Absolute Beginner Guide.

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Re: General Guide to Day Trading

Thanks for such a nice post. It will always be helpful to new joinees ever.

There is one quick question. I plan to start overseas trading. I have checked with a few firms. The difference in fees is huge. Like ICICIDirect and Interactive Brokers..

I need to know which will be the cheap and best broker, in your view, as I just want to purchase once and keep those stocks for a year or may be more. I would not be very active on purchase/sale front and would prefer doing research myself for stocks to purchase rather than paying for advice to these firms.

Thanks.
 
The first things to say at the absolute beginner is :
1) don't looking for the holy martingale
2) a good system for another people may be a bad for you
3) YOU are the core of the system
4) Less you trade less you lose
5) you don't trade a system, you trade a concept
6) Try paper trading : if it works, you have no warranty it will work in real, but if it don't work be sure it will be worse in real!
7) Fix some aim in a NUMBER of trades : for example +50% in 75 trades and calculate if it's possible. for instance :
capital 2000 commission 5 ( go and return), so gain 50% (1000$) you must gain 1000+75*5=1375 = 18 a trade.
if you decide to risk 2% of your capital (40), you need you gain 0.5 times the risk in average.
8) Calculate on 100 trades ( no more) the SQN ( quality) of your system
if you systel gives you regularly small gains it's better than only one huge gain and a lot of small/big losses.
9) Dont trade hopes, don't put rules than you don't follow. Cut the losses at once and don't down average, but you can up average.
10) Survey your account, don't put your head in the sand!!!!!
 
The first things to say at the absolute beginner is :
1) don't looking for the holy martingale
2) a good system for another people may be a bad for you
3) YOU are the core of the system
4) Less you trade less you lose
5) you don't trade a system, you trade a concept
6) Try paper trading : if it works, you have no warranty it will work in real, but if it don't work be sure it will be worse in real!
7) Fix some aim in a NUMBER of trades : for example +50% in 75 trades and calculate if it's possible. for instance :
capital 2000 commission 5 ( go and return), so gain 50% (1000$) you must gain 1000+75*5=1375 = 18 a trade.
if you decide to risk 2% of your capital (40), you need you gain 0.5 times the risk in average. **
8) Calculate on 100 trades ( no more) the SQN ( quality) of your system
if you systel gives you regularly small gains it's better than only one huge gain and a lot of small/big losses.
9) Dont trade hopes, don't put rules than you don't follow. Cut the losses at once and don't down average, but you can up average.
10) Survey your account, don't put your head in the sand!!!!!

**what I mean : if your target is 1.5 times your risk, when you risk 40 you gain 60. So you need to have 60% of good trades to realize you aim. ( I simplify you gain the target or you lose the risk).

if you start with a capital of 20000 with the same commission, you need to gain 10000+375 =10375 in 75 trades so 138.3but you risk 400 on each trade so the gain must be 0.34R
with the same system you need only 53% of winners
It's why I say a good system for some rich people may be a poor system for you.
 
hello sir i just want to explain about the overall procedure of the PAN card if you lost it anywhere .just go through the online site of income tax and aplly once again.
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