Santosh Pasi - The Person who takes Option Trading to the Next Levels
A Science graduate having two Masters in MBA in International Business and MCA, developed a taste for trading in 2004 and took his first trade in the giant TCS. Though he was less frequent trader until 2006. Back then, he was forced to exercise ESOP, which he was holding from 2002, because of new Fringe Benefits Tax. He was amazed at the value generated by it that enhance his interest in the Share Market.
His colleagues were the first source for the share market knowledge, tips and tricks apart from News and Media, which all was fully random and ad-hoc that continued for a few formative years.
Further, he generated some interest in option trading that begins with beginners luck but made a big hole in his capital. Then he understood he is doing something miserably wrong and he must have proper knowledge and education for trading. Thus, he registered to the Online Trading Academy (OTA) and completed their highest level Mastermind Community course. And based on his personality, trading style, mindset and emotions, he made his custom trading systems for option trading and continuously evolving it for the next levels.
I am talking about an IT professional who holds many IT Professional Certificates including CISA, CISM, CISSP and PMP in addition to those masters. Yes, I am talking about Mr Santosh Pasi who successfully manages OptionOracle - India’s most widely used Option Strategy Analyzer tool.
We are highly thankful for this wonderful Trading Journey. I love to transfer the control to Mr Santosh Pasi, so we all hear from him. Here he goes.
The Temperature and Pressure that turns him Diamond
You need someone to push hard. You will perform better in pressure only.
One of my friend has a role in this, pushed me hard to move forward and encouraged me to manage OptionsOracle and asked me to focus only on Option trading, instead of trading all asset class.
Even in Option Strategy Trading, I focus on volatility and go for non-directional.
When we developed our workshop, we went through multiple rounds of mock session before our first workshop.
Learning is the Key
Being young, you will focus on technical stuff, but as we move forward, we start looking into finance. As I took proper education, and got a good understanding of the market, kept me running. I have even traded overseas market when I was overseas for some time.
Yes, it is risky business, but you will get rewarded for these risk.
Every business carries some amount of risk, few may have low risk and few may have higher risk, so does trading.
You can minimize risk, if you know and understand your trades.
You can't completely eliminate risk (very first trade). But later on with adjustment and management, you may eliminate risk completely.
Trade Systematically to Uproot the Emotions
Go for the system-based trading. If you are trading CASH or Future (intraday), I used to SET my trade. Here SET means, (Stop Loss, Entry and Target). First I use to place Stop Loss (triggered market order), then place an order for entry. And later on, once you get entry, place order for Target. As soon as either Stop Loss or Target hits, cancel the other.
This way, I used to remove emotions. Now we do have bracket orders, this (SET) can be done easily in single order itself.
Now I'm Option strategy trader, where you get the flexibility to mould trades based on our risk appetite. We mostly go for risk defined strategies, I prefer to keep the lower side always protected.
Occasionally, we do face issue with execution, so is the reason we are trying to automate.
Keep your position size small, and you can control emotions too.
Avoid Analysis Paralysis
I'm a non-directional trader. It may be occasionally non-directional but slightly bullish or bearish. Don't try to predict the market, but try to follow the market. While taking trades, I avoid lots of analysis I try to keep the trade plan as simple as possible.
If your trading is simple and boring, it means you are on the right path.
If your trading gives you excitement, it means it is just by chance and not planned one.
The Book List
To be true, I haven't read any trading book end to end. If I'm going for some certification, then I'm forced to read those. Few recommended books (free and paid ones) are listed at our site.
You can read those books to get knowledge, but don't trade using it.
Most of those books are written by overseas authors considering their own market and those conditions are not here in the Indian market.
After reading those books, you need to draft your trade plan customized for you and Indian market and do paper-trading for a few months. Then you may start with one lot or one unit for a few quarters and increase position gradually. Always try to keep your position size small, so that you are comfortable with the risk associated.
Future Plans and Message to fellow Traders
My future plan is to automate the system as much as possible. We have started work on those, but it is a long way. Initially, we are going ahead with semi-automation and if it works perfectly, we will go ahead with complete automation or single click trades.
My message for fellow traders
- First draft your trade plan suitable for your personality.
- Keep position size as small as possible.
- Focus on a few sets of strategies and trade those.
- If you are using technical indicators or oscillators, consider 3-5 only and not more.
- Do not try to trade all asset class, all time frames, etc.
- You could be master of one or two things but can't be master of all.
- If you are trading option, try indices instead of stocks.
- If you are trading option, prefer to go for risk defined strategies only.
- Manage your risk.
- Do not do force trading. Very next moment, we may get an even better trade opportunity.
People can contact him on his social media.
If you like this article, don’t forget to bless it with your tweets or shares on your favourite social media. Further, you might like to read Following Trading Journeys:
Chartered Accountant turned full-time Trader - An inspiring Trading Journey
An MBA Specialized in International Business Turned Full-Time Trader cum Investor
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