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.
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.
Six of top 10 Sensex firms lose Rs 52,000 crore in market value; check out which ones https://t.co/2A2CyYeeIx
— Zee Business (@ZeeBusiness) March 18, 2018
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”.
Sensex tumbles 500 points on news of TDP pulling out of NDA. Indian Stock Market also pricing in a #BJP mukt Bharat. Foreign investors are quitting India due to the ill thought policies and utter mismanagement by the Modi Govt #mahagatbandhan #2019elections #TDPPullsOut #ModiFail
— Dr.Jitendra Awhad (@Awhadspeaks) March 16, 2018
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.
Markets reeling. Investors starting to feel Modi may not come back in 2019. Opposition having tasted blood forming make shift alliances to get BJP out. Alarming
— P.N.VIJAY (@pnvijay) March 16, 2018
Even after a 10% fall Indian stock market looking weak. Global cues and deepening Bank crisis playing havoc with sentiment
— P.N.VIJAY (@pnvijay) March 7, 2018
Modi made two mistakes. One have grand strategies and a poor team to execute it. Second letting Amit Shah- a mediocre but clever Neta- to take over the Party. For example Shah made no effort to reach out to South and BJP is paying the prize. People inside too scared of him
— P.N.VIJAY (@pnvijay) March 18, 2018
In fact, several die-hard BJP supporters are alienated after the party inducted allegedly tainted politicians like Narayan Rane and Naresh Agrawal.
Louts like Naresh Agarwal and Narayan Rane should be in captivity: of their own debased minds: these kind of louts don't belong to mainstream parties and / or in Parliament. Big mistake by a party claiming to be one with a difference. @BJP4India
— SUHEL SETH (@suhelseth) March 12, 2018
— Ashoke Pandit (@ashokepandit) March 12, 2018
Ex Maharashtra CM & Prime Accused In Multi-crore Money Laundering Scam, Senior Congress Leader Narayan Rane Gifted Rajya Sabha Seat From Maharashtra By BJP.
— Sir Ravindra Jadeja (@SirJadeja) March 11, 2018
With Naresh Agarwal also in BJP and Narayan Rane recommended for Rajya Sabha – which corruption and Congress mukt Bharat are the Bhakts tripping on?
— richa singh (@richa_singh) March 12, 2018
@BJP4India going Congress way. New low for BJP with Rane n Naresh Agrawal
— Neha Bhole (@Neha_Bhole1) March 12, 2018
#IndiaWithPMModi I was with modi but i felt shocked with naresh agrawal joining Bjp…I will not vote for BJP but Will never vote Congress
— Rajput (@Abdevilliers94) March 15, 2018
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”.
In 2014, a stockbroker friend told me that #BJP was like a C- grade midcap stock with suspect promoters on a bull run. The bubble will inevitably burst.
— Sanjay Jha (@JhaSanjay) March 4, 2018
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.
— News18 India (@News18India) March 18, 2018
Bad news for BJP. https://t.co/iUk5a1S5mC
— PhD in Bakchodi (@Atheist_Krishna) March 18, 2018
… 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”.
Since some trolls think I lost money yesterday, sorry to inform that I did not. I bought plunges in bank nifty and had got money on the upside. Intraday trading is bout the next intraday swing!!! pic.twitter.com/Ayu4EiNkvP
— Ashwani gujral (@GujralAshwani) March 16, 2018
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.
A lot of you want to know how much margin i use, i had put in 50 lk in may last year. Till now i have made 1 cr 70lk in this financial year. I will put my year end statement on 31st March, 2018. I do all my trades in MIS
— Ashwani gujral (@GujralAshwani) March 8, 2018
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.
6 winners, 1 loser, 2 big paydays and its not even half da month. And they say its risky!!! pic.twitter.com/79yBQfTkG9
— Ashwani gujral (@GujralAshwani) March 12, 2018
i need 60lk as margin, keep 20 as MTM, each time i go over 1 cr, i withdraw 20lk, so basically i have withdrawn 4 stakes of 50lk each this year, so i am playing with mkt's money. You can it with options as well
— Ashwani gujral (@GujralAshwani) March 15, 2018
Attitude and approach to life determines trading results much more than fancy technical analysis. If you think better technical analysis will make you trade better, you are barking up da wrong tree, all else being equal This is becoz trading magnifies your emotional weaknesses!!!
— Ashwani gujral (@GujralAshwani) March 17, 2018
He also assured that “all my screenshots can be your screenshots” if we can master the tactics of trading.
All my screenshots can be your screenshots, take the workshop and change your life. Or keep watching and guessing what i did. Details on pinned tweet!!!
— Ashwani gujral (@GujralAshwani) March 6, 2018
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.
You have been an inspiration for me to move from fundamentals based investment to trading.. started from 5% of portfolio.. now at 30% .. weekdays r awesome, weekends r peaceful.. it solved all my “what if” worries in the market .. thanks!
— Vikas Vishwakarma (@vikiitd) March 17, 2018
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.
I had done a basic video on market profile. Can go thru the same to start with.https://t.co/e9pNMxNjb3
Pwd: belltpo$1950 https://t.co/drsDrefI65
— jay (@niftywizard) March 18, 2018
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.
Your fortune will come from your focus – focus on one market or one technique. #Trading
— jay (@niftywizard) February 28, 2018
Like a kid in the candy store many new traders are either paralyzed by the many types of trading or go from one to another influenced by promises of riches or secret methods. Pick one and take the time to learn, practice and master it.
— Peter Robbins (@prrobbins) March 17, 2018
Trading cannot be taught. It is an art which a trader acquires through patience and immense pain over years. #Trading
— jay (@niftywizard) March 13, 2018
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.
Yep donating 10% of my profits every month to orphans is what leading my life so far. Else it would have ended years ago. Thanks for the suggestion DK! https://t.co/GnnRpDnAxS
— jay (@niftywizard) February 2, 2018
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.
Well on serious note. I took a big knock last few weeks. Witnessed one of my biggest loss in my 8 years of trading career which also affected my clients account been managed. Got a feel of quitting and handing over 30% of loss to them over time. (1/n)
— jay (@niftywizard) February 2, 2018
Some big loss! https://t.co/RUIUD3FQkJ
— jay (@niftywizard) February 2, 2018
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.
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!