≡ Menu

Life Time Savings Gone in Stock Trading

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

This broker does not charge anything for stock buying and selling. You can set GTT (Good Till Triggered) order after buying a stock - the system will sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Get a lifetime account in Sensibull.com (virtual trading app & strategy builder) fee ₹800.00+GST per month for FREE. It takes 5 minutes to open an account online. Click Here to Open Free Account with Them Today and Join 1+ Crore Investors & Traders>>

My Course Testimonials Year Wise:

Year 2015 | Year 2015 Page 2 | Year 2015 Page 3 | Year 2015 & 2016 | Year 2016 | Year 2017 | Year 2018 | Year 2019 | Instant Reaction Testimonial | Difference Between Othe Courses And Mine | Most Emotional Testimonial | Year 2020 | Year 2021 | Year 2022 | Year 2023 & 2024

What happens when there is no risk management and you lose your life time savings in stock trading? Yes this happens to some people who cannot stop their greed and keep trading on hope.

I got one email from one such now retired from job trader. Here is the transcripts from the email: (Read to know how selling good company shares at the wrong time can be painful, and its not always wrong to diversify your investments and invest in at least one real estate apart from your home of course if you can afford. Please note that this is contrary to what financial experts keep writing not to invest in real estate. If invested for more than 10 years in a prime location in real estate it will certainly give a great profit when you sell it – or if you have two kids you can gift your home to one kid and your real estate investment to your other kid. Both will be happy and money will remain in the house. Please also note that property in prime locations are vanishing fast. I do not think our next generation will find new apartments in prime location. Anyway real estate investment is not the topic here so I stop here.)

His email:

Like everyone I receive dozens of mails. I ignore most and read only a few. I read your mails in detail. You write so practical and down to earth and sensible. I have been investing in stock market since 1980 when I received my first salary. Mostly I used to apply in Initial Public Offerings (IPO). I got allotment in Hero Honda and Kinetic Honda. Unfortunately I sold Hero Honda and did not sell Kinetic Honda when it’s price peaked at Rs.150/- in 1985. Rs.15,000/- was more than my whole year’s salary. Result is there for everyone to see.

(Side note by me: Hero Honda is currently at 3280 – I am not even taking into the account the split of shares and the dividends this person must have received had he not sold. IPOs in those days did not come with a price band. Almost all IPOs were priced at 10. Some may be more or less. But in those days the IPOs were fixed at one price. If you want to read more on the history of IPOs this is a good article. My father also bought a few IPOs – so I remember.)

I stopped applying in IPOs after Garden Silk Mills Ltd. which was at 75 rupees premium in 1985/86. It’s listing price never went above 100. I stopped applying in IPOs. I started buying from market. A few very good company like Ponds and Doom Dooma but mostly faltu (useless) companies. So return on my investment was a average or below.

In the year 1992 I was having 4 Lacs in three scrips namely Reliance , Tisco (Tata Steel) and Ambuja Cements (all IPOs allotment and hence multi multibaggers).

A single BHK flat in the same building where I was temporarily staying for 4 Lacs which I did not buy. Price of that flat today is Rs. 1.50 crores. Then Harshad Mehta crash happened. I bought flat in 2000 from loan and selling investments, but I did not buy a larger flat selling most of my investment which would have come very handy today with my enlarged family. Moral of the story so far is always convert your investment in good shares and landed property.

I got retired in October 2017. I have been doing investment all my life which was spent in getting displaced from one place to another. So I thought now I can take rest and earn income sitting at home doing trading. In a matter of 10 months, I lost 30 Lacs without even realizing by trading in futures. All my life’s savings and little of my terminal benefits is gone. I thank God for whatever is left. Now I have started option trading. But I am going to be very careful and quit the market in case I loose further.

I am writing this for everyone specially new people who want to earn money and CREATE WEALTH to know this. Thanks once again for your emails which I always read with seriously and lot of interest.

– Mehta

Further to my trail mail I want your advice on the decision taken by me. I have decided to put all my terminal benefit amount in PMS of (name hidden), as I think interest earned on bank FD will actually decrease my money. I’m taking up a job. Pension plus job income will be sufficient to take care of my day today expenses. I am keeping 10-15 Lacs liquid for my son’s higher education. Please spare sometime for your advise on this. Regards. – Mehta

My reply:

Sir thank you for reading my emails that too in this age.

Everything was looking ok (mistakes do happen, no one is perfect) until I read this >> In a matter of 10 months, I lost 30 Lacs without even realizing by trading in futures. 🙁

Being an educated person how can this happen? After 10 lakh loss you should have stopped. Unfortunately in stock markets what is gone is gone. Even if you take a job and earn this money… that 30 lakh is gone 🙁

Anyway Sir, what has happened has happened, please forget.

>> PMS of (name hidden)

I had a bad experience of investing in PMS of a very popular company. So my advice is – please keep checking your value of investments every month. I think the rule says, they will have to show you the performance of the PMS you have invested.

If after 6 months its not showing a profit over 6% then you exit that PMS.

Hope that helps.

Live life peacefully.


His reply:

Yes 30 Lacs / life time savings is gone. Gone are dreams of foreign tours forget about buying bigger/another property for children. Beginning this month, I have started trading in options as chances of loss in an single trade are limited. I don’t know much except call and put. Taking very small small trades with the hope that earning something sizeable in due course.

Notes by me:

Note that even after lifetime savings lost this gentle man is trading naked (without hedge) and still dreaming to make it big. Read this sentence in above email – I don’t know much except call and put. How on earth someone with limited knowledge make it big in trading options?

It surprises me that just because the entry level to this business is easy and just because everywhere its written that option buy is unlimited profits – people jump in with greed – looking for unlimited profits. They forget that option buy is also a limited loss and that loss is all the money becoming ZERO.

Please note that option buy is unlimited profit is only a theory – no one has ever made unlimited money buying naked options. Even if you are a good option trader who does naked trading can you buy options worth 50 lakhs? You cannot.

Until and unless you do not hedge your option trades you cannot trade with large capital. You will be limited to a few thousands and stress.

Hope you learn a lesson from the experience of Mr Mehta.

TheOptionCourse.com © Copyright Since 2013 ® All Rights Reserved

Click to Share this website with your friends on WhatsApp

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | About Me | Conservative Option Course
Find 200+ testimonials of my course:
What Traders Say About This Course

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

Traditional brokers charge a lot for brokerage; however, this broker does not charge anything for stock buying and selling. Also, you can set GTT (Good Till Triggered) order after buying a stock, so that the system can sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Also, you get a lifetime free account in Sensibull (virtual trading app & strategy builder) which charges Rs.800/-+GST a month. It takes 5 minutes to open an account online. Click here and Open Free Account with Them Today >>

About the author: Dilip Shaw I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 0 comments… add one }

Leave a Comment