Today we are going to share an inspiring story of Mr. Siddharth Srivastava. He is a certified research analyst from SEBI and been into trading full-time from the tender age of 22. Siddharth is a firm believer of technical analysis and has been making a 60% CAGR on average through futures trading. Please read through his story in his own words.
Tell me something about yourself?
Hello, I am Siddharth Srivastava. I am an MBA and also certified in NISM certifications such as Research Analyst, Equity Derivatives and a few others.
I have always been into trading since the age of 22. Since I wanted to excel in this profession, I got myself registered as a Research analyst with SEBI. Trading in futures is what I specialize in. This is my profession since the very beginning of my career.
How did you start your trading journey?
I used to see my father who is also very much into trading and has been my mentor throughout. He used to trade when the internet was not available in abundance by drawing candlesticks and candlestick patterns in a notebook. As I grew up I became more and more interested in trading and the stock market.
By the time I was 22 years old internet was somewhat available and that’s when I started technical analysis using my laptop which was gifted to me by my mother for starting my career in trading. Initially, it was very difficult to understand the basics of technical analysis. But my father helped me through this and after multiple failures in analyzing trading systems, we realized the mistakes we made. We needed to find a system which would suit our trading mentality which we did find eventually. There was no looking back after that.
Did you face any setbacks in the beginning?
Oh, there were plenty of setbacks in the beginning and in the middle…Frustration and irritation took over my senses many times. It was demoralizing sometimes. But then to learn and excel in something you have to pay the learning cost which is true for every stock market trader.
How did you recover from the setbacks?
Over a period of time, I realized that there was no point in getting irritated or frustrated. My parents were very supportive and kept encouraging me to proceed further. The only way to get around this was to make sure that I streamlined my trading technique and increased my patience level to the mark of infinity because that is what accounts for most of a trader’s trading strategy. There is no giving up.
Which method do you prefer for your trading decisions? Fundamental or Technical? And why?
Technical analysis has always been my preferred method for trading. My technical analysis comprises of the no. of trades and the result arising from those trades which I find out through backtesting and optimization. Technical analysis of historical data enables me to take into account all the major global and economic events that have taken place and are inbuilt into the data that I am analyzing. It also accounts for all the quarterly results that have been declared for a certain period of time.
In short, all the trades that are shown in my report comprise of everything that affects the market and that particular scrip. Therefore, I realized one thing – Don’t get perturbed by the drawdowns as patience pays off when the right trades come along. Losses are a part of trading but what one must realize is that after the trades which made losses the winning trade is what you need to have the patience for. Those winning trades pay off and they pay off quite big. When you can wait for a 7.5 % return in Fixed deposits then why not have the same patience for trading which rewards you with much more returns.
Who is your inspiration in the Trading universe?
It is and will always be my father because of whom I have been able to achieve so much in my trading career.
What is your preferred method of selecting stocks?
I always go for scrips which have around 80 to 90 trades in a year (in the backtesting report) and have the maximum returns over the invested margin money. Too many trades increase the slippages, therefore, eroding my result and too few trades do not form a fixed pattern.
What are your total returns till now from the market?
I am a hardcore positional trader and I don’t believe in intraday trading because positional trading allows you to catch the trend and that’s where the money is. My CAGR return has been around 60 percent annually.
Any money management strategy?
Keep atleast 50 percent of the margin money invested separately as a reserve to face the drawdowns so that you don’t have to cut down on your positions. When you don’t have enough reserves to bear the drawdowns you tend to panic.
Which is your favorite segment in Trading?
Thanks Siddharth for sharing your story. It’s definitely gonna motivate all our readers here. Appreciate your time for this.
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