Restoring Traders/Investors Faith into Investing

Einstein

Well-Known Member
Anonymous
Answered Feb 17 · Upvoted by Swarupa Panda, lives in India (1992-present)


Rs. 115,950/-
Bought SBI Feb call option with strike price of 290 @ 8.33
Within 15 mins I had a profit of 24k. But I was greedy. So I waited it to reach 100000+. That day it closed at 7.5. I was being optimistic. Then next day it reached 1.8 due to its loss in quarterly results. Then PNB scam happened. It is currently trading @ 0.6. One of the biggest mistake all of us do is not deciding the target price and stop loss before entering the market. This is a lesson for me. I bought the option with loan money. I can't share this with anyone. That's why sharing without identity. I am broke and bank will be chasing me instead of Nirav Modi soon
 

Einstein

Well-Known Member
Kiran Suvarna, Fund Manager at Indian Equity Market (2001-present)
Answered Mar 24


Year 2008
Lost approx. 36 lakhs in just 2 days (January 21st and 22nd)..
Background:
I was very aggressive trader then. Previous year 2006 and 2007 was very good for me.. I had accumulated a fortune… I started with 30k during 2006 when I caught RPL( Reliance petroleum Ltd.) At 107 levels and rides most of the gains till 180… RPL alone made me 10 lakhs+(eventually rpl made a all time high of 295 and then got merged with reliance industries)..
Once u r in the money it's just about staying in the right trades… made money in RNRL (another Anil ambani stock) rcom, JP, suzlon,ifci, jspl etc…
By January 2008 , my margin showed a profit of 36lakhs+…
Then started the downhill..
As always had huge position in rcom, Tata power and power grid during the market crash of 21st and 22nd Jan 2008… Many of u may b aware of sub prime crisis which engulfed the world including india…
During those 2 days I lost all my profit and closed -70k…
First day (21st) I think my equity was down to 12 lakhs… I hoped that next day market will come back..But evening when US market tanked and all the rumours surfaced of Lehman brothers going down under, got to know the seriousness of the situation … Whole night couldn't sleep because of the huge long positon in hand…
Next day(22nd), market opened another 3%lower, I immediately covered all my long position… I had done my calculations which would still bring me near breakeven, but market was such intense that I had to give up… I covered all my position instantly at the market opening…
I lost all my profit of 36lakhs accumulated over past 2– 2.5 years + additional loss of 70k in jut 2 days…
In hindsight it was a good decision to sell in the morning itself, because if I had waited, would have gone down by another 20-25lakhs more… One of the major trader who I knew for long got heartache because of the carnage… Also papers here in mumbai were filled with people going down under along with market..Problem was they were statue while stocks were melting and didn't react.
Over next few years I came out well and as I see it now , was a great learning experience…
Thanks for reading..
 

Einstein

Well-Known Member
Paresh Somani, 12 years of Speculative market trading experience
Answered May 3, 2016


I lost 7 Million INR in last 3 years of trading. Single day loss is around INR 10 to 15 lacs in Commodity Trading - Natural Gas & Gold and Stock Options trading.
But as I lost all my money every thing in this speculative market, I read and studied alot. Trading with much more patience and studies.
It is not that easy to make money in this market. I am sure any body else would have committed suicide lossing such a big amount but I am trying to cope up and still trading in the market.
By the way I am from a medium class family and all money lost is earned by myself only.
Beware: Before trading in any speculative business, make rules and follow them. that is the only secret to make money.
Also, dont try to become over night billionaire or recovering lost money.
 

Einstein

Well-Known Member
Swapnil Shah, Design Engineer (2016-present)
Answered Mar 19


IMPATIENCE, GREED, PUTTING ALL YOUR EGGS IN ONE BASKET those were the reasons of my LOSS.
3.5 lakh, yes you saw that right. This was my loss not in one day but in a streak of 4 consecutive days because of the idea Vodafone merger back in 2017 march. I had a call option 0f IDEA AT 120, 4 lots after the news the price of idea went back from 108 to 96, had to sell it for pennies, was completely lost, I had just lost half of my investment in just one trade, so to recover my loss the very next day I purchased ICICI bank call option 4 lots again and in two days, it was all gone, now was left with just 60000 rupees, was blank in order to get help from Friends family who were doing share market I decided to go for revenge trading on bank nifty and nifty. The conclusion I still have 364 rupess in my ZERODHA ACCOUNT.
The lessons were not asked still would like to share my feelings
The main lessons that I learnt from those losses were:
  1. As a beginner never invest more than 10% of your total fund.
  2. There is nothing like revenge trading if you have lost money never ever think that you are going to get it back. Instead learn from it, it takes days to earn money and minutes to lose it all.
  3. Those money were my hard earned 2 years work, haven’t invested a penny on myself never gave any rupees to my family till that day, it was only my living expenses and the rest money in stock market which I lost in just4 days.
  4. I was suicidal, as a middle class person that was and still is my package for the year, i still hate myself for losing it all, but after a month of support from my friends i was back. now am just investing money in RD (doodh ka jala chaas ko bhi fuk fuk k peeta h) and not in mutual funds too.
  5. Things will work out no matter what and its not the end even if you have lost it all, you will stand up. just believe no matter what.
 

Einstein

Well-Known Member
Varun Dibdalli, Yes
Answered Nov 5, 2016


Stock market is the toughest place in the world to make money, whether you are a long term investor or daily trader.
I lost around 20Lakh in a single day, lost in the sense means MTM(market to market) loss because on that day I had bought position near 2Cr & square up loss was around 6Lakh.
It happened during 2015 June & August, I was used to trade daily. The market was in the bad phase during that year because of China & Global news but that is just a reason for them to build.
Biggest loser was Vedanta I had bought 50000 shares at an average price of 155 but it came to 145on that day it was down 15 percent and then I sold all the positions at 146 & also had ITC,Reliance Infra,Rel Power,NMDC & Gail in the futures so . But I squared up few positions so loss was around 6lakh & MTM was 20L.
My suggestions:
  1. Stock market is the not so easy place to make money.
  2. There will be very high big shots with strong software watching the changes in each & every position & play accordingly & not leave the room for people like us/daily traders to make the money.
  3. Patience is the key but they will test the patience very badly.
  4. Even if we take the stocks for delivery & wait for long term the will make us to wait for around 4 years.
Happy Investing & also trading!
 

Einstein

Well-Known Member
Anonymous
Answered May 13, 2016


Well I still feel heart broken and blank minded while writing this answer that I hv lost 20 lac rupee in F&O trading.
Somehow my fate showed me this time. I was well placed in Navratna company job but I quit it for personal reasons. In dilemma entered in stock market like newborn who know nothing technical or risk involved in it.
Beginners luck played part to suck me more in F&O when I used to get gains of 15 k to 25 k daily. But as it truly said ‘half knowledge is dangerous’ one fine day on August 10th 2015, my two F&O position started to show losses which never recovered and in instant lost 4lac. Stoploss was term I heard of but not knowing how to apply it.
From that day onwards, whole stock market got under the influence of bears for quite long time. In frustration to recover that loss quickly, I engulfed myself in madness of taking more positions in FNO without stoploss. Emotions took control over me and left with loosing 20 lacs over period of just 2-3 months.
I was like opposite of ‘Rags to Riches’ happened to me. Took off from trading. Learing more of stock market though my professional background doesn't support it. And learnt lesson of lifetime to respect Stoploss and never trade in FNO as it was rightly said FNO are weapons of wealth destruction. Someday you will definitely loose more money than you earn in FNO.
Best way for trading ‘CASH IS KING’.
Edit- Cash is king means it is best to buy stocks on delivery basis without any margin. You can sell whenever you want at profits as Patience is key in stock market.
Coz FNO and intraday margin is like Gamble, we say ‘JUA’ in hindi.
 

Einstein

Well-Known Member
-Rakesh Jhunjhunwala suffers 1300 crore loss in September 2018.
Two of his top holdings DHFL -55% FEDERAL BANK -42%
-Top Portfolio manager Porinju veliyath losses 876 crores in September 2018.
-Top Investor Dolly khanna's portfolio is wiped out by massive 73% in one month September 2018.
 

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