Veteran trader outlines his strategy for Budget Day trading and the lessons learnt from mistakes.
Manu Bhatia learnt the importance of position sizing in 2019 Budget. (Illustration: Suneesh Kalarickal)
Budget Day can be tricky for a trader. It offers opportunities, but with the volatility that can strike during the finance minister’s speech, there is high risk too.
In an interview with Moneycontrol, veteran trader Manu Bhatia shares how he strategises for Budget Day. Edited excerpts:
What are the trading opportunities around Union Budget Day?
Markets will not give a very big move a day before the budget because of the uncertainty (of what will unfold). Generally, we will not get a directional move on the previous day and there are no real trading opportunities from an options perspective.