Learn Trading Discipline with Market Veteran Sanjiv Bhasin

The recent Keynote Session at Masters’ Union featured Sanjiv Bhasin, a veteran with 38 years in the Indian and global stock markets. From the days of open outcry at the Delhi Stock Exchange to electronic trading and complex derivatives, he has seen the market evolve from its roots to today’s digital era.

In the session, the market expert broke down the difference between traders and investors, explained bull and bear cycles, and emphasised that survival, not speculation, defines long-term success. Students received an unfiltered view of trading psychology, risk management, and India’s equity market transformation.

Evolution of India’s Stock Market Landscape

The conversation began with stories from the Delhi Stock Exchange in the 1980s, when trades were shouted across crowded floors and records were handwritten. Today, electronic platforms like NSE and BSE allow instant trades, high liquidity, and seamless settlements.

This shift, he noted, demands adaptability, whether in technology, regulation, or global market flows.

Shifts that shaped the markets:

1. Transition from open outcry to electronic trading

2. Emergence of NSE and BSE as global players

3. Rise of online trading platforms in India

Traders and Investors: Two Distinct Mindsets

The veteran investor drew a sharp line between two roles: traders, who thrive on volatility and leverage, and investors, who focus on compounding wealth over time.

He warned that retail participants often confuse the two, especially when dabbling in derivatives, which leads to avoidable losses.

Contrasting approaches:

1. Traders: leverage, speed, high risk
2. Investors: patience, compounding, asset allocation
3. Retail pitfalls: lack of discipline in derivatives trading

Market Cycles and Investor Behaviour

Every generation, he said, goes through the same emotions: optimism in bull runs and fear in downturns. The key lesson is that cycles repeat, and only the disciplined endure.

Recalling the 2008 global financial crisis, the veteran explained how shocks reshape behaviour and why resilience matters more than prediction.

Patterns that repeat:

1. Bull markets encourage speculation and overconfidence

2. Bear markets reward discipline and capital preservation

3. Global crises redefine investor behaviour long term

Risk Management and Hedging Strategies

For the market professional, survival is the top priority. Hedging positions, controlling leverage, and booking profits before greed takes over are non-negotiable.

Drawing on his experience at Deutsche Bank during the Lehman collapse, he illustrated how even the largest institutions crumble without strong risk frameworks.

Survival strategies for traders:

1. Hedge positions using derivatives

2. Book profits and cut losses promptly

3. Prioritise capital preservation over chasing returns

The Psychology of Trading: Fear and Greed

Markets, he reminded students, are human behaviour scaled up. Fear and greed drive most mistakes, and emotional discipline is what separates professionals from amateurs.

His advice was clear: treat trading as a craft. Focus on the process, not luck, because even the best strategies collapse without discipline.

Mindset for long-term success:

1. Fear and greed drive poor decisions

2. Emotional discipline is essential for survival

3. Process-driven trading outlasts speculation

Lessons from Derivatives and Leverage

Derivatives are often where retail investors stumble. Options and futures look attractive but carry hidden risks.

Handled wisely, they hedge portfolios; handled recklessly, they magnify losses.

What derivatives teach:

1. Leverage amplifies both gains and losses

2. Options require discipline, not luck

3. Hedging is the true purpose of derivatives

Asset Allocation Beyond Equities

True wealth, he said, is not built on equities alone. Bonds, commodities, and cash reserves provide the resilience needed to survive downturns.

Discipline in allocation often matters more than chasing the next “hot stock.”

Diversifying for resilience:

1. Asset allocation balances risk and reward

2. Bonds and commodities complement equities

3. Cash reserves act as insurance against volatility

Advice to Future Market Professionals

Distilling nearly four decades of experience, the seasoned trader offered four timeless rules:

1. Survive for another day – never risk everything on one trade

2. Stay disciplined – follow stop losses and profit booking

3. Control emotions – fear and greed ruin more portfolios than analysis

4. Keep learning – markets evolve, and so must traders

For Masters’ Union students, the message was clear: success isn’t about predicting tomorrow, but about building systems that endure across cycles.

The golden rules:

1. Survive for another day

2. Maintain discipline under pressure

3. Control emotions before they control you

4. Adapt to new market realities

Why Market Experience Matters in Business Education

The fireside chat reinforced Masters’ Union’s philosophy: learning from practitioners who’ve lived through cycles brings lessons no textbook can.

Students walked away with a sharper understanding of the market as a living system shaped by psychology, regulation, and global flows.

At Masters’ Union, sessions like these prove why real-world exposure matters more than theory. The stock market isn’t just a place for profits; it’s a classroom in discipline, resilience, and survival.