top of page

Trading and Life!

An investor can take a 50% drawdown in his portfolio , hold his stocks and still make money after a few years


A trader who keeps options with a 50% drawdown will lose the rest of the capital also in that account!


As index derivative traders we cannot have the same mindset as investors picking stocks


Derivative trading is T20. Investing is Test Cricket.


The mindsets are different. The tools used are by professional derivatives traders are different also.


Investors cannot understand traders. It's just not in them.


With a daily settlement cycle the derivative industry has become more faster than ever before. And there is more professional money trading the options market than ever before.


A lot of retail traders are made to believe that there is only retail traders active in markets. And they trade with that assumption also.


But big houses are already moving away from the "Buy and Hold" mindset of the past many decades and exploring the new developing opportunities in derivative industry. Here is what GoldMan said recently



Their approach reflects the dynamic and data-driven nature of trading, where rapid decision-making based on current market conditions is critical.



And that SEBI report which was only on retail traders made people think that derivative trading was done by little johnies with new accounts in the markets. It's not right.


There is a lot more institutional money in Option trading than ever before. And it will keep rising.



This information provides a more nuanced view of the NSE derivatives market, highlighting the significant roles of institutional players alongside retail investors. It challenges the misconception that the market is dominated solely by retail traders.


I am not sure why some traders are obsessed with showing success or failure metrics of only 1 component of the market.


In the high-stakes arena of NSE derivatives, understanding the true landscape is crucial.


The presence of heavyweight institutional players alongside retail traders brings a complexity that can't be ignored. This isn't a retail-dominated playground – it's a diverse battlefield where the informed thrive. As derivative traders, we must navigate this reality recognizing that our approach is fundamentally different from traditional investing. It's not just about quick gains; it's about a strategic play in a market rich with institutional tactics.


We at Amplify, have spent years developing strategies in any and every market scenarios in ways which helps us recognise smart money positions via our proprietary calculations.


In this ever-evolving trading environment, staying informed and adaptable isn't just a choice – it's a necessity for success. P.S - BILLIONS IS A MUST WATCH! I've loved the way how this series has been made. A true insights into an aggreesive Hedge Fund.



96 views0 comments
bottom of page