options trader: ETMarkets Trade Talk: Indore trader who became crorepati selling options, started with just Rs 5,000
But as he gathered his inner strength and learned the hard way of dealing with losses, things started to change quickly and the fiery boy ended up clearing all his debts and even made a few crores. When he’s not busy selling Nifty options, the 31-year-old, who calls himself “Super Trader Lakshya” on social media, is busy making YouTube videos and mentoring youngsters to don’t fall into the same debt trap he fell into.
What brought you to trading? Is this something you always wanted to do?
All i wanted was to get in indian army just like my ‘bhaiya’ but i couldn’t qualify NDA then after i qualified SSB to get into IMA my family pulled me out because my brother was already there in the army. So I studied mechanical engineering.
When I was studying at university, my friends introduced me to the stock market. I started with Rs 5,000 in 2008. I did options, intra-day trading as well as IPOs. I lost a lot of money when Satyam crashed. This has destroyed the myth that trading is easy. I also lost money in stocks that were hot during this time like
Jaypee, HDIL, etc. By then, my total investment of Rs 3 lakh was down to Rs 60,000.
Gradually I started trading index options and saw some stability in 2012. At that time my salary was 35,000 rupees and I paid about 30% of that amount in EMI for the loan which I had contracted for the trade.
Eventually, I earned Rs 35 lakh through a loan of Rs 12 lakh. I knew everything and I became overconfident. I never believed in stop loss back then. Today, I am not leaving a vacancy. I watch or I go out. You can’t lose capital, but I lost it. My Rs 35 lakh went down to zero.
“ Back to recommendation stories
Then again in 2016 I took a loan of Rs 22 lakh after which my NDEs got out of control. I fell into depression and ended up quitting my job after an argument with the boss. I had to sell my bike, phone and all other valuables to survive and even borrow money from friends and cousins.
Eventually I found another job after a while, but 90% of my salary went to EMI. So I had to run a food stall to survive. I made tea, poha and even delivered food in my spare time. I had no shame in doing it because at that time everyone considered me a failure and you can’t go below zero.
So how did you engineer a turnaround from that low point in your life as well as your business career?
It was after I realized the importance of money management. I stopped trading for a while and only started after learning self-control and fixed goals. I continued to withdraw money from the market. If you make money, you should take it out. Paying yourself first is the best policy.
As my trading results became more predictable, I quit my job 3 years ago. I realized that my trading was good but my mindset was bad.
Gradually, I also started training people and started my YouTube channel to educate other young people entering the market.
What were the biggest mistakes you made during your formative years?
The biggest mistake a trader makes is thinking that today’s opportunity is their best bet. If you think the next one will be the best opportunity, you won’t make bad trades and will be on the lookout for good ones.
When a security drops from overbought positions, you should sell. When it moves from an oversold position, you need to buy.
I’ve been an options buyer all my life. It was the purchase that destroyed me, the sale made me earn money. Buying is like an addiction as you can earn Rs 200 from Rs 100. Selling you will earn Rs 20 from Rs 100.
My issue was overtrade, carry and expiry trade.
What made you quit your job and start trading full time?
I quit my job because my YouTube videos were getting popular and people wanted to learn from me. I wanted to do it full time.
At the age of 28-29, I was earning a salary of Rs 1.10 lakh per month. It was nothing short of a dream job. But I quit because I was too exhausted to do several things.
How do you manage your money now?
I won very little on good days and lost more on bad days. Then I changed my formula. I started making a 10% payout and then earned nearly Rs 3.5 crore in just 1.5 years.
I’m mostly an options seller these days. Previously, I was trading with a small capital and therefore I was buying. Now my capital has increased. Selling options requires more capital but gives me mental peace.
Besides a crypto wallet, I created an FD bank which earns me enough interest to support my monthly expenses.
I also follow the principle of having no more than 20% of my total funds in my demat account. If it exceeds 20% at any time, I sell.
Now I want 5% monthly income from trading and with less stress. I also have a long term portfolio of blue chip stocks.