Learn how to Manage Risk in Options trading

In this edition of the Face2Face series, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, in conversation with Mr. Pran Katariya, an IITian, a former entrepreneur and now a full-time stock market participant. Mr. Katariya, who has a wealth of knowledge and expertise in the stock market, talks about the differences between trading in the US and India as well as his transition from an entrepreneurship to trading. He debunks the myth that intraday trading can provide enormous profits by pointing out that even large companies like Reliance and HUL only generate moderate returns of 15% to 20% annually, making it hard for small traders to constantly achieve 100% gains.

The discussion will then spew towards other topics, the first being risk management. Since Mr. Katariya is an Options trader and avoids creating positions in Futures he will talk candidly about his strategy of preventing huge losses. He will also talk about how he trades in a few stocks where if he is at a loss, he would take delivery of those shares and hold it for longer lengths. He will cover aspects such as options trading, risk management and index trading. 

Furthermore, he will also give his views on how one can take up trading as a primary source of income. He will talk about the minimum capital required to have a sustainable source of income through trading. So for those who are looking to quit their jobs and take up trading as a full-time occupation, his words will be of great help. 

So, make sure to watch this video if you're interested in intraday trading and want to learn more about how to manage your risk and how to put stop-losses effectively.