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Last Updated : Jul 20, 2020 11:03 AM IST

Stock trading simplified by Afzal Lokhandwala

One of the most enticing areas, Stock Markets, acts as a slow poison to the majority and a consistent money generator for a very few.

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Afzal Lokhandwala, a Chartered Accountant, is one of the most followed stock market traders on Twitter in India. He is respected for his transparency, in showcasing the real picture of trading to the beginners who are joining markets thinking that stock trading is all about getting rich overnight.

He gained immense popularity when he put forward his knowledge through a very affordable video course called the “Classic Trading Course (CTC)”. He even accepts donations to charitable trusts to avail his course which shows his pious intentions of educating people about the markets. Those who have been trained by him have great things to say about his course. He also shares his insights on the markets on his YouTube channel.

TRADING OR INVESTING?

Afzal Lokhandwala differentiates trading from investing. Stock trading is about capturing those short-term price movements which are primarily caused by the emotions of the market participants. Investing is a long-term approach of wealth creation where one intends to hold stocks for longer periods.

He says, “Generally, people derive regular income from their business or jobs and invest some part of it for the long term. I derive my regular income through stock trading itself and invest some part of it. I am a trader. I can trade Intraday as well as Positional styles, but I like the latter more because I don’t like to be on my computer screen for a long time.”

HOW A BEGINNER IS TRAPPED 

On being asked about his journey in stock markets, he said, “I opened my first Demat account in 2015 looking at my friend who was doing Intraday trading. I liked putting money at stake and watching prices go up and down. I did not realize that I was inviting trouble as I was just gambling since I did not have any knowledge of it. I started getting calls from advisories saying they would give me “Sureshot Calls” and I have to pay the fees. Like every beginner, I too got greedy and started taking their services. Eventually, I started making losses after losses. I was so stupid that I was even paying them again and again. This continued till 2017 and I was psychologically exhausted. In 2018, I started to introspect and ask questions like, “If I am losing so much of money, there must be someone on the other side, making all this money”, “Why are my profits, small and losses big?” I became headstrong to discover the secrets of those very few traders who are making consistent money from stock markets. I got to know the real secret is the discipline in the approach. In the last 8 months of 2018, I could clock astonishing returns and recover a major part of my losses. Since then, I never looked back and made stock trading my primary source on income. I have also uploaded this video on YouTube which shows my P&L Report of 2018.”

On what a beginner should keep in mind, Afzal said, “Stay away from those advisors or trainers who promise you fixed income in stock markets. Secondly, never take a loan and trade. When it comes to stock trading, I say there are three pillars of successful trading: Risk Management, Trading Psychology, and Technical Analysis. Having trained doctors, engineers, and even grandfathers, I can comfortably say that learning is very easy.”

IS STOCK TRADING COMPLEX?

Afzal Lokhandwala believes that simplicity works better in life than complexities and the same is with markets. He relies solely on chart analysis to trade markets. On being asked about the other ways of analysing markets, he says, “See, relying my decisions solely on the charts has worked great for me. I believe that the emotions of the participants are reflected in the charts and if one can acquire that tact to decipher what the charts whisper, he would not need anything else. I do not look at fundamentals or news about the company. For me, the chart of the company is enough. However, there are other methods of analysis like data analysis, news analysis. But I feel chart analysis is easy, powerful, and exciting.”

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Afzal does not use indicators much and is more of a price action trader. He uses the traditional technical analysis methodologies like Supports and Resistances, Trend Lines, Classical Chart Patterns, and Fibonacci but in his distinct way. He analyses multiple time frames for his decisions in the markets.

LEARNING FROM THE RIGHT SOURCE IS THE KEY.

On being asked about the journey of the Classic Trading Course, he says, “You will find lots and lots of content on the internet on Technical Analysis. It is very hard to judge what is right and what is wrong. I had been a victim of such misinformation in the past. Moreover, I had been getting lots of requests to train traders. I decided to record a series of structured videos that cover all the aspects of being a successful trader and thankfully, the course turned out to be a transforming tool for many aspiring traders as well as experienced traders who were still struggling in the markets. For my time and efforts required in educating traders, I have priced it at a nominal amount to make it affordable to all.”

Afzal Lokhandwala leads a very simple lifestyle, loves music and sports, and spends most of his time with his family. He says, “Stock trading is not a job, business, or a profession. It’s a lifestyle. I enjoy the flexibility of my life and I am thankful I landed up being a trader. I can trade from anywhere with my laptop and internet and continue till my last breath!”

To start the journey of learning and trading profitably in the markets, traders can visit www.afzallokhandwala.com , the official website of Afzal Lokhandwala, which has been developed to streamline the process of education.

This is a partnered post.

 
First Published on Jul 20, 2020 11:02 am
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