loss in day trading

ajayms5078sundar · #1 17th January 2008, 12:13 PM

Since i was new to this line(august 2007), i have been asked by a company to invest some Rs.30000/- in the beginning stag and I was asked to give POA to them.

Then they were trading for sometime and no message or oral confirmation has been sent to me for most of the trades and they did not gain anything.

One fine day they were telling that i have lost my money of Rs27000/- due to volatile market. Is is possible in the day trading.

I was shocked and would like to have some of our friends guidelines to handle the situation. Can i sue on the firm or the possibilities please.

-sundar

logmein · #2 17th January 2008, 12:24 PM

Quote:

Originally Posted by ajayms5078sundar

Since i was new to this line(august 2007), i have been asked by a company to invest some Rs.30000/- in the beginning stag and I was asked to give POA to them.

Then they were trading for sometime and no message or oral confirmation has been sent to me for most of the trades and they did not gain anything.

One fine day they were telling that i have lost my money of Rs27000/- due to volatile market. Is is possible in the day trading.

I was shocked and would like to have some of our friends guidelines to handle the situation. Can i sue on the firm or the possibilities please.

-sundar

I think this is more foolish than unfortunate. What is the name of this company?

P.S: Can I approach you for a loan?

suba_stocks · #3 17th January 2008, 05:52 PM

Quote:

Originally Posted by ajayms5078sundar

Since i was new to this line(august 2007), i have been asked by a company to invest some Rs.30000/- in the beginning stag and I was asked to give POA to them.

Then they were trading for sometime and no message or oral confirmation has been sent to me for most of the trades and they did not gain anything.

One fine day they were telling that i have lost my money of Rs27000/- due to volatile market. Is is possible in the day trading.

I was shocked and would like to have some of our friends guidelines to handle the situation. Can i sue on the firm or the possibilities please.

-sundar

1) why do you want to hide company name....

2)why did you allow them to trade on behalf of you...did you ask them to to do so.

3)why did you give your trading account to them

what will happen if you give blank cheques with your sign on all cheques.
same thing has happend with you in this case ...so better learn to take care of yourself ..

regards
suba

rickyric_ny · #4 17th January 2008, 05:57 PM

Quote:

Originally Posted by suba_stocks

1) why do you want to hide company name....

2)why did you allow them to trade on behalf of you...did you ask them to to do so.

3)why did you give your trading account to them

what will happen if you give blank cheques with your sign on all cheques.
same thing has happend with you in this case ...so better learn to take care of yourself ..

regards
suba

never sign POA!!!....hi suba.... did u sign POA for Kotak. which trading account u hv. telephone or online. heard telephone doesnt need POA... is it right.?

raghav1366 · #5 17th January 2008, 11:18 PM

deal faltub,

it is the duty of every investor - / trader to see what is being done in the trading account on everyday basis. no transaction can happen without your consent. always the agent is safeguarded as he has got all power of attorney in his name.

that is why, always we should trade and have transaction only wth reputed trading houses who give the daily statement-invoices- with date and time of transactions. it is also possible to get thse stt in mail on day today basis. the invoice no given in the bill can be verified with nse website for 7 days from trading date. it is always the investor/trader beware in these situations.

hope u understand the position.

ravalsb · #6 25th January 2008, 03:37 AM

Even if losses were incurred.....i assume these were done through your trading account. If so, you must have got contract notes for all the trades.

Please check for contract notes.

Least you can do is claim short term capital loss against income from other sources. You can check with the tax consultant for eligibility.

maximus2 · #7 28th January 2008, 07:37 PM

hello friends,
1)POA is demanded by the brokers only when you want trade using margin,it is applicable for futures,options and if you are using margin to daytrade.for,taking delivery you dont have to sign POA even if your broker insists.the reason, brokers do that is,with POA they can cut your positions if the market turns against your position.
2)about suing the brokerage,legally, your case wont stand in the court bcoz you signed POA.the alternative would be to approach the grievance redressal cell of nse or bse and hope for the best.
3)Please dont let the dealers trade for you,its your money.the broker always gets the brokerage whether you win or lose.
4)Iam not sure whether you can offset trading loss with your income that is if you are speculating.consult a CA

Hope this helps you my friend.
Happy trading

beginner_av · #8 5th March 2008, 11:22 AM

Quote:

Originally Posted by maximus2

hello friends,

4)Iam not sure whether you can offset trading loss with your income that is if you are speculating.consult a CA

Hope this helps you my friend.
Happy trading

Offset short term loss with ONLY short term gains. Trading loss with income is not possible because your question implies that trading is not the primary source of your income.
You can carry forward losses ONLY if you file your returns within the due date.
Still, do recheck with a CA. You can ask acatrader or hari, who is a student of CA.