The guest post below has been written by Haresh Nagpal. Haresh has more than 20 years of experience in the Indian Financial Markets and is very well respected in the financial community.
I attended Traders Carnival on 01/05/2015 to 03/05/2015 at ITC Maratha Mumbai ( a repeat offender from last three years ) . For me, it is an opportunity to meet in person with people who I interact on Twitter on a daily basis .
The first session was conducted by Abhijeet Pathak ,a seasoned Options Trader.
Abhijeet has a unique way of trading options. He jokingly calls guys dealing in options looking at option greeks as Chaturs of 3 Idiots .I liked his way of looking at ratio of Nifty options with Nifty futures .
Key Learning :
200Day Moving averages in any time frame is usually respected even in option charts .
Key Fact :
Now days retail is writing more options than FIIs and Prop desks !!
The second session was on metrics for value investing by Debashis Basu of MoneyLife .Debashis divided his session into four parts:
- Common approach and Myth
- Key Facts about Stocks
- A suggested approach
- Face the Enemy of success
Some Value Concepts by him :
- High Dividend Yield -but price may not appreciate
- Low p/e -Remain low P/E because of Low E .Jokingly he quoted his friend a well known fund manager : “P/E is number of years the co is going to exist “.
- Growth at reasonable price
- Book Value: It may be inflated
- Stable earning: No growth
- Fallen Angels: May remain fallen
- Great Companies: No appreciation
- Hidden Bargain: How do you really know
- IPO : It is time when we are forced by seller to buy at a particular price
Key learning :
Since stocks are risky and can fall to any level as investors our foremost task is to control the risk and for him risk is high valuation.
- No expert is ever questioned even if he has been wrong a number of times
- Shanker Sharma: Average Fund Manger is chasing momentum 90% of time
Third Session was by Sucheta Dalal on Bull Markets ,Scams and due -diligence for retail traders.
She gave a nice talk on how certain managements cheat people .She appealed to every one to raise their voice against any wrong doing by any capital market participant.She complained that people are not willing to fight their own battles .
Next session was by Anil Padia– Ace trader using Ichimoku charts .He gave a talk on Traders Psychology and Ichimoku charts .According to him the biggest risk in trading is you.He told about our belief systems and how they are formed and how they effect our trading.
Key learning :
- All systems work well ,only the person who works is not working well.
- Van Thorpe: You don’t trade Market ,you trade your belief.
About 80% of trading desk in Japan use this strategy
Last session of day which went till midnight was by Shiva Galrani ,a friend from Dubai who is working with a MNC and is famous for his excel skills and MA cross over strategy.
The system is an EMA (Exponential Moving average system ) crossover strategy .It is a stop and reverse system so he is all the time in markets either short or long.
If some one wants to to learn discipline , Shiva is the guy to follow.He has a system in which he trades first 15 minutes in market and last 15 minutes ,since he has a job he cannot watch market whole day.
He is an inspiration to students of trend following systems.