wealth profiles a retail stock trader's biggest mistake.

Name: Sanjay Gupta*
Age: 23
Profession: Web designer
Location: Mumbai

SANJAY began his career at the age of 20, whilst still in college. He would earn between Rs 5,000 and Rs 20,000 for freelance web design assignments. What did he do with the money?

Well, besides his love for music and reading, he developed an interest in the stock market. "I would watch business television channels. Also, some relatives and friends invested in stocks. I was kicked!" says Sanjay.

So, he bought stocks of companies recommended by his friends and family, without any real knowledge of the stock market. He also went by his broker's tips. First, he invested Rs 5,000. Within three months he booked a profit of Rs 15,000 and was thrilled. He invested Rs 15,000.

In the hope of raking in more money, Sanjay began intraday trading (trading carried out in a single day during business hours) as well as margin trading (borrowing money from the broker to buy stocks).

Within eight months he had invested Rs 40,000.

Read:

• What brokers don't tell you
  
• This housewife became an expert at stock trading

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e-mail: Elda Christy

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