Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
Hi Afin ... Thanks for your query. I will try to finish my answer in short.
Since, January of this year, I have been able to produce consistent profit every month (it took me long time to improve my performance). As per my own Risk Management system, I utilise 10% of my capital every day. I only (or mostly) trade in Bank Nifty Options (I am a Bank nifty addict). I can't live without Banknifty. I hardly take two or three trades (sometimes only one) per day. Apart from it, I trade in Nifty options only on monthly expiry days (because as per my personal opinion, expiries are traditionally meant for Nifty only).
I got fired from my corporate job (was working with a major Media company) by the middle of this year (just because my boss was a lunatic). I immediately decided to invest my full savings and time on daily trading. I am single and living with my family. I don't spend too much money on myself. Hence, I can afford to take risk with my occupation.
My friends said that I took a wrong decision. My family was a little bit worried too. But I never let anyone to discourage myself and my plans. Somehow, I have been able to produce consistent income on monthly basis. Let us now do some calculations:-
I transferred Rs. 2 Lakh from my Savings account to my trading account by the end of May 2017. Since then I have been utilising 10% of my trading capital daily.
On average, I target 10% of profit per trade. Suppose, I took a Banknifty Option contract 25700 CE around 50. So, my target would be around 55. There are approx 22 days of trading every month. On some days, my Stop Loss is breached. But on most of days, I somehow get my 9% to 10% (on few days, I also make 50% to 100% per trade whenever Banknifty displays crazy moves).
As a result, to my surprise, since past few months, I have been making more money than what I was getting from my salary when I was on job. While I was on job, I was still trading but in light quantity.
This is still an early stage of my trading career. Now at the age of 27, my usual target is to make at least Rs. 1500 to 2000 per trade. Hence, on most of days, I end up making Rs. 1500 to 2500 to 4000. On my lucky days, there is no limit. On some days, I make nothing (or loss) due to triggering of my Stop Loss.
So far, I have collected money equivalent to few lakh rupees (sorry I don't want to disclose each and every money detail. You can do rest of the calculation yourself as I have given enough hint)
CONCLUSION (and also new year resolution):- I plan on to utilise the money I have been making through trading by January 2018. Also, chances are higher that I will have to join corporate world again (this time a Pharma company) by February 2018. But still I want to continue with my trading career simultaneously (along with that job). I know it is going to be very tough for me to handle both (job and independent trading business).
So, in short, 10% of those 'few lakh rupees' per trade (everyday). Will take maximum 2 or 3 trades everyday. Target would be same i.e. 10%. On some days, stop loss will get blown away (and I may lose heavily on those days). But on some days, I could (and most probably will) make so much that I could buy Business Class ticket to United States straightaway. Thanks....
Since, January of this year, I have been able to produce consistent profit every month (it took me long time to improve my performance). As per my own Risk Management system, I utilise 10% of my capital every day. I only (or mostly) trade in Bank Nifty Options (I am a Bank nifty addict). I can't live without Banknifty. I hardly take two or three trades (sometimes only one) per day. Apart from it, I trade in Nifty options only on monthly expiry days (because as per my personal opinion, expiries are traditionally meant for Nifty only).
I got fired from my corporate job (was working with a major Media company) by the middle of this year (just because my boss was a lunatic). I immediately decided to invest my full savings and time on daily trading. I am single and living with my family. I don't spend too much money on myself. Hence, I can afford to take risk with my occupation.
My friends said that I took a wrong decision. My family was a little bit worried too. But I never let anyone to discourage myself and my plans. Somehow, I have been able to produce consistent income on monthly basis. Let us now do some calculations:-
I transferred Rs. 2 Lakh from my Savings account to my trading account by the end of May 2017. Since then I have been utilising 10% of my trading capital daily.
On average, I target 10% of profit per trade. Suppose, I took a Banknifty Option contract 25700 CE around 50. So, my target would be around 55. There are approx 22 days of trading every month. On some days, my Stop Loss is breached. But on most of days, I somehow get my 9% to 10% (on few days, I also make 50% to 100% per trade whenever Banknifty displays crazy moves).
As a result, to my surprise, since past few months, I have been making more money than what I was getting from my salary when I was on job. While I was on job, I was still trading but in light quantity.
This is still an early stage of my trading career. Now at the age of 27, my usual target is to make at least Rs. 1500 to 2000 per trade. Hence, on most of days, I end up making Rs. 1500 to 2500 to 4000. On my lucky days, there is no limit. On some days, I make nothing (or loss) due to triggering of my Stop Loss.
So far, I have collected money equivalent to few lakh rupees (sorry I don't want to disclose each and every money detail. You can do rest of the calculation yourself as I have given enough hint)
CONCLUSION (and also new year resolution):- I plan on to utilise the money I have been making through trading by January 2018. Also, chances are higher that I will have to join corporate world again (this time a Pharma company) by February 2018. But still I want to continue with my trading career simultaneously (along with that job). I know it is going to be very tough for me to handle both (job and independent trading business).
So, in short, 10% of those 'few lakh rupees' per trade (everyday). Will take maximum 2 or 3 trades everyday. Target would be same i.e. 10%. On some days, stop loss will get blown away (and I may lose heavily on those days). But on some days, I could (and most probably will) make so much that I could buy Business Class ticket to United States straightaway. Thanks....
Sent from my Redmi Note 4 using Tapatalk
Hi Afin .... Good question. Sorry, I was busy with voice-over work. To begin with, so far I have never faced any issues with placing orders. The main catch is to place order using LIMIT option. Banknifty is so full of liquidity these days, that it's hardly an issue. For example, BN 25700 CE is available around 50. Hence, one can place limit order of 400 quantity (or 10 lots) or even more pretty easily. It will get executed easily. That will easily consume capital of Rs. 20000 or more.
Also, today by looking at your question, I feel nostalgic. You won't believe I asked the same query once from a rich Indian trader who once imparted some of his knowledge on a famous forum (let us not take any names) some two or three years ago. He is not seen anywhere now (I dont know where did he go). I had a brief conversation with him through email once. If you plan on to place REALLY BIG ORDERS, then I have attached some screenshots of an old email conversation below for your perusal. I believe one cannot place an order of more than 10000 quantity at once (correct me if I am wrong). Below are two screenshots (one includes my questions and the other one will show you his answers to my questions). I was 24 or 25 yrs of age back then. Had plans to trade big at that time also. But the plan never took off due to low confidence and courage and less knowledge. This is exclusively only for you guys. Please do not share these screenshots further. Enjoy ....
Also, today by looking at your question, I feel nostalgic. You won't believe I asked the same query once from a rich Indian trader who once imparted some of his knowledge on a famous forum (let us not take any names) some two or three years ago. He is not seen anywhere now (I dont know where did he go). I had a brief conversation with him through email once. If you plan on to place REALLY BIG ORDERS, then I have attached some screenshots of an old email conversation below for your perusal. I believe one cannot place an order of more than 10000 quantity at once (correct me if I am wrong). Below are two screenshots (one includes my questions and the other one will show you his answers to my questions). I was 24 or 25 yrs of age back then. Had plans to trade big at that time also. But the plan never took off due to low confidence and courage and less knowledge. This is exclusively only for you guys. Please do not share these screenshots further. Enjoy ....
Hi Afin .... Good question. Sorry, I was busy with voice-over work. To begin with, so far I have never faced any issues with placing orders. The main catch is to place order using LIMIT option. Banknifty is so full of liquidity these days, that it's hardly an issue. For example, BN 25700 CE is available around 50. Hence, one can place limit order of 400 quantity (or 10 lots) or even more pretty easily. It will get executed easily. That will easily consume capital of Rs. 20000 or more.
Also, today by looking at your question, I feel nostalgic. You won't believe I asked the same query once from a rich Indian trader who once imparted some of his knowledge on a famous forum (let us not take any names) some two or three years ago. He is not seen anywhere now (I dont know where did he go). I had a brief conversation with him through email once. If you plan on to place REALLY BIG ORDERS, then I have attached some screenshots of an old email conversation below for your perusal. I believe one cannot place an order of more than 10000 quantity at once (correct me if I am wrong). Below are two screenshots (one includes my questions and the other one will show you his answers to my questions). I was 24 or 25 yrs of age back then. Had plans to trade big at that time also. But the plan never took off due to low confidence and courage and less knowledge. This is exclusively only for you guys. Please do not share these screenshots further. Enjoy ....
Also, today by looking at your question, I feel nostalgic. You won't believe I asked the same query once from a rich Indian trader who once imparted some of his knowledge on a famous forum (let us not take any names) some two or three years ago. He is not seen anywhere now (I dont know where did he go). I had a brief conversation with him through email once. If you plan on to place REALLY BIG ORDERS, then I have attached some screenshots of an old email conversation below for your perusal. I believe one cannot place an order of more than 10000 quantity at once (correct me if I am wrong). Below are two screenshots (one includes my questions and the other one will show you his answers to my questions). I was 24 or 25 yrs of age back then. Had plans to trade big at that time also. But the plan never took off due to low confidence and courage and less knowledge. This is exclusively only for you guys. Please do not share these screenshots further. Enjoy ....
Sent from my Redmi Note 4 using Tapatalk
Thanks a lot Shiv! That's very kind of you. I am seriously looking at index trading as my daily bread and butter because just like you I have been facing workplace issues too. Thanks for answering all of these patiently and for attaching the screenshot also. I like the technique you have mentioned in your first post. I tried doing that in Nifty and even a small 10% profit matterred a lot
Sent from my Redmi Note 4 using Tapatalk
Sent from my Redmi Note 4 using Tapatalk
Sent from my Redmi Note 4 using Tapatalk
.
Just my 2 cents .. In case Of nifty Options I think the limit is 10,000 (as 75 is the lot size 9975) qty max per order. In case of BankNifty Options it is 2400 qty per order.
I would suggest 'not' to put market orders as I faced an issue a couple of weeks ago where my order was traded from Rs 170 right upto 135 with less than 2000 qty in Banknifty. Fortunately 135 was my buying price .. but I learnt my lesson.. hope it is useful for you too..
Correct ... In trading world, each and every single rupee matters a lot ...
I would suggest 'not' to put market orders as I faced an issue a couple of weeks ago where my order was traded from Rs 170 right upto 135 with less than 2000 qty in Banknifty. Fortunately 135 was my buying price .. but I learnt my lesson.. hope it is useful for you too..
.
Just my 2 cents .. In case Of nifty Options I think the limit is 10,000 (as 75 is the lot size 9975) qty max per order. In case of BankNifty Options it is 2400 qty per order.
I would suggest 'not' to put market orders as I faced an issue a couple of weeks ago where my order was traded from Rs 170 right upto 135 with less than 2000 qty in Banknifty. Fortunately 135 was my buying price .. but I learnt my lesson.. hope it is useful for you too..
Just my 2 cents .. In case Of nifty Options I think the limit is 10,000 (as 75 is the lot size 9975) qty max per order. In case of BankNifty Options it is 2400 qty per order.
I would suggest 'not' to put market orders as I faced an issue a couple of weeks ago where my order was traded from Rs 170 right upto 135 with less than 2000 qty in Banknifty. Fortunately 135 was my buying price .. but I learnt my lesson.. hope it is useful for you too..
Sent from my Redmi Note 4 using Tapatalk
.
Just my 2 cents .. In case Of nifty Options I think the limit is 10,000 (as 75 is the lot size 9975) qty max per order. In case of BankNifty Options it is 2400 qty per order.
I would suggest 'not' to put market orders as I faced an issue a couple of weeks ago where my order was traded from Rs 170 right upto 135 with less than 2000 qty in Banknifty. Fortunately 135 was my buying price .. but I learnt my lesson.. hope it is useful for you too..
Just my 2 cents .. In case Of nifty Options I think the limit is 10,000 (as 75 is the lot size 9975) qty max per order. In case of BankNifty Options it is 2400 qty per order.
I would suggest 'not' to put market orders as I faced an issue a couple of weeks ago where my order was traded from Rs 170 right upto 135 with less than 2000 qty in Banknifty. Fortunately 135 was my buying price .. but I learnt my lesson.. hope it is useful for you too..
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