In this Face2Face video we've with us our host, Mr. Vivek Bajaj, Co-founder, StockEdge & Elearnmarkets and Mr. Ashish Bahety, Director of NAV Investment Research Pvt Ltd & Quant-xpress Technologies Pvt Ltd. Mr. Bahety will talk about his journey as a professional trader with the strategies that allow him to get the maximum benefit. The right amount of zeal and passion for the market can make the experience more fruitful.
Mr. Bahety elaborates on the long-term profitability of selling options and the role favourable theta (time decay) plays in profitable trades. He also emphasizes the value of using spreads and hedge funds as risk-management instruments in trading. He breaks down the notion of spreads to help traders understand the nuances of spreads, including credit and debit spreads, as they play a significant role in options trading. By developing a systematic spread-creation process, traders can reduce risk and increase their income. He further demonstrates using probability curves to assess the likelihood of profit or loss. He stresses the advantages of spreads, such as fewer financial commitments and smaller margin needs, as well as the benefits of swing trading options for both automated and manual traders.
He then highlights the value of backtesting, which simulates trades using data from the past. A trader can develop a well-rounded and reliable trading plan by rigorously analyzing techniques across various expiries to find their strengths and shortcomings. He also emphasizes the advantages of using several time frames while sharing insights into his intraday trading code. He also talks about the importance of discipline, position sizing, and the evaluation of risk-reward ratios.
Watch this video to learn more about proprietary trading, trading's mathematical components, and how profitable systematic rule-based trading is.