How My Rs8000/- Capital Eroded to Just Rs500/- in Stock Market?

  Everybody generally thinks stock market is a place where people come to make quick money over the night.

If not we will invest now and in couple of days or weeks or in months it will make many fold and we will make quick profit by not doing anything :D ……. Just from the tips which we get from CNBC or from Times Now or from Bloomberg TV channel etc. ….. Is not it?

We generally see few people are making money around us by investing in share market … They may be our friends, collogues or relatives or acquaintances … When those guys make profit (though not sure if they are true to themselves) hey tell their fascinating stories, then we think why not we!!!

Then first thing we do is to open a trading account and busy share with recommendations… that we get from our near and dear or from print media or digital media or from TV channels…

Who is this guy???

The answer is none other than me …… :) :) :)

In late 2007 I started my job career when I started buying shares with just from recommendations….

Initially I was inspired by one of my close friend and then it became my passion to buy and sell shares and getting profits or losses… though at later stage I found my gross was a loss!!!!

With speculation once I bought Satyam IT share which was a hot stock then…. It is the story of 2008..

I accumulated this stock somewhere in 2008 before the month of December 2008 with a price more than 200/-

Then I bought some in 17^th December 2008 after Maytas deal fiasco,

On 23^rd December 2008  World Bank blacklisted Satyam . Hence share price dropped to 140/-

Again I accumulated few.

After that for few more days Satyam were in news and the share price went up and down many times in between like an ICU patient.

However since it was December and I invested all my money for 80C avenues , hence I have not left anything to invest in this share. Those were the initial years of my job…

It was 6^th Jan 2009 and there were rumors again in market about buying offer from Tech Mahindra and share price of Satyam Jumped to 178.95/-.

7^th Jan 2009 – I was at office and it was 1PM afternoon. Since morning I was at a project meeting and I came out from the meeting at 1 o clock. I opened my outlook and found a pdf forwarded to me by a friend with some news in subject line about satyam .

I opened the pdf and started reading it , As I were progressing my nerves started beating more and more …… I could not finish that ….. That pdf was the photocopy of the acceptance of fraud by Mr. Ramalinga Raju CEO Satyam then to NSE…

Without any delay I opened my demat account and broke down after looking the net value of Satyam which was just a 500/- odd rupees…..

And checked the price which was hovering between Rs 20-30 /- … I could not believe this just kept quiet and went for lunch .During lunch my colleagues were discussing about the scam who were not in the meeting and read and all the updates online.

Satyam was the first investment in stock market for me and what a disaster!!!!!

You can think what a type of shock I got at that time and what type of feeling was going in my mind then…

Why am I sharing my failure story with you????

It is because you guys should not make the mistakes what I did then ….

What are those?????????

If a company was in news for all the bad news regarding corporate governance and ethics then hold on , just don’t jump and busy the share because it dropped more than 50% of this share price…

I learned that lesson and applied that in 2014 after the great MCX scam when Financial technology  price decreased to 102/-  from its high price 1000/- in Jan 2013.Wait and watch and invest after getting some clarity from the market …

As buffet told Risk comes from not knowing what you are doing …. The same happened to me… I was just investing.. due my lack of knowledge in various aspects of stock investment I was just inviting more loss in my plate.

Once Buffet told Rule no 1 is Never lose money                .Rule No2: Never forget rule No 1

In a different way I can say “If you are losing money in stock market, never forget why you lose money” :D In a lighter not i am just trying to become a buffet…:D :D :D

Really we need to “Stop trying to predict the direction of the stock market, the economy or elections.”as told by Buffet..

As Mr. Bal Krishnan of CRISIL once told in a seminar Wherever you go whether it is USA or India, broadly the law is always in favor of capital market. As a retail investor we just need to be more careful.

And share market is not a Cashion or gamble … its pure mix of accounting and human psychology…

We should not be speculative rather assertive and studious if we are in the stock market….

The above one is my opinion…

“Anything can happen in stock markets and you ought to conduct your affairs so that if the most extraordinary events happen, that you’re still around to play the next day. “

So guys what do you say????