Only Idiots & Novices Trade In All Stocks Says Ashwani Gujral Even As He Rakes In Massive Rs. 1.48 Cr Profit With Minimal Capital As Margin Money

No talk, only bucks

“It’s all about bucks, kid. The rest is conversation,” Gordon Gekko said.

Ashwani Gujral appears to be a staunch believer of this philosophy.

“I wish all da “I told u so” types put up their trading statements up on social media or shut da fuck up!!!,” he yelled in a belligerent tone at unnamed Gurus who go around flaunting their bookish knowledge without showing what their net worth is.

I wish all da “I told u so” types put up their trading statements up on social media or shut da fuck up!!!

— Ashwani gujral (@GujralAshwani) November 18, 2017

Ashwani has himself been following the salutary practice of revealing his trading statements and how much profit or loss he has made.

We saw earlier how he came clean about his earnings and disclosed that he had raked in a massive profit by trading in F&O options of the Bank Nifty.

He also revealed how he used the ugly brawl between Billionaire Narayana Murthy and his estranged protégée Vishal Sikka to make a tidy profit for himself.

(How to be a successful trader in stocks – Mindset of successful day traders)

Purpose of disclosure of earnings is to inspire novices

Somebody questioned Ashwani Gujral as to his motive in disclosing his earnings statements.

Ashwani explained that the objective is to prove to novices that big bucks can be raked in from trading if proper techniques are followed and to inspire them to never give up when they suffer losses.

To show all of you that it’s possible, agar kissi cheez ko badi shiddat se chaho…..

— Ashwani gujral (@GujralAshwani) November 18, 2017

Massive gain of Rs. 1.48 crore on margin money of only Rs. 50 lakh

According to the latest disclosure, Ashwani has made a gain of Rs. 1.48 crore from the Bank Nifty options.

The gains have come in just eight sessions in the period from April to November 2017. Two sessions were a loss while six yielded gains.

Trading is bout wins and losses, but till u win more than u lose, u have won da overall game!! this is more relevant than the monthly statement pic.twitter.com/ymxBl4nWNU

— Ashwani gujral (@GujralAshwani) November 9, 2017

April 2017-nov 2017, monthly profit and loss, each series

— Ashwani gujral (@GujralAshwani) November 9, 2017

The surprising aspect is that the entire capital used in the trading process by way of margin money is only Rs. 50 lakh and not tens of crore as was believed earlier.

Sir How much Margin required to play this type of game? 25-50 Cr

— chandu (@chandupenkey) November 9, 2017

The capital used in this system is 50lk, so not a bad return, inspite of volatility!!!

— Ashwani gujral (@GujralAshwani) November 9, 2017

The objective to inspire novices is met as one can see from the exuberant responses to the disclosure.

I might take a print out of this and hang it in the wall for Inspiration .

— MADHAVAN (@MADHAVAN_MR) November 9, 2017

Phir ek baar… Mein aap ka… hai re Jabra… hai re jabra fan ho gaya…..

— Rachana A Vaidya (@Dstreetwinners) November 9, 2017

Madness.. absolute madness.. ! Killing it!! and killing it big!!

— SSHANTANUCHAWRI (@ShantannuRC) November 9, 2017

Rs. 8 lakh gain in seven sessions

In addition to the disclosure of earnings from April to November 2017, Ashwani revealed in the period from 1st November to 9th November, he made about Rs. 8 lakhs.

Here again, two sessions suffered a loss while five yielded handsome gains.

When you are seeing clearly, make da most of it!!! pic.twitter.com/Eb9lZ6XvzH

— Ashwani gujral (@GujralAshwani) November 10, 2017

Only idiots & novices dabble in everything, specialists focus

Ashwani offered the valuable suggestion that while trading, it is best to focus on that instrument which one is comfortable with instead of being distracted with all and sundry.

Prima facie, this applies to investment as well.

We have to learn the art of mastering the nuances of a few specific stocks instead of dabbling in every random stock that comes our way.

That is what specialists do, idiots and novices trade everything

— Ashwani gujral (@GujralAshwani) November 18, 2017

(Breaking free from the pattern of self-sabotage: Learning to master the trading mind)

Embrace risk and uncertainty, accept losses, and try to win more than you lose

Ashwani advised that we should never strive to win all the time.

A mental attitude which is averse to losses will never make progress.

Instead, we must accept that the risk and uncertainty means that we will suffer losses from time to time.

However, if we can even achieve a 50% strike rate, we can come out smelling of roses.

Fundamental flaw in people’s thinkin is the non acceptance of risk and uncertainty. This means that the same activity will lead to different outcomes and you need to be out when it does not work. The purpose is to win more than you lose, period

— Ashwani gujral (@GujralAshwani) November 19, 2017

If you win only half the number of times you bet, when u win, u ride double, when u win, u add to position, there is no way ur account will lose!!! So even a 50 pc success rate works

— Ashwani gujral (@GujralAshwani) November 19, 2017

Similar advice was offered by Peter Brandt, the internationally renowned trader.

Always an amusement to me when tweeters go out of their way to remind me of bad calls. Sorry, both profits and losses are part of trading.

— Peter Brandt (@PeterLBrandt) November 20, 2017

Even Billionaire Carl Icahn has adopted this philosophy in the context of long-term investments (see How Billionaire Carl Icahn Became “The Greatest Investor Of All Time” And Amassed A Fortune Of Rs. 136,500 Crore From Stocks Despite Mediocre Stock Picking Ability).

Carl Icahn’s “win rate” is only 58% which means that 42% of his stock picks turned out to be duds.

This is mediocre investing ability and one that would come from the toss of a coin.

However, the 58% which survived compounded Carl Icahn’s net worth at a furious CAGR of 31% with the result that the loser stocks were soon forgotten.

Carl Icahn also revealed that while he was swift in dumping the losing stocks he held on tight to the winning stocks for several decades (see Billionaire Carl Icahn Reveals “Real Secret” Behind His Astounding Success In Stocks).

“The real money that I made over the years is holding companies for 7, 8, 9 years and keeping them ….. You got to buy them when nobody wants them really …. That’s the real secret …. It sounds very simple but it is very hard to do … when everybody hates it, you buy them … and then when everybody wants it, you sell it to them … And that’s what we do” Icahn said.