Shankar Sharma Used Media to exit his holdings

Shankar Sharma is one of the famed broker of First Global who has various predictions that made him an iconoclastic or celebrity among informed traders. He rightly predicted New Highs of 2008, and again the crash of 2008 , Sell call on PSU Banks and you name it he has done most of the things correctly.

Jan 13, 2011 Interview on Market Correction

Markets could fall by 10-20% in 2011: Shankar Sharma

Recently he (January) appeared in Television channels and made a propaganda that Indian Markets could go new highs and INR could come around 45 bucks against USD and he added that India Macro is great. I'm one  of the guy who believed his words, but fortunately I didn't invested in Markets. I'd say that its purely because of luck that I didn't entered the markets because the investment which I intends to invest is (currently) locked in Real Estate ( Thankfully with nice profits- Again Lucky than my intelligence).

This is Recent Interview with ET: 

By end of the year, India will be the best among emerging markets: Shankar Sharma, First Global

Shankar's big call of INR Appreciation - Jan 22, 2012

Shankar Sharma's big call for 2012: A strong rupee, 45-46 to dollar

Indian GDP outpacing Chinese GDP - Feb 27, 2012

India's GDP growth may outpace China this year: Shankar Sharma

This is the stunner

Shankar Sharma bids goodbye to Dalal Street for his start-up 'Cerebra'

If Shankar Sharma believe that markets are going to go for new high why in this world he should unnecessarily concentrate on new biz that would take time to become profitable. This could be tricky question or else it could be unrealistic question, but Shankar needs to answer this question to all his viewers.

Well, my key take away is IN STOCK MARKETS EVERYONE HAVE VESTED INTERESTS. There is no room for sentiments. Markets are meant only to make money and we should never, never believe in the words of anyone irrespective of his/her credibility.

I've not lost money in the markets. But I've been blinded (I've to admit this) by the views of this guy whom I'd great respect. Here is the guy who said that markets would go new high, but is winding up the business and getting hell out from the markets and he still believes that listeners should believe his words.

WTF!

MY STANCE IN REC VINDICATED

My position in REC is vindicated. I know, I know what was your thinking. This is suppose to be a blog about mistake and how come I'm writing about winning position. Yeah, there is a glitch in this. I didn't took huge position in REC and my profits are not that big. This is one of the biggest mistake I've made. Despite seeing the momentum I didn't bet big and eventually end up making only small profits. This is not accepted and its poor trading strategy.

I missed blockbuster Nifty Rally

Haha, Another biggest mistake. I missed blockbuster Nifty rally. I was actually long Nifty around 4590 and booked my profits at 4710 and waited for a pull back. Again I entered Nifty at 4895 with hedged position and booked my profits and covered my shorts in call option and eventually lost money because of hedged position. Again at 5300 I enter into nifty with a bang by buying call options of SBI, Axis Bank and ICICI Bank. I was holding big long position in PFC and REC. I prematurely booked profit and wasted the opportunity and in that process I almost lost making more than 3 Lakhs (Actually made a small profit of 50k, but it simply compensated my earlier hedged losses that I made by writing call options). I believe that this rally clearly has legs and I personally believe that Nifty could make New High. Let me see whether I could make profits. I'm long in few positions that are very high beta names which I've never gone before in my life. Those are infrastructure names and I'm really afraid to hold it but still holding it in a belief that I could erase all my previous mistakes. Let's see what happens?

Failure is not a sin

I've seen a funny behavior from people who didn't want to reveal mistakes they made in stock markets. If they made winning position they use to boast that for months and years. But they didn't want to open anything that went against them. You know what it would be. Only few make 70-80% winning trade. Most of the traders or investors doesn't reveal their true losses.  I just want to be opposite to others and would like to put my losses in writing. I believe that I could learn a lot from my losses and could learn more in the process of becoming a decent trader. As a result, I'd like to put my mistakes on board.

From here on you'd hear mistakes that has been made by me in stock and commodity markets. I'm willing to reveal  all my dumb mistakes I've been doing in this trade. Hopefully I'd learn a lot from my mistakes.

My First Mistake in blog:

I shorted Gold and got trapped heavily and today morning I covered my position. I'm least bothered about the losses I made in this trade. But the manner in which I made is what that is concerning me. Despite being Gold Bull, I shorted Gold for temporary pull back and caught by the bull.

I lost almost Rs.40K in panic covering today. This is one of the worst day for me. Honestly, I'm losing big money after 4 years. This is the first time in 4 years I've been making big losses in my life. I've lost almost Rs.2 Lakh in Gold Short. Last time I made my loss of this magnitude was around July or August 2007 when I was shorting nifty and it rallied more than 500 points.

After that loss, there was no looking back. I've been continuously making decent profits and in 2008 I made big profits during September sell off and in 2009 I made huge huge profit during Nifty Upper Freeze, which was my biggest one day gain every in my history of trading. My profits were more than 2000% in a single week. That was tremendous time.

I was consistently making money in stock markets. Well I had bad day too. But the magnitude of losses were very small and I didn't remember making losses more than 10000 in a single day. Today I booked losses amounting to Rs.2 Lakh and in this process I could have reduce my losses by more than 40K-50K. Well, it is panic covering and I'm ashamed that I made this. Despite having great gut feeling and temperament I covered in panic and this is a biggest lesson for me. Hope to make mistakes and learn for another couple of thousand times.

Note: I'm formulating strategy to recover my 2 lakh losses and I need to work hard to formulate strategy to overcome my losses. Till then, I'll be licking my wounds.