A Friend Lost his Job in March 2020

He had some savings & got some money including Gratuity etc from his company so wasn't so worried.

He saw the Market rise post March 2020 & invested a Chunk of his Gratuity into markets mostly Pharma , Banks, Auto stocks

By December his capital had almost become 4x. He also had got a job now which was mostly WFH & he had time to spare & was quite well to do.

So he started to read about Books on Technical analysis so that he could Trade Intraday.

He had never traded the derivatives markets & was mostly a passive investor based on some Newsletters & Trading magazines.

Here he was now learning Call, PUT & all things about lot sizes.

started trading Intraday by pledging stocks for margin

Into Feb 2021, his capital was almost 5x since his Intraday were doing fine.

He took out 50% of the earnings, bought a 2BHK & a sedan both on Loans since he expected to service them easily based on new found expertise

By March Mid.

His Trading capital was now just 50%..
Because his position sizing was off & he was dabbling in BNF weeklies.

He called me up for advice & I simply told to stop trading Intraday & go back to investing & focus on his Job

He was thinking about taking a personal Loan as well to trade & recover the looses. I told him not to do this at all as it could backfire.

Last week he resigned from his Job, he wanted to be a full time trader & concentrate on Intraday trading.

Today he called up to tell that he blew up his account , he ows the broker a few lakhs since he had sold a few puts ..

Also he has a Home , Car & Personal loan to service

Thank fully he is on notice period & he has the option of taking back his resignation