In our endeavour to search for one of the best Investment mentors in India, we met Shabbir Bhimani. Shabbir runs a blog for stock market investors and helps them in investing in right stocks. We were privileged to have a small talk with Shabbir on his journey and understanding of the stock market.
Learn trading with Shabbir Bhimani
Below are the highlights of the brief talk we had:
TSO: Please tell us about yourself and how did you enter the stock market?
Shabbir: I started like any other retail investor does. Saved some money to trade and opened my trading account and was ready to play on the tips.
Few gains but most of them were losses. But I was convinced that there’s money to be made from the stock market. If money can’t be made from the stock market, why are so many big investors investing in the market and why the turnover in the exchanges all over the world is ever increasing?
The quest to know the answer lead me deep into the stock market.
TSO: How did you learn technical/fundamental analysis and what attracted you?
Shabbir: As famous quotes say “You Learn More From Your Losses Than Your Wins” and the same applied to me.
While doing online share trading I made few good wins initially but then I couldn’t repeat them often enough. I was making more losses than profits and this is when I started to read about Technical Analysis, Fundamental Analysis, Fractal Analysis, Swing Trades etc.
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Slowly I settled only with technical analysis for online share trading but the amount of money that I was comfortable trading and comfortable executing the stop loss in absolute terms didn’t grow as much as the knowledge of technical analysis.
As an example, I can execute a 5% stop loss on a 1L position but executing a 5% stop loss on 25L position seems practically impossible for me. So my trades didn’t grow as quickly as my capital. So I started investing and got into the fundamental analysis.
Now I apply fundamental analysis to invest in the right stock and technical analysis to invest at the right price and for the right time.
TSO: Tell us a bit more about your understanding of technical analysis and its effectiveness.
Shabbir: There is nothing that changes in the stock market on a day to day or minute to minute basis in the underlying company but the sentiments of the market participants decide the movement of price in the stock market.
Technical Analysis and price action strategies are the most efficient and perfect way to catch the underlying price movement precisely.
In short, technical analysis is the most effective way to trade in the stock market. As technical analysts, the only thing I am concerned is how the price will move and don’t focus too much on why the price will move the way it moves. As a fundamental analyst, I look for why the price moves the way it has moved.
TSO: What do you do to overcome the losses, if any, while trading?
Shabbir: Stop trading for the day.
The best way to overcome the losses is to stop online share trading for the day and come up the next day with freshness in the mind. You don’t need to go home with some money all the time. Some days aren’t for you and one has to accept it. Close the terminal and head over to something else.
You shouldn’t be starting at 9:15AM and stop at 3:30PM. You can call it a day as and when you feel like. This is the best part of being a stock market trader. You can make the money in few minutes that you may aim at making in the whole day or lose it as well. It is the end of the day for you right at that point.
TSO:What do you do when not trading or what else do you love to do?
Shabbir: I am a programmer and freelancer where I work for my clients. I have more than one blog to manage.
In short, I am a freelance programmer and a blogger.
As a hobby, I am a follower of thriller series and like to read books. So if I am not working then I may be watching some thriller series like Sherlock Holmes or The Mentalist online or reading books on marketing and human psychology.
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TSO: Any piece of advice for your readers or followers or traders?
Shabbir: The one advice I would like to give to everyone who is reading this, do not start to trade in the share market with real money on the first day you open a demat account. Do some paper trading and learn to trade the market before you actually trade with hard earned money.
Online share trading isn’t for everyone and if it is something that doesn’t work for you. Invest in stocks. If stocks aren’t something you can invest in, do it via a mutual fund. It isn’t about being in the share market but it is about building wealth from the market.