Broker CEO explains the ins and outs of the stock market: Who gains, who loses? [With video]

In the Bajarko Chirfar Premium Podcast, CA and CEO of Citizen Securities Broker (Broker No. 91), Manish Aryal, discussed the current situation of Nepal’s stock market, investor psychology, margin lending, trading mistakes, and future market direction. According to him, the market is not fully bearish at present but is instead moving in a sideways zone, where neither a strong decline nor a major bullish rally is immediately visible. He added that recent political and economic developments, including various investigation and arrest-related news, have only created short-term volatility, and the market has gradually absorbed these impacts.

Talking about margin lending, he described it as a potential structural reform for the market. If properly regulated, margin lending can improve liquidity, increase participation of small investors, and make trading more accessible. However, he also warned that misuse of margin lending can lead to overtrading, higher risk exposure, and significant losses, especially for inexperienced investors. Therefore, it should be understood as both an opportunity and a risk that requires strict discipline.

Highlighting common trading mistakes, Aryal said many investors rely only on price levels for decisions, avoid using stop-loss mechanisms, average losing positions, and make emotional decisions during market fluctuations. According to him, successful trading depends mainly on timing, discipline, and proper risk management, rather than speculation or emotion-driven actions.

On the hydropower sector, he noted that increasing liquidity in the market, declining interest rates, and long-term growth expectations have driven strong investor interest. However, he stressed that all hydropower companies should not be evaluated in the same way. Investors must analyze them based on project structure, financial strength, and future development plans, as some companies are fundamentally strong while others carry higher risk.

He further explained that interest rates are one of the key drivers of the stock market cycle. When interest rates fall, the market generally becomes bullish, while rising rates tend to create pressure. However, he emphasized that these effects are gradual rather than immediate.

Concluding his remarks, Aryal advised investors to avoid emotional trading and focus on data-driven decisions. He strongly recommended using stop-loss strategies, understanding risk properly, and using leverage only at the right time. According to him, long-term success in the stock market depends on discipline, timing, and risk awareness rather than short-term speculation.

This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.