The Fairy Tale of EVERY Trader - Profit, Loss, Strategy and Psychology

 Rajan, a young champ from Vadodara. He possessed a sharp mind and an innate curiosity and was always drawn to numbers, patterns, and the stories hidden behind the ticker symbols and market charts.

Being gujju, he had heard tales of people who made their fortunes in the stock market and was fascinated by the idea of becoming one of them. Little did he know, his journey would be marked by triumphs, losses, and a profound, transformative evolution that would change him forever.

If you can relate to the story, it will be fun to read for you.

 

Chapter 1: The First Steps into the Market

Rajan first heard about the stock market in the early 1990s. Following the liberalisation reforms of 1991, India underwent a period of transformation. The stock market, which had previously been obscure and inaccessible to most people, was now opening up, and the Bombay Stock Exchange (BSE) was abuzz with activity. Rajan was captivated by the idea of buying shares of companies and watching their value grow.

In 1992, the Harshad Mehta scam made waves in the media. Rajan, being young and impressionable, didn’t fully understand the gravity of what happened, but the hype and excitement around the market intrigued him. This was a time when the market seemed like a dreamland, where fortunes could be made overnight. Rajan’s first foray into stock trading was cautious. He borrowed a small amount of money from his father and invested in blue-chip stocks, believing they were safe investments.

But the market doesn’t play favourites.

Rajan’s first year as a trader was marked by both excitement and frustration. While his initial investments grew slowly, he saw others around him making quick gains. He jumped into speculative stocks, chasing the next big thing. In the end, he lost money on those trades, feeling the sting of his first loss. However, this loss only fuelled his determination to learn more about the market.

 

Chapter 2: The Growth and the Crash

The late 1990s and early 2000s were marked by both exuberance and caution in the Indian stock market. The Sensex hit new highs, and Rajan gained more experience, learning the fundamentals of technical analysis and studying global market trends.

By 2000, he had begun making calculated investments, focusing on growth stocks in sectors such as technology and pharmaceuticals. Rajan even researched the dot-com boom in the West and wondered if Indian tech stocks would follow a similar trajectory.

But as the years passed, Rajan would learn one of the harshest lessons of all - the market is cyclical.

The 2001-2002 crash, although not as dramatic as global recessions, had a significant impact on the Indian market. Many of Rajan’s investments suffered significant losses. He found himself questioning the very principles he had once held dear. Was the market as predictable as he thought? Were the patterns he had learned so meticulously really reliable? His portfolio shrank, and so did his confidence.

A period of reflection followed.

Rajan realised that trading wasn’t just about picking the right stocks—it was about managing emotions. He learned the power of risk management, the importance of staying diversified, and that the market wasn’t about predicting every move, but about enduring its volatility. He also discovered the concept of “market psychology,” realising that much of the market’s movements were driven by the collective emotions of traders and investors—fear, greed, and euphoria.

 

Chapter 3: Rebuilding and Rising

As the Indian economy grew in the 2000s, so did Rajan’s understanding of the market. The advent of online trading platforms made it easier for retail traders to enter the market, and Rajan took full advantage. He began to focus more on fundamental analysis, researching companies, their financial health, and future prospects. He was cautious with his trades, but he also understood that opportunity often came during periods of fear and market pessimism.

In 2008, the global financial crisis struck, and India wasn’t immune to its impact. The stock market crashed, and Rajan’s portfolio once again took a heavy blow. But this time, he was different. Instead of panicking, Rajan saw it as an opportunity. He started buying shares of fundamentally strong companies at rock-bottom prices. Over the next few years, as the market rebounded, his investments grew exponentially.

The period from 2009 to 2013 was a time of steady growth for Rajan. His portfolio surged, and he started to gain recognition among his peers. He understood now that the market wasn’t about making money quickly—it was about patience, discipline, and the ability to weather the storm.

 

Chapter 4: The Dark Night of the Soul

By the 2010s, Rajan had become a seasoned trader, having spent two decades in the markets. He had faced market crashes, booms, and stagnation. The Indian stock market had matured, and the Sensex was touching new heights, breaking records year after year. But for Rajan, something had shifted.

He began to notice that despite the profits, he wasn’t as fulfilled as he once thought he would be. He was constantly chasing bigger profits and this relentless drive led him to take greater risks. He found himself drawn to the volatile, high-risk trades that promised quick returns. But that’s when the market reminded him of its dark side.

He tried Futures and Options strategies with Index trading and stocks but was unlucky.

In 2016, Rajan experienced one of his worst losses with the Brexit event. After a series of risky trades, his portfolio was decimated in a market correction. His sense of self-worth, built on profits and losses, shattered. F

or the first time, Rajan questioned his identity as a trader. Was he defined by his portfolio, or was he more than that?

It was during this period of self-doubt that Rajan realised the true psychology of trading - it was about managing his own mind.

 

Chapter 5: The Trader’s Wisdom

By 2019, the Indian market had witnessed unprecedented growth, with the Sensex and Nifty crossing new milestones. Rajan, now wiser and more introspective, understood that trading was as much about emotional intelligence as it was about strategy. He had learned that losses were part of the journey, not the end of it. His trading style had evolved—he now focused on long-term investments and employed a disciplined approach to managing stop losses and profit-taking.

The global pandemic of 2020 brought chaos to markets worldwide, but Rajan remained calm. He didn’t panic, even as the market plummeted. Instead, he saw it as an opportunity to buy quality stocks at discounted prices. His patience paid off when the market recovered in 2021 and continued to do so through 2022, 2023, and 2024.

As Rajan celebrated his 55^th birthday in 2025, he reflected on the decades of experience, profit, loss, and growth he had endured. The Indian stock market had grown to be one of the largest in the world, and Rajan had become a part of its story—a story of strategy, evolution and mastery over one’s own psychology.

His profits were now more stable, his losses smaller, and his understanding of the market deeper. But more importantly, Rajan had learned the most important lesson of all - that the stock market is not just a place of numbers, but a reflection of human nature itself. And in that reflection, he had finally found peace.

By the way, it's priceless to hear his story and share it with our readers through a blog.

The End of the Story, or the Beginning for Many Traders?