Confessions from someone who trades for a living…

A little about me.

1. I understood the stock markets practically first and then I learned the theoretical part. Usually, people do it the other way around — but for me, I did not have the option to learn the theory first as I had the fire in me to get the trades going. And when I got stuck at some levels I went around & gulped the lessons.
2. This method has given me the flexibility to learn a few niche areas in and around options trading, find higher profitable trading strategies & use the probability theory to full advantage.
3. But these may not work for you, and I personally recommend you to learn the theory first & then get hands-on experience. You may not be as lucky as to avoid a mega drawdown due to a lack of knowledge or ignorance.
4. The reason I provide post-mortem analysis is to restrict you from reading my articles to plan for the next day. I would be the last person on earth to provide you with a recommendation that wouldn’t work. I personally do not like to lose my money on a trade — so it will be double difficult for me to see you lose your money on following my advice.
5. The post-mortem report I do daily on nifty & banknifty is just a shoutout of my daily journal, some observations of what I saw, did, or missed every day.
6. Nobody can predict the future right, unless they are gifted. I know I am not. That doesn’t stop me from guessing the market direction or getting into a trade. There are only 3 possibilities in every trade I get into… I get my view right & I make money | I get my view right & still lose money | I get my view wrong & lose money
7. I am not a SEBI registered analyst or someone who has the degree to give you financial advice. Although I plan to get my license soon — because I like to learn.
8. You should also try to time the market & have a view. Your conviction will help you get into good trades, similarly, you should have an unbiased view if your trades aren’t working & try to exit at the best opportunity possible. Sometimes it is better to fight another day if you are able to stay alive till then.
9. Everyone says mutual funds are best — yes they are best. They also say you shouldn’t try to time the market. What I personally feel is mutual funds are basically for the salaried class who can plan on a systematic investment plan because they get a salary every month. If you are a trader or want to start generating your wealth via stock markets then you should try to time the markets & create alpha. Even if you fail today — your pursuit will help you achieve excellence in the near future.
10. Personally I feel the odds are stacked against the traders to win consistently. The clearing houses, regulators, exchanges, and brokers get assured money every time you trade irrespective of whether you make it out alive. So if you can find a decent broker you can save some money. At present Zerodha is what I recommend for a beginner & Kotak securities for a professional
11. If you are just starting, it’s quite straightforward to begin with just 1 stock or 1 index & try to perfect its move & style. This will teach you consistency & finding high-conviction trades. Once you master the price action you can spread your research to a broader set of stocks or indices.
12. I usually trade by pledging my stock, ETF, or liquid funds as collateral. I try to achieve a 12% return every year and hoping my pledged list of securities will give me a 6. 18% returns YoY is my target — but since I don’t have a boss I don’t go through a performance or appraisal review end of every year. Even if I make less, more, or the same — I am happy to be trading.
13. Early on I traded with a cash balance and had that guilty feeling when there were streaks of losses. Now since my funds are fetching me a fixed deposit return of 6% even if I don’t trade — I feel like I have a safety net.

My Published books…