Best way of day trading - 2652 theory of trading

[jhaveri_n]

If you are trading cash segment for a monthly charge of Rs. 350/- try this.

http://www.icharts.in/realtime-charts-basic-service.html

If you want futures also try this for a monthly charge of 650/-

http://www.icharts.in/realtime-charts-premium-service.html


their quotes match those mentioned by other members.

Hi Prasadam, do you think the data is any different then what show up on the charts attached with trading software, like i said above, i currently use traders terminal from 5paisa.

 

[flashkid]

hi
just avoid gmr infra , ifci the reason because here its difficult to deal with the orders as the price changes in a tick is high .
just go in LT, REL CAP, REL INFRA, HDFC,
one member says ABAN is favourite for this method
just try these high value stocks
paper trade for one week and see the results
dhiraj

Thank You for the advise.

I found out about IFCI the hard way
It hit SL both on 14th and today

I will switch to the other stocks

 

[prasadam]

Hi Prasadam, do you think the data is any different then what show up on the charts attached with trading software, like i said above, i currently use traders terminal from 5paisa.

If your broker is providing charts, please go with the values as per those charts. We have to trade as per our charts. This is what I learnt from "Going with the Intraday mini flow" Thread (Main thread).

http://www.traderji.com/day-trading-stocks/24071-going-intraday-mini-flow.html

The same thing is being followed in the live thread also.

 

[jhaveri_n]

If your broker is providing charts, please go with the values as per those charts. We have to trade as per our charts. This is what I learnt from "Going with the Intraday mini flow" Thread (Main thread).

http://www.traderji.com/day-trading-stocks/24071-going-intraday-mini-flow.html

The same thing is being followed in the live thread also.

Hi Prasdam, I appreciate your help, unfortunately, i dont think, this is the best place to start trying to learn the 'Intraday mini flow', I think Saint has other related strategies as well, wanted to know where to start from, coz the thread you provided has +500 pages, is there a better way. Sunil please help.

 

[stokinghem]

Dear Friends


is it possible to develop afl for 2652 system

and available please provide either afl or xls sheet for it i think GepAna.xls can be extended for 2652 system

Anyone can provide afl for multiple symbol plotting in single chart for price only

Seniors with lots Treasure please help

Best Regards to All
My best wishes for nice profitable trading days to all friends

thanks

stokinghem

 

[Sunil]

hi sunil
no buddy, u r the person to whom the credit goes for this method .

i pointed my finger , but u led the way .
u made it simple and as most of the querries were related to futures u answered them all. now am also thniking of mastering fututres

/QUOTE]

Dhiraj,
I was only able to answer queries related to Nifty, which one can trade ONLY in Futures segment. (I can't comment on liquidity of Nifty ETFs available in cash segment).


I still maintain that there's not much difference in intraday trading of stocks, whether in Cash market or Spot market.
The major difference is only with regard to fixed lot size. Margin (leveraging) is provided by brokers in both segments, if u trade in cash market only on intraday basis.
For example, if u trade in Reliance @ CMP 1400, then:
for cash market, as u said, the trade value u keep is normally Rs 1 lac, then you will buy around 71 shares of RIL.
In futures market, fixed lot size of RIL is 75 shares.
(this coincidence may not be there in case of all shares)

for buying 71 shares of RIL in cash market for intraday basis, I am sure your broker won't ask for full Rs 1 lac to place order. He will ask you to provide only a certain % of your order value (differs with every stock & broker) as margin amount to place that order. In case of bluechips like RIL, even a margin of Rs. 15000 is enough to place order of Rs 1 lac.

If u place such order in futures segment, for 75 shares, then here too, a certain % of margin is asked by your broker. I am not sure, but here too, it might be only Rs 15000.

What differs is the profit-booking procedure....
When your target level is reached, and u feel that it has potential to give more profit, ideally, u may book out 1/4th or 1/2 of your position, and trail the balance quantity. Like, in RIL's case in cash market, u may book 41 shares at 0.5% and balance 30 shares at 0.8% or whatever.

This facility is NOT available in FUTURES segment. You have to sell lot wise - so, u will have to book out the entire one lot of 75 shares of RIL in one go at your target level - u cannot break up / divide 75 shares in Futures segment.

If u normally book out all at a fixed 0.5% or whatever, in cash market, then you will find no difference at all in Futures segment.
ALSO, TAKE NOTE OF CHARGES:
SOME BROKERS HAVE LOWER BROKERAGE RATE FOR FUTURES (though not necessary)
BUT OTHER COSTS LIKE STT, DUTIES, ETC ARE DEFINITELY LOWER IN FUTURES SEGMENT THAN IN CASH SEGMENT
But, in % terms, not that much of difference.
STT:
cash = 0.025%
futures = 0.017%

other duties/taxes:
cash = 0.0055%
futures = 0.0043%

From tax-treatment angle, Intraday trading in Cash market amounts to INCOME FROM SPECULATION BUSINESS
while in futures segment, it comes under INCOME FROM NORMAL, NON-SPECULATIVE BUSINESS.

As a well-wisher, I wanted u to take note of these things before u decide to switch to futures segment.





PS: If we come out intraday trading sphere, and if u feel like carrying forward the trade for next day, then u cannot do so in cash segment (for longs, there's a higher brokerage for BTST, and for shorts, u have to compulsorily square-off your trade by 3:15pm same day, and u cannot carry forward)
No such distinction & restriction in futures segment.

 

[dhiraj11378]

thanks sunil for all above posts
all ur posts are crystal clear and very informative .
dhiraj

 

[prasadam]

thanks sunil for all above posts
all ur posts are crystal clear and very informative .
dhiraj

I second it.

 

[velanthangavel]

Just now I joind plz send me ful details of 2652 theory

 

[prasadam]

Thank you sohan.