I am 32 years and reside in Mysuru. I just started trading in stocks 3 months ago. Unfortunately, I lost 2 Lakhs while trading in stocks. I have the attitude of never giving up. I then borrowed another lakh from my relatives and lost this money trading in stocks. Now I cannot face my relatives and have stopped attending all family functions. What should I do?
Understand the difference between traders and investors. Traders are in the stock market for short term gains. Traders can invest for the short term if they are disciplined, hard working and have working knowledge of the stock market. You are an investor not a trader. You need to invest for the long term. Unfortunately, you have behaved like a trader and so have lost money in stocks. First stop trading and understand your situation. You might have invested in good stocks, whose prices would rise, when stock markets do well. Your immediate focus should be paying back the loan. First tell your relatives of your loss in the stock market and promise to pay them in installments. Running away is not a solution to a problem. Set a part of your salary aside and repay your relatives. You must never borrow to invest in stocks. This lesson should serve you well.