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Thursday, February 26, 2009

Share Market Income: A Myth or Reality

I started trading at the age of 21 and until now I have gone through different up and down in markets.
My college was very near to my first stockbroker. This initiated spending some time with them(later whole time).At first when I was a beginner, I remember that there was nobody to guide me other than my Broker. The trading terminal boys( I call them Devilzzz) usually guide(( misguide??)) to trade like thisn that.
At first I lost 25000/- with in a span of 3 months. CanaraBank was my first try. I gave check of INR 25000/- in the month of March 1987 and at the end of June 1987 I got a call from my broker that I need to give another cheque to hold the items I purchase the daybfeore.
I was shocked, where my 25000/- went?? I was suspectful on my broker( beleive me--I was wrong). I audited all statements and found that Shares of CanaraBank ate my money.
I found an interesting matter. I followed certain rules that went against me. The devilzzz used to bring some Technical Analysis, Intraday Trading tips etc and force us to follow that. In most days I found STOPLOSS is the Villain.
I saw that 90% of my trades booked loss in its STOPLOSS price.
So what i do now??
whom shall i beleive??
Why we need to keep STOPLOSS?
What we will do when the STOPLOSS making more loss?
A number of questions came to my mind.
From where i will get my money back?
I discussed about these situation with the stock broker again. He suggested some small training camps, discussions with elders etc. I started going through different techniques to analyse the markets.
My playground was Cash Market, until I realize what is Call option and Put option, Option trading and Derivatives.This made me greedy( I know you will say that Im not greed, just trying to get my lost money back) and I decided to leave Cash market and try my intelligence in fetching money in Futures and Options.
My Stock broker was happy and he told me to raise more capital and come back to trade.
Being a college student, how I will raise the money 60000 INR atleast.
Here all readers should congrat me:
I got money from my girlfriend ( later she became my wife)
I started trading, at first it was quite nice as some Call options immediately found some money.
But things went wrong when a severe scam hit throughout the market. I took two positions in one side.
Both land in Zero at the date of expiry..
My total Loss creeped to 37000/- till
My broker and trading Devilz console me and show me the Portfolio of some other Traders who lost even more than me. ( actually they were stating that U ARE NOT THE FIRST FOOL TO INVEST IN MARKETS)
I gave a Gap of four months--and I completed my Grduation, got a small job in these period.
I came back to trading . I usually contact them over phone to know how much i earned on that day. I got a lottery in one scrip: I dont like to say the name: And i got all my lost money with some excess,
Vowww...this encouraged me and I didnot take my money back from the Account. My image in Trading hub and in the Stock broker was growing better to best. They introduced me to many newcomers and I became a SUPERSTAR at there within few months.
Things were going good untill I take a decision to invest more money according to advice from an INVESTMENT GURU.
I took a Bank loan of just Six Lakhs and decided to invest in Stock Market.
I divide the amount and deposited in CASH MARKET, DERIVATIVES AND MUTUAL FUNDS.
I saw money growing, growing, growing and I was happy in those days.
RECESSION STORM and ECONOMIC TSUNAMI.....new villian, I didnot book my profits and I was simply keeping some STOPLOSS while trading. Vertical falls and Bounce backs literally killed my money in TRADING.
I pledge my equity inorder to hold my position. All went wrong and my portfolio dried up.
I purchase some shares of low cost..all went southwards.
i always hear TV channels...
i always read newspapers...
i always look how Hangseng moving...
i always look how Europe is opening...
i always look how DOW future behaves..
i always analyse how DOW &NASDAQ landed the day before..
i always put stoploss
i always study chart
i look in different websites
i still remember an analyst saying Reliance Industries is a Good Pick at the price of 2700.
i still remember an analyst saying ABAN is an excellent pick for long term when it was above 2000.
i still remember in a TV show, explaining the growth of ISPAT INDUSTRIES when the stock was included in F&O
while writing this, I lost my eight lakh investment and my profit of twenty lakhs in total.
I know you are smiling by hearing the small amounts. But remember, I am the representative of common traders in India, who come ,sit and watch to the monitor of trading hub from 9.55 Am to 3.30 Pm. They usually leave the STOCK BROKER with a great sigh.

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