In recent years, India’s retail investors and traders have developed a newfound preference for diversified market participation. Earlier, most retail participants ventured into the stock market alone, with other segments like derivatives, commodities and currencies remaining unfamiliar territory for the average individual trader. However, the landscape has now transformed dramatically, with retail traders and investors taking on these uncharted territories with greater confidence.
The numbers confirming the retail trading boom in India’s derivatives market are both interesting and impressive:
- Retail traders account for over 25% of the average daily turnover in the F&O segment.
- In just the equity derivatives segment alone, the number of individual traders grew from around 7.1 lakh in FY19 to over 45 lakh in FY22 — recording a 500% increase.
- In 2023, the NSE saw activity from over 8 million individual F&O traders — a 30% jump from the previous year.
Despite these seemingly optimistic numbers about retail participation in the F&O segment, the reality is grimmer than one would expect. A recent study by SEBI revealed that in FY22, around 90% of derivatives traders — or 9 out of 10 of them — suffered losses averaging to ₹1.1 lakh!
Decoding the Mounting Losses Among Retail Traders in India
Various analysts have differing opinions about the factors driving such tremendous losses among F&O traders. They range from overtrading and over-reliance on tips to inadequate risk management and a gambling mindset. While all these reasons are valid, there’s another trigger that is often overlooked — most traders do not have access to the right charting tools.
Something as fundamental as the lack of charting solutions can make a massive difference between profits and losses, especially in a market that is as volatile as the F&O segment. While platforms like TradingView are available in India, the average retail trader often does not have room in their budget to pay for these premium charting tools. Consequently, they are forced to rely on poorly assessed tips and speculate rather than strategise in the markets. Needless to say, this directly translates to mounting losses.
To resolve this growing issue and bridge the gap between affordability and accessibility, Samco Securities, India’s leading technology-driven stock broker, has taken a revolutionary step that is transforming the way traders in India obtain and analyse market data. The broking partner has collaborated with TradingView to integrate the global super-charting platform’s tools into the Samco trading app.
For every Samco customer, this means that they can access charts, indicators and tools from TradingView for free on their Samco trading app itself.
How the Samco-TradingView Partnership Benefits Traders
The partnership between Samco and TradingView heralds a significant leap forward for users of the Samco trading app. This collaboration offers an enhanced, feature-rich trading experience by integrating TradingView’s advanced charting and analysis tools directly into the Samco trading platform. If you are a Samco customer, this means you get a suite of capabilities that were previously unavailable (or accessible only through separate platforms — at a premium).
Here’s a closer look at the multifaceted advantages of this partnership:
Comprehensive Access to Technical Indicators`
The integration of TradingView charts into the Samco trading app brings over 100 technical indicators to Samco users. These indicators include advance/decline lines, 52-week high/low metrics, and EMA crosses, and they are all instrumental in crafting informed trading decisions. For instance, if you are eyeing the volatile energy sector, you can use these indicators to pinpoint entry and exit points with precision, thus leveraging data-driven insights to capitalise on market movements.
Multi-chart Viewing Capability
Perhaps one of the most striking features of the Samco-TradingView collaboration is the ability to view up to 16 charts simultaneously on a single screen in the Samco trading platform. This unparalleled comparative analysis allows you to monitor multiple assets or the same asset across different time frames, so you get a holistic view of market trends. For example, if you are tracking the performance of tech stocks across various exchanges, this feature can highlight divergent trends or correlated movements —helping you create nuanced trading strategies.
Advanced Candlestick Patterns
The integration of TradingView features into the Samco app gives you access to advanced candlestick patterns like Renko, Kagi and Point & Figure. This enhances the technical analysis toolkit typically available to traders. Additionally, such patterns also offer insights into market sentiment and potential reversals that standard candlesticks might not reveal. For example, if you are focusing on the forex market, you can use Renko charts to filter out minor price movements and identify important trends that could guide you to more profitable trades.
Unlimited Saved Chart Layouts
In the Samco trading app, you can create and save an unlimited number of chart layouts. This feature caters to the diverse needs and strategies of each trader. Whether you prefer a certain layout for day trading or another for long-term trend analysis, this feature ensures that your personal preferences are readily accessible. Consider a scenario where you engage in intraday trading and switch between high-volatility stocks. In this case, saved layouts can quickly bring up preferred indicators and time frames, thus saving precious time in fast-moving markets.
Customised Trading Alerts
Lastly, the partnership introduces customised trading alerts directly within the Samco trading app. You can set alerts for specific price levels, technical indicator thresholds or market events and receive notifications through various means, including PUSH notifications, audio signals, and visual popups. This feature is invaluable for traders who cannot afford to be glued to their screens at all times. For instance, if you are a commodities trader, you can set an alert for when gold reaches a specific resistance level, ensuring you never miss an opportunity to execute a planned trade.
A Closer Look at the Advanced TradingView Charts Accessible in the Samco Trading App
The TradingView feature in the Samco trading platform offers a variety of chart types to cater to different types of analysis. Each chart type provides unique insights into market trends, price actions and potential trading opportunities. Here’s a closer look at the diverse chart types available on TradingView via the Samco trading app:
Heikin-Ashi Charts
Heikin-Ashi charts are a variation of candlestick charts that use average price data to filter out market noise and show the trend more clearly. These charts are useful for identifying trends and potential reversal points, making them ideal for traders looking to follow or trade in the direction of the trend. For example, a series of green (upward) Heikin-Ashi candles might indicate a strong uptrend, suggesting a buying opportunity.
Renko Charts
Renko charts ignore time and volume and focus on price changes of a predetermined size, which helps to filter out minor price movements and pinpoint significant trends. Each brick represents a movement in price, and a new brick is only added when the price moves by a certain amount. This chart type is particularly useful for traders who prioritise price movement over time in their analysis.
Kagi Charts
Kagi charts emphasise the direction of price movements and ignore time. In this way, they are similar to Renko charts. These charts use a series of vertical lines to depict price movements. The thickness of the lines changes to indicate shifts in market direction. Kagi charts are beneficial for traders who want to understand market sentiment and potential reversals.
Point and Figure Charts
Point and Figure charts focus solely on price movements, disregarding time and volume. These charts use columns of Xs and Os to represent price increases and decreases, respectively. They are useful for identifying support and resistance levels, breakouts, and trend reversals.
Access Advanced TradingView Tools for Free on the Samco Trading App
If you’re wondering how hefty the price tag to access these features is, there’s some great news for you! Samco Securities offers access to charts and tools on TradingView for free. All you need to do is sign up for a demat and trading account with Samco and log into the Samco trading app. You can then access these advanced charts, over 50 technical indicators and multiple chart layouts without paying any added fees.
About Author
