Former JP Morgan consultant reveals dark side of trading. Click to learn more
Aditya Singhania, a former consultant at JP Morgan, recently shed light on the challenges of trading by sharing a cautionary tale about a friend’s substantial loss.
In a post shared on social media, Singhania recounted how his friend, who quit his job to pursue full-time trading, lost over ₹1.4 crore on a capital of ₹1.7 crore. Singhania emphasized the risks involved in trading, cautioning that it remains one of the toughest professions to make money, especially when it serves as one’s sole source of income.
Spoke to someone recently! His situation –
— The Simple Trader (Aditya Singhania) (@Simple_trader_) April 3, 2024
Started with Capital of 1 crore, made 1 crore net profit in 2022-23 and paid 30 lakh in income tax …so closed year with capital of 1.7cr
Next year started with 1.7cr, and lost more than 1.4 cr in derivative trading in FY 2023-24, so…
Singhania’s post, shared on April 3, has garnered significant attention, accumulating close to two lakh views and eliciting nearly 1,000 likes along with numerous comments, which read:
“Never rely on trading income as single source of income”
“Feel sorry for his losses, best is to keep taking profits away and lock into other assets”
Among the responses, one individual offered advice for Singhania’s friend, suggesting they consider joining a prop trading desk to potentially recover their losses with leverage. However, the commenter acknowledged the difficulty of offering advice, admitting their own struggles in trading over the past seven months, where they earned only a modest 3-4% return.
This anecdote serves as a stark reminder of the inherent risks associated with trading and the potential consequences of relying solely on it for income. Singhania’s message underscores the importance of understanding the complexities of the market and the need for prudent financial management to mitigate losses and safeguard one’s financial well-being.
