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I bought my bonsai on the 16th of February and in the past week, my bonsai has dropped more than half of its leaves and turning yellow. I am trying to give my tree the most sunlight I can in the house and watering when the pot feels light as the guy in the shop advised.

any advised to recover my tree would be greatly appreciated.

Thanks

Chinese Elms belong outside. That is what is happening to this plant. It is reacting to a change of environment. It is a tough species, but will not last long in the wrong conditions. Read on this site about how to care for this species.

Jlnuttall wrote: watering when the pot feels light as the guy in the shop advised.

Very bad advice. You will not be able to tell the difference between too much or too little water this way.
Read up on how to properly water plants.

Thank you for your replies, I was also told that it could be kept indoors! It was in a green house when I purchased it. Would you suggest moving outside straight away then? I will look up watering in more detail but do you have any tips.. And will the plant recover from this state do you think?

Thanks in advance

Taking it outside right away might not be that great for the plant... what is your weather like?

There is a big difference between a greenhouse and a house. If you are in the UK you can put it out, the weather is not cold. You can keep anything in a house but it does not mean it will live.

Put it in proper soil. And than get it outside. I can see that it's too wet. Chinese elm's don't like to be drowned all the time. I've lost some elms in my starting days because of that. Also lost one that was outside and took a huge amount of rain in one summer. It was in a shady area and did not had a chance to dry between the very often rain showers in that month.