Journey of a Stock Trading Entrepreneur Prateek Sahni

June 3, 2024

3 Minutes

At the tender age of 21, Prateek Sahni stands as a testament to the transformative power of learning, perseverance, and a holistic approach. This young stock trader and entrepreneur boasts of eight thriving businesses, a remarkable accomplishment achieved in just two short years.

From School Benches to the Stock Market

Prateek’s educational journey commenced at DAV Public School in Star East Delhi. As he completed high school, the world was thrown into disarray by the COVID-19 pandemic, casting a shadow over his future aspirations.

However, amidst the uncertainty, a fortuitous encounter with a friend would introduce him to the enigmatic world of the stock market. Through this conversation, Prateek gained an understanding of stocks as representations of ownership in companies, coupled with the potential for financial gain through their sale and purchase.

Embracing Education

Inspired by the possibilities, Prateek invested his savings in a Demat account with Angel Broking (now Angel One). He immersed himself in the intricacies of the market, dedicating countless hours to watching YouTube videos and studying the fundamentals of stock trading. Topics such as IPOs, fundamental analysis, and balance sheet readings became his focus.

Initial Success and Setbacks

Prateek’s initial trading ventures centered on scalping, a high-risk strategy involving rapid entry and exit from positions in pursuit of modest gains. Success accompanied his early attempts, particularly in stocks like BSE (Bombay Stock Exchange).

Yet, eagerness proved to be a double-edged sword. Overtrading and revenge trading, impulsive attempts to recover losses, consumed him. Consequently, significant losses ensued, amassing to approximately Rs 20 lakh.

Psychological Reassessment

The financial setbacks faced by Prateek prompted a profound reflection on his trading practices. He recognized the paramount importance of discipline and patience, acknowledging that his trading decisions were being swayed by emotions.

With renewed clarity, he deconstructed his trading style, identifying areas for improvement. Revenge trading was replaced by discipline trading, governed by clearly defined rules and limits. The significance of comprehending option Greeks and trading strategies such as scalping, options, and futures also became apparent.

Regaining Capital and Diversification

Armed with a revitalized approach, Prateek diligently implemented his newfound strategies, successfully recouping his lost capital. In a single day of disciplined trading, he realized a profit of Rs 1 lakh, which he astutely invested in multiple businesses established in collaboration with friends and relatives.

These businesses diversified his income sources, ranging from financial management services to coffee vending, providing a financial buffer against the inherent risks associated with the stock market.

Thriving as a Stock Trader and Entrepreneur

Today, Prateek’s accomplishments are a testament to his passion and dedication. He has ascended to become a highly successful stock trader and entrepreneur, managing an impressive portfolio worth crores and overseeing eight flourishing ventures.

Key Lessons Learned

Prateek’s remarkable journey offers invaluable insights into the art of successful trading and entrepreneurship:

• Analytical skills are indispensable, but psychology and discipline are the cornerstones of trading.
• Revenge trading and overtrading are perilous practices that can lead to substantial losses.
• Patience and a well-defined trading strategy are essential for long-term success.
• Seeking knowledge from mentors and peers can provide invaluable perspectives.
• Diversifying income sources through multiple businesses enhances financial stability.