Business

Option Traders: Is trading that easy? 5 key learnings from option traders at Traders Carnival

Bengaluru: The zero-to-hero stories of a handful of option traders in the last 2-3 years have made hundreds of others hopeful of replicating their success by moonlighting as a day trader. Some of these new star traders are not only willing to share their secrets but also mentor the new crop on Dalal Street.

At the 3-day-long Traders Carnival 2022 held in Bengaluru last week, the newbies got to learn some of the tricks of the trade from the masters of the game like Sivakumar Jayachandran, Super Trader Lakshya, Rajesh Sriwastava, Santosh Pasi, Jegathesan Durairaj, Nayan Pokharkar, Harshubh Shah and others.

Here are the top 5 learnings:

  • Ace scalper Sivakumar Jayachandran believes in following the movement of smart money, without which he says a retail trader is like a sitting duck. “I can be bullish or bearish on the same day depending on where the smart money is moving. A scalper’s job is not to win the war but win the battle,” he told participants at the carnival. On a given day, he is looking for a window of 3-5 minutes to make money.

  • Chennai-based option seller Jegathesan Durairaj, aka Jegan, says his focus is now on looking at controlling drawdowns. “My research is based on controlling my loss rather than looking for a profit,” he said.

  • Bank Nifty scalper Pranav Daure suggests traders to use only excess capital lying around with them and trade only once a day. “Excessive trading will lead to a burnout,” he said, adding that he shuts down his trading desk after making 1 per cent profit on a typical day.

  • Super trader Lakshya says it is important to understand money management and position size to limit your losses, survive and thrive in the market.

  • Option seller Sharique Samsudheen says trading is easy but traders make it difficult. “You should look at trading as a business and not as a competitive sport,” he says.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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