Why trading is not for me...

#1
Hi Guys!

This is Chaudhary from Delhi. I wanted to run by a little hypothesis by you knowledgeable folks.

So, I have been recently bitten by the trading bug and decided to invest my savings in the share market, actually all my savings, right down to the last penny.
I bet most of you have a pretty good idea of where I'm going with this.

Yep, I ended up losing all my hard earned money that I saved up in a year all but in a matter of two days of trading. The savings were in early 6 figures.

About me, I'm a web analyst and have absolutely no background in trading. I thought reading FAQ page on how to place a margin plus order with the help of ICICI Direct's recommendations would be more than enough. Pretty dumb, eh?

Anyways here is what this query is for
I traded on tues for the first time and could have booked a profit but was hoping the graph would keep going up. I incurred a loss of about 30K. Credits Federal Bank margin/intraday.

I took a day off and did my due diligence by basic research about what makes a stock a good stock.

Today was going awesome until Maruti and Sail happened. Since I was trading in margin I ended up losing almost all my remaining savings.

Aside from the usual Study/ Research of the stock exchange and stocks, avoiding intraday in the initial days what are the must-have's to do be successful in trade. Not becoming greedy comes to my mind.

Also this is not the first time that I've lost money while chasing my loses. Although the last time it was in a casino. Coming back to the question is trading not for me? Please leave behind your valuable input.

Asking if I can make up the loss in the next few days is out of the equation, right?

Thanks!
 

bpr

Well-Known Member
#2
first of all u lost 1 year savings ppftt just go celebrate if you are closing for good (but this trading bug has no cure)
people loose their entire life savings ....and entire life time ....
so nothing to fret ...it is just the beginning ...

secondly every new comer looses in trading no big deal nothing new....but putting your entire 1 year savings which is a big sum of money to you looks like, into trading account and blowing in couple of margin trades... that you cannot blame trading ....may be matter between your ears.

and here is the usual stuff

trading is not easy ...
it is a gradual process....
it can take years....varies from person to person..
there is no guarantee that you will see light at the end of tunnel...
 
#3
Mr. Chaudhary, this is one time when I find it difficult to say "Welcome to Traderji".

If you feel that trading is not for you, then traderji.com is not for you either.

However, if you are still interested in trading, you will find a wealth of material here. Kindly go through the material here as you did with the various other published material, and avoid negative topics.

All the best.
 

suri112000

Well-Known Member
#5
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Raju

Well-Known Member
#6
Chaudharyji ,

Though I am not a profitable trader in Intraday but have extensive losing experience ...Sharing my thoughts

1.Stop Intraday if you are doing.
2.Learn Discipline ....Read Mark-Douglas - The Disciplined Trader.
3.Learn Money Management / Risk Management.

Understanding what is important in trading takes lot of time.In initial few months/years we tend to search for best system.But as per my learning other things than the system is highly important.
Once u understand the seriousness of "other things" then only a system should be thought of.

My years of reading forums , interaction with traders have convinced me that in market , people who have earned are investors/positional/swing .As compared to positional very few Intraday traders are in profit.
 
#7
If an amateur have 1 lakh, he trades for 10 lakh with margin and ends up with 10 thousand in his account. (Greed)

If professionals have 1 lakh, they trade for 10 thousand and make 1k profit and end up with 1 lakh 1 thousand in his account. (Risk Management, Psychology, Experience)

You belong to which category? You know it!
 
#8
@bpr The grey matter between my ears tells me to do my research properly and not to blow all my earnings all at once. It was about 5L. Although not all was lost in trading. ICICI charged the rest as brokerage and other fees.
@timepass I believe anything can be for anyone, if they are committed to it. Trading is no exception. But of course I have miles to go before I sleep. And yes I'm sure I'll find good resource here.
@osho343 Yup! Beginning it is.
@suri112000 That was vague.
@raju It does looks like I picked the wrong niche. Maybe one day we will get there with leanings from experiences.
@learnerji Actually both. I was kinda swinging in between. But I get your point. #2

Thank you all for your input, I'm most certainly not blaming trading for my outcome.
I'm pretty sure it has to do with my lack of knowledge of the market and how it operates. And even more so with the fact that a techie who works from home stumbles upon something which pays him in one day which the contract would give in weeks.

I value my opinions highly but also give high regard to other people's opinions. Sometimes I sway their opinions, other times they make me want to reconsider. So I would say I'm quite open minded.

Now this query was put here for two reasons

1) To ascertain that the loss was not because of trading but by the methodology of trading. The winnings never stop, and a 10K profit to me would be peanuts to a guy earning 100K and so on.. It never stops. And if I or anyone else can't understand that then most probably trading is not an ideal option.

2) For some stranger to find this query online someday and see if he/she has the same mindset and if trading is right for them. And what all precautions they can/should take.

Coming back to trading. This is the most important lesson I've learned so far.
Trading is careful risk-calculated investment, not an online game!

ps: Every share that cost me my savings, made 5-15% profits by end of week. Union Bank Of India, Bank Of India, Federal Bank, Maruti, Gail.
Lesson #1 learnt: Don't get caught up in the margin hype, use your money, trust your decision and the company and take delivery rather than be forced to square off the same day.

As for me, nope it's not over.
I live, I learn.

Cheers!
 
#9
Welcome to the world of trading , intraday trading precisely:clapping:
Since you are a newbie, I would advise to take your remaining money from your account and do some course or read some good books on it for a year and then come back to the market. During this one year , you can do paper trading.
It is surely not for faint hearted and its good you learnt your lesson earlier otherwise your losses would have been in multiples of your account.
But believe once you had mastered the technicals and have got some experience, there is nothing better job than this.
 

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