General Trading Chat

[Smart_trade]

Was looking at Zerodha star traders returns figures in Opentrade. Most of them are making over 100 % returns per annum...great going.That should be a role model for new aspiring traders.

Smart_trade

 

[PreSap]

Hi ST da,

What is your frank opinion for a trader with a capital of 1 lakh. Is it way below the minimum requirement to turn it into something substantial or will it take a lot of time?

Sent from my A0001 using Tapatalk

 

[niftytaurus]

Few ideas on scaling up of this business :

1) If you want to scale up, then you have to trade larger timeframe,trade mechanical systems which require less thinking .

2) Trade more scrips on larger timeframe so that you have time to think about various positions.

3) Think of trading long term and investing after some time for generation of wealth.Stocks and mutual funds we can use.

4) Think of starting a KPO in which you decide mechanical trading systems and employ people who will trade in groups say one group of 2 employees trade Nifty, other group trades SBI, 3rd group trades Bank Nifty etc. These people should not be held responsible for profits/loss but they should be held responsible if they have not taken the trade as per the system.

5) Start a hedge fund and employ traders to trade some fixed capital and increase the capital limit once you have confidence in their trading abilities.

6) Go for algo based trading in which you can programme for number of scrips.

As and when you overcome various stages, next stage doors will open.

Smart_trade

Thanks ST da for your detailed reply..it gives you a good idea about scaling up..
but still as I previously said, what are the options for price action discreationary traders..?
a)what all points you suggested (in blue) needs a mechanical system but as we know no mechanical system works...mechanical systems based on some indicators & indicators doesnt give consistent profits..so no mechanical system..so I had asked what other options for price action trader?
b)as you suggested trade longer time frame, but for that we need to do swing trading/positional trading..but if someone wants to trade only intraday..then?

means for scaling we do need A MECHANICAL SYSTEM..for scaling, we do need positional overnight trading..
is there no way for PRICE ACTION TRADER & Trader who just wants to trade ONLY INTRADAY..please suggest
thanks

 

[Smart_trade]

Hi ST da,

What is your frank opinion for a trader with a capital of 1 lakh. Is it way below the minimum requirement to turn it into something substantial or will it take a lot of time?

Sent from my A0001 using Tapatalk

If you are not dependent on withdrawing the profits for your expenses,then it may not take much more time to get good amount of capital.. All good traders start with Rs 50,000 or Rs 1,00,000 and make large capital out of it.

You have to avoid taking large losses because large losses put us down in our growth and they are destabilising psychologically.

Smart_trade

 

[Smart_trade]

Thanks ST da for your detailed reply..it gives you a good idea about scaling up..
but still as I previously said, what are the options for price action discreationary traders..?
a)what all points you suggested (in blue) needs a mechanical system but as we know no mechanical system works...mechanical systems based on some indicators & indicators doesnt give consistent profits..so no mechanical system..so I had asked what other options for price action trader?
b)as you suggested trade longer time frame, but for that we need to do swing trading/positional trading..but if someone wants to trade only intraday..then?

means for scaling we do need A MECHANICAL SYSTEM..for scaling, we do need positional overnight trading..
is there no way for PRICE ACTION TRADER & Trader who just wants to trade ONLY INTRADAY..please suggest
thanks

No ,only with daytrading and that too trading alone you cannot scale up beyond a point. It is like a doctor...if he works alone, there is a limitation how much he can earn but if he opens a chain of hospitals in different cities with different super speciality departments, then he can scale up much better.

ST

 

[niftytaurus]

Was looking at Zerodha star traders returns figures in Opentrade. Most of them are making over 100 % returns per annum...great going.That should be a role model for new aspiring traders.

Smart_trade

Dear St sir..
I can see 6 star trader here..are there more star traders as I didnt log in open trade..i can see some..
but All traders who is making big return has not much capital..Besides, I have seen 20,45 averages trade per day..dont you think for intraday trader, it is too much?..We dont know how much risk are they taking for per trade? as When i see their profitabilty graph, drawdown is big percentwise ..some have 30-40 % drawdown..is it right MM? I dont know whether I am seeing right as I couldnt log in..but i can see 6 star traders profile there..is that all or more?
we had star traders like you & many more seniors whom are really our inspiration..even shubhaddep sir thread" double your money in 40 trades" is also a real inspirational..that its possible..even with 2% risk per trade
thanks

 

[jain.er]

Dear ST da I am facing a recurring problem in my day trading. After an entry in a trade quite often I have observed that if I scratch the trade (in case its not moving in my favor say after 15 mins) or if I revise my SL (post movement in my favour) my SL is hit.

But ultimately stock goes in the intended direction without hitting my original stop. Am I doing something wrong ? Below I post an example from today's trading.

 

[Smart_trade]

Dear St sir..
I can see 6 star trader here..are there more star traders as I didnt log in open trade..i can see some..
but All traders who is making big return has not much capital..Besides, I have seen 20,45 averages trade per day..dont you think for intraday trader, it is too much?..We dont know how much risk are they taking for per trade? as When i see their profitabilty graph, drawdown is big percentwise ..some have 30-40 % drawdown..is it right MM? I dont know whether I am seeing right as I couldnt log in..but i can see 6 star traders profile there..is that all or more?
we had star traders like you & many more seniors whom are really our inspiration..even shubhaddep sir thread" double your money in 40 trades" is also a real inspirational..that its possible..even with 2% risk per trade
thanks

There are some 20-22 stars. They are doing some changes in their platform today and hence all of the stars are not visible. One has to select a star who has identical trading pattern in terms of scrips traded, number of trades per day etc. But if someone can learn a few things from these traders, Rs 500 pm is negligible price to pay.

ST

 

[Smart_trade]

Dear ST da I am facing a recurring problem in my day trading. After an entry in a trade quite often I have observed that if I scratch the trade (in case its not moving in my favor say after 15 mins) or if I revise my SL (post movement in my favour) my SL is hit.

But ultimately stock goes in the intended direction without hitting my original stop. Am I doing something wrong ? Below I post an example from today's trading.

The tight stoplosses work in strong trends. But in weak and overlapping trends, we need to keep slightly loose stops.In sideways markets market hits the stoploss and proceeds in the original intended direction..So sideways markets we need to buy dips and sell the rallies.

ST

 

[PreSap]

May have been a slow day at the markets. But what a day of receiving insight it has been today. My thanks to all... For the questions and for the answers.

Sent from my A0001 using Tapatalk