---
title: 'The Mistake That Taught Me How to Trade | My Journey Since 2006'
source: 'https://youtube.com/watch?v=ZXmOW0uVQ8A'
video_id: 'ZXmOW0uVQ8A'
date: 2026-08-10
duration_sec: 114
---

# The Mistake That Taught Me How to Trade | My Journey Since 2006

> Source: [The Mistake That Taught Me How to Trade | My Journey Since 2006](https://youtube.com/watch?v=ZXmOW0uVQ8A)

## Summary

The speaker recounts his initial foray into trading during his second year of graduation, which began with a friend's tip and quickly led to significant losses. This painful experience drove him to realize the necessity of a systematic approach, leading him to document his trading rules and risk parameters.

### Key Points

- **Early Start in Trading** [00:02] — The speaker received stock tips from a friend working as a computer operator at a broker's place, prompting him to invest money meant for college fees.
- **Initial Success and Overconfidence** [00:30] — He made quick profits and believed that if money kept flowing, he could easily make more, which fueled overconfidence and led to continued trading.
- **The Journey of Losses** [00:44] — After the initial gains, he experienced a series of big losses, which forced him to understand that a systematic approach was necessary.
- **The Need for a System** [00:58] — He realized he needed to write down his trading rules, including entry points, targets, and exit strategies, to avoid impulsive decisions.
- **Defining Targets and Stops** [01:14] — He began documenting his trades, setting specific targets (e.g., buying at ₹1, targeting ₹10) and acknowledging that no one, not even the Finance Minister or Trump, knows future prices.
- **Risk-Reward Ratio** [01:43] — He concluded that a practical approach is to take a profit of ₹20 and a loss of ₹10, establishing a clear risk-reward ratio.

### Conclusion

The speaker's journey from impulsive trading to a disciplined, rule-based approach highlights the critical importance of having a system and defined risk parameters to survive and succeed in trading.

## Transcript

when I was in the second year of graduation. I got some links from one of my friends. He was a computer operator somewhere at a broker's place. So, I make money. Well, there was
you left at that time. Okay, let's see Okay, and I invested that money in trading. keeping the fees aside, I thought okay, let's do it for two, four, five days.  There is still
time to pay the fees or submit the fees. And I feel that money is being made. And I feel that money is being made. money keeps on flowing like this, then the world will make money.  The journey started from there.
From there the journey of losses started and big losses kept on happening, kept on happening, kept on happening. Slowly, slowly, slowly I understood that brother, a system is needed.  That means I will have to write down what I have to do.  As you said, the stock is up 3%.
People feel like they should go further or stop.  So I will have to write a system on my notepad. So since I started doing this I started writing down if I have entered a stock.
How long will I stay in it, that is, Yes.  That means I bought a stock at ₹1. What is my target?  My target is ₹10.
No. Nobody knows, even the Finance Minister does not know that Rs 120 will come.  Hey, even Trump sir doesn't know that it will come to 120.  So how do I know?   I don't know, right? Do I know this stock will go down?  Don't know.  So one way we
can do this is to take a profit of ₹20 and a loss of ₹10. take a profit of ₹20 and a loss of ₹10.