Day Trading Equities in Volatile Markets | Podcast
Talking points on this podcast:
- Stock market strategy
- Methods for trading highly volatile markets
- Working from home as a trader during coronavirus
This time on Trading Global Markets Decoded, our host Martin Essex is joined by Nishant Porbanderwalla, a day trader in equities at Kershner Trading Group in Austin, Texas, where he has worked for 14 years.
In this episode we cover equities strategy, and in particular methods for day trading stocks in volatile markets.
Day trading is not appropriate for everyone and represents significant risk. When trading on leverage, it is possible to lose more than your initial investment.
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Stock market strategy
The podcast begins with Nishant’s stock trading strategy. How would he sum it up? “It depends on the market but traditionally, over a period of 14 years, I’ve been trading reversals.
“But the market’s been going crazy since the bottom in March, so I’ve been trading momentum a bit, looking for blow-off tops and bottoms.”
He emphasizes the variety in his approach. “If the market keeps changing every six months your strategy has to keep changing slightly…because the market before coronavirus was different and during it was different, now…it is different [again].
“You have to be adaptable to different changes in the market. That’s the biggest key for longevity in this business.”
Trading volatile markets
Nishant says that his strategy is a better fit for a volatile market. “For me, this has been probably the best year ever. I thrive on volatility being high,” he adds.
When Nishant started in 2006, the ‘big moment’ was 2008’s financial crisis. “There was such fear and volatility, that I’ve never seen – even today,” he says. “The coronavirus hasn’t come close to those days. There were days where people thought the world was coming to an end.”
At the time futures were ‘going crazy’, the fate of the US was in the hands of Congress, big institutions were going bankrupt. “It was a different kind of fear. I learnt a lot from that time, then comes the flash crashes that happened in 2015. You learn from these crazy moves, [in order to know] how to manage something like this pandemic.”
During the current volatility, Nishant has been looking to catch quick drops and then sell. “I’m not holding it for the rest of the day, I’m trying to make 30-40 points very quickly.
“You keep playing the trend, and sometimes if the drop is too big you start holding those drops and you play those differently.”
- Stock Market Basics: A Beginner’s Guide to Trading Stocks
- A Brief History of Major Financial Bubbles
- Day Trading with Bollinger Bands®
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.