Attention all traders! Are you tired of taking losses and feeling like you're trapped in the down spiral of the stock markets? Well, risk management is something you’ve got to keep in aligned with your trading strategies.

Curious, what risk management in trading really is? It's simply the process of identifying, assessing, and controlling potential risks associated with trading. It involves determining the amount of capital to risk on each trade, setting stop losses, and having an exit strategy in case things go south. In other words, it's like wearing a seatbelt while driving a McLaren at 240 kmph - it may not look cool, but it's essential for survival.

And speaking of survival, a good risk to reward ratio is crucial to the longevity of your trading career. The risk to reward ratio is simply the amount of potential profit compared to the amount of potential loss on a trade. A good ratio means that you can afford to lose more trades than you win, as long as your winning trades have a higher profit potential than your losing trades.

But how do you know if your trading strategy has a good risk to reward ratio? This is where backtesting comes in. By backtesting, you can see how your strategy would have performed in the past, and you can make adjustments to improve its effectiveness.

In today’s video, Kirubakaran, an experienced options trader, sheds light on the reasons why a staggering 89% of F&O traders (according to SEBI) lose money, provides us with insights on effective risk management in the stock market, and finally delves into the intricacies of becoming an algo trader.

00:00 Let’s get started
00:27 Probable reason behind 89% F&O traders losing money
05:08 Steps involved in deploying an algo trading strategy
07:19 Should you really backtest your trading strategy before deploying in real markets?
08:34 How did market behavior change towards Bank Nifty with the introduction of Finnifty?
11:20 How does Kirubakaran deal with huge losses in stock markets?
12:32 Lessons learnt the hard way
13:51 Deeper dive into the backtest of Kirubakaran’s trading strategy
16:11 What are the steps to become a Quant trader?
17:49 How can I handle IV spikes while trading options strategies?
19:21 Risk management in a nutshell
19:41 LearnApp Prime
20:29 Closing thoughts
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