The seventh Traders Carnival came to an end in Mumbai last week. The who’s who of the trading community gathered under one roof to share their expertise. From options trading to the Gann theory, the event covered a whole host of subjects.
Here are five key takeaways from the event:
1. The Big Lesson
"Cutting your losses" is the biggest lesson that Atul Suri has learnt from this stock market. While a successful trade is measured in terms of money made, it is also measured on how small the losses were.
"This market will give you opportunities. The problem is that most people are unable to cut their losses because their ego gets in the way and that’s where they get eliminated. That’s when the big trade or wave comes, and they are not there to surf it," he said. He also explained the three biggest aspects he uses before executing a trade.
2. The Two Sides Of (Trading Options) Coin
One is an options buyer while the other is an options writer. Yet, Chandan Taparia of Motilal Oswal and options strategies PR Sundar have created wealth for their clients.
In this interview, both Sundar and Chandan Taparia talk about how their own trading ways are beneficial and also how options buying and writing can be a risky bet.
3. The How, The What & The Why Of Writing Options
How writing options is useful in making money? What to do with your options when you are bullish and bearish? Options strategist Jegathesan Durairaj explains how it works, depending on the way he views the market.
4. Do Your Own Research! (Can’t Emphasize Enough)
When we asked JC Parets of AllStarCharts about how he manages to read 5,000 charts in a week, his answer was “I don’t know why others don’t!”
Preferring to stay away from the fundamentals of a stock, Parets uses RSI (Relative Strength Index) as one of the major indicator for analysing a chart.
5. Trading And Psychology
Does ego play a key role in executing a trade? It does. For stock traders, a losing trade is a wrong trade. People start to doubt their system and skills and search for newer methods when that happens, said Rakesh Doshi, a member-broker of the National Stock Exchange.
In this session, Doshi talks about conditioned behaviour and various other aspects related to a trader's psyche.