Always try to keep atleast 2 demat accounts. I know many would disagree to this as to why should we keep 2 or even more demat accounts at the first place. Let me explain it to you why.
Firstly, I want to tell you that you can link any number of demat accounts to your single savings account. Yes it is very much possible friends to link a number of demat accounts to a single savings accounts as there is no restriction to it.
Soo coming to the point, keep atleast 2 demat accounts. One for trading and one for investing i.e. one for short term and one for long term(only in Equities). You may also keep a third demat account for commodity,options and futures and equity Intraday.
Please note that all this I am talking about a seasoned trader/investor who has enough knowledge and experience in markets and not about a beginner into markets.
Keeping these many accounts would make your work easy as to keep track of all your trades and investments for long. Those who generally invest for 10–20 years as well trade every two three months i.e. Short term trader or swing traders need to have a clear idea of all their trades and investments as it is your hard earned money. You cannot be complacent with your investments so that is why two demat accounts are essential.
The third account should be considered as ‘trash'. According to Sunil Minglani, keep just 50–60k or whatever your risk appetite is into this third account and tell your mind that this money is going to turn into ash. Train your mind like that. That this money was never with me. These 50–60k rupees were never with me. Forget them. And trade as much as you can because you want to relieve yourself from your frustration with this account.
Just dont rubbish the other two accounts which are your prudent investments and trades. Dont spoil them. As they say - “jitna ghussa hai pura is tisre account pr nikalo aur smjh lo ki ye paise aapke paas kbhi the hi nai. Wo jane k liye hi dale h aapne us account me”.
You'll just have to pay the AMC of these accounts at the end of the year which are very miniscule.
This is a kind of stress reliever strategy for the professionals.
Now a question might pop up into your mind - Why to do all this?
All this is done because emotions play a very important role in markets. Emotions of the whole world; emotions of millions and billions of people towards the market; towards that company; towards the share price. Emotions are a vital part. What is stock market? Its basically a game of emotions, feelings, sentiments and psychology of people.
Never mix your emotions while investing into any particular company or just trade by intuition. Never trade blindly. Never trade on tips. Develop your own strategy. Don't forget that the market never makes a mistake. We do.
Losses are bound to come. Losses are a part of the game. Without losses, a person cannot learn how to trade. It is the losses that teach individuals how to trade and how to invest. Dont be afraid of losses instead learn from them and do not make the same mistake again. Take an oath that you will not commit the same mistake again.
So to sum up, I truly feel that having multiple demat accounts will definitely benefit you however I must say that opinions differ. They always will.
So it can definitely differ from person to person, trader to trader and investor to investor.
This is my completely my personal opinion.
BY ABHIRAM DAPKE
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