A thread on how I see the evolution of traders in the Indian markets and why that is a problem in the current scenario . Thread stems from a casual conversation with @gautam_icma yesterday

I entered the markets in 1991, as an investor . Used to buy stocks , get them transferred to my name and hold for a few months . Also applied for new issues, followed fundamentals

Started trading that too holding overnight for days within the settlement in 1999. Initially used technical analysis for holding positions for days or weeks

Daytrading I started in 2001 , after being 10 years in the markets . And it was tough as hell. Positionals had greater effect on PnL , daytrading was at best a pastime with low rewards

Not only me, the majority of traders of my age went thru the same timeline I guess. First traded options probably in 2002. That too 1 lot at a time

This gave me a lot of time to study the basics of technicals and use them with a lot of hit and miss. Became a full time trader in 2000. Blew up in 2003. Became profitable with some degree of certainty only in 2005. Have prop experience from 2008-2013

Today I see the majority of traders
1. Not having a good grip of basics , but starting off with fancy indicators , strategies from day 1
2. Starting daytrading from day 1.

Why is this a problem ?

Without basics , both the theoretical and the practical experience , one cannot go advanced. It takes 5 years of watching a full market cycle to understand the nuances on how TA works

Daytrading is the toughest of all endeavours. You have to be absolutely systematic ( which majority are not). More than any system or approach which is probably 25% of the game , the discipline / mental toughness / money mgmt are the key factors

In this lockdown, have seen many part time traders jumping into daytrading once they have a terminal with charts by the broker .
Daytrading is NOT EASY MONEY

Plus, this market is the first one in my life where I am seeing 25-30yr old trading gurus/mentors . These guys have themselves never seen a few market cycles and neither they have any prop/institutional experience . It's blind leading the blind :(

Another factor has been the posting of MTM screenshots which work as an easy lure . I consider myself lucky that I started off in a much slower time ( markets were on from 12 to 2) which gave me the time to learn

Upstox has opened a huge number of new accounts once the lockdown began, they were practically swamped .Given the queries I am getting from friends and relatives , everyone thinks if I just teach them for a few days they will daytrade and be easily profitable

I had done 2 YouTube videos on absolute basics, the building blocks . Response tells me people are finding those absolute basics I learnt 20 years back quite new ( which implies their lack of any strong grasp of basics ).

I understand that in these times of uncertainty with existing jobs and businesses , everyone is looking for alternatives . But trading and specially daytrading takes years to master to live off it. 99% looking for a quick buck will blowup. This is not going to end well :(

Add to this the retail fascination with weekly option selling . By traders who cannot decipher market direction nor having any sound grounding of Greeks . Add low margins for option selling offered by some brokers .It's simply a matter of time when these guys too blowup :(

Kindly do not see this thread as negativity but some plain speak from someone who has survived the markets for 20 years . Blunt talking is never sweet to hear , but if my experience and observations help even a small number of traders my aim of this thread is successful.

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