My First Experience with Trading: Knowing When to Step Back

How It Started

During my second or third year of engineering, one of my friends was already interested in trading. He introduced me to it and taught me some of the basics.

At that time, we received SSP scholarships, and we started investing small amounts in stocks. What began as a small experiment gradually turned into something more interesting.

Eventually, we started trading Futures and Options (F&O) on Nifty and Sensex.

The Excitement of Trading

There were times when we made profits of around ₹3,000–₹4,000, but there were losses too. Like many beginners, we experienced both sides of the market.

Trading became a regular part of our college routine. We would keep opening charts during classes, watching price movements and checking what was happening in the market.

Looking back, it is funny how much attention those charts could take away from everything else happening around us.

At the time, every market movement felt interesting. There was always something to watch, something to learn, or another opportunity that seemed worth exploring.

Why I Stepped Back

It has now been almost a year since we last traded.

Today, my situation is different from what it was back then. I don't have enough money that I can comfortably afford to lose, and I don't believe my trading skills are developed enough to justify taking that risk.

I'm also in an important phase of my engineering journey, focusing on improving my technical skills and preparing for job opportunities.

Returning to trading just because I have done it before would not be a good enough reason.

Learning to Manage Risk

One thing this experience has taught me is that making a profit once doesn't necessarily mean you know how to trade consistently.

The money we made was exciting, but the losses were a reminder that the market doesn't always move in the direction we expect. In F&O trading, losses can happen quickly, and the risks are significant.

I still find trading interesting, and I may explore it again in the future. But for now, I would rather learn more without risking real money.

There is no need to rush.

For Now, I'm Choosing Stability

At this stage of my life, I want to focus on building my career, improving my skills, getting a job, and becoming financially stable.

Maybe I'll return to the markets someday with more knowledge, a stable income, and a better understanding of risk management. Or maybe my interests will change. Either way, I don't need to decide that today.

Sometimes, making a good financial decision means knowing when not to participate.

For now, I'm comfortable stepping back, learning at my own pace, and focusing on what matters most to me.