General Trading Chat

[wisp]

I buy all the funds through online purchase mode. I am registered for online investments with all the fund houses where I invest. They are Reliance ,Axis,Franklin Templeton, Motilal Oswal,HDFC,Birla Sunlife etc...all of them have online investment facilities. If you go through some portal, then brokerage will be charged to you...so go directly through fund houses.

Smart_trade

Hi Da,

Hope its ok to ask this question. Why do you invest in funds, what benefits do you (since you are a very successful trader) get from investing in funds?

 

[Smart_trade]

Hi Da,

Hope its ok to ask this question. Why do you invest in funds, what benefits do you (since you are a very successful trader) get from investing in funds?

Most new traders will have this querry. I have my investment portfolio, mutual fund portfolio,real estate portfolio and trading portfolio. All the four are independent.

Traders can make very good returns but I ask a question to me can I scale up trading ? Meaning I am suppose ok trading on 15-20 L capital but can I trade on more than 1 crore capital ??The answer for me is a bit difficult. And even if I make 20-25% return per annum, I will make big profits....so not after those 300 % return magic traders. I am not saying they cannot make high returns but for me 20 % pa is more than enough to increase my wealth.So I believe that diversification is the key.I am no more in capital generation so why take undue risks and risk my family's financial future which is absolutely secured as of now.

Smart_trade

 

[Smart_trade]

I have a friend who is a very large trader and he trades arbitrage.His capital was more than 25-30 Cr and I used to talk to him about trading.

He told me one secret which I remember till today. He says ST, we both are traders..but you try to make 15 L on 15 or 20 Lacs capital so that is 100-120 % per annum which is not easy. I on the contrary try to make just 5-7 % above my cost of capital and that gives me 1.25-1.5 Cr per annum....now tell me why should I take undue risks and put my capital in jeopardy...Sensible thought ...

Smart_trade

 

[Smart_trade]

I have a friend who is a very large trader and he trades arbitrage.His capital was more than 25-30 Cr and I used to talk to him about trading.

He told me one secret which I remember till today. He says ST, we both are traders..but you try to make 15 L on 15 or 20 Lacs capital so that is 100-120 % per annum which is not easy. I on the contrary try to make just 5-7 % above my cost of capital and that gives me 1.25-1.5 Cr per annum....now tell me why should I take undue risks and put my capital in jeopardy...Sensible thought ...

Smart_trade

His cost of capital is 9-12 % pa. and he tries to make 15-17 pa % on his capital...but on 25-30 Cr...that is huge.

He told me once that he does not do something extraordinary in trading but he trades simple things with extraordinary efficiency...meaning all his depositors are paid on exact date....not even 1 day late.Simple set up he trades.

Smart_trade

 

[kainiteh]

What different between one who trading with large capital and one trading for point... Underlay is same which is %... multiplier....

Just for clarification....

 

[XRAY27]

His cost of capital is 9-12 % pa. and he tries to make 15-17 pa % on his capital...but on 25-30 Cr...that is huge.

He told me once that he does not do something extraordinary in trading but he trades simple things with extraordinary efficiency...meaning all his depositors are paid on exact date....not even 1 day late.Simple set up he trades.

Smart_trade

Da !!!

3 M in play... Mind,Money Management,Method...i seen similar person of the type you quoting...20 to 22 Pa is his earning, carrying this from past three years !!!!

 

[Smart_trade]

What different between one who trading with large capital and one trading for point... Underlay is same which is %... multiplier....

Just for clarification....

Nothing really, except I dont want to trade on such big capital

ST

 

[Smart_trade]

What different between one who trading with large capital and one trading for point... Underlay is same which is %... multiplier....

Just for clarification....

In arbitrage play, he is trading with both leggs of the trade closed. So he makes a definite but small profits on every trade.In plain trading, losses could be more.

ST

 

[jagankris]

Dear ST DA,

Why do you prefer investing in Mutual funds as well instead of preferring to pick/manage the portfolio by yourself ? any specific reasons/advantages of investing in MFs' ?

I prefer to keep Trading capital less - here you refer to day trading capital or it includes swing as well ?

TIA.

 

[kainiteh]

In arbitrage play, he is trading with both leggs of the trade closed. So he makes a definite but small profits on every trade.In plain trading, losses could be more.

ST

Understood!,

Now your signature makes more sense to me, Lot to learn...
"While amateurs go broke by taking large losses, professionals go broke by taking small profits"

Thanks