📈

Ask Me Anything with Madan Kumar and Kirubakaran

Jul 2, 2024

Ask Me Anything with Madan Kumar and Kirubakaran

Introduction

  • Interactive Q&A session with Madan Kumar and Kirubakaran.
  • Participants can ask questions related to trading and investing.

Speakers' Background

  • Madan Kumar
    • From Chennai, 44 years old.
    • Full-time trader for 17-18 years.
  • Kirubakaran (KBA)
    • Also from Chennai, trading since 2008, full-time since 2017.
    • Focuses on algo trading, systems development, and backtesting.

Key Concepts Discussed

Trading Psychology & Money Management

  • Importance of interaction and honesty in Q&A.
  • Emphasized the importance of trading psychology and money management in successful trading.

Key Points on Trading

  1. Capital Requirement
    • Adequate capital is essential for trading.
    • The specific amount depends on individual needs.
  2. Trading Plan
    • Essential to have a detailed trading plan covering instruments, strategies, and trading type (systematic or discretionary).
  3. Mindset and Psychological Preparedness
    • A sharp mindset is crucial; avoid trading during personal turmoil.
    • Handling of losses is part of successful trading.

Guidelines for Beginners and Non-Tech Background Traders

  • Use of no-code platforms like TradingView for backtesting and strategy development.
  • Emphasis on understanding market behavior before focusing on technical aspects or hiring a coding team.
  • Outsourcing development work if not proficient in coding.

Queries from Participants

Non-Tech Background in Algo Trading

  • Use TradingView for market behavior analysis.
  • Understand market behavior first, then move to technical and execution aspects.
  • Consider outsourcing development or finding a coding partner.

Handling Drawdowns

  • Drawdowns are inevitable in trading; essential to learn how to manage them.
  • Overcoming drawdowns builds resilience for future trading.

Greed and Position Sizing

  • Greed is not just limited to trading but affects overall life decisions.
  • It's crucial to recognize and manage this trait.

Real-Time Queries

  • Options Freezing & Market Risks:
    • Discussed market risks and potential Black Swan events.
    • Importance of portion control and having a plan for worst-case scenarios.
  • Systematic Trading and Social Media Influence:
    • Advised avoiding social media influences and focusing on consistent trading plans.

Increasing Market Trading Hours

  • Potential regulatory changes and how traders should adapt.
  • Suggested that traders are highly adaptable and will find ways to cope with changes.

Scaling Up Capital

  • Scaling should be gradual, similar to increasing weights in training over time (analogy of small calf to big bull).

Conclusion

  • Effective trading requires a combination of sound strategies, psychological resilience, and adaptability to market changes.
  • Emphasized the importance of learning from experiences and continuously improving trading skills.

Full transcript