What’s there in the mind of Mr Ashish Kumar Chauhan, MD CEO of NSE 

SHOULD NSE COME OUT WITH RESTRICTIONS ON RETAILERS IN INTRADAY TRADING?

He said, NSE is a testament to our shared financial aspirations. In the heart of this vibrant marketplace, as

 the Diwali lights shimmer, we embark on a journey of careful choices and strategic investments.

Explaining his views with more retailers getting into speculative stock trading, he elaborated that…

This brings us to exploring why this statement.

 We know that the pandemics has given rise not only to work from home culture (especially in IT services), but also lots of youngsters entering the Stock-Market.

 Information & Technical (IT) analysis is key factor in stock-market & with internet & various “Apps” it is becoming more & more important for Fund Manger & large players to stay competitive.

 While new investors, gets more time to understand market behaviour & adjust, intra-day participation don’t get this opportunity of understanding everyday volatility due to open-interest & its impact etc.

Most of the new comers to intraday trading, don’t even have total idea of various technical indicators and their types like Leading or Lagging, etc., or even how its characteristic change during opening & closing sessions, leave alone the mid-part of trading-session. This is of course is colossal damage to new investors & will make many of them shy away from the stock-market as the success rate in 6-12months itself is not an encouraging one.

Is this not happening in regions like USA/ Europe /China or any other places. Do they have more knowledgeable & matured retailers or is it a problem of over-enthused new entrants. Indian population has a large proportion of youngsters who have more than one income in their family & more aspirational towards instant gratification. 

This is one of the reason which will be evident when we analyse trading style in various regions

This is to provide a 360 0 view on the important statement from NSE chief. We will discuss more about the right strategy in my next posting & request your views on this topic