My First Stock Market Trading Experience When I Was 14.
The 90s Was A Boom In The Stock Market In India. At 14, I Was No Exception, Like Many Other Young Indian Investors.
2023 is gone, and 2024 begins with hopes and possibilities of the stock market scaling to a new high amid wars in a few countries. The stock market rally in 2023 reminds me of the 90s era of the Indian stock market, where markets took their highest peak.
My town, Jamnagar, has many active investors and HNIs (high-net-worth individuals) who invest regularly in the stock market. I was thrilled to invest in the stock market when I was 14, as the buzz to invest in the stock market was too high.
I saw many young & affluent investing in stocks and IPOs(IPOs were coming out in huge numbers in the 90s). I decided to test the water and bought 15000 Indian rupees from my father as an interest-free loan for three months. My father thought even if I lost all the money, it could be a lifetime learning experience.
Out of those 15000 Indian Rupees, I invested some amount in IPOs and the rest in buying some stocks. My luck didn’t favor me in the IPO market, but I made some profit in trading. I kept trading for a few months and investing in IPOs. Some shares I got through allotment were de-listed after some time, but I was lucky to sell them for marginal profit.
Sometime later, I paid back the total amount to my father and left trading in the stock market. I took my father’s guidance and traded in shares under his authority. My father wanted me to experience it and practically learn about the stock market.
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” — By Phillip Fisher
I still remember getting 100 shares of ‘Pampasar Distillery,’ but I couldn’t sell it, and the company sold to some other owner(I don’t know which company took over). Until a few years back, shares were in my custody as there were no buyers in the market for those shares.
After almost one and a half decades, I learned that my shares have some value in the market. I learned that Vijay Mallya(a liquor baron of India then, now a bankrupt businessman) took over the Pampasar Distillery business.
Soon after hearing the news, I received a letter from the new company about the recent developments and details about taking over the businesses of the previous company by United Spirits.
After the merger into a new entity, I received 40 shares of the United Spirits instead of 100 shares I held in Pampasar Distillery.
The shares of United Spirits were priced at around 1000 rupees per share in the market then.
I sold 40 shares, received around 1000 per share, and gained a handsome profit.
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” — By Paul Samuelson
The lesson I learned at 14 left a lasting memory in my mind.
Today, after so many years, I keep investing in stocks, mutual funds, and ETFs, but set an eye on reasonable profit goals and not be excessively greedy.
