How I lost my father's hard earned money in the stock market !

How I lost my father's hard earned money in the stock market !

It was the first pay-cheque of my life. I had a decent job and was no more dependent upon my father for my expenditures. I hurried to the mall which I had been watching from a distance and bought some expensive clothes and shoes and some gifts for my sister and mother. Back in 2007, malls were quite expensive and my visit to the mall was a drain on my pocket. And the very next day I realised I had nothing for the next 28 days of the month. This was my first lesson. I had to save !
Next month a senior of mine woke me up from my financial slumber, showering upon me some knowledge, making me realise that I had not been doing right with my money. He told be about some ways to invest and I decided to invest. One of my friends who was as naive as me introduced me to the stock market. I was still in the euphoria of having a salary at hand and the freedom to spend it. But alas ! I had no money to invest, as salary was already gone. I had to make a future.

I turned to my father who had kept the earnings of his life (after retirement) in a bank fixed deposit in an MIS (monthly income scheme). I had recently learnt that fixed deposit eats into your capital and the funds must be parked in an instrument which give good returns. Next thing I learned was 'stock market'. I decided to motivate my father to break the fixed deposit and use the money to participate in the bull run of 2007. On 08 Dec 2007, my father broke his fixed deposit - the only corpus he had - and gave it to me, trusting me with all he had. I invested 5 lakhs of the hard earned money into the stock market. I bought some good shares (my definition of 'good stocks' was different then), with 3 months of 'offline research' which basically meant listening from TV and other people around gossiping about stock market.
Everyone knows what happened in Jan 2008. My heart sank when I saw on TV the news of thousand point fall of the stock market in the winters of Jan 2008 and more than disappointment, I suffered from the guilt of having lost my father's hard earned money !!
What I learnt then was that stock market is not for people like me who don't know enough. I thought possibly there were insiders who manipulate the market to benefit from the folly of people like me. I decided that I would never venture into the market again. But with more knowledge coming my way, meeting other people, gradually knowing more about the stock market, I developed courage to venture into it after 7 years, only to burn my fingers again !!

It is worth mentioning here that after my first disappointment with the stock market, my father was not angry at me (I expected him to be!), took the loss in his stride, he too learned from the experience and later invested the residual funds in 2013 to only to reap the benefits of the bull run that followed. He also started his business of security agency which flourished and became profitable. So entering the stock market was ultimately a learning experience for both of us and we progressed a lot, both in terms of relationship and financially !. 

Comments

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