From losing money borrowed from friends and parents to amassing a mass fortune within a short period. Here is an inspiring story of a young trader who transformed his passion for trading into an extraordinary success story.
Amit Kumar, a 23-year-old, started his trading journey during the time of Covid while pursuing a BA from Banaras University. While many youngsters were busy playing ludo during the time, Amit looked for ways to make money online on Youtube. There, he stumbled upon a video regarding the stock market, which kickstarted his journey to become a successful options trader.
After watching many videos on Youtube relating to the stock market, he opened a Demat account and deposited Rs 2-3 thousand which he ended up losing to the market. Later he borrowed Rs.10-15 thousand from his friends. A few of his trades might have been successful, but at the end of three months, he lost 25000.
Without losing hope, he convinced his parents to lend him Rs.10000 and used this amount to trade. Unfortunately, he lost this capital in 10 days. Somehow he convinced his parent to lend him money for the second time and he could increase it to 1.5 lakhs in a month.
However, he gives this credit not to his skill but to the sharp movements in the market during the time of Covid. The first thing he did after earning the profits was return the money he had borrowed from his parents.
With the remaining capital he had with him, he continued his options trading journey, but unfortunately, he lost this capital again within a matter of a month.
Instead of losing hope and giving up on the market, Amit turned to Subasush Pani’s YouTube channel, ‘Power of Stocks,’ for guidance. Considering Pani his mentor, Amit diligently honed his skills before resuming his journey as an options trader.
In the first year, Amit experienced a loss of Rs.1.69 lakhs. However, in the second year, he made a profit of Rs. 12.03 lakhs. The year 2022-23 proved to be a breakthrough for him, as he generated an astonishing gain of Rs. 90.11 lakhs, with a mere capital of Rs. 5 lakhs.
Amit has accomplished this remarkable milestone as an option buyer, defying the common belief that significant profits are only attainable by being an option seller. In his interview, he also stated that he plans to keep being an option buyer because he has cultivated a mindset with the buying approach.
When asked about the biggest challenges he faced during his initial options trading journey, he stated that his main challenge was not about making money but it was about being able to preserve it and not losing it through over-trading. He stated that he tackled this issue by maintaining strict rules and relying on a ‘kill switch’ feature on his trading app.
When it comes to his daily routine, he stated that he watches Subasush Pani’s market discussions for insights, determines market levels, and determines trade quantities Additionally, he keeps a close eye on the VIX index to assess market volatility, which helps him adjust the intensity of his trades.
When asked about advice for beginners to follow to be profitable, he emphasised maintaining discipline and mastering human psychology over trading strategies. He added that none of the methods will work unless the trader has the proper mindset and discipline.
Finally, he emphasised the need of establishing a solid foundation of market knowledge rather than chasing profits in the early stages of trading, which he believes is critical for long-term success in trading.
Amit’s story of hard work, persistence, and unwavering hope is an example to new market traders. Watch the full story here – Amit Kumar Success Story
