Sivakumar Jayachandran Net Worth, Trading journey and Scalping strategy

Sivakumar Jayachandran

The King of Options Scalping

Sivakumar Jayachandran


Sivakumar Jayachandran Biography

Full NameSivakumar Jayachandran
EducationHotel Management (Graduate)
Speaking LanguagesTamil and English
OccupationOptions Scalper(Buyer)
Founder & CEOOI Pulse
Net Worth50 Cr+ (estimated)
Monthly Trading Income1 Cr+
YouTube ChannelOptions Scalping

Sivakumar Jayachandran’s Background

Sivakumar Jayachandran is an active and one of the best options scalper in Indian Stock Market. He did his Hotel Management in 1995 from Chennai. And he started working in Radisson Taj Coromandel Hotel, the money he use to earn their was decent but his lifestyle was really hectic as he was busy serving the guests whole week and no public holidays were there in hotel industry as that was the time when most people go to hotels to spend their vacations and holidays. Because of this busy work life, he wasn’t able to spend time with his family.

Working in a BPO experience

One day while talking to one of his friend who use to work in a BPO Industry, his friend told him that he has a 9 to 5 job and also have holidays on weekends. Hearing this, Sivakumar Jayachandran also applied for an interview in a healthcare BPO where his friend use to work but they refused him as he was overqualified for that job and they also thought that he would leave after learning from them.

On the opposite of that BPO, there was another BPO building. So, he goes there too to give it a shot, the HR there agreed to take his exam and interview and he qualified both the written exam and the interview. But then, they made an offer of Rs.2500 per month which was just a fraction of what he used to get in Hotel Industry. And he accepted that offer and started working there, he worked really hard and got promoted in three months only.

There he met his wife. Then, he and his wife left that BPO and joined another fresh startup BPO and they scaled it up and started leading a team of 200 employees. Then, he got an offer from Mumbai to work there on double the salary which he use to get in Bangalore. So, he left and joined that BPO in Mumbai.

Starting his own company

One evening in Mumbai, Sivakumar Jayachandran called his friend with whom he use to work in BPO industry. While chatting with his friend, his friend shared his thought of starting their own company. Next day, they had their business plan ready, then they pitched that plan to an investor, who got impressed and agreed to put Rs.2 crore in their startup.

In 30 days , they got their first client and within two years they had 200 employees working under them. By the end of fourth year, they had grown their company and 800 employees were working under them at that time. Then, in 2015, they got an offer from a bigger company to buy them out and they sold their company.

Sivakumar Jayachandran’s Trading Journey

He was also trading all these years while working in BPO industry. His friend only introduced him to Stock Markets and they both use to trade and invest in stocks. He use to invest in shares of companies like DLF, Suzlon, Unitech, JP Associates, Tata Motors, Bajaj Finance, etc.

Sivakumar Jayachandran’s biggest regret

In 2007-2008, with Satyam Saga and Lehman Brothers collapse, the stock markets crashed and his 10 lakhs worth portfolio came down to 1 lakhs. And out of panic, he sold all his shares and emptied his portfolio. His biggest regret till now is that he also sold 1000 shares of Bajaj Finance, which he bought at an average price of Rs.170. If he would have been holding those 1000 shares of Bajaj Finance, it would be worth in crores today.

Sivakumar Jayachandran’s comeback in trading

Then, he started trading based on tips providing services. But after losing money again, he decided to stop this Gambling and focused on learning trading by observing the markets and candlestick patterns. He says that his learning phase was from 2013 to 2014, where he learned about Open Interest, Candlestick patterns and some indicators like SuperTrend, RSI, Vwap, Wma and Parabolic Sar.

In 2015, he became profitable in trading. His confidence then, started increasing and he started scaling up and by the end of 2017, he covered all his losses and also made profit.

Why Sivakumar Jayachandran started scalping?

He says that “it is a myth in the market that only sellers make money, buyer doesn’t.” He says that buyers has a limited risk and if they know what is the risk they wanted to take, then they can take that limited risk and earn. He observed that any trade which he use to hold beyond 15 minutes to 1 hour was resulting in a big loss. Then, he started taking scalping trades.

Scalping is when a trader enter and exit within 2 to 5 minutes of taking the trade. Some of his trades lasts less than 10 seconds and some of his trades lasts from 3 minutes to 5 minutes. He says that “Scalping is the best genre if you are an option buyer”.

Some of his profits and trading execution screenshots can be seen below –

His advice to novice traders

His advice to novice traders is that to never trade with money taken from personal loan or credit card. He says that “Never trade with a money which you can’t afford to lose”. And treat profit and loss both at the same length.

Sivakumar Jayachandran’s 1% strategy

He follows 1% strategy rule which is to just make 1% profit of your trading capital and then, stop trading for that day. For example, if you have a capital of Rs.100000 then, the 1% of that capital would be Rs.1000. So, according to this strategy, if you made Rs.1000 profit with a capital of Rs.100000 then, stop trading for that day as your target of 1% is achieved. In this way, a trader can made 20% return on his capital in a month and in 5 months, his capital would be doubled.

His views on Open Interest

According to Sivakumar Jayachandran, Open Interest is his GOD. He takes all his trades based on Open Interest. And he believes that Open Interest will tell(or caution) about an upcoming move in markets because open interest is nothing but the total number of open positions of sellers. So, according to him

  1. If open interest increases and the price also increases that means sellers are adding more positions on upside. So, there will be a possibility of up move. And we can go Bullish. This is also known as Long Build Up.
  2. If open interest increases and the price decreases that means sellers are adding their position on downside. So, there will be possibility of a down move. And we can go Bearish. This is also known as Short Build Up.
  3. If open interest decreases and the price increases that means sellers are covering up their positions. So, there will be a possibility of a short covering. And we can go Bullish. This is also known as Short Covering.
  4. If open interest decreases and the price also decreases that means sellers are exiting their positions. So, there will be a possibility of sideways or rangebound market. So, we should not take any trades in this condition. This is also known as Long Unwinding.

This is how he decodes the Open Interest data and take trades based on that.

Sivakumar Jayachandran’s trading process

He starts his trading day at 8:30 a.m. by looking at Dow Futures and it’s last night movement. He also sees Banknifty and Nifty charts with the indicators he use. He marks the near or upcoming resistance and support on the charts of Banknifty And Nifty. Till 9:00 a.m. – 9:15 a.m. he does his pre-market analysis by decoding the open interest data with yesterday’s move in Banknifty and Dow Futures. Then, at 9:15 a.m. when the market opens, he start taking his opening trades and quickly start trailing his trades as soon as they move above his buying price.

He does averaging as well as pyramiding while taking his trades. He says that morning trades are really risky and it requires experience and speed to properly execute the trades. He takes his morning trades with his yesterday’s profits as his Stoploss. For example, if he made Rs.1 lakh profit yesterday then, his stoploss for today would be Rs.1 lakh. His day mostly gets done by 9:45 a.m. to 10:00 a.m. 90 percent of his trades lasts only for 2-3 minutes and he don’t hold his trades much beyond 10-15 minutes.

According to Sivakumar Jayachandran, the best time for scalping is from 9:15 a.m. to 10:00 a.m. and from 1:30 p.m. to 3:00 p.m. as the volatility is higher at these times in the market. He also uses multiple trading accounts with different brokers and divides his capital in all these trading account so that he cannot just keep on averaging his losing trade and loses a big chunk of his capital in a single trade. And also sometimes many times brokers have connectivity issues. So, this also helps him to quickly switch to the another broker if one is not accepting orders.

To know more about Sivakumar Jayachandran you can watch his full interview with Mr. Vivek Bajaj here:-

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