General Trading Chat

[TradeJoker]

Retail traders are trading, that's y FIIs are here,

 

[headstrong007]

Siddhhi bat no bakwas...
With new lot size 75, volumes to 66% girega. So liquidity me difference to haga i hoga. Slippage bahut bar jayega keuki volume girega. Overall bad effect i hoga small time frame trader ke liye..

 

[rahulmalik]

what you call noise is actually liquidity coupled with volatility. So in order have less noise, liquidity has to come down as well to balance out the equation. Only way to achieve such balance is to have a wide ask-bid spread. Infact, lower time frame trading would be account killer.

Yes, and this will also increase the spikes / whiplashes, killing the SLs of LTFs, as you mentioned. A wider spread will be a catalyst to such whiplashes

 

[Dax Devil]

May be he means traders with big capital who doesn't care about lot size,

Of course traders with big capital are market makers who move the market that makes us small timers jump in and enter the trades in the first place. But they are like sharks, looking out to feed on small fish - us. And these sharks do Care about lot size, as lot size determine the number of small fish theryby the degree of ease in feeding on them.

 

[rahulmalik]

Retail traders are trading, that's y FIIs are here,

so true joker bhai - jahaa little fish, wahaa big fish :lol:

dax - your post coincided with mine

 

[rahulmalik]

Of course traders with big capital are market makers who move the market that makes us small timers jump in and enter the trades in the first place. But they are like sharks, looking out to feed on small fish - us. And these sharks do Care about lot size, as lot size determine the number of small fish theryby the degree of ease in feeding on them.

Just wondering about the total gain at the end of it, for bigger fish. I see that the total value of trades ( on NSE) may not be impacted at all, however the number of trades may go down drastically. For now, it looks like the brokers may be the biggest victims of this policy. Rest we will see, how it goes on.

 

[Dax Devil]

Yes, and this will also increase the spikes / whiplashes, killing the SLs of LTFs, as you mentioned. A wider spread will be a catalyst to such whiplashes

Whiplashes due wider spread would be the best thing IMO. It will help speed up market evolutionary process. Fact is, 30-40% people who enter the market in the garb of trader are unfit people who secretly dream to turn their 1 lakh into 5 crores in 6 months. They will either have eyes opened to see the true colors of the market and learn fast to live within their means or be quickly exterminated by these whiplashes. Business of stock trading is not for the feeble minds.

 

[wisp]

Inspite of the increase in lot size, the markets are going to trend so for trading I dont think it will make a long term effect. Traders will get accostomed to new lot size.Initially there could be some buy/sell depth issue but that will get adjusted quickly.

Swing trading and daytrading both modes will be profitable in my view. If one is making money in daytrading, there is no reason to shift to some other mode. There is a possibility that we get more durable trends during the day, we have to see how it works but a temporary issue in my view.

Smart_trade

Looks like ST Da does not think there is going to be any long term impact.

 

[Dax Devil]

Just wondering about the total gain at the end of it, for bigger fish. I see that the total value of trades ( on NSE) may not be impacted at all, however the number of trades may go down drastically. For now, it looks like the brokers may be the biggest victims of this policy. Rest we will see, how it goes on.

No. The biggest victims would be those 30-40% whom I mentioned in my previous post. They would be adamant, wouldn't learn, try to be overconfident by pumping themseleves with 'you can do anything' kind of idiotic quotes, and get perished in due course.
Funny coincidence, last night I read a 2009 post in an old thread quoting a japanese proverb, The only cure for idiots is death. Metaphorical death, I hope.

 

[XRAY27]

I'm going for complete swing base in month of Nov...rather then intra day !!! still things stabilize...ST da has different view but.. there will be price gaps/spread..so smaller time frame trading is little bit risky...