Market Insiders recently had the privilege of sitting down with Dilip Kumar, the esteemed Founder of Bigarc Analytica, for an in-depth conversation. With over 20 years of rich experience in financial markets and a reputation as one of the most insightful minds in the industry, Mr. Kumar has carved a niche for himself as a trusted expert and mentor. As a SEBI-registered Research Analyst (RA: INH000014243) and a Certified Research Analyst, he has been a guiding force for countless traders and investors.
Mr. Kumar’s remarkable journey is marked by significant achievements, including authoring highly-regarded books on trading strategies and market analysis. His publications have gained recognition for their practical insights and straightforward approach, making complex financial concepts accessible to a wide audience. His work has become a go-to reference for both novice investors and experienced market participants seeking to enhance their trading prowess.
Not only is Dilip a prolific author, but he is also an influential figure in the digital space. His educational content on YouTube has attracted thousands of followers who benefit from his clear and comprehensive lessons on option trading, market analysis, and investment strategies. His videos simplify sophisticated market dynamics, allowing viewers to gain a thorough understanding of trading techniques and the intricacies of financial markets.
Dilip Kumar’s extensive experience includes exposure to global markets, including a stint on Wall Street, where he honed his skills in international trading dynamics. His hands-on experience and strategic insights have made him a highly sought-after mentor and educator, known for his ability to demystify trading and investment strategies.
Through Bigarc Analytica, Mr. Kumar continues to empower traders and investors by providing comprehensive market research, strategic insights, and hands-on mentorship. His unwavering commitment to education and his passion for mentoring have set a high standard in the industry, making him an inspiring figure for learners at all stages of their trading journey. Market Insiders is proud to present this engaging conversation with Dilip Kumar, where he shares his invaluable insights and wisdom.
A Bold Leap: From IT Professional to Stock Market Visionary
From a young age, Dilip Kumar was fascinated by the stock market. Back then, there wasn’t the buzz of social media or easy access to information like today. But his passion pushed him to learn, no matter the limitations. He found a way through correspondence courses. Every month, a book would arrive covering two new chapters on the basics of stock trading. He absorbed every word, laying the foundation of his market knowledge.
However, being born into a middle-class family, he faced pressure to secure a stable job and support his family. So, he pursued a career in IT software. But even in the tech world, the market stayed on his mind. He decided to blend his expertise in software with his love for the stock market, exploring ways to dig deeper into financial data and analytics.
This unique skill set opened doors for him on Wall Street, where he gained global experience. Yet, after a successful stint, he felt the urge to do something on his own. He realized there was little left to discover in his job. That’s when he made a bold decision—to leave his well-paying position and dive headfirst into the stock market. He chose passion over security, setting the stage for a remarkable career as a market expert and mentor.
Market’s Core Remains Unchanged: Evolution of Form, Not Fundamentals
Dilip Kumar explains that while the stock market may seem different today, its core remains unchanged. The only thing that evolves is the format. He shares an example: “Twenty years ago, scammers would send fraudulent schemes through letters; now, they use emails. The tactics are different, but the game is the same.”
He believes the market’s psychology, the types of players, and people’s perceptions have stayed consistent over time. “The market is like a mirror—it reflects human emotions, behaviors, and greed just like it did decades ago,” he adds. For him, understanding the market means understanding these timeless patterns, not just the technology or tools that shape it today.
Managing Risks: The Secret to Consistent Success
When asked about his biggest success and failure in the market, Dilip Kumar’s answer is clear and straightforward: “In the market, the key is not to hit home runs but to avoid striking out. Never fail big.”
He believes in always keeping the downside limited. No matter the investment, he calculates the maximum risk he’s willing to take. “When I invest, I assume the worst-case scenario—losing the entire amount. If I’m okay with that, I go ahead. If not, I don’t,” he explains. For him, it’s about playing the long game and staying in the market without taking reckless risks.
As for his successes, he’s had many. Some investments have grown 10x, others 15x. But for Dilip, success is not about the individual wins. It’s about maintaining a strategy where every gain outweighs the potential losses. That’s what keeps him ahead in the game.
Scientific Approach to Investing: Data Over Emotions
When it comes to investing, Mr. Kumar relies on logic and data, not emotions or gut feelings. “I never buy a stock just because I like it, or because it feels right. Every decision is backed by a system I’ve built and tested,” he says.
Drawing from his science background, Dilip believes in creating a structured trading system based on observations and research. He sets clear criteria for when to enter and exit a trade—whether it’s buying or selling. “The system must prove itself in both bull and bear markets before I trust it with my money,” he adds. For him, it’s crucial to analyze the system’s performance over one or two years to see if it consistently delivers profits or incurs losses.
His approach eliminates guesswork. By sticking to his rules and testing them rigorously, he ensures that every investment decision is rational, disciplined, and backed by data. This mindset, shaped by his scientific training, is what keeps him focused and grounded in the ever-volatile stock market.
Adapting to Market Conditions: A Trader’s Arsenal of Strategies
Dilip doesn’t limit himself to one trading style. He believes that just like an army has a range of weapons, a trader must have a diverse set of strategies. “You need to keep all your weapons ready. The market situation decides which one to use,” he says.
For daily profits, he leans towards intraday trading. When aiming for bigger gains, he switches to more complex strategies. “Having two or three strategies up your sleeve is crucial,” he advises. Flexibility is key. If he’s taking a positional trade, he always uses hedging techniques to minimize risk. “I never create positions without hedging—protecting your capital is as important as growing it,” he explains.
This tactical approach ensures he’s prepared for any market condition, making his trading style both dynamic and resilient.
Turning Setbacks into Strategy: The Art of Managing Losses
For Mr. Kumar, accepting losses is a fundamental part of being a successful trader. “If you can’t handle a loss, you’re not ready to be a trader,” he asserts. Losses are inevitable, but they must always be planned and calculated.
He doesn’t view losses emotionally. Instead, he sets clear boundaries on how much he’s willing to lose in each trade. “For example, in intraday trading, I limit my loss to 20 points. If I’m trading 100 quantities, I’m ready to lose ₹2,000,” he explains. He also factors in how many days he might incur losses, usually around three out of ten days. That’s ₹6,000 in losses. But on the remaining days, if his profits exceed these losses, he ends up being profitable.
For him, it’s not about avoiding losses but managing them. “Calculate your maximum loss and pick your quantities accordingly. It’s all about discipline,” he advises. This mindset helps him stay calm and focused, even when faced with setbacks, knowing that his overall strategy is sound.
Why Volatility Takes Center Stage in Options Trading
When it comes to trading options, Dilip Kumar emphasizes the critical role of volatility. “In options, volatility is king. Stock prices are just one piece of the puzzle,” he says. Many traders make the mistake of focusing solely on stock prices, but Dilip believes that’s a flawed approach.
“Stock prices only account for about 30% of what drives options prices. The remaining 70% is influenced by factors like volatility,” he explains. According to him, understanding and analyzing volatility is key to predicting options’ price movements. That’s why he stresses it so much in his seminars and videos. “If you want to trade stocks, stick with stock prices. But if you’re trading options, volatility is where you should focus,” he adds.
This deep understanding of how volatility affects options helps him and his followers make more informed and profitable trading decisions.
Delta vs. Vega: The Battle of Greeks in Options Trading
When asked to choose between Delta and Vega, Dilip Kumar doesn’t hesitate. “Vega is more crucial—and riskier—in options trading,” he says. While Delta represents direction and price action, Vega measures volatility, which, as Dilip often emphasizes, plays a bigger role in determining options’ prices.
“Delta is about where the stock is headed, but Vega tells you how intense the ride will be,” he explains. For him, understanding Vega is vital because volatility can make or break an options trade. That’s why he always prioritizes Vega over Delta when analyzing trades, keeping a close eye on how shifts in volatility impact the overall strategy.
Buying vs. Selling: Choosing the Right Approach Based on Strategy
When it comes to trading, Dilip Kumar carefully chooses between buying and selling based on his strategy. “For intraday, I prefer buying because it offers quick opportunities without much exposure to overnight risks,” he shares. However, for positional trades, he leans towards selling, but always with a protective strategy in place.
“I never sell without hedging,” he adds. Hedging helps him manage the higher potential losses that come with selling. This calculated approach allows him to capitalize on both sides of the market while keeping risks under control.
Debunking Myths: Why Trading Needs Strategy, Not Superstition
Dilip Kumar has seen his fair share of misconceptions in the trading world. From people picking trades based on astrology to relying solely on gut feelings, he believes such approaches are more like gambling than investing. “I’ve come across traders who follow nakshatras or let their intuition guide them. Sometimes it works, but most of the time, it’s just luck,” he says.
He warns that intuition can be misleading and cause traders to make impulsive decisions. “That’s why having a solid system in place is essential. It removes emotions and ensures that every trade is based on logic and research, not on whims or superstitions,” he explains. For him, trading without a system is like sailing without a compass—you’re bound to lose direction sooner or later.
The Myth of a “New” Market: Why History Always Repeats Itself
Mr. Kumar believes that one of the biggest misconceptions about the market is the idea that “this time it’s different.” He explains, “People often say the market won’t fall this time, or it won’t react like it did before. But that’s a dangerous mindset.”
He points out that the fundamentals of the market haven’t changed for centuries. “200 years ago, wars happened, and markets reacted. Today, it’s the same. People cheated back then, and they do now too,” he adds. Believing that the market will behave differently based on current events or emotions is misguided. The truth is, market patterns tend to repeat, driven by the same human behaviors and psychology that have always influenced them.
Decoding Market Movements: Predictions Backed by Data, Not Opinions
Dilip Kumar’s predictions have often turned out to be spot-on, whether it was forecasting a market crash during the 18th Lok Sabha elections or anticipating future downturns. “It’s never about guessing. It’s always about what the data tells me,” he says.
While everyone else was confident that the NDA would secure 400 seats, Dilip took a different approach. He analyzed historical data and compared it with current trends. “I looked at past opinion polls and showed exactly when and where they got it wrong. Just because polls say something doesn’t mean it will happen,” he explains.
For him, collecting data is the easy part. The challenge—and the skill—lies in analyzing it accurately. “Sometimes you’ll get it right, sometimes you won’t. But keep learning and refining your process,” he advises. His disciplined, data-driven approach has allowed him to see beyond market noise and make reliable predictions that others often overlook.
A Different Path: Trading Success, but a Desire for Greater Impact
Reflecting on his journey, Dilip reveals that if he could turn back time, he would choose a different path. “If I could start over, I wouldn’t be in the stock market. I’ve spent years researching and analyzing, and sometimes I wonder—what if I had put this effort into medicine or space research? I could have contributed so much more to humanity,” he shares candidly.
For him, the stock market is about predicting numbers and chasing targets. But this realization is why he’s passionate about teaching others. “I think if I can help people make money and improve their lives, I’ll feel like I’ve made a meaningful impact,” he says. By mentoring and guiding others, he finds a sense of purpose beyond the confines of stock charts and market trends.
Mastering Stress: The Key to Professionalism
Dilip believes that stress is an inherent part of every profession—whether it’s trading, medicine, or even the military. “In trading, you worry about market movements; doctors worry about their patients. But staying calm is what defines a true professional,” he says.
He shares an analogy: “Imagine visiting a doctor who panics at the sight of a patient. Would you trust him to treat you? It’s the same with trading or even in a war zone—if the army loses its cool, everything falls apart.”
For him, controlling emotions is a skill that must be developed over time. “You have to accept that things won’t always go as planned. It’s okay to feel bad about setbacks, but you must recover quickly,” he advises. Building this resilience is what separates a seasoned professional from the rest. It’s not about avoiding stress, but learning to manage it effectively.
Trading Software: Empowering Traders with Smart Decision-Making Tools
Mr. Kumar’s trading software is designed to simplify decision-making for traders. “The system we use for trading is the same one embedded in our software. It’s not feasible for me to tell everyone to buy or sell a particular trade, so the software does the heavy lifting,” he explains.
The software is built on the strategies and systems that Dilip has developed over the years. It helps traders analyze market conditions, spot opportunities, and make informed decisions without relying on constant guidance. By leveraging technology, he ensures that traders have the tools to succeed with minimal guesswork and maximum accuracy.
Prioritize Education: Trading Should Complement, Not Replace Learning
Dilip’s advice to young traders is simple yet powerful: “Never compromise on your education. A master’s degree is a must. Let trading be your side hustle while you focus on your studies,” he emphasizes.
He believes that gaining knowledge should always come before chasing profits. “Learning is more valuable than any profit you’ll make in the beginning,” he says. He encourages young traders to read extensively, absorb as much information as possible, and conduct thorough research. Building a strong educational foundation will not only make them better traders but also equip them with skills that last a lifetime.
Dilip Kumar’s journey from a curious learner to a seasoned market expert reflects his deep commitment to mastering the intricacies of the financial world. Through his extensive experience and scientific approach, he has not only excelled as a trader but also made a significant impact as a mentor and educator. His emphasis on discipline, data-driven decisions, and the importance of managing risks offers invaluable lessons for traders at all levels.
Whether it’s developing a systematic trading method, prioritizing volatility analysis in options trading, or using innovative software to empower traders, Dilip’s insights are shaped by a relentless pursuit of knowledge and an unwavering dedication to helping others succeed. His approach to stress management, willingness to debunk market myths, and encouragement to young traders to prioritize education reveal the depth of his understanding and the values that drive him.
For those seeking to navigate the complexities of the market, Dilip Kumar’s strategies and philosophies serve as a guiding light. His story isn’t just about financial success—it’s about making a difference, empowering others, and finding a deeper purpose beyond profits. Through his teachings, he continues to inspire countless traders and investors, proving that with the right mindset, strategies, and discipline, anyone can thrive in the ever-evolving world of finance.
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