How Stock Market kicked me out.

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“Investing is simple but not easy”. It took me 2 years to understand. I started investing with a small amount, and with time I increase my investment in the stock market. After a year I make a huge loss and the market kicked me off.

My success in the beginning day

When I was studying in higher secondary school my friend advised me to invest in the stock market. I asked my Parent for money, but they deny. They told me that the stock market is for Gambler. I was having my saving. I put my all saving in the stock market. At the beginning level, I was getting a profit and I was happy, I was teaching my friends and family member how to invest money. My family member was also happy Because I was making a huge profit. I made ₹8,00,000 profit with an investment of ₹2,00,000 which is a 300 % return in a year. My Biggest profit was from Company named “Urja global”. I brought it at ₹2 and it went to ₹6.

After some days, I got some tips regarding the company named “Indiabulls Housing Finance”. The company was planning for Expansion. The company share price was ₹300. I thought It was a big opportunity that can make me rich. At that particular time, I was having ₹10,00,000. I was greedy and I take a loan from my friends and family member of around ₹50,00,000. This time my Parent also gave me money because I was making a good profit. I had bought 20000 quantities worth ₹60,00,000. I was very happy and was curious about my profit. I thought I was lucky because I get a tip.

My biggest failure and I was kicked off

After 2 months company had to cancel expansion plans due to liquidity issues. The company had taken a huge loan and the result for the company was also not good, Price crashed by more than 50% within a month. The stock price came at ₹140 and I was losing almost ₹33,00,000. I was not having money to repay loans that I had taken from my friends and family member. I was depressed. In the end, my parent help me out, and they gave me money to repay my friend's loan.

The key point to know due to which I was kicked out of the market.

  1. I invested through a tip
  2. I had taken a huge loan from my friend and family member.
  3. I can’t control my emotion.
  4. I didn’t Diversify.
  5. I was overconfident about the stock market.
  6. I had not researched the company.

Key points I learn from my mistake.

  1. Not to invest money through News and Tips.
  2. we should control our emotions.
  3. Never be overconfident otherwise you would be thrown out.
  4. Never invest by taking loans.
  5. Invest money that you can afford to lose.