General Trading Chat

[Smart_trade]

If I get a partial or full short delivery, who will be responsible for my loss. Do they compensate my loss.
Because, when I make a short delivery I have to pay difference in price and have to pay penalty as well.

Penalty amount goes to Investor Protection Fund.

If you get short delivery,the exchange conducts auction and buys the shares for you and there is no loss.

In case of internal short,meaning client A of the broker has short delivered and client B could not get the delivery,your broker is supposed to inform the short delivery to you on the day of payout.He then gives you the credit at the highest price at which the share has traded on that day on that exchange and you can buy these shares at the current market price.There is no loss as you will get the credit at the maximum price of that day so you buy anytime,your buy price will be equal or less than the rate at which you get credit.

The short delivering client is charged the maximum rate plus penalty of 2 %. The penalty goes to Investor Protection Fund of the exchange.The rate difference many brokers don't pass on to the clients.

Smart_trade

 

[deba72]

If I get a partial or full short delivery, who will be responsible for my loss. Do they compensate my loss.
Because, when I make a short delivery I have to pay difference in price and have to pay penalty as well.

If you receive short delivery, no penalties for you and you would be getting auction credit benefits. However, if you sell in T+1 and unluckily you receive full or partial short delivery in T+2 then you have a problem and you would be penalized. This is because none is supposed to sell shares which they don't own. Actually, officially there is nothing called BTST... but brokers offer it to increase their delivery brokerage revenue. Some brokers ( like Kotak, Motilal etc ) offer you guarantee against short delivery for selected list of scrips. This means, if you sell in T+1 and there is short delivery in T+2, they would meet the payin obligations from their pool account.

 

[Snake.Head]

 

[PUCHU_2500]

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[XRAY27]

Old post of ST da on Stages of traders life

There are very predictable stages in any traders trading cycle.They are as under :

1) Total beginner stage : We all started with this stage...we make some money on shares bought on tips and recommendations of someone and feel that this is a good way of earning some extra income....quick and easy money...but soon we get disillusioned as some tips fail and we are left with holding some worthless stock....then we decide that we must make our own study and make our own decisions....

2) Holy Grail Indicator/method stage :Then comes a stage in which we desperately go after books,new indicators,Metastock,Amibroker,tradestation,RSI,ROC,MACD...etc .We are fully convinced that out there there is some secret formula,some magical indicator or some key to trading riches...and if we manage to find out that we will make it in trading.....this search continues for long time...and we finally realise that there is no holy grail or a super indicator which will never fail.This is a stage where one believes that to be successful you need to have contacts with operators,inside information,market movers etc

3) Kabhi Khushi Kabhi Gum Stage : Then we come to Kabhi Khushi Kabhi Gum stage.....actually it is " Less Khushi More Gum " stage here we take trades on some indicator.....it sometimes makes money,sometimes looses money....whenever it makes money,we grab it because we have a baggage of earlier losses and we dont want to let these small profits go....and invariably some loosing trades...we overstay in loosing trades as we cannot affort to take losses....this also continues for a long time......

4)Consistant Small Profits Stage : Then we come to consistantly small profits stage and here we trade small lots,we are quick to cut our losses and also quick to take profits....we dont make big profits but we remain net positive and hand to mouth traders....just barely meet our expences

5 Professional Consistantly Profitable Stage : : Next stage is consistantly profitable trader stage who trades for living....he has by now understood that there is no "Holy Grail" ,the key is not the entry but money management,position sizing and trade management....having a control over our emotions while winning or loosing....but he still has not figured out how to go in the large multicontracts trading stage.....his trading capital increases at steady 40 to 80 % per annum.....still hungry for achieving next stage....

6) Master Trader Stage : Here traders are very happy and at rest in their minds....large quantities,large profits....but all achieved not through taking large initial risks but taking controlled risks ,adds,holding positions till the trend at hand is in force and quickly reversing when the trend changes....their mind is quiet....no turbulance...this is where they make between 300 % to 800 % returns on their trading capital per year.....

Every trader has to undergo these stages....there are no shortcuts....you may reduce the time spent in each stage depending on your efforts...this is a road with stones and thorns....and we have to walk this road barefoot ourselves...nobdy can do it for us....but if we make it, at the end of the road there is a beautiful life awaiting you,life of self confidence knowing that you can make a very decent living with your head held up,you are not dependent on anything or any one...no bossing,no office politics,no payment defaults.....and you will not exchange this with anything else.....

Best wishes for every one to graduate to master trader stage.....

Smart_trade

 

[vivektrader]

A 'convergence area' of 20,50,100,200 EMAs on a daily chart showing an agreement between 'investors' and 'traders' about the underlying trend. Here investors are net buyers and also its an area of accumulation. For long term investing probably a place to watch out for, one can enter after a breakout in the direction of pre-existing trend.
Original concept taken from:https://www.youtube.com/watch?v=QInB6iExaxw.
Example is a daily chart of Bajaj Finance (4years). One can buy when 20,50,100 and 200 EMAs are stacked over one another in that order.

 

[DSM]

Vivek,

Convergence areas look good in a bullish market. In sideways, downtrend, there will be failures of convergences, but those charts will not get published. (Survivor bais - We look for lessons in success among those that have worked or succeeded while not accounting for those which have failed (and paradoxically can teach us much more) examples of survivor bias gives a misleading picture.... Trading with all indicators, we need to look at the overall market scenario. For e.g say a 9/21 MA bullish crossover in a downtrend is not the same as 9/21 bullish crossover in a bullish trending market. Infact, 9/21 MA bullish crossover may actually be a shorting opportunity in a downtrending market, and not a buying opportunity..... This is where discretion and experience comes into play - and makes a difference between taking money home or giving 'tution fees' to the market... Same signal, different actions....

As traders, we need to look deeper that just signals.... Just sharing my views...

A 'convergence area' of 20,50,100,200 EMAs on a daily chart showing an agreement between 'investors' and 'traders' about the underlying trend. Here investors are net buyers and also its an area of accumulation. For long term investing probably a place to watch out for, one can enter after a breakout in the direction of pre-existing trend.
Original concept taken from:https://www.youtube.com/watch?v=QInB6iExaxw.
Example is a daily chart of Bajaj Finance (4years). One can buy when 20,50,100 and 200 EMAs are stacked over one another in that order.

 

[newuser_RK]

A 'convergence area' of 20,50,100,200 EMAs on a daily chart showing an agreement between 'investors' and 'traders' about the underlying trend. Here investors are net buyers and also its an area of accumulation. For long term investing probably a place to watch out for, one can enter after a breakout in the direction of pre-existing trend.
Original concept taken from:https://www.youtube.com/watch?v=QInB6iExaxw.
Example is a daily chart of Bajaj Finance (4years). One can buy when 20,50,100 and 200 EMAs are stacked over one another in that order.

Classical example of survivalship bias. Bajaj finance would be a classic buy under every damm parameter, strategy, indicator, price action human has ever invented. Problem is for every Bajaj fin
There are numerous failures. Second human phsycology, its very difficult to digest huge gains, I having SKS in my porfolip and it has tripled and daily I am having an urge to sell it.

Sent from my AO5510 using Tapatalk

 

[vivektrader]

Vivek,

Convergence areas look good in a bullish market. In sideways, downtrend, there will be failures of convergences, but those charts will not get published. (Survivor bais - We look for lessons in success among those that have worked or succeeded while not accounting for those which have failed (and paradoxically can teach us much more) examples of survivor bias gives a misleading picture.... Trading with all indicators, we need to look at the overall market scenario. For e.g say a 9/21 MA bullish crossover in a downtrend is not the same as 9/21 bullish crossover in a bullish trending market. Infact, 9/21 MA bullish crossover may actually be a shorting opportunity in a downtrending market, and not a buying opportunity..... This is where discretion and experience comes into play - and makes a difference between taking money home or giving 'tution fees' to the market... Same signal, different actions....

As traders, we need to look deeper that just signals.... Just sharing my views...

Sir,
I fully agree with what you said. My query is how do you time (or confirm) a buy (for long term) in an uptrend on a daily chart? I only do intraday trading based entirely on Price Action (IDF) plus a 20EMA for reference and nothing else (no indicators etc.)
Thanks

 

[DSM]

Vivek,

In the current market scenario, almost everything will be a buy... Long term buy in my view should be a mix of technicals and fundamentals...

Technically, buying pullbacks in an uptrend, fundamentally - well managed companies, transparent management, with regular distribution of dividends, low or no debt and growing QonQ sales.... These companies are buy and forget....

Sir,

I fully agree with what you said. My query is how do you time (or confirm) a buy (for long term) in an uptrend on a daily chart? I only do intraday trading based entirely on Price Action (IDF) plus a 20EMA for reference and nothing else (no indicators etc.)
Thanks