Hi,
Let us start the journey.
Since I had no obligation, I decided that it is better to stay away from trading for the time being and concentrate in other things. So I told Mr. Gulati to keep me as his dealer since I was very much conversant with NEAT terminal and for that service I will not charge him a single paisa. After some reluctance, finally he agreed with a condition that I should not trade. In fact, it was a good opportunity for me to closely monitor his trade. He did not follow any charts. He was completely a tape reader. These were my observations as a dealer of Mr. Gulati.
1. He basically followed 4 to 5 scrips.
2. These were the scrips which had high volatility and high volume (Basically these were software scrips).
3. He was basically a jobber, at times his position stayed only for few seconds.
4. When he squared up his position in a profit, he let 10% of his position to continue and keep stop loss at breakeven price of that trade.
5. He never took any overnight position (at least during my association).
Believe me, such was his screen reading accuracy, he managed to make a profit of 75,000/- in a single month. My association with him lasted for one and half month. after that period, he switched to some other broker. In that one and half month, I was very fast on key board and told my broker to allot me a NEAT terminal for jobbing. He eagerly accepted my proposal. Again to my surprise, I was not able to make any profit in my first month. In fact, there was a loss (although the amount was not big). My daily turnover was between 5-10 crore and in that month I was generated brokerage around three lakhs with a brokerage rate of 0.02%. In this one month I had not followed any chart. Now I felt pressure on me as I spent six months without any result.
Finally, I decided that I will risk another 50,000/- to 60,000/-. If I will get any success, then I will continue, otherwise I will quit trading. It was around August 1999. Again I went back to the Knight-Rider and start analysing. I decided that I will risk 10,000/- in each trade with a total loss of 60,000/- and after initiating a trade I will place stop loss immediately and leave the seat and close the position by phone just 10 minutes before market close. In that process, my first trade was Software Solution (it was a favourite of Mr. Gulati). At that moment,I had a margin money around 1,60,000/-. So I initiated a long position of 50 shares with a stop loss below 200 points. In this trade I almost earned 20,000/- in a single day. From August, 1999 to February 2000 was the climax period for software sector. During this period, my 1,60,000/- had turned into 8,00,000/- only by positional trade. But when software stocks started to tumble, I lost 2,00,000/- rupees in only two trades. I was completely nervous by their vertical fall. At that time, market was divided into two type of stocks. One was New Economy Stocks (Software, Media and Telecom) and the other was Old Economy Stock (rest). It was a complete taboo to touch Old Economy stock. So I decided to buy some stock from Old Economy Stock of worth 5,00,000/- for long term purpose (more than 5 years) and go for a analyst job. I bought 1000 Bajaj Auto @ 550/- and searched for a new job. Finally I got a job with a NSE broker with a salary of 25,000/- per month. My joining date was 3rd October, 2000 (it was a Tuesday) It was a big achievement for me. On Monday (It was Gandhi Jayanti), one of my newly married friend invited me and some friends for launch. I was coming along with my friends on bike. In front of my friend's house, the bike on which I was riding got slipped. Although the fall was minor, but I suffered the major accident of my life.
Now have patience for my next journey.
With Best Wishes