Hey guys welcome back to my posts. Today I will discuss how I recovered my losses in share market but first you must know how I made such stock market losses.
When First time I made a trade, it was pretty awesome to see shares in my account. I just bought 1 share of Tata Power and kept it only for 10 min in my account. I sold it with 1 Rs profit and it was amazing to see green profit in my account. That profit did not last for 1 day because I made sequence of trades where I some time end up in red and some time in green but at the end I was in red. I made stock market losses but there was one guy who made the money, guess who? The Broker.
How I made stock market losses
I never realize this thing and kept paying money to my broker for the losses which I was making continuously. Usually I get more aggressive to recover the losses after every trade but I never succeeded. I made huge losses which I could not tell to any one. I paid huge money to broker over the time of two years.
When I see the history of my trade, It was obvious that I could have made two or three time money which I lost in share market with intraday trading.
If you have an enemy then just ask him to do intraday trading and he will finish himself. In intraday trade you get the 3 to 16 times limit to buy the share of respective companies. Let’s say you have 10 Rs then with 10 time limit you can buy the share of 100 Rs. This is an easy way to wipe out your capital like a fire cracker.
How I recovered stock market losses
To recover your losses you need to understand what mistake you are making. I understood that I can never be a successful trader and I accepted it. I left my aggression beside because it’s not your opponent to fight with, It’s market and it’s supreme. You don’t have to beat the market, you just have to get to the market side and do what market want you to do.
I started to buy best companies which will anyway give to the profit in future. Best of Nifty 50 such as HDFC, HUL, RIL, ICICI or other private banks. I started buying on dips and holding until I get into profit. Usually it takes 10-15 days to see 3-4% profit but at least it is consistent. Don’t afraid to buy the expensive share if it is of nice quality because it will earn you money sooner or later. Consistency is the key whether you making less profit but at least it is profit not lose.
If you earn 1% profit in 10 days after tax and brokerage, It means you are on right track. In one year if you earn 30-40% on your capital, It means you are the best. You do not beat the market but you have beaten down those mutual funds who are earning 15-20% profit.
Never be in the hurry to get rich. You just need to look for right opportunities to invest and get your reward.
I usually stay invest with 50% of my capital and buy the same share on dips and sell on rise with another 50% capital.
I am invested as a long term investor and also I am satisfying the trader which exist in me to the some extend. Now I am in profit and I don’t stay in the market all day. Now I am concentrating on my primary job and on weekends I analyze that how the companies are perform which are decorating my portfolio.