Read how a trader stuck with stock market trading basics and made crores.
Please Read This Disclaimer Before Reading This Article:
Stock market investments are subject to market risk. Please invest carefully after thorough research. This article explains how if you stick to the basics of investing and do proper research, you can make millions or even crores.
Year 2005: I started reading bits and pieces about stock markets, but never traded until 2007. Finally I started trading the stock markets in 2007, though for 2 years had read a lot about stock market investing especially basics. Like other retail traders, initially for first three years I made huge losses, now recovered, fact is even after knowing the stock market basics when I was making losses I did not stick to the basics of stock investing.
My regret is that even after I knew the basics I did not stick to it and lost more than 7 lakhs. You can read the mistakes I did while trading here.
I was yearning to meet a trader since 2007 who stuck to the trading basics and made a lot of money.
As luck would have it I met him via my site, www.TheOptionCourse.com. He contacted me through WhatsApp on April 30, 2017. Here is the screenshot.
What follows is a long and interesting conversation.
What Is Stock Market Trading Basics Dilip?
Well it is just one line which 99% or more traders DO NOT follow. Here it is:
Cut Short The Losing Trades Fast, And Let The Wining Trades Ride As Long As They Can
That one single line 99% traders do not follow instead they do this:
Cut Short The WINING Trades Fast, And Let The LOSING Trades Ride As Long As They Can ON HOPE THAT THEY WILL RECOVER
Next what he said amazed me, because this is only the second time someone called me in the last three years and said he is in profit. The first time was sometime back in 2015, but his profits were negligible. This trader is in huge profits.
This is what he said:
I am also trading in stock since 2001. Currently now in profit of around Rs. 1 crore.
I wish everyone said that, but alas it is not the case. 🙁
I asked him what kind of strategy you follow or it is tips/advisory service?
He said, no he never take tips, but used this strategy:
Book Loss At The Earliest And Carry Profit As Long As Possible
There you go. At last I met one trader who stuck to the basics of stock trading and made a whooping profit.
Rs.1 Crore is not a matter of joke, right?
Obviously my next question was: This is amazing then why my option course?
He said he is keen to learn new things, that is the only reason.
At the time we were having chat, Nifty was around 9300. (30-April-2017)
Now this is what he said that surprised me the most:
Presently carrying 450 (6 lots) nifty @ 7950, but not booked profit till.
I thought strange.
Since I am mostly into options I asked him – you mean 7950 CE (Call Option)?
He said, no I bought Nifty Futures at rate 7950 in November, and rollover-ed till now.
Let us do some simple calculation.
He is not a small trader for sure. 450 means 450/75 = 6 lots.
Here is his profit if he books at 9300:
9300-7950 = 1350 * 75 * 6 = Rs.6,07,500.00
Profit of Rs. 6 Lakh, 7 Thousand, 500 in 5 months.
Average profit per month:
6,07,500.00 / 5 = Rs.1,21,500.00
Rs. 1 Lakh, 21 Thousand, 500 profit per month.
How many people earn this much per month in India from stock trading?
Amazing. This is what stock markets can do if you stick to the rules of trading.
I think it is an art, not a science.
So where do we go wrong?
Panic, Greed, Emotions is the answer.
Panic: We book profits early.
Greed: Not managing our finances well and taking a loan sometimes to trade (bad idea), or trying to make 10% every month from trading. Impossible. See how much this greedy trader lost and this trader lost 2 crores.
Emotions: In hope that losses will recover, we let the losses ride.
All of the above combined, traders keep doing mistakes time and again.
He fixes loss or takes a stop loss at a certain percentage but profits, he did not tell exactly where he takes.
This stop loss percentage can be flexible depending on the trade taken but it should be fixed before the trade is taken, not after.
I agree that this trader does good research before selecting scripts and I think he is a naked futures trader. Naked trading means he does not trade with a hedge. I personally feel this is not good for most traders. But if you are an exceptional trader with proper planning and full control over your emotions then it is fine on some percentage of your account not all.
Look at his today’s (04-May-2017) profit. Rs.67,000 profit in one day, isn’t this amazing?
Yesterday one of my free subscriber whatsapp me that this person is FAKE as Petro Eng does not have futures trading.
I think it is misunderstood.
He traded in CASH not Futures and this was an Intraday trade.
Though I personally do not like Intraday trading looks like this person is good at his job.
If you are so good then fine, but if you are not then please stay away from Intraday trading.
Intraday trading has the power to suck you in, but for most traders it is a lose all trading game.
My advise is stay away from intraday trading.
Look how this traders lost 40 lakh trading intraday.
And he is the father of all losers in intraday trading – he lost 2 crores.
Read the above and I bet your bones will shiver.
If you are losing money trading intraday, stop trading today
Positional hedged trading has a lot of benefits like low tension, no need to watch markets every second like intraday traders do, and it has the benefits of compounding which intraday day trading lacks.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
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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.
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