Date: January 22, 2007

 

Dear Investors,

Sensex saw its biggest single-day fall yesterday. The riches-to-rags stories

What Would Happen, If You Were The Trader ????

Always Be Long Term Investor

The third Monday of January which fell yesterday, is commonly believed to be the Saddest Day of the Year.

It couldn't be more true for Pankaj Kotecha (36), a cable operator and an investor in the stock market.

In three days (Thursday, Friday and Monday), he lost Rs 60 lakh as the Sensex crashed 1408 points yesterday in a cataclysmic spiral over the three days.

The Sensex saw an intra-day loss of more than 2,000 points yesterday, before closing at 17,605 points.

Ironically, Kotecha has never been a big player in the markets and in fact began only eight months ago.

"I had to sell off blue chip shares in margin selling and all I have left are really pathetic scrips," said Kotecha.

Then take Keshav Mehta (37, name changed), an investor from Ghatkopar who lost Rs 90 lakh in just 10 minutes in the market. Mehta had earned the amount all through last year by trading at the right moment.

He then booked a 3 BHK flat in Ghatkopar's Kalpataru Apartments. He has had no option, but to cancel the booking.

Mehta can, however, take heart from Neeraj Pandya (name changed). A full-time trader (he quit his job), Pandya lost Rs 1.25 crore yesterday and told us "taking sanyas from the Sensex was the only way out".

Conclusion :-

Never be a day trader or never invest for short period. Always invest in stock market for long term. Otherwise you will be Mr. Mehta or Mr. Keshav

Thanks and Regards,

PMS Department