Whatever I'll share here, It will be my point of view. It was a story of a trader and his journey towards finding
the real truth. First, I always tried to study the human psychology behind the trading. I'll gradually explain it in
this forum.
Journey towards trader'shood - My initial entry
First, I explain how did I get a trader instict inside me. I came to Delhi to appear for for competitive examination
(Indian Civil Service and I was from science background). In that process, Harsad Mehta scam had surfaced and the BSE SENSEX has crashed from 4400 to 1600 in couple of days. At that time, that fall had completely shaken the capital market as well as India. Till that time, I was less aware of capital market. Gradually some fascinating story about Harshad Mehta published in media. At this point of time, some interest towards stock market had been generated. In the later part of 1993, I shifted my room and started to stay with some students who were belong to commerce background (It was due to frustration for not qualifying for Civil Service Examination). At that time, IPOs were a craze. They applied to some IPOs from their pocket money. Sometimes they got allotment and sometimes they not. But whenever they got allotment, there was a mini party. First I couldn't understand all these things but gradually things were clearer to me and I developed some interest towards stock market. Then an IPO issue from RELIANCE house had hit the market. It was IPO issue of RPPL and RPEL. At Rajiv Chowk, I saw a big line (really big) at Bank of Baroda building. I knew from them it was for that IPO issue. I came to my room and talked these things to my fellow roommates. They said it was a good issue but unfortunately, they don't have any money. So they encouraged me to go for this issue.
At that moment, I've 1500/- rupees as surplus money. So I decided to apply for it. These issues were par issues and you have to pay 250/- as application money, 250/- as allotment money (in case of allotment) and the rest 500/- as final call. I applied for 500 shares, four in the name of my friends and one in the name of mine. These issue were
oversubscribed by more than 100 times.Fortunately, I got four allotments in the name of my friends but there was no allotment in my name. The entire allotment process took more than two and half months.Finally I paid 1000/- rupees as allotment money. These four allotment had suddenly brought me into limelight in my friend's circle. Wherever I
went, everybody was asking me for some kind of treat as if I was a millionaire. In fact, I threw some parties to my friends. Everybody said you will get astronomical amount on listing. At those times listing occured approximately after six months.
I remembered my feelings in the previous night. I was completely restless. Now the D'day had come. Lol, the listing price was 20/- per share. Now all my friends who were talking about astronomical listing had got vanished. My room-mates advised me to transfered these shares into my name and keep them for future as there was no harm in
keeping these shares because they belonged to a good industrial house. So I applied for transfer to my name. Fortunately, the company did not ask for the final call. In between, almost six to seven months had been elapsed and the price of both the companies had come down to 8/- rupees. Suddenly, I heard some rumours regarding some development in Reliance and the prices of RPPL & RPEL started climbing. Within one month it touched around 135/- per share. I couldnot believe in my eyes and sold all these shares to a broker for 50000/-. He even did not hear any words from me and gave 50000/- rupees as cash. Since I had never seen that amount in that time, so I did not ask a single question to him. After sometime, I came to know that the price of these two companies will touch 200/- ruppees in near future. In fact, the news behind the price spiral was their merger with Reliance. At the time of merger, their price was around 130/- per share and they never crossed 150/- mark. Anyway, I've pocketed 50000/-
ruppees within one year by investing just 2000/- rupees.
Now please wait for the story of my next journey.
With Best Wishes
Till then
Good Buy
