Mastering The Market: A Conversation With Afzal Lokhandwala, The First Indian Winner Of The United States Investing Championship
Afzal's remarkable achievement in 2022 not only placed him among the elite ranks of successful traders but also showcased his exceptional prowess and unwavering dedication.
New Delhi (India), July 4: Join us as we sit down for a captivating tête-à-tête with Afzal Lokhandwala, a trailblazing trader who made history as the first Indian to secure victory at the prestigious United States Investing Championship (USIC).
Afzal's remarkable achievement in 2022 not only placed him among the elite ranks of successful traders but also showcased his exceptional prowess and unwavering dedication.
Q: As the first Indian to secure victory at the prestigious United States Investing Championship (USIC) in 2022, what do you believe contributed to your success in the competition?
A: Winning the USIC is a significant achievement and one factor that contributed to my success. I developed a robust trading system that incorporated clear rules, a strong mindset, effective money management, and a deep understanding of technical analysis. This systematic approach provided me with a solid foundation for making informed decisions. I waited until I felt fully prepared and confident before participating in the competition, avoiding taking any shots when I wasn't ready. Finally, I embraced transparency and authenticity by submitting my account details upfront, ensuring the accuracy and integrity of my performance.
Q: How did you discover the United States Investing Championship (USIC), and what motivated you to participate and ultimately win the competition?
A: During my quest for consistency and profitability in trading, I began researching successful traders with verifiable track records. It was during this research that I noticed a common pattern among these traders: many of them had won the USIC. Intrigued and inspired, I set a goal for myself to participate and ultimately win this prestigious competition. The opportunity to showcase my skills on a global platform and be recognized as the first Indian to secure victory since the inception of the USIC served as a tremendous motivation throughout my journey.
Q: How does your swing trading style differ from other popular trading methods, and what advantages does it offer?
A: My trading style revolves around swing trading, which involves buying stocks and holding them for a few weeks or months to capture 10% to 30% gains. Unlike day trading, which requires constant market monitoring and rapid decision-making, swing trading offers a more relaxed approach, allowing me to capitalize on price fluctuations over a slightly longer timeframe. Additionally, compared to long-term investing, swing trading enables traders to execute a greater number of trades and seize various market opportunities. The faster compounding of returns sets swing trading apart, as traders can capture profits more frequently and accelerate the growth of their returns.
Q: What advice do you have for aspiring traders who may be tempted by options trading promoted on social media?
A: I firmly believe that swing trading in stocks surpasses options trading in multiple aspects, such as time commitment, stress levels, risk management, and the expertise required. Options trading can be complex and involves higher risks, especially for ordinary traders. Recent reports by SEBI indicate that a significant majority of traders experience losses in options trading. There’s one line I get to hear the most from traders I interact with, “I made good money in stocks but lost it all in options.”
Q: How do you identify stocks to trade? What is your trading philosophy?
A: My approach is unconventional. I look for specific things on the chart. I like stocks that are trending up or are about to start trending up. I use price and volume because that’s what really speaks a ton about the stock. But that’s not it, the timing is very important because that’s what defines the risk-reward equation. You got to be buying at a point where the odds of hitting your desired gains are higher than that of hitting your stop loss.
Q: Don’t you analyse the company’s business and reports?
A: If you are a short-term trader, technical analysis is the way to go. I do not care about the balance sheet, sales, and profits of the stocks I am trading. All I am concerned about is what the participants are doing with the stock over a period of time using price and volume, and that gives me all the information I need about the stock.
Q: The market seems to be strong right now, with stocks charging upwards. What advice would you give to beginners here?
A: The market has just crossed an all-time high level, and stock traders should be making money here. But what separates champion traders from losing traders is how they manage periods of unfavourable conditions. The fallacy of staying invested all the time is a devastating proposition. In trading, you need to act like a chameleon. My advice would be to master the art of adjusting your trading intensity with the market environment. In good conditions, I go aggressive, and in bad conditions, I sit quietly. That’s very important.
Q: What else do you do apart from trading?
A: Apart from trading, I devote time to my Champions Club to guide and equip ordinary individuals to become successful traders. Members have unrestricted access to my entire system and tools. I look forward to creating many long-term success stories.
