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No problem sir......WELCOME!!!! to the world of stock market
This is your first lesson....I learned the same four years back and please let me tell you my story as it may help u...
I lost 90% of my capital RS.1,60,000 by stupidly handling my hard earned money to my broker which i earned working with a BPO company and i was 19 years old then.....i learned a big lesson and from that day onwards i started investing on my own i was impressed with the story of WARREN BUFFETT and then RAKESH JHUNJHUNWALA who started investment with rs.5000 and made rs.5000 crore in around 15 to 20 years....I started learning books on stock market trading and investment....For the past 4 years,i have never missed even a single day of trading....I started as a Daytrader(Scalper) and i whatever salary i used to earn,i used to trade with that money and used to loose...Every single day market taught me a lesson.I tried trading with all kind of trading systems and oscillators,searching for that HOLYGRAIL which was not their in the market.As days passed by,i kept learning new different lessons market taught me and finally after 3 years of long financial,emotional and mental struggle....i started making money in the markets and the good thing
is i recovered all my losses in less than 7 months as i m a scalper(Daytrader) and i trade in margin as my trading capital was less,but today after 4 years of my experience as a full time trader,i have earned a big amount and cannot do daytrading with that amount so now i daytrade only with 25% of my capital and with the rest amount i indulge in short term trading.....
The lessons that i have learnt are:--
1)-To excel in market,learn to read the charts(candlestick is preferred) which clearly tells the forces of Demand and Supply that prevails in the market.Focus only on the leading indicator-PRICE and chart patterns,every other indicator is Rubbish(except Moving average)
2)- Market works in several different timeframes.There are traders trading in
5-min,15-min,30-min,60-min,Daily,Weekly,Monthly and yearly charts.Every other trader has different targets and so is the different timeframe they use.
Larger timeframe means larger profits and vice-versa.But larger timeframe means bigger Stop-loss as well but if u r an investor then Stoploss is not required as u safe as u can hold stock for long term.Investment is safe,Trading is risky as the rule goes HIGH RISK-HIGH RETURNS.
3)-The only way to survive in the market is a good money management and
Risk management.
Thats enough about me and the lesson market taught me
Dont worry.....even if u lost big amount.
Stay in this business and in a span of 4 years you will operating at a level of competence and will be amazed with the kind of returns you can make in the world's best business-Stock investment
As i mentioned investment is safe,trading is risky
and you have got Rs.70 lakhs in your hand so dont even think of trading as u can make big money doing right investments...
Diversify your money in 10 to 15 equal parts and invest accordingly.
Invest using monthly charts if u r looking for returns in 3 to 6 months.....
or if u r a long term investor you can use quarterly or yearly charts.
OR
If u want to learn.how stock market functions,then u have to get in the ring.
But remember Risk management......
If u prefer trading,my advise would be to trade only with the money you can afford to lose because you will lose initially....Every trader loses.....because it takes time to learn market...atleast 2 to 3 years....
I would rather advise you to trade with Rs.5000 to Rs.10,000...Which i think
you can afford to lose and in the process you can learn the market and can make your own investment decisions.....and then you dont have to depend on fraudsters like Ashwani Gujral who are only interested in making their money.
BEST OF LUCK!!!!!!
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thank you sir for such a motivating quote.........................
i have the similar story to but i m still in losses & waiting for some gains........
thnks again