Many kids I know come to me and say ‘I wish to open a brokerage account to buy and sell shares’. Knowing their market knowledge and patience levels my usual advice is ‘No, do not you will lose money’.

After that I do not much care what happens. Many of them do open an account, and do lose a lot of money. Fine by me, though, I do feel bad. Some of them do come back and tell me ‘I lost….’ but well that is fate.

However there are some people whom I have dissuaded very strongly – “I will break your legs'” kinda threats too!!

For the kids I really love, I push them into a SIP (eeks it hurts poor kids!!) – I hope they continue the SIPs through the carnage….

2 of the kids were doing a SIP of Rs. 2000 and Rs. 500. Then one day, they fell to the temptation of opening a ‘trading’ account and calling themselves investors.

For the kid who was doing a Rs. 500 SIP I had offered a safety net of Rs. 30,000 for a 5 year uninterrupted SIP, but the lure of trading pulled the kid to the markets. SIP was stopped and 50,000 went to trading. This was about 5 months ago.

The rest, as they say is history. Both of them are in the red to about 30% of their portfolio, and bleeding.

Luckily, I hope, they are not putting more money into ‘trading’…..

I suddenly realised that LEARNING with their own money is far, far, far valuable for them than all the TEACHING and LOVE and CARE that I was bringing to their wealth creation process.

I do feel sad, but a good learning for all 3 of us I hope.

Trading, is NOT a part time hobby – and it reminds you of that pretty cruelly.


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  1. Sir
    I too learned it hard way …
    wanting to explore equities I opened a trading account with guardian angel ..
    Did intraday trading as per RM calls …now suffering loses
    However never stopped SIP
    RM still calls …I am firm stop calling for intraday….NO to trading

  2. I too learned the same way invested one lakh in equities … portfolio is red by 30 percent… good learning however.. now i only invest in sip

  3. it is not what others did….did these 2 people change or are they continuing to invest….’hoping’ that the market will change and THEY will make money?

    it takes a lot of time and effort to accept mistakes…my guess is till they either recover the amount invested (if they are lucky and the market moves up) or if they lose much much more they will stick around. God bless them….

  4. sure, Trading, is NOT a part time hobby. trading in exchange is like playing any sport @ highest level e.g Olympic.

    one can’t succeed while practising sport it in spare time & think of competing with other participant @ Olympic.

    most of them who take my advice when they are new into trading, mostly trade from the office in spare time & that to intraday. which is the hardest game to master among other form of trading.

    i know fate of many, but they simply shadow my advice any time in the future got trapped in greed & fear cycle which drive this market.

  5. is not high time for teaching finance literacy to all our kids in college as a subject in our higher secondary /college as mentioned in Rich Dad Poor Dad? or will it induce kids for more speculating latter?

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