Arpit Bhargava’s Comprehensive Narrative of His Stock Market Journey

June 9, 2024

3 Minutes

Arpit Bhargava, a seasoned financial consultant with over sixteen years of stock market experience, offers an insightful account of his journey, highlighting valuable lessons and industry transformations witnessed along the way.

Inception: The Physical Stock Exchange Era (2003-2005)

Bhargava’s initiation into the stock market occurred in 2003, at the tender age of eleven. During this era, trading transpired through physical slips or share certificates, with Physical Stock Exchanges, known as Share Transfer Agents, serving as the primary trading platforms.

The Rise of Trading Terminals (2005-2006)

Around 2005, trading terminals emerged, enabling traders to access quotes displayed on black screens. This technological advancement paved the way for social media platforms in 2009-2010, followed by the widespread adoption of smartphones from 2012-2013, significantly enhancing the accessibility of stock market trading.

Bhargava’s Trading Education and Early Stumbles

Beginning in 2005, at age fourteen, Bhargava initiated trading activities through his father’s trading account via telephone calls. However, a particular trade involving the purchase of Hannang Toys shares resulted in substantial losses. This experience emphasized the significance of prudent trading practices and the avoidance of aggressive attempts to recover losses.

The Role of Fundamental Analysis

Bhargava’s sister, a chartered accountant, played a pivotal role in enhancing his understanding of stock market principles. She stressed the importance of fundamental analysis, equipping him with the ability to assess company financials and identify potential investment opportunities.

Embracing Passive Investing

From 2013 onward, Bhargava shifted his focus to passive investing, a strategy that involves investing steadily and gradually through mutual funds. This approach enabled clients to cultivate their investments over time through the power of compounding.

Challenges and Triumphs as a Fund Manager

Initially, Bhargava encountered challenges in securing clients and persuading them of the benefits of passive investing. Nevertheless, by 2017, his approach gained recognition, and he established a substantial clientele.

Combating Fraudulent Practices

Bhargava cautions investors of the prevalence of deceptive activities within the stock market. Promoters may inflate stock prices through the dissemination of rumors and manipulation of trading volumes. Investors are urged to remain vigilant against such practices and conduct thorough investigations before making investment decisions.

Warning Against Phone Call Scams

Unsolicited phone calls purporting to offer lucrative trading opportunities frequently constitute scams. Fraudulent actors procure investor data and tailor their calls to maximize their chances of success. Investors should maintain a skeptical stance and avoid falling prey to these deceptive tactics.

The Significance of Robust Investment Processes

Navigating the stock market successfully requires the implementation of a reliable and robust investment process. Fundamental investing, which emphasizes the analysis of company fundamentals, provides a solid foundation for long-term achievements.

Conclusion

Bhargava’s stock market journey has been characterized by a multitude of accomplishments and obstacles. Throughout these experiences, he has acquired invaluable insights into the importance of prudent investing, the establishment of strong investment processes, and the unwavering pursuit of knowledge. As individuals embark on their own investing endeavors, they are encouraged to approach the task with discipline, caution, and an insatiable thirst for learning.