An excerpt from my discussion with a trader who had a lesson learnt early on in his trading career. A lesson about not listening to anyone’s trade call.
This is what he had to say.
One day I received a phone call, and I was told that he was calling me from a company named “Pride Trading Consultancy”. The person also gave me his name.
He mentioned that their company is SEBI registered and they provide calls and tips in stocks, options, and futures. He, then, presented three different plans, each with a different price. I was offered to make a profit of 5k to 10k first, and after that profit, there was a premium plan of 10k, that I may choose to buy.
It looked lucurative, already but he continued.
He said that once I take that plan, they’ll ensure big profits every month. He started painting wild dreams, but I told him I would first check their SEBI registered license number before making any decisions.
“Fair Enough”, he said.
He provided me the website of his company. It was “https://www.pridecons.com/”.
As soon as I opened it, a pop-up appeared with their SEBI registered license number on top. I took the license number from their website and checked it on SEBI’s website, and it was valid. As soon as I entered the license number, the company’s name appeared along with all the details.
I also tried another method; I only entered the company’s name, and the license number appeared directly. I then asked him to send a photo of the SEBI license, to that he refused to send it. So, I hung up the phone immediately.
The next day, he called again, asking what I thought about his company. I told him straight away “Boss, I am not interested, but he persisted and said there is no harm in taking their plan after making a profit. He started pressuring me again, but I told him I would only work with one lot.
He said his job was only to provide calls, and the rest was up to me. He didn’t care how much I traded for; he just wanted the money for his company’s plan. He also assured me that there wouldn’t be profit every day in the market, which seemed genuine.
So, I agreed.
The next day, he called again and said that whatever profit I make today, I would have to give it to him. I agreed because I was curious about how much profit one lot would bring. But when the market opened, he kept pushing me to place the order immediately, but I refused because I wasn’t at my trading desk.
He called again, kept insisting, saying that I should enter immediately because he had been telling me since 9:15 to enter. I told him that if I entered now, it would be too late, and there’s still a whole day ahead; something or the other would surely come up. But he didn’t listen to me.
There was another lady on the call, and she said to trust her like a friend, and I should place the trade now. But I couldn’t trust her, so I decided to only trade with one lot. But she asked how much balance was in my account, and I said only 10k. She suggested taking 8 lots, but I refused, saying the market would be very volatile today.
She insisted, saying there would be a lot of movement today. So, I agreed, thinking if they had so much confidence in their company, then why not. But I asked for the stop-loss first, to which she said their company was still finding it, and she urged me to enter now. She completely messed with my mind, and I entered at 11:30, and by then, almost 50% of my capital had vanished.
So, I called her, but her phone wasn’t connecting. So, I called the number on their website, and someone else answered. I asked to speak to Riya Varma, but he said he would tell her to call me back. After a while, she called, and I asked if I should exit because I had lost almost 60%, but she said no and told me not to do anything until she tells me to. She assured me that we would make a huge profit today, around 300% to 400%.
But my mind stopped working as my loss reached almost 90%. So, I shut my laptop down to calm myself and then reopened it.
I promised myself to place a stop-loss. “When the market reached that level, I would exit”, I thought.
I saw the market was moving completely opposite to what they had suggested. Then I called them and told them the market was moving opposite, but she was still insisting that I shouldn’t exit as the market was volatile today, and they were in the mood to hit the stop-loss. But I asked her, if they were providing the trade without a stop-loss, then which stop-loss had hit.
I was confused. Really confused.
I explained to her in straightforward language that if the premium became zero, then what was to be done. She said she would call me after the market closes. But she cut the call out of fear. After that, she didn’t call again after the market closed because the premium she had suggested had become zero.
If the price of that premium had increased, she would have definitely called. This means they claim to be SEBI registered, but it seems they don’t have much knowledge of the market; they provide trades without much knowledge, and people get trapped in this. I only lost 7500, which I’ll recover because it’s not a big amount for me, but what about those people who don’t have much knowledge and invest their entire 1 lakh?
Or was there something else going on?
Was I given a trade at a level which could get someone else a benefit? I am not sure whether I will ever get an answer to that.
