore, he will buy the stock which is selling at ₹100, he will get it at 105, 102, 103, okay,

[11:03] but scrub, he had it at 1 crore, so he bought one share from whose regular market, friend, on the other hand, when people saw what was happening in the futures market, that as the rates were increasing in the futures market, then people were going back to 18, so

[11:18] people were going back to 18, so you have taken one. The like share will do a soft sell for one crore, by selling 4 here, this is a habit, now on the other hand remember one thing, now what will he do, his average is at 102, it is

[11:33] at 3, the next day the same share Shiv and one lakh will be packed in the market, the same ₹100 share will come back to 95 first, share it on the show as well, share it on me as well and at 98 9573 how low can the water go, he will keep

[11:50] giving, the price policy will keep coming down, so finally when the school will pass, then the people on the share market will feel that it is the same, now he will keep it during the day, it will come to him at one crore in the regular market and also at one crore in the future market,

[12:04] now when he brings the price to Note 3, then coming to the elastic body, he will buy this one like share again, you will see here, suppose he has made a lion, it is of Scorpio sign, he has done it in night for some time, some in 9892, some other, whatever he has done, then

[12:19] if you make its average 95 a year So now he has Rs 95 lakhs back, in that he took Rs 1 lakh extra in the series,

[12:31] so see, he has Rs 2 lakhs back, so now he has talked it back, okay, so what will happen next day, he will again bring down the price of the shoes, okay, so if someone sells these shares, some convent will go in

[12:46] November, some will be left, so on this side, if its average is 90, then what will he do, it will be 88, but when he takes back all the shares, then ₹3 will be returned to him and doing this in this way, he will bring the price to 80, on one hand the

[13:02] price has been taken to a good level, on the other hand he has 1 like share back and he also has 8-10 lakh rupees back in his account, and on the other hand, see from here, the price that he had sent for 1 like share in the future market, has come down directly to the tax price,

[13:17] this is just 20 lakhs directly, he is making a profit in this way and on the other hand the price is at 80, so here also one lakh Give him shares, now this city has 80% of your consumption, Ashoka, when people have bought the deal, now this is not an issue,

[13:32] when the face of the company goes back to Ram, then if you get lucky, you will go for 100 and take 20 lakhs from there, for 20 lakhs, this is the order in which you are buying, there is a video here with my details on this too, you people can see these things, now if

[13:46] I explain this thing here in this video then it will become a long round, but then what I wanted to say was here, I will give you another example that the world needs the market these days, you should see it from here, now you will see that for so many days the

[13:59] place of age was falling, it has been a good TRP of 11000 points, so market is going up and down, sometimes up and sometimes down, the pass fruits are performing positively, only negatively, now I will tell you something that now they are being done

[14:15] with you here, you will see that on one hand you are getting good, There has been a lot of profit, most of the people have got 30%, 40% blast, as much as this market has gone down, some have got 20%. Now, firstly, most of the people do

[14:30] not have that much money to give it somewhere when every city is getting it at such a low price. The low price. The way they are seeing that the shares they have are still going down, on the

[14:42] other hand, the shares they have are going up, as you will see here, in the top ten, you will see that the skip from five are looking active, they are looking positive and the positive, you will see that the thing on the screen before this is in 1200 percent

[14:57] positive, if you look at the negative ones also, there three percent are going negative, so now all the shares you have are in the same, the rest which are going up are in positive, so now the first mistake you will make here is that you will

[15:10] so now the first mistake you will make here is that you will this will happen with you here also because It has been said that all these shares will go up one by one but first you will take out this cloth of yours,

[15:24] how will you take out a big one, the Genie Juju shares you have, you do not need them, you will sell them to Jaipur, it means you have strengthened them, by selling them you will see that this share is not going up, I will find you, they are going up, when you take

[15:39] entry in these, the ones which are going up, then what will happen is that all these will come down and other shares will also go up, you will see that I had taken inventory, then this one went up a little and after that that mission started going down, then the other one will start going

[15:54] up, by the time you will know that five percent, seven percent, ten percent, that thing is needed, see this is 12 percent shameless and here you will see the shares which are sold at seven percent, they go above seven percent and get

[16:08] locked here, but these shares, whenever the price decreases again, they go up, they can also go up on a good smell, so come, what I was saying The next day you will see that all these shares will go up one by one

[16:21] but what will happen is that as you take entry in something, it will go down again because you will feel that this share is ready to go up, you will go and there is something in it, it will start coming down and the one which you will leave and want to exit because it is going down, then you will

[16:34] and the one which you will leave and want to exit because it is going down, then you will points with you and in the coming days it will do a good amount, sometimes you will leave from here, enter another city, as you

[16:49] enter, you will see the next day it will start going down and the share of yours will start going up, then in the coming days all these shares will recover, it may take time, the share which you bought will recover while putting it in the date, the second one will go

[17:03] up in 5 days, but when you see that it has gone up well, then perhaps the time when you took entry was its last time to go up, after that the mosque did not want to go up, when you took entry it started coming down again, so now you have to

[17:18] take entry as per your own discretion and you have to see that firstly it is not on these news The second thing to know is that do that firstly it is not on these news The second thing to know is that do your own way, work according to your strategy. When we are

[17:33] talking about some hearsay things, we are going up, we are going on the pause in the patients, then going up, we are going on the pause in the patients, then see that all these shares that are trading, none of your shares are like this except two-three

[17:45] companies. The promise for the performance of the Chor company from today is that friend, come, there are a lot of shares, all their options are going negative, but it has been said that those shares are coming in positive and Khushbu is quite positive,

[17:59] Mukesh and have fallen so much, so this seven cycle of stock market is the reference point of the village Umra, whatever our thinking is around our lists, village Umra, whatever our thinking is around our lists,

[18:13] here, that is why I am giving an example that if you do your research, if it is going up, then if I invest in it, it will start going down, so this It will take all the minute details of the shares back to the top but you are not going to get any benefit

[18:26] because you will come out from here and ask there, it will go down, whatever comes out from there, there is something in the other one which is not needed, so I have shared all these things with you in detail, now if you want to see all these things, this channel of Easy Stock Exchange is available

[18:39] on YouTube, every type of video is available here with details, you video is available here with details, you comment, I will send you its link, you can watch that video so that

[18:53] you can understand maximum profit and all the things and after that do trading so that you also enjoy it, so Inshallah brother, we will meet in the next video, take care of yourself, wherever you are, I am asking, remember like this

More from Easy Stock Exchange

View all

⚡ Saved you 0h 19m reading this? Transcribe any YouTube video for free — no signup needed.