ETMarkets Trade Talk: College professor hits jackpot with noiseless style of stock trading

For every theory in the stock market, there is a counter-theory just as for every buyer there is a seller. So how does one ignore the noise and focus only on what’s important to make money?

Over the years, Professor Kaushik Akiwatkar, who has doubled his trading capital in the last one year, has developed a time-tested style of his own to catch the trend using Point & Figure and Renko charts in a noiseless fashion.

Having taught at various universities in Ahmedabad, Sonepat and Mysore between 2014 and 2022, he is now a full-time derivative trader and also heads the products team at Elearnmarkets in Kolkata. Edited excerpts from a chat with the professor-turned-trader:


Please take us through your educational and teaching background.
I was born in Pune and went to Ahmedabad to study computer science at the graduate level and also did an MBA in marketing and finance before getting into a career in academics.

At Rishihood University, I was part of the founding team from 2017 to 2020 and was responsible for building a robust learning culture by developing processes and partnerships that prioritized the needs of students and faculty.

In 2020, I took charge of Cresta School of Management, Science, and Arts, as the Dean of Campus where I was involved in the design and launch of specialized undergraduate programmes affiliating with the University of Mysore. Currently, I am the Head of Product at Elearnmarkets, where I develop courses on financial markets that are accessible to all.

Throughout my career in education, I have been fortunate to be a part of various initiatives and organizations, including the Business Incubator at Gujarat Technological University and the Shalom Club of MASHAV, Ministry of Foreign Affairs, State of Israel.


We don't see too many academicians and professors taking interest in active trading. How were you introduced to the world of stocks? And what made you turn full-time into trading?
Each of my educational experiences has contributed to building my trading journey. I was fortunate enough to be introduced to the industry by a mentor with a successful career in the stock market. Despite facing challenges and needing guidance in the early stages, I persevered and dedicated myself to learning and improving every day. Through hard work and determination, I developed my own unique trading style and strategies.

Along the way, I discovered that many people lack the knowledge and resources they need to succeed in the stock market. As a professor, I have the skills to convey complex concepts in a way that is easy to understand. This led me to my calling of educating others about the ‘Science of Trading’, while also trading myself. Over the past five years, I have been able to turn my passion for trading into a fulfilling full-time profession.

Any parallels that you can draw between the two worlds of academics and trading?
As a professor of behavior and marketing, I had a strong foundation in the study of consumer behavior, particularly the decision-making processes that drive buying behavior.

In the world of trading, understanding mass behavior is crucial for success. Technical analysis and chart analysis are tools that allow traders to analyze and predict the behavior of the market as a whole, which is ultimately driven by the collective actions of buyers and sellers. This is because the prices of securities, such as stocks and commodities, are determined by the balance between supply and demand.

By applying my knowledge of consumer behavior and understanding the fundamental forces of supply and demand, I am able to make informed trading decisions.

How is a typical trading day for you and how do you go about figuring out the strategy?
As a positional trader, I typically start my work in the evening when data from the exchange is available for analysis. It takes me about 3 hours to analyze the charts of the Nifty 500. I prefer to screen the charts manually as it helps me improve my observation skills. My main goal is to identify swing or positional trades and only enter the market if my trigger is activated. During the day, I have plenty of free time, which I often use to read, write, or create videos for my YouTube channel about the markets. I also use Twitter to share my insights and understanding of trading and markets with other traders, hoping to help them learn from my experiences.

So how do you go about picking stocks?
I take long-only positional trades in the futures segment for 2-3 months. Usually, I have 2 open positions at any given point. I look at fundamentals as well but I do not short stocks.

You call yourself a noiseless trader. Can you help us understand what it means and how you remove the noise while looking at the charts?
Noiseless charts are those that have been stripped of any extraneous information that could distract from or obscure the underlying trends and patterns being analyzed. This can include data points such as random price fluctuations or volume spikes that do not reflect the overall trend of the market.

As a trader, I primarily use Point and Figure and Renko charts, which are objective and plot only price action. These charts are one-dimensional, unlike Candlestick charts which are two-dimensional and plot both price and time. The simplicity and lack of noise on these charts are what inspired me to adopt the name 'The Noiseless Trader'.

In my trading, I try to avoid adding too many indicators. Instead, I focus on taking trades based on price action and use indicators only to confirm my analysis. This helps me to avoid the pitfalls of relying too heavily on indicators without a clear understanding of the market, which can lead to poor trade decisions and ultimately wash out my capital.

How do you manage to keep investing and trading as separate subjects? For a full-time trader, it often gets tough.
Before answering the question, it's important to understand the difference between an investor and a trader.

For me, an investor is someone who looks at the balance sheets, analyzes the scope of a sector and the progress of a business, and based on this information, makes a decision to invest. As an investor, you are taking ownership of the company and are committed to the business through good times and bad. You are focused on growing the business, rather than exiting it.

On the other hand, a trader is someone who has a specific entry, exit, and stop-loss conditions. When you have an exit price in mind, you are considered a trader, regardless of your holding period.

To help keep my trading and investing separate, I use this simple definition to guide my approach. I know that if I have an exit condition in place, I am trading, but if I am investing, I am committed to the long-term success of the business.

As for my portfolio, I have invested in a number of stocks such as J.B. Chemicals & Pharma, Aarti Industries, Asian Paints, Kansai Nerolac Paints, and Bharti Airtel. These are just a few examples of the stocks I hold.

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