In my last article, I spoke about shares and their profitability. To give you more background — I was actively involved in share trading until 2023. I started my journey as a retail investor, but over time, I transitioned into a full-time stock and options trader. However, due to some personal reasons, I decided to step away from active trading.

Trading vs Investing: A Clear Difference

It's important to understand that investing and trading are not the same. Investing is typically long-term, rooted in patience, and can yield significant returns over time. Trading, on the other hand, involves short-term speculation, high tension, and high risk.

I was not an investor in the traditional sense — I was a trader.

The Highs and Lows of Trading

Trading — particularly options trading — can be highly profitable, but also extremely risky. In fact, I would go as far as to say that options trading without a strong foundation in market fundamentals is almost suicidal.

Here’s a glimpse into the reality of my trading career:

My highest single-day profit: ₹7,00,000

My biggest one-day loss: ₹3,00,000

These numbers reflect the volatility and emotional pressure traders deal with on a daily basis.

Recognized by the Government

Due to the consistent profits I generated — and the taxes paid on them — I was honored with a Bronze Medal by the Ministry of Finance under the Best Income Tax Payer Award category. This was a proud moment in my trading career, as it validated my success and discipline in both trading and compliance.

Transition to Mutual Funds

By 2021, I began shifting my focus away from active trading. For the past four years, I’ve fully transitioned into mutual fund investing. It’s a more stable, long-term strategy that aligns better with my current goals and lifestyle.

A Final Thought

Trading is not for everyone. While it can be lucrative, it demands constant attention, nerves of steel, and a deep understanding of the market. If you're not equipped with strong fundamentals and emotional control, the risks can easily outweigh the rewards.









 

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