₹10 Lakh Trading Loans settled within ₹75k, Got my Life back | Losses & Lessons Ep-17

This episode of Losses & Lessons isn’t just another loss making trader story. It’s a deep dive into how a businessman entered the stock market with confidence, faced massive trading losses, navigated the emotional and financial storm that followed, and came out with a mindset that many traders fail to achieve even after years.

At its core, this story blends human psychology, technical realities of the market, and the often-overlooked financial mechanics behind recovery.

From risk-reward ratios and over trading traps to loan settlements and their long-term impact.

Mr. Sahoo wasn’t new to risk.

His business background had taught him about cash flows, capital allocation, and decision-making under uncertainty. But the market is not business.

In business, you can influence demand, negotiate supply, and adjust strategy mid-course. In markets, you face a moving, indifferent system that doesn’t care who you are or how confident you feel.

Like many retail traders, Mr. Sahoo was exposed to the noise of YouTube traders flaunting profits and the Instagram “rich lifestyle” culture. Screenshots of P&L accounts, luxury cars, and “freedom” narratives were everywhere.

But here’s where his story stands apart: he consciously distanced himself from it. He knew that social media optics had no bearing on real wealth. He didn’t measure his self-worth against curated online images, a choice that later kept his recovery grounded and free of ego-driven decisions.

In the beginning, every small win felt validating. Every small loss felt like an opportunity to “recover” quickly. This is how over trading starts.

Over trading isn’t just about the number of trades. It’s about the erosion of decision quality:

You increase frequency, which increases brokerage and transaction costs — silent killers of net profitability.

You take trades outside your original strategy just to keep “doing something.”

You reduce the accuracy of your setups because you’re trading from restlessness, not opportunity.

What began as a manageable setback snowballed into a ₹12 lakh hit. This wasn’t just a market move — it was a combination of loss-chasing psychology and lack of predetermined exit criteria. To keep trading and manage other financial needs, loans were taken — including one for ₹3.22 lakh. This is where the story takes a rare turn.

Instead of being buried under EMIs, Mr. Sahoo negotiated a settlement at ₹40,000. That’s a fraction of the original liability. For most, this would be unthinkable, but it was a deliberate, calculated choice:

Short-term relief: Immediate breathing room from debt pressure.
Cash flow preservation: As a businessman, he knew liquidity mattered more than optics in times of strain.
Mental peace: Removing the constant repayment burden allowed him to focus on restructuring his finances.

However, the technical reality: a settled loan negatively impacts CIBIL score and future borrowing potential. This is a trade-off — in some cases worth it, in others not. He accepted the consequence, prioritizing immediate stability over long-term credit access.

The same approach was applied to other loans — closed at significantly reduced amounts, freeing him from the cycle of compounding interest.

One of the most refreshing parts of his mindset was around spending and value perception. In a digital world, it’s easy to swipe, click, and spend without feeling the real cost. But he preferred connecting to money in its physical form — a reminder that every digit represents real, hard-earned value.

This kept him from unnecessary lifestyle inflation, a trap that catches many traders who hit a winning streak.

Today, trading is a smaller, more controlled part of his financial life. The primary income comes from business, with the market serving as an additional, calculated exposure.

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0:00 - Introduction
1:03 - Entry into Stock Market
4:38 - Influence of YouTubers
7:08 - Mindset during Earlier Days
10:16 - Reaction on Loss of Capital
11:24 - Loan Settlements
14:30 - Market Fault or Mindset Flaw
16:58 - Why Sharda invested in Mutual Funds?
18:58 - PnL Discussion
22:05 - Sharda's learning from Losses
25:56 - Impact of Digital Lifestyle
30:04 - Current Situation & Mindset
33:27 - Final Thoughts