Fan Site: Inspired, Not Endorsed, By Rakesh Jhunjhunwala

Ashwani Gujral Rakes In Rs. 2 Crore In Trading Gains While Investors Bemoan Losses



Ashwani Gujral and other astute traders are grinning from ear to ear as the gains are gushing in. However, investors are cutting a sorry face as the losses are mounting




Investors Bemoan Losses …

It is no secret that investors are having a harrowing time at Dalal Street nowadays.

The Sensex and Nifty have tumbled like a ton of bricks.

On Friday itself, the Sensex plunged a colossal 509 points while the Nifty followed suit with a crash of 165 points.

Sensex crash

In fact, in just one day, six of top 10 Sensex firms lost a mind-boggling sum of Rs 52,000 crore in market value.

According to some political pundits, the markets are pricing in a “BJP Mukt Bharat” and investors are fleeing due to “ill thought policies and utter mismanagement by the Modi Govt”.

The worrying aspect is that even former NAMO Bhakts are turning hostile at the unending buffooneries.

PN Vijay, the veteran stock picker, who has gifted us several mega multibagger stocks, exemplifies this.

“Markets reeling. Investors starting to feel Modi may not come back in 2019,” he warned in an ominous tone.

In fact, several die-hard BJP supporters are alienated after the party inducted allegedly tainted politicians like Narayan Rane and Naresh Agrawal.

Naturally, the Congress party took advantage of the situation to trash the BJP a “C- grade midcap stock with suspect promoters on a bull run”.

The only thing coming in the way of the Congress stealing a march over the BJP is RaGa’s buffoonery and propensity to commit gaffes.

Even the Congress party does not want RaGa to campaign for them out of fear that he will rub voters the wrong way.





… while Traders Strut With Hefty Gains

In sharp contrast to the sorry state of investors, traders are beaming from ear to ear as the gains are gushing into their bank balances.

Ashwani Gujral, who is the leader of the trading community in Dalal Street, does not tire of posting his earnings’ screenshots, much to the delight of the other traders and the chagrin of investors.

In fact, on Friday, when the Sensex crashed the colossal 509 points, Ashwani Gujral raked in a handsome gain of Rs. 7.10 lakh from “intraday swing”.

He revealed that in the period from April 2017 to 8th March 2018, his earnings from trading are Rs. 1.70 crore.

We can safely estimate that his income in FY 2017-18 will be about Rs. 2 crore.

After paying 30% income-tax, he will take home a fortune of Rs. 1.40 crore.

In addition, he rakes in money from TV appearances and also from holding conferences and seminars.

Also, in the period from 1st March 2018 to 12th March 2018, the earnings have totaled Rs. 48 lakh.

There were two massive gains of Rs. 16.22 lakh and Rs. 13.76 lakh on 7th March and 6th March respectively.

He also assured that “all my screenshots can be your screenshots” if we can master the tactics of trading.

In fact, the incessant barrage of earnings screenshots by Ashwani Gujral has inspired some investors to embrace trading.

They are also raking in handsome gains.





Farmer’s son rakes in 120% from trading

The notable aspect is that Ashwani Gujral is not the only one raking in mega bucks from trading.

Even a humble farmer’s son named Jaychandran has mastered the art of trading and is now raking in big bucks.

His profile has been revealed by moneycontrol.com.

The creditable aspect is that Jaychandran stays in a mofussil area which is far away from the glittering lights of Dalal Street.

Jaychandran, who is also known as @niftywizard on twitter, has revealed his techniques in an interview.

He has also provided a detailed explanation of a technique called “market profile”.

Apparently, the “market profile” technique is a rare one which is used sparingly by traders.

Jaychandran has echoed Ashwani Gujral’s advice that traders should focus on “one market” or “one technique” and not dabble in multiple things at the same time.

Earnings disclosed

Jaychandran is following the salutary practice adopted by Ashwani Gujral of revealing his earnings and losses.

He trades only nifty options. His capital is Rs. 5 lakh and the risk per trade is limited to 2% i.e. Rs. 10,000.

The results are quite impressive and have yielded gains of upto Rs. 39,000 on some days.

No doubt, limiting the loss to 2% of the capital is a very sensible strategy indeed.

What is also commendable is that Jaychandran donates 10% of his monthly profits to charitable purposes.

However, it is notable that trading is not a bed of roses.

Jaychandran candidly revealed that he suffered a “big knock” and one of the “biggest loss” in his 8 years of trading career.

Rakesh Jhunjhunwala, ultimate master of investing and trading

Rakesh Jhunjhunwala, the Badshah of Dalal Street, is the ultimate inspiration for us.

He has not only mastered the technique of investing and has several mega multibaggers in his portfolio, but is also an expert of trading.

In an interview to Ramesh Damani (who is also an astute investor-cum-trader), Rakesh Jhunjhunwala revealed his secret techniques of trading:

(i) Stay with the trend: Buy when the market is rising, sell when the market is falling;

(ii) Markets are basically momentum. Play the momentum;

(iii) Understand the broad direction of the trend. Don’t try to master the nitty-gritties;

(iv) Realize that only 40% of the trades will be successful;

(v) Do ‘pyramiding’. When you realize you are on the right path and the stock price is rising, buy more and more;

(vi) Never average a losing trade position;

(vii) A good trader should have his highest position outstanding at the highest price. This sounds counter intuitive but is correct because no one knows what the “highest” price is;

(viii) Don’t obsess over losses;

(ix) Cut your losses;

(x) Keep the capital invested in trading to the bare minimum;

(xi) Trading profits also come in spurts. There are dry periods when trading will yield no gains.

Rakesh Jhunjhunwala made the astonishing revelation that the capital employed by him for trading is a paltry sum of Rs. 1 lakh. The rest of the money deployed in trading is taken on leverage.

It is worth recalling that there are several other examples of investors-cum-traders such as Billionaires Radhakishan Damani, Carl Icahn and George Soros.

Conclusion

Prima facie, there is no reason for us to confine ourselves only to investing. We can also follow the illustrious footsteps of Rakesh Jhunjhunwala, Ramesh Damani etc and dabble a little bit in trading, albeit by limiting our risk exposure to petty amounts to begin with!








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14 Comments
  1. Ajay's Gravatar Ajay
    March 18, 2018 at 8:37 pm | Permalink

    “BJP Mukt Bharat” is going to be a reality, investors like it not but going to be true at least “BJP Mukt Union Govt” . And I am sure the market is falling on the LTCG issue people are selling to get the benefit of “grandfathering” I do not when granmothering comes in!!!!!

    If the owner or admin or moderator of this site like it not I write my comments and try to publish all opinions here. Be tolerant to all views

    Reply
    • Prashant's Gravatar Prashant
      March 19, 2018 at 11:16 am | Permalink

      Dear Ajay,
      when market leaped from 14k to 34k and now 1000 points down which is not even 5% .. I donno what falling you are talking about ?
      This is not even correction …. Peopels who are cursing LTCG, please keep in mind how much money we made in last 3 years …

      We are sitting on Solid economy which can grow for 8% for next 10 years .. unless a full majority government like BJP in power

      Reply
      • SVAR's Gravatar SVAR
        March 30, 2018 at 10:08 am | Permalink

        14k to 34K? What is the time period? Since election results were declared markets went up from about 32.5K to 33K now.These are the facts.

        Reply
  2. Jignesh's Gravatar Jignesh
    March 18, 2018 at 9:07 pm | Permalink

    Why would anyone follow him, not all are good traders

    Reply
  3. rajiv's Gravatar rajiv
    March 18, 2018 at 9:47 pm | Permalink

    i have availed the services of gujral, it was a painful experience, lost half of the amount in 3 years. his claim is not reliable, be aware

    Reply
    • PARTH P's Gravatar PARTH P
      March 19, 2018 at 5:06 pm | Permalink

      He made profits by asking you to buy/sell, when he himself was selling /buying respectively.

      GUYS, NEVER EVER, BELIEVE A TECHNICAL ANALYST.

      BETTER GO WITH FUNDAMENTALS AND DON’T GET LURED INTO FOR HUGE PROFITS.

      DO YOUR OWN RESEARCH WITH MUCH AVAILABLE FREE OF COST RESOURCES ON INTERNET.

      STRONG FUNDAMENTALS IS THE ONLY THING WHICH WILL MAKE YOU BIG PROFITS IN THE SPAN OF 5 TO 10 YEARS.

      Reply
  4. SL's Gravatar SL
    March 19, 2018 at 2:55 pm | Permalink

    Does he have a paid subscription for the trades that he actually does himself?
    If not, what would you guys recommend not for intra but recommendation for holding medium term?

    Reply
  5. kharb's Gravatar kharb
    March 19, 2018 at 5:41 pm | Permalink

    I never ever trade, but still I think it is very difficult to do day trading with external guidance, but Yes positional trade for few days can be done. But still trading is a game of experts so leave it to them.

    Reply
  6. rajeev's Gravatar rajeev
    March 19, 2018 at 5:42 pm | Permalink

    If BJP doesn’t win again it will be terribly bad for the economy and market, simple logic – Congress in best case scenario will progress from current 44 seats to appx 100 seats (because it is now almost nonexistent in many states), so if a non-BJP coalition comes to power it will be at the mercy of regional supremos who will armtwist the govt to extract maximum mullah for their states irrespective of need/requirement (remember the lame duck govts of Devegoda and Gujaral in mid 90’s) and it is really going to dent the image of the country, FII and FDI flows and the domestic finances.

    Reply
    • kharb's Gravatar kharb
      March 20, 2018 at 6:41 am | Permalink

      Necessarily not, Dream budget of P Chidambramb , which is considered the best till date in Indian history was presented by non BJP, non Congress Govt. What is use of a strong Govt headed by any Chaywala, who without knowing A B C D of Economics start experimenting with Great Indian Economy and ultimately derailing it by thoughtless Demonetisation, poorly implemented GST, series of Anti Middle Class budgets, and ultimately crushing middle class with LTCG tax, Increasing Cess on income tax, removing exemption of Medical and transport allowance from tax exemption, reducing Intrest rates on small saving schemes like PF etc,ultimately ends up destroying Great Indian Economy , when Global economy is at Upswing, resulting in Huge banking NPAs, series of Banking Frauds and various other Scams, creating A Big Army of Jobless Youth. So keep faith in Indian Enterpenures who will keep on steering Indian Economy irrespective of shift of Govt from any Chaywala to any other Pakode wala.If you are able to get better it will be Bonus. The only loss will be that you will not be able to Enjoy Super Hit Jumlas or words like Mitron suddenly at 8 PM,or linking Adahar with any thing you can think of.

      Reply
      • grohal's Gravatar grohal
        March 20, 2018 at 10:41 am | Permalink

        Kharb you are blatantly distorting Factors:
        1) removing exemption of Medical and transport allowance from tax exemption: Govt provided 40000 standard deduction in lieu of it, which will remove stupid bureaucratic paper work we all go through each year.
        2) Increasing Cess on income tax: Above 50 lakh taxable income (it applies to rich not middle class)
        3) LTCG tax: Again hardly impacts middle class.
        4) reducing Intrest rates on small saving schemes like PF: Don’t you know Interest rates are falling across asset class along with inflation.
        I can go on but no point mentioning it to a biased mind.

        Reply
        • kharb's Gravatar kharb
          March 20, 2018 at 11:46 am | Permalink

          If you don’t know facts than please correct, cess starts from 2.5lakh (not above 50 lakhs as you misquoted). Pf rate reduced as interest rates going down, what a Joke, you must know Interest rates has already started hardening and even banks have started increasing FD rates and bonds yields has gone up recently world over including
          INDIA . If you think LTCG tax above one lakh hits only rich, so in your view who get just above 1lakh long term capital gain, then you are manipulating definition of rich. If rich are to be excluded than he could have START LTCG tax anywhere between 5 Lakh to 10 lakh. But it is really painful when some one argue for Anti Middle Class Economic policies of Modi Govt, it is Like Rubbing Salt on wounds of middle salary class people.

          Reply
      • bholu's Gravatar bholu
        March 24, 2018 at 7:01 pm | Permalink

        yes I am agree with you. Now is the time to hand over the reigns to Rahul Ji. He will be ably supported by businessman politicians in Tamil Nadu who own Aircel, Sun TV, SpiceJet, apart from secretly owning major news publications. politicians who own sugar mills, real estate in Maharashtra. Politicians who own coal blocks, iron ore mines in Chattisgarh, Orissa.

        I secretly think you want people from Tamil Nadu to have a say in Indian govt. ? I am all support for you.

        I am all support to you.

        Reply
  7. Abraham's Gravatar Abraham
    March 19, 2018 at 10:01 pm | Permalink

    I am a trader as well as an investor i trade in selected stocks .THE strategy I follows is 4 week break out 0r 20 day breakout strategy. This startergy was discoverd by Richard donichan .In his book turtel trader he explained it.The stratergy is simple.Buy when a stock breaks 4 week high 0r sell when it breaks 4 week low.However for practicing this method one need a good charting software .

    Reply

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