'Sita Maiya ki Agni Pariksha': What Vijay Kedia says on F&O trading at BT500 Wealth Creators Summit

Market veteran Vijay Kedia said he does not invest in stocks while looking at the phase of stock market, be it  bullish or bearish. This is because a corporate or promoter does decide on expansion looking at the pace of economy, not stock markets. Ask Mukesh bhai (Mukesh Ambani), he said, what is bull or bear market. "The bulls and the bears follow them; they don't follow the market," Kedia said. 

Kedia said he stays invested for long term and short term price movements do not bother him.               

Speaking at BT500 Wealth Creators Summit, the Managing Director of Kedia Securities said there were a lot of uncertainties in the last two years -- the US recession, high inflation and interest rates globally, two wars that are still underway, domestic concerns and recent elections, but things have turned positive now. 

He said it is a possibility that the market is heated and may cool off going ahead. "Markets may retrace from here. Nobody knows. Sometimes, it rises amid fear and uncertainties and when all is well it falls. But if you are a long-term investor for say 3-year, 5-year or 10-year, you are in Amrit Kaal, a golden era," Kedia said. 

F&O investing and small traders

Kedia says its a human psychology that small investors with little money at disposal want to make quick bucks within a short span by engaging in futures & options trading, thinking they would first create capital and then plunge into long-term investing. Such traders, Kedia said, usually believe that even as 99 out of 100 F&O traders fail, they could be the one to succeed.   

"Many such new F&O traders do make money initially in a bull phase; they may think of themselves as wise men and economists, before losing all the money. It's a cycle. In the second phase, they realise their mistakes and do SIPs and investments. So it's a cycle. Its a Sita Maiya ki Agni Pariksha that everyone has to give initially," Kedia said.