Yuvraj Murjani is an entrepreneur who is a powerhouse of stock market trading. He had to grow and fill his father’s shoes quite early when his father suffered paralysis that left him bedridden. Yuvraj took it upon himself to take care of the finances, look after his father’s clothing business and become the bread-earner in no time.
He has moved on to hone his knowledge and skills of stock trading where his passions find a gateway. Yuvraj has self-taught the nitty-gritty of the stock market and has also suffered losses quite along the way. Nonetheless, he is striding and wishes to be a certified trader real soon.
Read more about the basics of stock trading, some trading advice and more in this candid conversation with Storiyaan.
Yuvraj Murjani: Stock Trading 101
Questions and answers
What brought forth your interest in stocks in the first place and how did you get started?
I came across a renowned Indian business magnate and stock trader, Rakesh Junjunwala. I gathered knowledge about the market and learned a lot from his videos. Consequently, I did my fair share of research about stock companies. That made my passion intrigue for the stock market growth, and I was finally ready to dip my toes into this field.
You went through a very difficult phase in your life after your dad’s illness. What were the major contributors to your optimism and determination during that phase?
Together my family and I managed to sail through that challenging period. During that phase, I handled our family business and took care of the shop. Besides, I also looked after the finances. Thus, the only answer when you face difficulties is to keep moving forward and not think about giving up.
What are some of the research strategies that you had to divulge to get to know the field better?
The utmost important thing to do to get better knowledge about the field is to have constant research and contemplate on it. I conduct my primary research through newspapers and make a market prediction based on the data that I gather. Moreover, I only enter the markets I think will help me book profits and use all my strategies and insights to my benefit.
What would you describe yourself as a day trader, or a swing trader or a scalper, or as an investor-trader?
I am indulged in both Day-trading and long term investments. I have set daily targets for myself regarding the amount of profit I have to acquire under any circumstances. If I fail to do so, I have to incur losses.However, I take it as a lesson and try to pay more attention to those issues the next time around.
What is your favourite time frame to trade on and what is your favourite technical indicator?
I would have to say that in my experience 9:15 to 12:00 is my preferred time frame to trade. Along with that, my on-screen time is up to a 3minutes chart. Furthermore, the technical indicator I use is the Relative Strength Index [RSI] as it measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or asset.
Can you tell us if you made any rookie mistakes in the initial days? How did you overcome them later?
It is impossible to avoid losses when you first start in the stock market. I learned this the hard way as I began booking small losses in my initial days. But, later on, I learned to retrieve the losses on the same day. If recovering the loss isn’t possible on the same day, I wait for a good timing that will provide me with an advantage and I can make profits and cover the losses adequately.
What are some of the common misconceptions that people have before they invest in the stock market and how can they educate themselves?
In India, people enter the market with a misconception of ‘Jugaad’ which is a mentality or practice of bending rules and thinking laterally to making something work. The first thing that needs to be clarified is that Stock Market dealing is not easy money, unlike popular opinion. People should conduct their research, be it books, blogs, newspapers etc. But most importantly, you must possess the will to be a trader.
How do great traders go about finding their approach to the markets? What would you say sets them apart?
There are two kinds of traders you will find at stock trading which are big reputed profiles and old well-experienced people. I think the ability to see the bigger picture and forward-thinking is what sets them apart. Therefore, there are many strategies that they follow and it is beneficial for other traders to learn and emulate them in their trading practices.
What advice would you give to non-professionals who would like to start trading and what are some of the skills essential in this field?
As a non-professional, the best thing to do is study the commodity in which they would like to start trading. Research and gather as much knowledge as they can is the most important step that proves valuable in any period. Just start from small investments and trades, don’t be afraid to take calculated risks. With practice, skills can be mastered, and sooner or later you will be able to make successful trades.
In the last couple of months crypto has seen some drastic changes. What are your views on that?
In my opinion, Crypto is a huge game that does not work on certain strategies. It works on big players and their plans, for instance, Elon Musk. These people influence the market. Thus, I think there is no precise prediction that can be established when dealing with Crypto.
1. Which one do you trade-in-derivatives or non-derivative? Non-derivatives
2. Leverage or no leverage– No leverage
3. One trader you follow passionately – Rakesh Junjunwala
4. One thing that keeps you motivated– My past
5. One book you would recommend for new traders– Basics of Indian Stock Market by Angshuman Adhikari