Day trading Versus Investment (please give answers)

[coollife]

Hi Cool life,

You know the answer can send into you chronic severe depression or you can go crazy out of emotional high. Such things are better "discovered" by one self rather than asking others. On both sides, winning as well as losing, there is no limit to how much you can make or lose. You can lose more capital than you started with.

please be specific i am ready to accept the truth. I just want to know can one make living out of day trading

Please tell me what percentage can one make on long run

Thank u

 

[sunil_1972]

Hi Cool life,

I have been watching your posts since a long time. I think that you are spending a lot of time in inaction. Instead of merely drawing conclusions by what others say, you should get at least "2 drops" of experience of all the things.

Choose your broker quickly and get started. You do not need thesis of 200 pages for a broker. For a small account, brokers usually offer 10 paise intraday(5 paise each side). You can bargain it to 3 paise both side(buy and sell side). Else, brokers have prepaid brokerage schemes where you can get lower brokerage upon advance payment of certain money.

Start with Rs. 2000, trade in qty of 10 shares of any scrip at a time. The point is not to make money, but for yourself to gauge whether you can handle the emotional swings and still profit.

Jump into action. That is the only way to go ahead. Nobody will ever give you a certificate that says "You can trade now". Start very small and keep growing.

Even an experienced trader will loose concetration some times. So I use a simple method to bring my concentration back. I trade in equity for a week. From Monday to Friday. Go long or short according to market condition. Never hold any stock for next day. Trade as many stocks you like. But profit should be more than 100 Rs. and Less than 200 Rs. after brokerage and other charges. Do this practice for 5 days in a week.

How you get concetration from this practice? Some times you get 150 Rs. in a single stock trade in half an hour. Immediately you cover the position and leave the trading hall for the day. Because your target is achieved. And some times your trade went wrong. But you will not hesitate to put stop loss. Because you should achieve 100 Rs. plus for the day. Trade another stock, cover the loss and achieve the target. I adviced this practice for my friends and it is widely appreciated.

 

[rajputz]

Just for a test....Rather then investing your whole 50k, just open an account with 1000Rs. Learn with it. No body will be better teacher for you, rather then learning with your own mistakes...Its never good to put large sum in widout proper knowledge. it is easy to lose and too hard to earn it back.

 

[SCION]

I second rajputz,instead of putting all your money try it out small...
Would you jump into a well,well aware of the fact that you do not know how to swim and no one around to help you if things were to go wrong....
Please take your time,even if its a year plan it properly,learn the game and then go for the plunge....
:thumb:

Thanks i will start of , because as u said i am simply wasting time in judging and not doing anything. Ok tell me which broker to go for as per ur knoweldge like Sharekhan , 5paisa , indiabulls. Whichever u suggest i will just jump into them for opening account. Thanks a lot .

 

[Smart_trade]

please be specific i am ready to accept the truth. I just want to know can one make living out of day trading

Please tell me what percentage can one make on long run

Thank u

One can make a very decent living by daytrading...but it is not easy....let there be no illusion that you master a few concepts and you are on a great paying profession....far from it..any other profession has better chances of success than trading.......

My experience is 80 % will fail in daytrading....about 10-12 % will be just breakeven types...making some money here,loosing some there...only less than 10 % will be successful in daytrading and making living out of it. A good daytrader will make about 10-15 % of his capital in a month in daytrading....really advanced and gifted traders make even between 30-50 % of his trading capital per month...but it is very rare to find such traders who are consistant high performers as these are less than 2-3 % of the entire lot of traders. The road to this level is extremely tough...most will never make anywhere near to this level....

Best wishes for your progress....

Smart_trade

 

[sbhav]

hi coollife,

it is possible to make a living out of trading.i will suggest swing/positional trading rather than daytrading and for that you have to train yourself with adequate knowledge.
you cannot start a busines overnight,consider trading as a business and equip yourself with the required knowledge and methods and more importantly the initial money you mentioned is not adequate to earn a living.

take care,

sbhav.