Absolute Beginner Guide.

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I have a silly question That I have open a Indiainfo account but really want to tell you that I do not have faith in them as they do not have full support as I tried to find their delhi phone number but do not find any means how will solve our quries they have only number of Mumbai if you have any numbers of indiainfo it will be a great help for me and plz tell me if I can have faith in Indiainfo.
 

TFL

Well-Known Member
Ok TLF I have question
Is it usefull to use a software just to check the market and use icici direct for intraday trading. I think Change in the price of one stock would be same as of software and icici direct am i right. plz suggest me on this
If you want to execute the orders fast then software based platform is better than web based like icicidirect's. Also they have severe downtime issues, then you will be locked up with your order.

TFL.
 
If you want to execute the orders fast then software based platform is better than web based like icicidirect's. Also they have severe downtime issues, then you will be locked up with your order.

TFL.
I have Indiainfo account for trading but they do not have any customer care numbers I live in delhi Can you tell me any number for delhi, and is it worth to have faith in them.
 
Re: General Guide to Day Trading

Here I will guide you about the setups needed fort day trading.

First off all you need to arrange all the inventories before starting day trading. I will describe below what you need to do first. All are inconsideration that you want to be a dedicated online trader and need to have a fool proof trading system. This setup will keep you in trading as far as you want.

1. Open a Bank Account, Demat Account & Online Trading Account. You can contact a broker firm to get these accounts opened.
Brokerage firms: Sharekhan, Geojit, Religare, Reliance Money, HDFC, ICICIDirect, etc.

Funds from your bank will be transferred to the trading account. Then shares can be brought using that money. The shares you brought will be held on your demat account.
While buying a share: Bank account -> (cash) Trading Account -> (shares) Demat Account
While selling a share: Demat Account (shares) -> Trading Account (cash) -> Bank Account

The above transactions attracts certain commissions, known as brokerages. Since, above the value of shares you will be charged some small amount of money as brokerages. Also you will be charged some taxes for these transactions and for the gain.

Brokerage: For the whole buy and sell value,
STT(Security Transaction Tax): Calculated on the Weighted Average Price of the client for a particular days turnover,
Stamp Duty,
Service Tax,
etc.
This doesn't include income tax. You need to pay a particular % of income tax for all your Gains only, Also you can deduct your losses from the Gains for the calculation of income tax.

I will post a real life example of a transaction.

Share: UNITECH LTD
No of Shares brought: 200
Buy Price: 147.85
Total Amount: Rs: 29570
Brokerage: Rs: 15
Service Tax: Rs:1.86
NET COST OF BUY: Rs: 29586.86


Now you have a Trading Account ready to buy and sell shares.
For day traders the shares are brought and sold in the same day itself.
So these shares will not actually go to your demat account.

Now we can discuss about other client setups.
Consider you are a dedicated trader who trades from your home or office, you need to have the below hardwares and softwares.

1. Sufficient Trading Capital (Money).
3. A good Computer System.
4. A Power Back Up System.
5. A good Trading Terminal Software.
6. A very good Internet Connection.
7. A calm environment where other will not disturb you.


Sufficient Trading Capital
You should have sufficient fund for trading. Broker firms allow you to trade more than the money you have for non-delivery trading(day trading) or for 6 days trading with some brokers like Sharekhan. This is known as leverage, its good you can buy more for less money but, say for example if you have Rs:1000 the broker firm may allow you to trade for 4000 and for even 10000 with some brokers. But high leveraged trading is extremely dangerous and it will kill your trading capital. So try to be less leverage as possible.

See the danger of leveraged trading by an example,
One have taken the leverage of 10 times his trading capital of 1000 and brought shares worth 10000.
Brought ABC 100 share for Rs:100
After 15 minutes the share price is not moving up but going down. So he decided to sell the shares at the current price to limit the losses.
He sold at: Rs:90, means he lost Rs:10 per share.
So, Total loss = 10*100 = 1000. Now Rs: 1000 will be deducted from his trading account. Now his trading capital is 0, means he cannot trade since there is no money left.

His Capital: 1000
Brought in leverage: 10000
Lost 1000
Now his Capital: 0

Like wise if you have gained and booked profit at 110 you will gain 1000. Means you have made 1000 from 1000 from a single trade. But a single loss will kill a greater percentage of your capital and you will get pain to even recover from the loss.

I know I have detailed roughly about leverage. But consider, many traders left trading just because they traded with highly leveraged money. So my advice is to not leverage or leverage very less but never leverage more than 4 times(4000 from 1000). As a thumb rule don't loose more than 1% to 2% of your money in any single trade and not more than 10% at any time.

Computer System
These days all computers are highly powered so there is no need to discuss much but, for a dedicated online trader I recommend the following computer setups.
Processor: Dual Core min. 3.2 Ghz(1.6*2)
RAM: 1 GB or more if you are using Windows XP or higher versions.
Monitor: Preferably 2 monitors. 15inch minimum. One for Charts/Graphs and the other for orders and Index tracking.
Browsers: Internet Explorer + Opera or FireFox

Power Back Up System
You must have a power back up system over your conventional 20 minute UPS. Buy a UPS which gives atleast 1 hour back up or buy some other kind of backup system. Even if the power fails you must be able to trade for the next 1 hour atleast even if you have no power cuts in your area.

Trading Terminal Software
As a day trader you should have a trading terminal rather than brokers webpage trading. For this you can signup for brokers providing software terminals to trade. Below are some brokers who provides softwares.

Sharekhan: Provides Software(with technical analysis tools).
ICICIDirect: Donot provides software (So, not suitable for day traders).
Religare: Provides Software.

[Optional]
If you can buy technical analysis softwares (like MetaStock, Amibroker, etc) will be a good idea. Also you need to buy good real time data feeds inorder to see charts and prices in MetaStock, Amibroker,etc. Softwares provided by brokers doesn't need additional data feeds. The advantage of these Technical Analysis softwares over broker's trading terminal softwares are the higher ability to do technical analysis.

Internet Connection
A proper internet connection is a must for every trader. A 250Kbps internet connection will smooth out your trading. Also take a backup connection from a different company inorder to continue trading when the other connection fails of any reason.
Backup Connection is not expensive if you take a usb data card wireless connection or mobile edge internet connection. All these are available for as low as 400 per month or even less. You may also activate the backup connection from your mobile service provider and can use your mobile as modem to access internet through GPRS or EDGE. All mobile service providers have this facility for less than 250 per month. This will save you from a sudden internet blackout.


I wrote these all in a jiffy manner, so please correct if I have missed something or did anything wrong. Will update and add more advanced topics regarding day trading soon. But I need your feedback, questions, complaints, etc to keep me in track.

Thank you,
TFL.
Dear TFL,

At the very outset I thank you for starting this thread. I was trying to learn the nitty-gritty of day trading for sometime. Your thread will be of immense help to me and other fellow members.

I want to ask you if I should have two internet connection running at a time when you have said, "Monitor: Preferably 2 monitors. 15inch minimum. One for Charts/Graphs and the other for orders and Index tracking". For day trading, I must continuously monitor the charts/graphs of scrips I am following.

Please do clarify this.

Regards,

Raju
 
Hi ALL,

I am a newbe in share market,never done any trading,just going thru the learning phase.

AND this thread helped me in a great deal.MANY MANY THANKS to all the senior members for sharing their thoughts and most valuable time.

I have few doubts, not sure whom to ask and where to post, that's why I'm posting it here.Sorry for that.

Here is the case:

I am trying to practice Tech. Analysis with the help of Metastock as TA software.

Now I want to plot the daily chart as well as weekly chart for the same security(say ACC,HDFC or whatever).

I have the EOD data and while I am plotting those data in metastock I am getting the daily charts only.

Now PLEASE let me know

1. How to plot the weekly charts?
2. Do I need to download the data seperately for weekly charts? If so from where?
3. Can I convert these EOD datas(hystorical) to weekly data somehow and then plot those in metastock?
4. OR just tell me how do you plot a weekly chart?


MANY MANY THANKS in advance.
 

TFL

Well-Known Member
I have Indiainfo account for trading but they do not have any customer care numbers I live in delhi Can you tell me any number for delhi, and is it worth to have faith in them.
Sorry I donot know the CC no of them. You can obtain the phone no from the website of by placing a request to their email.

TFL.
 

TFL

Well-Known Member
Re: General Guide to Day Trading

Dear TFL,

At the very outset I thank you for starting this thread. I was trying to learn the nitty-gritty of day trading for sometime. Your thread will be of immense help to me and other fellow members.

I want to ask you if I should have two internet connection running at a time when you have said, "Monitor: Preferably 2 monitors. 15inch minimum. One for Charts/Graphs and the other for orders and Index tracking". For day trading, I must continuously monitor the charts/graphs of scrips I am following.

Please do clarify this.

Regards,

Raju
Sorry, can you write your question in another way?

TFL.
 

TFL

Well-Known Member
Hi ALL,

I am a newbe in share market,never done any trading,just going thru the learning phase.

AND this thread helped me in a great deal.MANY MANY THANKS to all the senior members for sharing their thoughts and most valuable time.

I have few doubts, not sure whom to ask and where to post, that's why I'm posting it here.Sorry for that.

Here is the case:

I am trying to practice Tech. Analysis with the help of Metastock as TA software.

Now I want to plot the daily chart as well as weekly chart for the same security(say ACC,HDFC or whatever).

I have the EOD data and while I am plotting those data in metastock I am getting the daily charts only.

Now PLEASE let me know

1. How to plot the weekly charts?
2. Do I need to download the data seperately for weekly charts? If so from where?
3. Can I convert these EOD datas(hystorical) to weekly data somehow and then plot those in metastock?
4. OR just tell me how do you plot a weekly chart?


MANY MANY THANKS in advance.
Asish07,

You only need enough data(3 or 4 weeks) to get weekly charts and there is no need to get additional data for weekly. Familiarise with MS and use its user guide for forther formation regarding this.

TFL.
 
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