In an exclusive interview with Midday, Aksha Khosla shared his insights about his view on yesterday's market crash, upcoming trends, and investing in derivatives.
Aksha Khosla
Aksha Khosla, an expert securities analyst in Mumbai, is known to be result-driven, able to make sound decisions under pressure and have a wide-ranging understanding of investment stratagems. The reason why His stockbroking body is counted among the best in business today. His vast knowledge and unparalleled endorsements to cope with the risks involved in trading on equity and derivatives in India can make anyone attain high yields.
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In an exclusive interview with Midday, Aksha Khosla shared his insights about his view on yesterday's market crash, upcoming trends, and investing in derivatives.
MD: Sir, we will start by asking you the very basic question. For how long have you been in the industry? And at this age ? What all has made you to reach at this level today ?
Tell us about your journey.
Ak: It was in 2003 when I entered the trading arena. I was just 19, but being a native of India's financial capital- Mumbai, you can say that my grasp over technical analysis of the market was good from the very beginning. When I am 37, I am at a level where my monthly trading volume is about 2000 crore. Nevertheless, I have also seen and gone through severe struggles and setbacks that lasted for a decade. Those experiences are unmatched, but that pedagogy has made me where I am today.
The full credit goes to my previous painful setbacks that helped me grow for the above compliment. (Laughs)
MD: Trading in Derivatives is your specialization. Tell us more about this particular segment in securities market trading?
AK: You are right. I mainly trade in derivatives- options using arithmetic Greeks, other hedge tools, arbitration, and strategies. Derivatives are securities that derive their value (or are dependent) from an underlying asset like stocks, currencies, commodities, etc. Futures, Options, Forwards, and Swaps are derivatives financial instruments which are a great tool to hedge your portfolios against any market falls and crashes. It’s a bit like insurance.
MD: Can anyone trade-in instruments like Derivatives? How are they different from stock trading?
AK: As I told you that Derivatives are financial instruments that can be used to create Hedge positions according to the market conditions using arithmetic Greek tools. It's all about mathematics, money management skills and the right temperament. Although anyone can trade in derivatives, the skill comes with a huge learning cost- Time and Money. They are more complex and riskier to trade-in compared to stock trading.
Suppose you go by the actual trading statistics globally. In that case, it’s evident that 98% of traders and speculators lose money in derivatives trading, and it's not easy to get into that exclusive 2 % category. Moreover, for a seasoned derivative player who always trades using money management tools combined with the right temperament,it is always a good time to make money. Their trading options are evergreen irrespective of the four trends of the market- uptrend, downtrend, range-bound and volatile.
MD: How do you manage to trade when the market goes down? For example, the way market went down by 1500 points yesterday, how can one book profit in such a scenario?
AK: There are many bearish instruments in the derivative segment that can be used independently for aggressive traders or can be used to hedge it with some bullish instrument to bring down the risk and increase stability in your trade. I used the same strategy yesterday —combined some bearish instruments along with bullish counters to trade-in. But then again, it depends on the market to market, and every day is different. One strategy that has worked for me yesterday might not be helpful today. There is no single strategy for me; I mainly do my mathematics each day. I usually don’t like to do it but I will post my trading screenshot on my Instagram handle today.
MD: How are you different from other industry experts?
AK: I have lived in both sides of the coin. The kind of exposure and experience I have got during my setbacks is very rich and unmatched. My setbacks are actually the best thing that happened to me in last 35 years. Though They were very painful then but now if I look at it they have made me the person who I am today.
MD: Will it be ok for you to lend some best investment advice/tips to potential traders/investors through live sessions etc.?
AK: Why not. I am totally open to this. If anybody can benefit from my past and present experiences, I would be more than happy. People can bypass those mistakes in their trading journey.
MD: Finally, is it the right time for investors/traders to enter the market?
Ak: Of course, it is the best time and place to be in as an investor. Go for value investing and do consult an expert for a clearer understanding.
But if you ask me for traders, I will never suggest them. I don’t want anyone to get into this segment.
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