Taking up entrepreneurship right after graduation

General
1

Hello Everyone

I write to you as a 21 year old about to graduate in a month’s time. I currently feel a bit lost and I thought why not seek advice. This might be long and I hope you read it till the end.

So a bit of background about myself, I am pursuing BSc Finance from NMIMS Mumbai. I have been interested in stocks since I was 11. Bought my first security based on my father’s advice. Since then I have been fascinated about the markets.
As I went through school, it became clear to me, finance is the industry I want to be in and thus the subsequent professional education degree.

I started trading on my own when I turned 18. I have made a lot of mistakes in the process, lost money but for me trading remains fascinating so I carried on. I focused on up skilling myself, supplementing my college education (which focused more on fundamental analysis). I went on to learn technical analysis, started pursing CMT (cleared level-1), I then got interested in trading systems and pursed a quant trading program.

Basically over time I up-skilled myself based on my needs. Now I am able to backtest systems I wish to follow.

Finally after 2 years, this FY I broke-even (even managed to win the Zerodha 60 day challenge twice :D).

I am really interested in this space of capital markets which is why I did not apply for a lot of jobs which were coming through college placements. Entrepreneurship really interests me more than a job, I also feel as I am young, it will be a good experience for me to start something of my own and learn from those mistakes and failures than get a job at an MNC which acts like a KPO basically supporting foreign analysts. Thankfully, I am not in a situation where I have to start providing for my family which gives me a bit of freedom.

I am thinking of starting a full fledged business where I develop a few algorithm enabled systems and sell it to clients who aren’t well versed with trading. Trading is a full time profession and many people like my father who have full time jobs often dabble in the markets only to lose money. I feel if I am able to create meaningful strategies for retail clients, it would benefit them a lot.

People in the higher income group who have the ability to take risks but can’t afford the buy in of a hedge fund often look to trade on their own, blowing up their accounts in the process. I think if I am able to develop a service to cater to those clients, it would benefit the retail clients a lot.
The only way I can think of servicing the clients is by becoming a SEBI RIA and selling algorithms to the clients based on their risk appetite.

I really wanted to know what you think of an idea like this and advice you would give me going forward. I know credibility will be an issue as I am young, but I think to start off with I can target a few of my family members and friends to build a client base.

1 Like
2
  1. Why not find a job in the field and at the same time build your service part time, this will give you more incites and at the same time will build your work experience/profile.Job also give you structured approach ,vision on how to scale big sustainably .
  2. Lot of ideas in entrepreneurship comes when you are around people and you started solving niche problems in the area.
  3. Job will give you regular income as well ,keeps away the thoughts of failures( more like backup options).
  4. Building a business involves large number of small failures ,path is tough so be ready with any worst case scenarios.
  5. Try to find like minded people and when you start talking to multiple folks you may find some good mentors .

All the very best for your journey!!

4 Likes
3

Hey @Swaraj_Rajagopal

Firstly congrats if you have figured out that this is your calling. Creating algorithmic trading systems for others based on their logic isn’t a bad idea. You are right that there are a lot of folks who want to automate but don’t have the know-how. A few points that I’d want to make.

  • Firstly, I am assuming that you know programming. Make sure you first put in your time and effort to get good at this. Just because there is demand doesn’t mean that you can build a product without the requisite skillsets.

  • If you did turn someone’s strategy into a program and give it to him, it won’t be a one-time affair. The other person will need your constant help to keep changing. So you will have to factor it in.

  • If the program lost money, you can rest assured that you will get the blame and maybe not get any credit if it made money. So you will have to make peace with it.

  • If you are going to give your programs (your strategy vs their strategy) to multiple users for automated trading under SEBI RIA, it is currently a grey area in terms of regulation. Customers can on their own automate, but an intermediary can’t really give out automated trading strategies.

And finally, I don’t think you should do a business just for the heck of doing it or because it is cool. Unless you can be profitable yourself with your automated strategies for a while, you shouldn’t even think of selling it to others claiming that they can be. You are still young, try spending as much of your time learning, sharpening the axe before you go cutting trees.

Hopefully this helps,

6 Likes
4

Yes it gives lots of flexibility . I am too of near about same age ,though had been in markets for quite a time. You can message me in case you need anything.