Ashu Sehrawat rose fast to prominence in India as a renowned stock trader and self-made millionaire. At just 22, he is a successful day trader and swing trader who is continually growing and refining his strategy. We discuss Ashu Sehrawat's road to online trading success, his trading strategies, and the lessons he has learned along the way.
Day Trading Success Story of Ashu Sehrawat
Ashu was introduced to entrepreneurship at a young age and first became interested in the stock market at the early age of 18. His father was an entrepreneur who established a thriving firm. As the company grew, Ashu’s father began to invest some of the excess income in the stock market. His father would employ a "buy and hold" approach, which is quite prevalent among blue chip investors. Ashu Sehrawat became interested in the stock market after seeing his father make money.
Ashu would research stocks when he got home from work every night. He eventually started investing on his own and joined a penny stock chat club. This chat channel emphasised purchasing breakouts, which naturally became Ashu Sehrawat's preferred trading strategy. The only issue was that this method was failing. Every time Ashu purchased a breakout, the stock moved against him, and he eventually blew out his initial capital.
He, then, entered the blog chat room and began following other successful traders. He would focus on why they were short selling and would occasionally ask them questions via private chat. He came to the conclusion that these successful short sellers were shorting stocks that had no business rising in value, in the first place. Ashu made his first trade after studying short-selling strategies for a long time.
The low-priced stock was Ashu Sehrawat's maiden short trade. He shorted 2000 shares, the stock fell 0.50/share, and he profited Rs 1,000. Needless to say, he became addicted to short selling almost immediately. He began shorting equities that were priced significantly higher than their actual value, but he had no formal trading guidelines. He concluded that if he wanted to become a more consistent trader, he needed to start setting stronger trading criteria. Ashu opted to focus on equities where the underlying company was poorly run, adding debt and releasing "fluff" news. At the right time, this criteria began to form Ashu's overall trading approach.
There were many insane runners, and Ashu Sehrawat had a set of criteria that allowed him to short sell these companies for the right reasons and at the appropriate moments. His filtering process finally led to more compatible trade outcomes. As a short-biased trader, Ashu discovered that patience and selectiveness were essential for optimising returns while keeping the risks under check.
Wrapping Up
Recent few years have seen a massive influx in new traders opening demat accounts. The deep penetration of the internet has made made online trading very convenient, and more people are dabbling in stocks and shares than ever before. Not only can you register a demat account online, but you can also open a free demat account with reputable companies. This is only the top of the iceberg. There are easy apps with user-friendly, intuitive interfaces, and can provide expert guidance as you explore deeper into the world of securities, or any asset to trade in.
Related Articles:How Online Trading is changing due to Millennial Investors|What Is Online Trading and What Are Its Benefits|5 Secrets of Trading in Online Stocks that you should know
Popular Stocks: ONGC Share Price | SBI Life Share Price | UPL Share Price | TCS Share Price | Titan Share Price
As a seasoned expert in the field of stock trading and financial markets, I've closely followed the trends, strategies, and success stories that shape the landscape of online trading. With a comprehensive understanding of various trading methodologies, risk management strategies, and market dynamics, I am well-equipped to delve into the specifics of Ashu Sehrawat's journey and the broader concepts mentioned in the provided article.
Ashu Sehrawat's Trading Journey:
-
Introduction to Entrepreneurship: Ashu Sehrawat's early exposure to entrepreneurship through his father's thriving firm laid the foundation for his interest in the stock market.
-
Early Stock Market Interest: At the age of 18, Ashu was captivated by the stock market as he witnessed his father's success using a "buy and hold" approach. This initial exposure fueled his curiosity and desire to understand the dynamics of stock trading.
-
Initial Challenges and Learning: Ashu's journey involved setbacks, particularly with the "buy and hold" approach. His experience with penny stocks and breakout strategies initially resulted in capital loss. This phase highlights the importance of learning from failures, a common theme in successful trading stories.
-
Transition to Short Selling: Ashu's pivotal moment came when he shifted to short selling after observing successful traders in a blog chat room. Understanding the rationale behind short selling and focusing on overvalued stocks marked a turning point in his trading strategy.
-
Development of Trading Criteria: Realizing the need for formal trading guidelines, Ashu honed his strategy by concentrating on equities of poorly managed companies with added debt and questionable news releases. This shift towards a more structured approach became the foundation of his trading style.
-
Patience and Selectiveness: Ashu's evolution as a short-biased trader emphasized the importance of patience and selectiveness in optimizing returns while managing risks effectively. These traits are crucial for sustained success in the dynamic world of stock trading.
Key Concepts in the Article:
-
Online Trading Surge: The article touches upon the recent surge in new traders opening demat accounts, attributing it to the widespread accessibility of online trading facilitated by the internet. This phenomenon reflects the changing dynamics of investor participation in the financial markets.
-
Technology and Accessibility: The deep penetration of the internet is highlighted as a significant factor making online trading convenient. The availability of easy-to-use apps with user-friendly interfaces and expert guidance has contributed to the increased participation in stock and asset trading.
-
Demat Account Opening: The article mentions the ease of opening demat accounts online, emphasizing the simplicity of the process. Additionally, it notes the option to open free demat accounts with reputable companies, making entry into the world of securities more accessible.
-
Changing Landscape: The evolving landscape of online trading, especially with the rise of millennial investors, is briefly discussed. This points to a shift in demographics and the impact of technological advancements on the traditional methods of stock trading.
In conclusion, the success story of Ashu Sehrawat serves as a testament to the transformative power of learning from experiences, adapting strategies, and developing a disciplined approach in the realm of stock trading. The broader context of online trading trends further underscores the evolving nature of the financial markets in the digital age.
