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.