There is something about the future that intrigues everybody. Humans get fascinated by what will happen next and our innate desire to predict. These traits are visible in our everyday lives…be it the weather predictions, a cricket match bet, trading in the stock markets, or even something as basic as the exam scores. We want to know how things will turn out before they do and will ponder on the outcome of any event under the sun, and even beyond it. Prediction is the most fundamental element of planning & decision making.
The underlying reason why people predict? To feel in control, to take charge, try to decide the best course of action to achieve our goals. Textbooks teach us scenario planning and analysis but little do we realize that these are some aspects that we knowingly or unknowingly use in our everyday lives.
Our fondness for predicting outcomes was pretty evident in the year 2020. Among other things, the year 2020 witnessed an influx of retail investors into the stock markets. Greater liquidity, better return, technology-enabled access to the stock markets, and lastly increased participation of millennials owing to work-from-home led to a record number of people opening their trading accounts. Stock markets offer people the chance to predict future price movements with the goal of wealth maximization.
Retail investors’ participation in stock markets remains at an elevated level
As per the data from National Securities Depository and Central Depository Services, Indian investors opened a record 14.2 million new Demat accounts in FY21, a nearly three-fold rise from the previous year’s 4.9 million. A similar trend was spotted in Zerodha’s new account openings.
Nithin Kamath, CEO and Founder, of India’s biggest stockbroking firm tweeted, “The last 18 months at Zerodha have been eventful, to say the least. Historically, market crashes caused panic & reduced activity. But this crisis led to a rush of new customers looking to buy into stocks on sale. Free time due to lockdowns & low bank deposit rates helped.”
“Once this younger bunch of first-time investors saw quick profits, they started spreading the word and got their friends & family to invest. Market outperformance has led to continued momentum in user growth until now. It all felt like magic, we did nothing different,” the tweet added.
The last 18 months at Zerodha have been eventful, to say the least. Historically, market crashes caused panic & reduced activity. But this crisis led to a rush of new customers looking to buy into stocks on sale. Free time due to lockdowns & low bank deposit rates helped. 1/3 pic.twitter.com/EVkZb1GNll
— Nithin Kamath (@Nithin0dha) July 15, 2021
The most underappreciated aspect of building a successful business is just how important being at the right place and the right time is. All you can control is how you build your team & hence the products. Everything else is pure randomness & luck. 3/3
— Nithin Kamath (@Nithin0dha) July 15, 2021
Given India’s equity markets are still underpenetrated, we have a long way ahead of us. Despite the nationwide lockdown, markets were resilient and people remained invested in the markets. This highlights the maturity of Indian investors & the future scope of equity investments in India.
Growing concerns in Cryptocurrencies
Similarly, even a complex product like cryptocurrency saw the entry of various crypto trading platforms that witnessed greater interest and higher activity on their apps. Financial assets like Cryptocurrencies require a great amount of expertise to trade in them.
Unlike traditional assets, to perform fundamental analysis users have to look at a wide range of factors. Not necessarily these sources may be easily available. Many experts argue that performing any analysis on cryptocurrencies is next to impossible since they don’t have an intrinsic value of their own.
As per a recent article in Yahoo Finance, The governor of the Bank of England said that cryptocurrencies have “no intrinsic value” and people who invest in them should be “prepared to lose all [their] money.”
Co-founder of Ethereum, Anthony Di Iorio, recently quit crypto citing safety concerns. All these developments further raise a question mark on the long-term sustainability of cryptocurrencies as an asset class.
At the same time, there is an overwhelming surge in spending by the people in fantasy sports. Online fantasy sports have pretty much changed the overall landscape of sports consumption and engagement in India. Thanks to the digital wave, the online trading and gaming industry are expected to be among the mainstream industries shortly soon.
As per a KPMG study, the online gaming segment in India is projected to grow at a CAGR of 21% over FY21-FY25 to reach a size of Rs 29,000 crore. Similarly, data suggests that tech-savvy broking firms like Zerodha, Upstox have double-digit market share in terms of the number of unique investors as compared to traditional stock brokers. These trends indicate the flow of income and savings to alternative investment avenues.
CricStox – The new trading platform for Millenials
The growing online penetration of trading and gaming is the segment and opportunity that CRICSTOX targets through its app. CRICKET + STOCKS = CRICSTOX. India’s love for cricket knows no bounds and millions watch it. We have already discussed the vast scope of trading in the Indian context. And that’s where our conviction in the app and its model comes from!
Prediction is important to bring order in life but having said that it isn’t easy. It is heavily dependent on an individual’s knowledge and expertise of the subject matter.
For someone new to the stock markets, it is tricky to understand EBITDA, Price-to-Earnings ratios. However, understanding the concept of average, strike rate, or run rate is very simple. Every Indian household while watching a cricket match talks about these terms like an expert.
We have our favorite players, we have our opinions and judgments. At the same time, we have the reasoning and logic behind these opinions. The only aspect that we wish to highlight here is that cricket terminology is so lucid and easily comprehensible. You need no expert advice and knowledge to trade in the stock prices of your favorite cricketer.
Stock markets may suffer from information gaps and some level of opacity but we, through our app, are selling a concept that is freely available and accessible for all. The idea behind the app is to democratize trading at the most basic level. Very shortly, we offer to bring CricStox as an alternative investment avenue.
What does the CricStox trading platform offer?
We all have at some level predicted the score every time we have watched a match. We want to legitimize this skill through the app and channel the energies in a more fruitful outcome…..and that is trading!
The app involves trading based on information that you easily understand and can make sense of. For people with little background in trading, we have tried to further break down the trading concepts in a simple language. For equitable dissemination of information, we have made the basic player stats available to everyone that ensures a level playing field for all. The only differing factor among the users would be the player strategy and securing the right trades to gain an advantage of dividends. We have clearly explained the concept of dividends at all stages, in the app, and on the website.
We believe that if you love cricket and are interested in taking part in the trading rally then CRICSTOX is the place for you. Come maximize your skills and rewards!