How I Lost 80k INR in Intraday Trading

I lost approx. 80k INR in Intraday trading.

In my last post, I shared how I started investing. In today's post, I will share how I started as a long-term investor, did swing trading, got into Intraday trading, and lost almost 80k INR.

On 21st June 2021, I bought my first shares of Vodafone India. Then based on some news, I purchased shares of the Indian Overseas Bank and Central Bank of India.

Later, I learned about Bluechip stocks, so I bought ten shares each of Reliance, TCS, Infosys, HUL, etc. Until here, everything was going well from a long-term investor perspective. I was working hard, making money, and as soon as the money reached my bank, I was depositing into my trading account to invest and increase my portfolio size.

Things remained the same for the next couple of weeks, but when the price of the shares I bought started increasing, I was making profits. I started thinking, why not sell these shares and make some profit?

I had purchased 10 Reliance shares at 2100 rupees, and the price touched 2150. I sold the shares to make a profit of 500 INR. At that time, I didn't even know the concept of Swing Trading. Later, I realized this is called Swing trading.

So, for the next few days, I started doing swing trading. Instead of focusing primarily on my work which could have paid me a lot higher, I was stuck to my computer and phone screen from 9:15 to 3:30.

These things continued from the second half of July to the first week of August 2021. Then one day, I found out about Intraday trading. I saw I am getting 6x leverage on buying shares.

With less money, I could buy more shares and sell them at a profit. It sounded very cool to me, and without any proper knowledge, I got into Intraday trading.

I took a trade in Tata Motors and made a profit of 4000 Rupees. I was like It is very easy. I should do it instead of long-term investing and Swing trading.

So, I sold all my holdings to get the funds back in my trading account to do intraday trading with all of my funds.

Once I had all the funds back, I started Intraday trading. I even came to know about Short trades. On 18th August, I took a short trade in HDFC bank and lost almost 20k rupees. On 20th August I booked a profit of 7200 Rupees. I was like, some days it will be profit, some days it will be a loss.

Things continued like this: on 24th August, I took a short trade in Bajaj Finserv. Even after seeing a loss, I waited for the market to close and booked a loss of 31k rupees.

After losing that much, I came into revenge mode and wanted to recover my losses. I took a few more trades in revenge in the coming days, and by the end of September 2021, I had lost almost 80k rupees. Then, It was apparent I quit the stock market by October 2021.

After quitting the stock market, I started looking for other investment options and invested in expired domains. In tomorrow's post, I will share how I purchased six expired domains worth 2.5 Lakh INR. So, stay tuned for that.

Thanks!