Early Days
Every successful trader has a beginning, and more often than not, that beginning is far from glamorous. Before wealth, recognition, or influence come into the picture, there is usually a period of hardship that shapes a person's character and ambitions. In *Bulls, Bears and Other Beasts*, Santosh Nair introduces readers to the early life of Lalchand Gupta, affectionately known as **Lala**, whose difficult upbringing becomes the foundation of his extraordinary journey through the Indian stock market. Rather than portraying him as someone born with exceptional talent or privilege, the author presents him as an ordinary young man whose circumstances force him to seek opportunities wherever he can find them.
Lala grows up in a financially struggling family where meeting everyday expenses is a constant challenge. Life offers very little comfort, and opportunities appear scarce. As a teenager, he falls into the company of troublesome friends, developing a rebellious attitude that often lands him in fights and unnecessary conflicts. Concerned that his son's behaviour may eventually destroy his future, Lala's father decides to move the family away from their old neighbourhood in the hope that a different environment might help him change his ways. However, changing one's surroundings does not immediately change one's mindset, and Lala continues to search for direction in life.
The family's situation becomes significantly worse when Lala's father suffers a severe accident while working at the factory. The injuries leave him unable to continue earning a living, and almost overnight the family's financial burden shifts onto young Lala. Still studying at the time, he is forced to take up small jobs simply to keep the household running. The work provides income, but little satisfaction. Deep down, Lala knows he wants something greater than a lifetime of low-paying jobs that barely cover daily necessities. This growing dissatisfaction becomes the driving force behind his search for a better future.
Fate begins to intervene when Lala reconnects with his college classmate, **Pradeep Mohan**. Unlike Lala, Pradeep works in the back office of a stockbroking firm, handling client records and post-trading operations. Their conversations introduce Lala to a world he had never truly considered before—the stock market. Listening to stories about fortunes being created and destroyed within minutes captures his imagination. For the first time, he discovers a profession where success appears to depend not on expensive degrees or family wealth but on knowledge, observation, courage, and timing. The stock market represents possibility, and that possibility immediately appeals to his ambitious nature.
As Pradeep continues sharing stories from Dalal Street, Lala becomes increasingly fascinated. He realizes that financial markets reward skill and quick thinking rather than social background. This realization is transformative. Having grown up believing that limited resources meant limited opportunities, he now sees a profession where determination and intelligence may matter more than inherited privilege. Although he understands very little about trading itself, he becomes convinced that this is where he belongs.
Unable to suppress his curiosity any longer, Lala asks Pradeep to help him secure a job at a brokerage firm. While he dreams of standing on the bustling trading floor where fortunes change hands every second, he understands that every career begins with small steps. Pradeep manages to arrange an entry-level position at a relatively unknown brokerage house and advises his friend to remain patient and avoid acting recklessly. Lala accepts the opportunity without hesitation because he knows that simply entering the industry is more important than the designation attached to his first job.
The late 1980s present a fascinating period for the Indian stock market. Public interest in equity investing is steadily increasing, although the market remains vastly different from what investors know today. Institutional investors such as the Unit Trust of India (UTI) and the Life Insurance Corporation (LIC) dominate trading activity, while reliable public information about companies remains limited. Much of what passes for market research depends on personal relationships and insider information rather than transparent disclosures. Brokerage rates are significantly higher than modern standards, and investing based purely on business fundamentals has yet to become widespread. In this environment, information itself becomes one of the most valuable commodities on Dalal Street.
Some of India's best-known companies already attract significant trading interest. Reliance Industries, Bajaj Auto, Tata Tea, Tata Chemicals, Castrol, and TISCO are among the actively traded stocks of the period. Influential market operators such as Nemish Shah, Manu Manek, and Ajay Kalyan command enormous respect within trading circles. Although Lala enters the market at the lowest level, he soon realizes that he has stepped into an ecosystem where personalities can influence prices almost as much as financial performance.
Working in the brokerage's back office proves to be an invaluable learning experience. Instead of seeing only stock prices, Lala gains access to something far more important—information about who is buying, who is selling, and how major market participants behave. Every transaction tells a story. By carefully observing client activity, he begins recognizing patterns that many others overlook. More importantly, he understands that success in the stock market often comes from understanding people as much as understanding businesses.
Recognizing the importance of relationships, Lala actively builds connections with employees at other brokerage firms. He understands that information travels quickly through trusted networks, and friendships often become valuable sources of market intelligence. His willingness to learn, observe, and interact earns him respect among colleagues, eventually leading to his promotion as a dealer on the trading floor. This marks a turning point in his career, placing him much closer to the heart of market activity.
Life on the trading floor introduces Lala to the excitement and intensity of open-outcry trading. Prices are announced through the exchange's public address system, while the daily *bhaav copy* records the highest, lowest, and closing prices of each stock. After official trading hours end, activity continues in the unofficial **kerb market**, where participants negotiate deals in highly liquid stocks. The market never truly sleeps, and Lala quickly realizes that every moment offers another opportunity to learn.
Among all the market participants, it is the **jobbers** who capture Lala's admiration. Unlike investors who wait months or years for returns, jobbers profit from tiny price movements executed repeatedly throughout the day. Their success depends on reading crowd psychology, anticipating market sentiment, and making rapid decisions under pressure. To Lala, they represent the highest level of trading skill. He understands that becoming a successful jobber requires not only market knowledge but also emotional discipline and the ability to remain calm while others panic.
The mechanics of trading also leave a lasting impression on him. Every transaction must be recorded carefully in the **sauda pad**, which contains details such as the broker's clearing number, whether the shares were bought or sold, the company name, quantity, and transaction price. These handwritten records form the backbone of trading operations before the arrival of computerized exchanges. Through this meticulous process, Lala learns that behind every successful trade lies careful execution and accurate record-keeping rather than excitement alone.
As his confidence grows, Lala forms a close friendship with **Bunty**, an employee at a non-banking finance company. Bunty frequently seeks inside information about brokers, jobbers, and important market transactions, recognizing Lala's growing network within Dalal Street. In return for valuable information, Lala receives generous payments that supplement his modest income. These interactions further reinforce an important lesson: in financial markets, knowledge often possesses greater value than capital itself. Bunty eventually concludes that Lala possesses unusual instincts and predicts that he is destined for much greater success in the years ahead.
The chapter closes by showing how dramatically Lala's life has changed in a relatively short period. What began as a desperate search for employment has evolved into the first steps of an ambitious career in India's stock market. Although he still has much to learn, he has already discovered the qualities that will define his future—curiosity, resilience, sharp observation, and an unwavering determination to rise above his circumstances. These early experiences lay the foundation for the remarkable journey that follows, proving that every legendary market participant begins not with extraordinary wealth but with an extraordinary willingness to learn.