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Trading Profile – Whiz kid and Options Game Winner Kosta Konstant

June 10, 2020

Trading Profile – Whiz kid and Options Game Winner Kosta Konstant

The ASX Options Game has come to a close; it’s been a great Game this time around with a record number of players competing for the grand prize!  18-year old Kosta Konstant from NSW is the winner with a final portfolio of $349,533. We asked him a couple of questions about himself and his approach to trading and how he learned how to trade and he agreed to share his thoughts!

The ASX Options Game has come to a close; it’s been a great Game this time around with a record number of players competing for the grand prize! 18-year old Kosta Konstant from NSW is the winner with a final portfolio of $349,533. We asked him a couple of questions about himself and his approach to trading and how he learned how to trade and he agreed to share his thoughts!

 

When did you start trading? What/who got you into it?

I became interested in investing when I was 10 through shows such as Sky News Business’s “Your Money Your Call” and CNBC’s “Worldwide Exchange”, which I would watch with my dad. I first started trading equities at 14 as part of the ASX schools share-market game.

 

Why did you start trading? What do you hope to achieve?

I started trading as I was inspired by the successes of investors such as Warren Buffet and Ray Dalio. I hope to be able to develop my own investing philosophy to replicate some of their successes.

 

What are your trading goals? Is there anything you are focused on improving on?

My trading goal is to be able to profitably apply my understanding and passion for economics through short term trading. I am always aiming to further develop my investing philosophy to be able to better hedge my portfolio against unexpected outcomes. Currently, I’m focusing on reducing the time I need to develop a plan of recovery if a trade goes against me to eliminate ill-informed panic trades, which are often costly.

 

How have you educated yourself?

I learnt a lot of the economics influencing global markets through watching CNBC and reading their articles which would provide current and relevant insights from Wall Street hedge fund managers and successful traders. I learnt to develop a trader’s mindset and philosophy through reading biographies on successful traders such as Warren Buffet and George Soros, which I would apply, practise and refine in ASX and TradeFloor’s trading games.

 

Are there any books or courses you’ve completed that you would recommend?

For new investors, I recommend “Making money on the Australian share market” by Frank Newman & Suzi Bilosh as it helped guide how I should approach investing and the importance of an investing philosophy. For new options traders, I recommend watching Implied Volatility’s education videos as they provide an easy-to-understand introduction to how options work and how they can be used to minimise portfolio risk and enhance returns.

 

Did you find the Options Game a useful way to learn? In what ways?

I found the Options Game to be an incredibly useful way to learn how to trade options. The options cookbook and weekly webinars introduced me to new trading strategies which I could apply and observe in a real-time and in a risk-free way. Its payoff diagrams and stress-testing functions were also useful in determining the risk-reward ratio of a potential trade.

 

What advice would you give other traders or those considering starting?

For anyone interested in investing and trading, I would highly recommend you read about the investing philosophies that have made successful investors successful and to find out what you would like to really gain out of trading. I also recommend starting on a trading game as it would help develop your own investing strategy and philosophy.

 

What’s your approach to picking direction and what sort of strategies do you use?

I try to pick market direction based on current economic sentiment and the expectations of upcoming economic data and central bank meetings. During US and Australian earnings season’s, I pick direction based on earnings expectations for companies which reflect the performance of their broader sectors in relation to market valuations and previous earnings results.

 

What do you think the secret to success is?

In investing, the secret to success is to develop and master your own well-informed investing strategy with a level of risk you are comfortable taking. No strategy will be right every time, but so long as you have a framework you can stick to you will be able to grow and recover regardless of what happens and minimise panic.

 

What would you like trading to have done for you in 5 years’ time?

I would like my trading to complement a future career in finance once I complete my commerce degree.

 

What do you think of the Implied Volatility trading platform?

The implied volatility platform is a powerful and incredibly useful tool for all options traders. Its theoretical pricings, pay-off diagrams and stress testing functionality ensure you’re never left in the dark regarding your portfolio performance and inform your future investment decisions. I highly recommend it.

 

Try our platform for yourself by joining the next ASX Options Game which will start on 15 June.

 

Past returns do not reflect future returns. 

Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only trade if you are confident that you fully understand what you are doing. If you are thinking about acquiring a financial product, you should consult our Financial Services Guide (FSG) at www.reachmarkets.com.au first. 

 


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