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You Must Add Bank FD Interest in Your Loss

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When you lose money trading in stock markets – its just not the loss you must add the interest lost had you kept that money in a Bank Fixed Deposit.

Read this email I got:

Hi Dilip Bhai,

I was a regular trader in the stock market but form 2005 to 2007 after that I had lost my all money in the crash, which is around Rs.15 lakh. If I invested that money in FD that would be more than 40 lakhs. Just think what I lost in this market. Then I stopped trading for 10 years and I thought I need more education to trade in stock market and I found a teacher who taught me trading in option with hedging option and hedging option with future, pair trading in options, arbitraging with current and next month future, time decay technics with current month and next month option selling, 22 ways of option hedge trading like butterfly, collar, condor, straddle, strangle but ultimately none of them can make money for me. Now my experience is this that somehow market will fetch money from the trader, no trader can earn from this market for a long run, may be 5% of trader are exceptional or lucky or punter what ever. Honestly do you think I need to learn much more or to quite for ever.

Here is the screenshot of that email:

And here is another trader losing 15 Lakh:

15 lakh loss is 40 lakh if FD interest added

Adding FD interest loss to the loss makes sense. Current Bank FD rates as of July 2019 is 7% per year. So whatever your loss you can use this calculator with 7% per year interest rate to know your exact loss till date:

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Coming to the question, if you have lost too much money trading the stock markets (too much money is more than 5 lakhs with interest) – well even I am in that club, then should you learn and start trading again?

Ans – Well this is your personal opinion. If you have the urge to trade and invest even after the loss then yes you must learn to trade but you have to change your mindset to become a very conservative trader. You just cannot trade for revenge.

You have to change your mindset that 10% a month is simply not possible in the long run from stock trading. You must learn to first protect your capital by hedging your trades and be happy with 2-3% a month.

Use this calculator to know how much you can make at 2-3% a month if you start now and trade for next 10 years:
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

You have to be patient to recover your money – there is no other alternative.

My Nifty Conservative Course and Bank Nifty courses will help you to achieve 2-3% a month – but you must have the will to learn and trade.

If interested you can pay the course fee online here.


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About the author: 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.

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