How it all began:
My father had always wanted to trade but he somehow never could make money in the market. Belonging to a lower-middle class family, he decided he could no longer afford to make losses after I was born.
However, he continued following the market and eventually introduced me to it too. He encouraged to try my hand and to not give up after I made losses the first few times. He was delighted to find I was much better at it than he was!
How it has evolved over time:
My first years were used in long-term equity investments which began to pay off during the three years. My father had always discouraged me from day-trading, but I read a sentence online that made me change my mind.
No, it wasn’t a motivational quote, but a simple matter-of-fact statement that I still remember the crux off: The average price difference between Infosys’s daily highs and lows was 150! That stark difference drove home the fact that there was money to be made here.
Thus began my journey with Day Trading. Right now, I have a few equity long-term investments,a couple of medium-term commodity buys and short-term derivatives.
My Biggest Loss:
There were plenty! However, I remember this security that I invested in lost close to 20% of its value a couple of weeks later. Foolishly, I decided to stick on, believing that a rebound was on its way and ended up losing close to 45% of my holding before selling it.
My Approach to Trading:
As mentioned, I maintain a long-term portfolio while spending a couple of days in a week on intra-day.
Regardless of your time-horizon- a full knowledge of the market is extremely important. Beyond that, the strategy changes drastically. In long-term trades, I like to pick unfancied stocks with strong fundamentals, particularly those with great price-to-earning ratios. In the short-term, I swear by the moving-average.
I’ve always been good at identifying patterns, and it’s a gift I rely upon heavily for trading. It’s served me well so far.
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