After years of investing in the stock
market, I finally took the plunge into
the high-paced world of trading in
October 2024. This leap was fueled
by a combination of curiosity and
newfound freedom after leaving
Standard Chartered. With the US
election looming and speculations of
Donald Trump’s re-election creating a
buzz, I saw a golden opportunity to
test the waters.
Without hesitation, I opened a CFD account and dove straight in. The markets soared, and on the day of Trump's victory, the exhilaration was unmatched. My initial trades yielded an impressive 20% gain within just a week. The success was intoxicating, but it also led to overconfidence. Soon, I found myself fully leveraged sometimes even up to 120% undeterred by the steep fees charged by the trading platform.
In this whirlwind of activity, I placed two significant positions on the US30, convinced that the market's upward trajectory would continue. Unfortunately, I underestimated the unpredictability of the markets. Trump's sudden, unexpected comments triggered a sharp downturn. My reluctance to cut losses, driven by hope for a rebound, proved costly. The market's relentless decline wiped out my gains and, ultimately, my capital.
Over the course of those intense two months, I executed approximately 300 trades with a success rate hovering around 60-70%. Yet, my entire journey was overshadowed by the two trades that went disastrously wrong. A pivotal moment arrived on the night of December 18th, 2024, when the Federal Reserve announced another rate cut. Jerome Powell's remarks sent the market into a tailspin, reaffirming my realization that even the US market relies heavily on sentiment rather than fundamentals.
At one point, I had achieved a nearly 180% return on my capital. Yet, by the end of it all, I had lost not just my profits but also my original investment. This experience took me on an emotional rollercoaster swinging between excitement, joy, stress, and sorrow. Trading became an addiction, keeping me awake until 1 AM UAE time, with early morning trade checks becoming a compulsive habit.
Reflecting on this odyssey, I recognize the invaluable lessons it taught me about risk management and the psychological demands of trading. Immersing myself in the US market, I consumed over 200 hours of market analysis and news on YouTube within weeks. It was a crash course both figuratively and literally in navigating the high-stakes trading landscape.
Key Learning:
Understanding the distinction between a trader's profile and an investor's profile is crucial, as their strategies, goals, and decision-making processes are fundamentally different. Trading involves short-term, high-frequency actions aimed at capitalizing on market fluctuations, while investing focuses on long-term wealth creation through disciplined, calculated approaches.
Trying to juggle both mindsets can lead to confusion and inconsistency unless, of course, you're someone like Rakesh Jhunjhunwala, the "Big Bull," renowned for his exceptional acumen and foresight in the market.
To succeed, it's essential to define your financial persona. Are you a trader, an investor, or perhaps a mix of both? This clarity will guide your approach and decision-making process. Go slow, stay focused, and avoid the pitfalls of greed, which can trigger impulsive and counterproductive actions. Above all, cultivate patience. Whether trading or investing, success lies in staying disciplined, adhering to your strategy, and allowing time to work its magic.
Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.
Without hesitation, I opened a CFD account and dove straight in. The markets soared, and on the day of Trump's victory, the exhilaration was unmatched. My initial trades yielded an impressive 20% gain within just a week. The success was intoxicating, but it also led to overconfidence. Soon, I found myself fully leveraged sometimes even up to 120% undeterred by the steep fees charged by the trading platform.
In this whirlwind of activity, I placed two significant positions on the US30, convinced that the market's upward trajectory would continue. Unfortunately, I underestimated the unpredictability of the markets. Trump's sudden, unexpected comments triggered a sharp downturn. My reluctance to cut losses, driven by hope for a rebound, proved costly. The market's relentless decline wiped out my gains and, ultimately, my capital.
Over the course of those intense two months, I executed approximately 300 trades with a success rate hovering around 60-70%. Yet, my entire journey was overshadowed by the two trades that went disastrously wrong. A pivotal moment arrived on the night of December 18th, 2024, when the Federal Reserve announced another rate cut. Jerome Powell's remarks sent the market into a tailspin, reaffirming my realization that even the US market relies heavily on sentiment rather than fundamentals.
At one point, I had achieved a nearly 180% return on my capital. Yet, by the end of it all, I had lost not just my profits but also my original investment. This experience took me on an emotional rollercoaster swinging between excitement, joy, stress, and sorrow. Trading became an addiction, keeping me awake until 1 AM UAE time, with early morning trade checks becoming a compulsive habit.
Reflecting on this odyssey, I recognize the invaluable lessons it taught me about risk management and the psychological demands of trading. Immersing myself in the US market, I consumed over 200 hours of market analysis and news on YouTube within weeks. It was a crash course both figuratively and literally in navigating the high-stakes trading landscape.
Key Learning:
Understanding the distinction between a trader's profile and an investor's profile is crucial, as their strategies, goals, and decision-making processes are fundamentally different. Trading involves short-term, high-frequency actions aimed at capitalizing on market fluctuations, while investing focuses on long-term wealth creation through disciplined, calculated approaches.
Trying to juggle both mindsets can lead to confusion and inconsistency unless, of course, you're someone like Rakesh Jhunjhunwala, the "Big Bull," renowned for his exceptional acumen and foresight in the market.
To succeed, it's essential to define your financial persona. Are you a trader, an investor, or perhaps a mix of both? This clarity will guide your approach and decision-making process. Go slow, stay focused, and avoid the pitfalls of greed, which can trigger impulsive and counterproductive actions. Above all, cultivate patience. Whether trading or investing, success lies in staying disciplined, adhering to your strategy, and allowing time to work its magic.
Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.
Contributor
Chinmaya Meher is a banking professional with over 25 years of experience, currently the Head of Client Onboarding for Private Banking Clients at Standard Chartered Bank. An expert in Financial Crime and Fraud Risk Management, he co-founded SAATHI Technology, which develops health tech solutions for cancer patients. Chinmaya holds an MBA in Finance and International Business, completed the Oxford Fintech Program, and is the Managing Partner at ThinkBOX Consultants.
