I can never forget that day, which changed my life. It was 20 October 2011. Intraday trading was new concept for me. I was excited about trading in Stock market. It’s just been one week I had entered in Stock Market and I was trying to understand how to trade in Stock Market.
I always observe rushing my friend in cafeteria to finish his breakfast before 9.15 am (Time to start Indian Stock Market). He was young, Smart and Intelligent, he use to monitor stock market's Update very closely and use to explain me. “See this stock will definitely fall or will raise now. ” and to my surprise it use to happen most of the time.
I started thinking, why not I should open a demat account and use his talent and earn some extra four to five thousand per month. I had 1 lakh rupee in my saving account and opened a demat account with ICICI bank on 12th October 2011 and by 19th October my account was active to place Buy or Sell order in Stock Market for Intraday Trading, Future and Options and for delivery calls
I thought from 20th October I will start my trading, but unfortunately I was sick on that day and I could not go to office, I did Lakshmi Pooja in the morning and I decided to watch CNBC awaz & take advise from my friend over phone. I was not sure how to place a trade, I called my friend and he explained me over phone, by 10 am I got a call from my friend " hey Raju, there is a stock named M and B switch listed today, you take a sell call on it at current market price, Hurry !!!". He hanged up immediately, I could only note Stock name “M and B switch gear" but I did not notice his other information. I read in books and had heard my father saying me all the time “Little knowledge is always danger”, But I did never take his words sincerely.
I bought the stock at Current market Price,135 and I bought in margin because i was very confident on my friend’s suggestion and like every trader I also wanted to earn more :-)), I traded for Stock worth 5 lakhs. After 10 minutes, my Friend called " hey Raju, did you take Sell call on that stock, I said yes I took at 135". Actually I did a mistake, he asked me to take sell call but I took Buy call on that stock because I did not know how to sell a stock. My father called me and asked me to get ready for medical check up, I did not reveal about my trading to my father as he is totally against of Investing in stock market. He always use to suggest me to invest in LIC, do some Fixed Deposit or buy some Gold. That day I was not willing to move away from my computer screen. My friend has told me that, if stock falls we will be in profit and by the time i was about to leave for doctor, stock came down to 122 and I was very happy and Informed my friend that my father is insisting me to see doctor.
He assured me that he will keep me updated with the stock update. I was very excited that I have made Rs 13 profit on each share but I was not aware that I am actually in loss of Rs 13 per share as I had taken Buy call.
somehow I forgot my cell in front of my computer while leaving home for hospital, on the way I realized that I am not having my cell phone with me. Father saw me in tense and asked me If i am feeling uneasy. I could not reveal him anything and I had not stored my friend cell number in my diary to dial up from my father's cell phone.
The M and B switch " this stock fall down till 118 and then suddenly moved till 181, My friend was trying to reach me continuously to come out of the stock but he was not getting any response, finally My Mom lifted the call and she gave my father's cell number to contact me.
My friend called me and asked me to exit from the stock as soon as possible, he told the stock moved to 200 and he lost nearly Rs 80,000. I was shocked; I cannot explain my situation in words. The worse thing was yet to happen, I was not aware of my demat account’s User Id, so that I could have asked my fried to login on my behalf.
I was shocked and lifeless, I was thinking of the plans I had for coming days. I was cursing myself for taking a decision to start trading. I had planned for my dream Bike that I wanted to buy, I remembered Rs 10,000 which i had to return to one of my friend and many more. My fried was trying to console me that The stock might slip sharply.
I called ICICI direct (demat) customer care and requested him to help me, they seemed helpless as I was not sure with my account related information, I asked them what will happen if i am not able to come out of the stock by my own, they said that demat account will sell/buy your stock by 3.15 pm automatically if traded in margin. (I had traded in margin. )
The stock was at Rs 330, by 3 Pm. My friend called me and said sorry, I understood I lost all my savings. I was praying to God for some miracle and was cursing me on taking decision to enter in intraday trading.