How Stock Market kicked me out.
“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.
- I invested through a tip
- I had taken a huge loan from my friend and family member.
- I can’t control my emotion.
- I didn’t Diversify.
- I was overconfident about the stock market.
- I had not researched the company.
Key points I learn from my mistake.
- Not to invest money through News and Tips.
- we should control our emotions.
- Never be overconfident otherwise you would be thrown out.
- Never invest by taking loans.
- Invest money that you can afford to lose.