I am 44 M, my problem is that i have lost all my savings in option trading. I have sworn many times to myself that I will never trade again, but even now whenever I get money from somewhere I start it again and make more loses. How can I get rid of this addiction? Pls help me.

Ans: Hi Jaideep, Making money through options is same like Casino and I have never seen any person earning from casino in longer period hence stop doing revenge trading and focus on investing, buy quality stocks, be with the journey of the growth for the company and you will also make good money.

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Ans: Vikash,
Trading is a Zero-sum game. Money is just getting rotated from one trader to the other trader. Money is not getting generated. The only person who makes regular income in trading is the broker.

So instead of trading, please consider, long term investing via mutual funds.

Ans: trading in equities or in option is not a part of stock market, stay away from all these

Ans: there is no concept of recovery in stock markets specially in trading. Invest in a discipline way and keep compounding your money.

Ans: I'm truly sorry to hear about your difficult experience with the stock market. It's not easy, but you've taken a positive step by seeking guidance on how to rebuild your financial future.

Firstly, I want to commend you for recognizing the need for change and halting your options trading. It takes courage to reassess and pivot, especially after setbacks.

Now, let's focus on rebuilding. Since you're starting from scratch, it's crucial to prioritize savings. Begin by setting up an emergency fund to cover unexpected expenses. Aim for at least six months' worth of living expenses.

Once your emergency fund is established, it's time to think about investing for your kids' education. Given your past experience, cautious investing is key. Consider diversified mutual funds managed by professionals. These funds spread your investment across various assets, reducing risk.

Regular funds, managed through a Certified Financial Planner, offer personalized guidance and oversight, helping you navigate the complexities of the market.

While index funds may seem appealing for their low fees, they lack the active management that can help mitigate risks and seize opportunities in volatile markets.

Remember, investing is a long-term commitment. Stay patient and disciplined, and avoid the temptation of get-rich-quick schemes.

You've already demonstrated resilience by seeking advice. With careful planning and prudent investing, you can rebuild your financial stability and secure your children's future education.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in