loss in day trading

[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

 

[logmein]

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]

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]

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]

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]

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]

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]

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.

 

[NOMINDTR]

I know this is a late response. Still I consider something I must write.

People like my friend who started this thread are vulnerable to the vested interest or brokers.

Though brokers are not in business to educate people, it is ethical to educate a client on basics of the market and about trading is a must.

On the part of clients, they must get education before they put their money.

My friend could have put his money in some mutual fund instead!

POA is generally not for executing trades in the absence of a trader's notice.

It is the duty of the trader to have an eye on the transactions on his or her account.

A SEBI circular says it is mandatory for a broker to send digital contract note to the client within 24 hrs of trade.

I regret what had happened to my friend.

 

[HHPPREMM]

My prob is a bit diffrent than of Mr.sunder.My broker wud trade on my account without my knowledge.I had opted for online trading terminal and i used to trade on it.One dau i saw shares which i had not traded.On enquiring with the broker he told me that this was a notional transaction done on behalf of an outstation client and the money will be transfered in my account.I found this at that time agreeable.On persistently asking as 2 hw he cud trade in mt a/c without my knowledge so he said that the company/broker gives this authority 2 their employees.My Qs is Is this true that the employees hv right to trade in the customer's account WITHOUT any permission in writing or otherwise.The loss to me was to the tune of Rs.1,63,00. While signing the a/c opng documrnt i had asked to give me xerox copy of the entire document set which was not given to me.What I m writing now may b of use 2 our new fellow members.I was told that wn an offline trade is done on behalf of the client then the conversation is recoeded by d broking hse.as a proof.In my case wn I askd dm abt my recording I was told dat after sndng d contract note d rec is erased and in fact i was not being sent d C.N aftr every deal.Can any one PLEASE suggest me what 2 do.Thanks