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14 minutes में जानें share bazaar में trade करने के 8 तरीकों को। - YouTube
Channel: Vivek Bajaj
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In the last 9-10 months, so many people have come to the market to make money by trading,
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I am a little scared, but there are also opportunities, if people participate in market the right way,
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people will be able to make actual money in the stock market by trading. Friends, I get phone calls regularly
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I get regular emails and people ask me for the right direction of trading, how should we do it
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Friends, I'm Vivek Bajaj, I've been in the market for last 15 years. I know what works in the market.
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Friends, through this video, I will introduce the various ways of trading
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In the coming videos I will discuss each method one by one in detail.
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So please focus on this series, because if you want to do full or part time trading,
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and you think you can earn by trading, this video series is very relevant for you.
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Friends, let's go towards a journey, where I tell you how the people who came to the market 15 years ago
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like me, how they completed their journey. Friends, I'll give you a pyramid, the trading strategy pyramid
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In this pyramid I will try to show you all the trading strategies that can be deployed in the market.
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Why is this a pyramid? As you see, it is very thick at the bottom, and lesser at the top. Why?
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There are a lot of people using the strategies below, limited people are there at the pinnacle, the top
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who are working on specific strategies. Friends the logic of this pyramid is that
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the more you go up, the more knowledge you need, risk is higher, and returns also rise.
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Friends, I'll tell you about the pyramid now. The first strategy, at the bottom,
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through which we, the people who came here 15 years ago, entered the market, arbitrage strategy
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The word arbitrage must sound complex but it's a very easy strategy.
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When the market was immature before, there were a lot of price discrepancies,
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So the underlying, like Reliance for example, which traded in both NSE and BSE
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if there was price difference there we would capitalize it. This is called a free lunch.
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The free lunch you get outside church, it was there at that time and we all took advantage of it.
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there's no shame talking about it because when a market first begins, it gives arbitrage opportunities
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the new people in the market are able to capitalize those opportunities.
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So when derivatives began in 2002, when options, futures began, lots of arbitrage was available,
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which was considered a least risk and high return strategy.
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In 2008, something happened. Algo or robotic trading was allowed in India. Believe it or not,
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60% of the trading volume on the exchange today is algo. This means robots are working with us to earn money in markets
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Who will win? The chances of robots winning are high. Which strategy? The straightforward one, where
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not much brainpower is needed, robots will swiftly trade there, and you won't even realize.
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So arbitrage strategy, through which we started our career, that went into the robots' hands.
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And now who does arbitrage? robots, who quickly analyze any price differences between 2 exchanges
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and quickly capitalize them. But friends, don't be disheartened. That one strategy is dominated by robots.
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But as we learn about strategies above, you'll see there are more strategies you can work with
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Friends, if you are liking this video, do press the like button, I'll feel motivated to record more videos for you
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So arbitrage is done, let's move to a strategy above known as spread trading
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Spread trading sounds complicated but it is easy. It means using the same underlying, like Reliance for example,
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and a lot of its contracts and instruments are traded, like the Jan and Feb contracts for Reliance futures.
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Reliance options multiple strike price, so for one underlying there are many instruments available
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The spread trader trades on the gaps between these instruments & tries to estimate the gap's status
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For example, in calendar spread, if Jan Reliance is for ₹2000, Feb Reliance is for ₹2008,
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means a gap of ₹8, spread trader predicts whether this gap will become ₹16 or fall to ₹1
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Friends, I will discuss the prediction methods in the upcoming videos, I'll make 1 video per strategy
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to clear your concepts more. So if he predicts the ₹8 will become ₹16,
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he will buy the Feb contract and sell the Jan one, because it is trading higher than the Jan one
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And when this ₹8 becomes ₹16, he'll square up the trade and make money. This is a small and easy example I gave
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but if you see from options perspective, I got a ₹2000 call option, and sold a ₹2100 call option, it's a spread of 2 premiums
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We'll discuss retail later. This was another way to invest in the market. The 3rd way is jobbing/scalping,
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or trading quickly. Friends, I call this work for a daily wage earner, someone in the market the whole time,
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trades all the time, in high quantity. If you see the high volume in the market, it's not due to end of the day position traders.
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this market is for the daily wage earners, who trade tick by tick, continuously. The dynamic of trading tick by tick
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and the dynamic of taking a position at night are different & I'll show them in videos strategy-wise.
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I hope you got that tick by tick means trading at every price, making small profits, and exit with small losses.
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Hello, hope you're liking my effort. If you want me to record more such videos, like this video, share with your friends
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and subscribe to connect with my efforts and press the bell icon to know if a new video has come. Thank you.
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The 4th strategy which is popularly used by a lot of people is technical trading.
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it means using the field of technical analysis, related to price behavior, to predict where the price will go
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you can do intraday or position based technical trading. There are 2 ways to do it
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classic technical, done with patterns and charts, 2nd is modern technical driven by indicators, oscillators
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and is rule driven. There will be a separate video on this but understand about technical trading
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which is widely used, and many like you must be learning and understanding technical analysis
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Next strategy, from now the complications rise because now stats and quant play a role.
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The next strategy is pair trading. Like the name says, it involves 2 instruments, underlyings
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in spread there was the same underlying and 2 instruments, now we have 2 underlyings
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like reliance nifty, ICICI and HDFC, in the middle of related but different underlying
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whenever the gap increases, there is a pair trading opportunity. This can be done in 2 ways also
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one is statistical pair trading, other is relative strength pair trading. I'll discuss the details in the next video
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because statistical pair trading is a deep science, so is relative strength trading
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the next strategy is for newcomers who love options, options strategies
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this means what? Below we talked about options pair and spread trading,
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here when we talk about options strategies, we talk about options greeks - delta, gamma, theta, vega, rho
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we make a view of these greeks on any trade. Am I trading delta, theta or vega?
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If you understand these characters, I guarantee options will become a cake walk for you.
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but as I said, the complications are rising, you have to study more, do more homework, get more knowledge
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Now the strategy I will tell you is very interesting, it is called quant trading
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Quant means anything and everything expressed in numbers. It can be anything like
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from 10 am to 11 am in the last 5 years, what did Nifty do?
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and if it feels like Nifty will perform this much in this environment, with this probability, I'll trade it.
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This means that those who do quant trading work with probability
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Those with a statistical background must be able to understand that the market is a sum total of events
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Quant defines the probability of success and accordingly, gives a participation framework
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last and most exciting, traders doing these earn the most with multi asset trading.
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this means trading in equity, commodity, currency, bond, and wherever there is excess profits
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whether long or short, and deciding their position with a holistic view of the market.
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So now you have understood this pyramid, and inside it, as an individual trader
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you start with technical trading because its access and understanding is relatively easier.
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since the lower strategies are more dependent on transaction cost, prop desks use them more
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and a retail trader participating through a broker moves ahead with technical strategies,
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then moves to pairs, quant and finally emerges as a multi asset trader.
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Friends, I hope this classification concept was clear to you, I will make videos on each strategy ahead,
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and will give you conceptual clarity on those strategies.
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Thank you for watching this video. Do stay connected with this channel, bye.
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