ETMarkets Trade Talk: Indore trader who turned crorepati by selling options, started with just Rs 5,000

As a small-town young boy from Indore, all Lakshya Singh dreamt of was to become an Army officer one day just like his “bhaiya”. As fate would have it, a few years later he found himself fighting a lonely battle against depression at a corner of his dingy room in fast-paced Bengaluru. For the rest of the world, he was a failed trader running neck deep in debt with loans from banks, friends and family members.

But as he gathered inner strength and learnt the hard way of managing losses, things started to turn around soon and the feisty lad ended up clearing all his debt and even made a few crores. When not busy selling Nifty options, the 31-year-old, who calls himself ‘Super Trader Lakshya’ on social media, is busy making YouTube videos and mentoring youngsters so that they don’t fall into the same debt trap he fell into.
Edited excerpts:

What brought you into trading? Is it something you always wanted to do?
All I wanted was to get into the Indian Army just like my ‘bhaiya’ but I could not qualify NDA and then after I qualified SSB to get into the IMA, my family pulled me back as my brother was already there in the army. So I studied mechanical engineering.

When I was studying in college, my friends introduced me to the stock market. I started with Rs 5,000 in 2008. I did options, intra-day trading as well as chased IPOs. I lost a lot of money during the Satyam crash. It destroyed the myth that trading is easy. I also lost money in stocks that were hot during that time like

, Jaypee, HDIL, etc. By that time, my total investment of Rs 3 lakh had reduced to Rs 60,000.

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Gradually, I started trading in index options and saw some stability in 2012. At that time, my salary was Rs 35,000 and I was paying around 30 per cent of that in EMIs for the loan I took for trading.

Eventually, I made Rs 35 lakh from a loan of Rs 12 lakh. I knew everything and became over confident. I never believed in stop loss at that time. Nowadays, I do not leave a position open. I watch or exit. You can’t lose capital but I lost it. My Rs 35 lakh went down to zero.

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Then again in 2016, I took a Rs 22 lakh loan after which my EMIs went out of control. I went into depression and ended up quitting my job as well after a fight with the boss. I had to sell my bike, phone and every other precious belonging to survive and even borrowed money from friends and cousins.

Finally, I got another job after some time but 90 per cent of my salary was going in EMIs. So I had to run a food stall to survive. I made tea, poha and even delivered food during my free time. I had no shame in doing it as at that time everybody considered me a failure and you can’t go below zero.

So then how did you stage a turnaround from that low point in your life as well as trading career?

It was after I realised the importance of money management. I stopped trading for a while in between and began only after I learnt self-control and fixed targets. I kept on withdrawing money from the market. If you are making money then you should withdraw some. Paying yourself first is the best policy.

As my trading results became more predictable, I left my job 3 years ago. I realised that my trading was good but my mindset was bad.

Gradually, I started training people as well and started my YouTube channel to educate other youngsters entering the market.

What were the biggest mistakes you made in your formative years?

The biggest mistake of a trader is to think that today’s opportunity is the best chance they have. If you think that the coming one will be the best opportunity then you will not make wrong trades and be on the lookout for good ones.

When a security is moving down from overbought positions, then you should sell. When it is moving up from an oversold position, then you should buy.

I have been an options buyer throughout my life. It was buying that destroyed me, selling made money. Buying is like an addiction as you can make Rs 200 from Rs 100. In selling, you will make Rs 20 from Rs 100.

My problem was overtrading, carry forwarding and expiry trading.

What made you quit your job and get into full-time trading?

I left my job because my YouTube videos were becoming popular and people wanted to learn from me. I wanted to get into it full time.

At the age of 28-29, I was earning a salary of Rs 1.10 lakh a month. It was no less than a dream job. But I quit because I was getting too exhausted doing multiple things.

How do you manage your money now?

I was making very less on winning days and losing more on bad days. Then I changed my formula. I started making a 10% payout and then I made close to Rs 3.5 crore in just 1.5 years.

I am mostly an option seller these days. Earlier, I used to trade with small capital and so I used to buy. Now my capital has increased. Option selling requires more capital but gives me mental peace.

Besides a crypto portfolio, I have made a bank FD which gives me enough interest to take care of my monthly expenses.

I also follow the principle of not having more than 20 per cent of my total funds in my demat account. If it goes above 20 per cent any time, then I sell.

Now I want 5 per cent monthly income from trading and with less tension. I also have a long-term portfolio of bluechip stocks.

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