Mukesh Bansal, co-founder of Myntra and Cult.fit, candidly revealed his tumultuous experience with day trading in his younger years, leading to a prolonged hiatus from investing in the stock market. In a conversation with Groww CEO Lalit Keshre on the SparX podcast, Bansal reflected on the impulsive nature of day trading and its impact on his investment journey.
During his twenties, Bansal delved into day trading fervently, enticed by the allure of quick returns. However, the volatile nature of day trading left him disillusioned, prompting him to temporarily abstain from investing altogether. He acknowledged the psychological toll of day trading, emphasizing its drastic fluctuations compared to the steady growth of long-term investments.
Shift to Long-Term Investment:
Bansal underwent a significant transformation in his investment approach, opting for a more conservative strategy focused on long-term holdings. He expressed a newfound commitment to patience and stability in his investment portfolio, steering away from the erratic nature of day trading.
Caution Against Day Trading:
Both Bansal and Keshre cautioned investors against the pitfalls of day trading, highlighting its unsuitability for the majority of individuals. They emphasized the importance of understanding investment vehicles thoroughly and warned against relying on stock recommendations from unverified sources.
Keshre outlined various avenues for aspiring investors, ranging from individual stock picking to mutual funds and index funds. He stressed the significance of aligning investment choices with one’s understanding and comfort level, advocating for informed decision-making and prudent financial planning.
Conclusion:
Mukesh Bansal’s journey serves as a cautionary tale against the allure of day trading and the importance of adopting a patient, long-term approach to investing. Aspiring investors are urged to prioritize education, research, and aligning investment choices with their risk tolerance and financial goals. Bansal’s shift towards stability underscores the transformative power of learning from past experiences and adapting strategies for sustained financial growth.
