I lost half of my money in share market,I also left job for the sake of trading ?I am so tense?pls help?

Question

I friends ,I had around 5 lkhs ( half million rs ) mine personal savings & around 1.5 lakh of loan which i took to invest in shares,wen i invested i got return of almost 17% within a month .But now suddenly i lost all money and left with only 3.5 lakhs out of 6.5 lakhs .All my shares are half of there earlier value i tried to trade and with some defeat and some success standing at the same where i wud be if i invested and didnt do any trading,I also left the job as i was so worried for my money and now dont know wat to do .....I am very confuse and worried i have many options like stay ionvested for few years in midcap because they can recover very as well as they can be half of worth soon .I can take call for 3 or 4 years in which i am sure they can be of good value..whenever i invest in shares i cant concentrate in job and remain very tense .Pls suggest what to do shoud i be invested or shuffle my portfolio to large cap but they wont return my money soon ....Pls help me .....thanks.

Answer 1

First of all I think that loss of money is not end of everything in so beautiful life.

1) search for a job where your mind will be engaged in work and these ever troubling thoughts of loss of money will be minimize.

2) whatever loan  amount is outstanding against your name if possible, settle it .

3)  what ever shares are with you of the blue chip cos. I think  better to stay invested.

4) keep away yourselves from Share market at least for one year.

5) If mid cap shares you think to sell, then sale proceeds may be invested in mutual funds.

Answer 2

I regret that you have had the opportunity to learn a very expensive lesson.  Of course you are worried.  And you are not the only one.  There are a lot of worried investors and speculators currently.  I think that you should start looking for another job and stop all of this trading while you still have 3.5 lakhs left.  It is a good plan to invest some of it but buying and selling is not a good way to increase your assets especially during a bear market, which we are now in.  And if suffering a drop in asset values causes you such concern, maybe you should think twice about this course of action.  

India is a growing economy and a great place to invest, but you have to do it with some caution and reason.  Last year share prices were very high and there were very few bargains if any.  This year share prices are much more reasonable and getting more reasonable every day.  The investment climate is better now than it was last year, but it might be even better still a year from now.  Keep that in mind.

Answer 3

Sorry about your loss but you took too much risk. Any stocks that can up that fast you have learned can fall that fast as well.

You need to learn far more before dipping back into the market.

If you worry so much you can't work, then trading stocks is not for you imo.

Personally I think there is far too little attention paid to managing risk. I think managing risk in regards to return is actually the BIGGER part of being a good investor or trader.

Just look at how all the talk is almost always about what to BUY and hardly ever what to sell, even here.

It is buy low SELL high but most ignore half the equation. For example if your stocks went up 17% in a month you should have thought about being able to protect or take those profits instead of how to multiply them (I would guess).

Your investment decisions should be made on the best investment that will return the most with the lowest relative risk to the return. You must always balance those.

The fact you think large caps are the better investment right now, then how soon they cover your losses should have NO part of the decision. The market doesn't care how much money you have lost.

Good Luck in the future.

Answer 4

Well sorry for your loss.

I think the No1 Lesson one should learn is to never take a loan to invest in the market.

This is market it can go down or up. you should only invest in the market what you can afford to loose.

My suggestion would be that you try to settle the loan. and then get a job. stay invested in the market if you can for a long term at least 2 years. if not then you can withdraw your money and get a job.