The hand that rocked the cradle

Its been 3 weeks since I ventured into active equity market.. The journey has been a roller coaster ride strewn with optimism, enthusiasm, energy, intellectuality, deft, poise and what not.. Nothing short of a thriller.. For the past 20 days, the end of the ride has brought a smile.. Invariably..

Until today..

So who rocked the cradle hard enough to demand attention.. Its me.. And me alone..

I dint think very high of myself but thought that I had morphed into a person who can control emotions and can refrain from impulsive decisions.. To an extent I was right too.. The past few months have been commendable and it reflected in equities too.. I was running on a handsome profit in midterm investments and tried my hand today at intra-day..

Intra-day is where you buy and sell shares all in a single day.. You dont carry it over to the next day.. It was my first venture today..

My plan was to invest in Tata coffee which had been doing well.. But it was a very bullish one too.. It will take you for a ride without your consent.. I wanted to buy it first thing today and sell soon.. But it started way beyond what I planned.. So I skipped.. A good move.. It dropped after some time.. Seemed a very good move.. Great going..

I could have quit the day since I dint study any other company.. But did the demon inside me quit? No..

Just yesterday, I saw titan increase 200 a day.. It started well today. So what I do? I buy 25 shares at 9.30am.. In just 15min, it increased Rs.50.. WOWWW!!! I stand to make Rs.1200 profit.. Well I could have quit that time with a big glee on my face.. But did the temptation inside me let me think so? No..

On the other hand, even without selling the shares right away, I could have put a minimum sell value and left.. By this way, I could have played the mother bird which collects food in small quantities, stocks and then looks for more. But today did I play the mother bird to secure the windfall? No..

I went for a bath and came back to see that price was down close to my buy.. I played the wait and watch game.. Even when it was decreasing, I kept watching and had a blind hope that the price would increase.. It being a bullish share was another nightmare.. Then had a thought.. 'Okay even if it falls more no issues.. we can keep it and sell later'(In which case tax will be high).. It kept on going to lower limits.. Beyond danger limits..

At one stage, it dropped to Rs 100 below my rate.. And I did what I should have never done.. I panicked.. And sold the shares to avoid further loss.. And what happened after I sold it??.. The price started increasing.. And ended the day at Rs 80 less than what I bought..

I was crestfallen.. Dejected.. Disappointed.. On a day, when I should have been happy for earning Rs 1200, I was here ruing my loss double that of what I should have potentially earned..

I failed in my test of temperament.. It's an affordable loss for me.. A big lesson learnt.. Here again, the lesson is complete only when I clear my next test.. The tests are never gonna stop..

So back to basics again.. And on a personal note, I have heard many people say 'Don't venture into equities.. Stay away.. Only people who lost are more'.. All are correct.. But did anyone ask why?? I would say that it's a test of your character.. Nothing else..

1. Don't panic
2. Learn to control your emotions
3. Take risks but keep your loss under check
4. Don't show your heroism at work
5. Trust your instincts
6. Never never never ever be greedy

These sound so simple in words and makes you think its a no-gamer.. But that time it dint..

On a happy note, the loss today is tangible.. That tangibility is acceptable to me.. May be if I had not panicked I would have reduced my loss by Rs 500-700 max.. Its ONLY money at play.. Many a time, the loss is not money but something else worthy.. It has made me look at myself again.. I m very happy on that regard..

I had a reality check today.. How about you?