Earlier this year, the Securities and Exchange Board of India released a report that revealed the stark reality — 9 out of 10 traders in the equity F&O segment suffered losses in FY22, and the average loss size was a staggering Rs. 1.1 lakh! Clearly, it’s only the trading success stories that mostly make it to the front page. Beyond the small group of successful traders in India, there lies a vast majority of retail participants who consistently face losses in the market.
With options trading success rates being so low, what can you do to ensure you’re on the winning team? We at Samco Securities have the answer — post-trade analysis.
The Growing Need for Post-Trade Analysis
The thing that sets successful traders in India apart from the rest is just this — they learn from their mistakes and constantly work on becoming better traders. After all, there’s no shortcut to success. Post-trade analysis is the cornerstone of trading success stories — particularly in dynamic market segments like equity intraday and equity derivatives.
But how do you, as a trader in today’s fast-paced markets, get started with post-trade analysis and use it to write your own trading success story? The new-gen trading app from Samco may be the answer you’re looking for. It comes equipped with an industry-first analytical tool, aptly christened ‘My Trade Story’ — because it analyzes billions of data points to curate your very own trade story, identifies problem areas and offers you corrective suggestions.
In short, it transforms the way you trade and helps you improve your overall trading performance swiftly and exponentially.
Still not convinced about the sheer importance of post-trade analysis? In that case, let’s introduce you to the trading success story of Mr. Alkesh Shah — a dedicated intraday options trader from Ahmedabad, who has also been a valued member of the Samco trading community since 2018.
Defining the Problem: A Closer Look at What Was Troubling Mr. Shah
Over the past five years, Alkesh Shah from Ahmedabad had been actively engaged in the F&O segment as a full-time intraday options trader. He primarily focused on index options and stock options. Despite the generally low options trading success rate and day trading success rate among most retail participants, Mr. Shah was apparently performing quite successfully as a trader.
Before leveraging the benefit of post-trade analysis with the ‘My Trade Story’ feature from Samco, he believed (like most traders) that he was following the right strategies. In short, he had no problem with his trades and was confident about his trading success story.
Game-Changing Insights from ‘My Trade Story’
Even though there was no pressing problem, Mr. Alkesh Shah decided to enhance his trading experience and explored the ‘My Trade Story’ feature in the Samco trading app. More specifically, he looked for insights about his trading performance over the past financial year 2022-23.
That, right there, was the beginning of Mr. Shah’s true trading success story because the feature revealed some crucial insights about his past trades, strategies and trading patterns. These were details that he had previously been unaware of — and would never have figured out without post-trade analysis. This is why we at Samco call them the Andekha Sach — or hidden insights.
Here’s a sneak peek at the key unseen insights from Alkesh Shah’s trade story:
- He had a success probability of 1.14 and an impressive winning trade percentage of 80%.
- Most trades executed using the strategy of ‘Buying Index Put Options’ resulted in losses.
- Sector-wise analysis indicated that the chemicals sector was not proving profitable for him.
- Even though the optimal holding period for his top-performing strategies was 0 days, he typically held most positions for around 2 days.
Despite the fact that Alkesh Shah’s options trading success rate was generally high, Samco’s ‘My Trade Story’ feature identified three problem areas —
- His strategy of buying index put options was highly loss-making.
- His options trading success rate in the chemicals sector was low.
- The average holding periods for his trades were not optimized.
3 Things Alkesh Shah Did to Improve His Trading Success
Armed with the hidden insights from his trade story, Alkesh embraced a streamlined three-fold approach to elevate his performance:
- He Reallocated His Capital Strategically
Mr. Shah wisely redirected 80% of his capital from buying index put options to the more lucrative avenue of selling equity futures. This would help him improve his options trading success rate significantly.
- He Optimized His Holding Periods
Since his top-performing strategies had an optimal holding period of 0 days, Mr. Shah began closing positions on the same day. This would also contribute to his trading success story by ensuring consistent profitability.
- He Refocused on the Right Sectors
Lastly, Alkesh Shah aligned his sectoral focus with the market’s interests. This put the broadcasting sector in the spotlight for his portfolio, and he strategically engaged in selling futures for prominent broadcasting stocks like Network18 and TV18.
The Results? Upgraded Trading Metrics Within a Month!
The hidden insights about post-trade analysis that Alkesh Shah obtained from the ‘My Trade Story’ feature gave him stellar results within just one month. Here’s what happened:
- His average profits shot up 40%
- His average loss went down by 90%
- His winning trade percentage grew by 10%
- His trade score improved 4X
Summing up the trading success story of Mr. Alkesh Shah in his own words:
“As a full-time intraday options trader from Ahmedabad, my primary goal is to protect my trading capital and enhance profitability. I’ve experimented with various options strategies on indices and stocks. Thanks to Samco’s My Trade Story, I identified my weaknesses and areas for improvement in just a month. Adjusting my approach based on Andekha Sach feature insights led to a remarkable 4X growth in profitability while consistently preserving my capital. Grateful for Samco’s valuable tools that transformed my trading journey.”
It’s Time to Write Your Own Trading Success Story with Samco Securities
Alkesh Shah’s journey is proof that ‘My Trade Story’ from Samco Securities is an innovative tool designed to empower you as a trader. If you’re keen on joining the ranks of successful traders in India, all you need to do is open a demat account and a trading account with Samco Securities. The process is quick, easy and hassle-free — making it easy to choose Samco even if you have a demat and trading account.
Once you’re a part of the Samco trading community, you can tap into the insights offered by our pioneering trading app. Here’s how it can transform your trading approach:
- Strategy Efficiency Analysis
‘My Trade Story’ evaluates your trading history and identifies the profitable strategies from those resulting in losses. This crucial insight empowers you to concentrate on effective strategies and optimizes your overall trading approach for better success.
- Sector-Wise Success Breakdown
This aspect of the tool provides a clear view of which sectors are yielding profits in your trades. With this knowledge, you can strategically invest in sectors where your success rate is higher, thereby enhancing your portfolio’s overall performance.
- Trade Duration Insights
This feature highlights how long you’re holding winning versus losing trades. Understanding and adjusting these holding periods can significantly impact your profits and losses. You can refine your trading tactics, like Mr. Alkesh Shad did, to improve your overall day trading success rate.
- Benchmark Comparison
‘My Trade Story’ compares your performance against benchmark indices. This comparison is essential to assess if you’re outperforming the market or if there’s a need to align your strategies more closely with market trends.
- Revealing Hidden Trade Patterns (Andekha Sach)
Our trading app also uncovers hidden patterns in your trades and provides insights that help identify both your strengths and your weaknesses. This feature is pivotal in improving the areas that need work and recognizing new opportunities you were previously missing out on.
- Comprehensive Performance Overview
Offering a broad perspective of your performance through metrics like the Samco Trade Score and strike rate, this tool also helps fine-tune your approach. You get to understand the full potential of your trades and make more informed entry and exit decisions.
- Risk-Reward Analysis
‘My Trade Story’ also provides you with detailed insights into the risk-reward dynamics of your trades. This analysis is crucial for a deeper understanding of your overall trading performance. It also empowers you to make decisions that balance risk and reward effectively.
Set Yourself Up For Success with Samco Securities
Alkesh Shah’s trading journey, enriched and transformed by Samco Securities’ ‘My Trade Story’, is more than just an inspiring narrative; it’s a blueprint for what can be achieved with the right tools and insights in the dynamic world of trading. His story stands as a testament to the power of detailed analytics and strategic adaptation in crafting trading success stories.
To join the leagues of Mr. Shah and other successful traders in India, switch to Samco Securities and leverage the innovative features of ‘My Trade Story’ to improve your trading performance, risk management and strategic success.