Is Daytrading dangerous?

[stt]

AOE is boring after few weeks. Sometimes you need to play a level over and over to be able to know where you can find resources quickly. To avoid very early attacks build a military building from the direction of attack, far from village.

The will stupidly attacking it. Build your resources fast and be strong to oppose. It is unbeatable at some level of difficulties. Its just a game. Choose a level that is easy for you to defend, tough enough to keep you intrested.

THANKS YOGI,
Presently trading 3 minutes time frame for grabbing opportunities on 10/15.

 

[stt]

I trade only nifty, nothing else.

GOOD STRATEGY. BUT WHAT ABOUT THOSE STOCKS WHERE WE SEE A SIGNIFICANT MOVEMENTS?

 

[rajanikant_sharma]

If you can manage one (nifty, earning profit), why you want to go for others........?

 

[stt]

If you can manage one (nifty, earning profit), why you want to go for others........?

DEAR rajanikant_sharma,
GENERALLY STOCKS OUTPERFORM NIFTY. IT IS VERY RARE FOR NIFTY TO HIT UPPER/LOWER CIRCUITS. IF NIFTY MOVES 2-4% IN A DIRECTION YOU CAN EASILY FIND A LIST OF STOCKS WITH 5/10/20% CIRCUITS. IF YOU KNOW HOW TO TRADE NIFTY THEN TRADING ANYOTHER STOCK WON'T BE YOUR PROBLEM. GO FOR IT WITH A SMALLER RISK.

 

[rajanikant_sharma]

"ANYOTHER STOCK WON'T BE YOUR PROBLEM".......................

Well, watch 50 stock at end of the day, waste 2 hours on analizing, prepare seperate buying points for each.........have an eagles eye on each.............. etc.......... Not possible for me.

I studed nifty quite long time and prepared one excel sheet based on few technical and assumption that generate approx. 70% result for me, and I am happy with what I am doing.

Can you give me another good reason for watching far..............?

 

[yoogi]

Nifty is a very Good defensive bet when considering India story, stock of the nation. No sectoral worries can affect.Nifty is low beta. Nifty never (well almost) swings more than 5% in a day.

But to trade on momentum, newsflows, tips, sentiments, individual stocks are best. Take a reality/infra stock like UNITECH, PARSVNATH or GMR for example. They swiing wildly, intra day or daily. Nifty has fallen just 11 % where as Parsvnath has fallen from its peak by almost 22%. So if nifty goes back to its peak and parsvnath also does the same which one will make you more money. Ofcourse risk of parsvnath not going up despite a good rally in nifty is always there.

High beta is where the money is to be made or lost. Why we trade in F&O? to make a kill or get killed. With stocks it is just faster than Nifty.

 

[stt]

Dear Rajnikant And Yogi,
If Trading Nifty Gives You Sufficient % Return Then It Is Good. But You Can Observe The Intraday Comovement Of Nifty And Outperformers For Few Days After The Market Is Closed.

 

[rajanikant_sharma]

Yogi,

You are absolute right that a stock can jump 10-15% in a day as it is not possible for nifty, but does it suits you ?

Don't know about the stocks you are talking about but years back I was trading Mcdowell at 258-272-298-313 and SBI at 668 and these stocks are nearly 1500+ now, thereafter I decided to stop because it was not possible for me to follow 20-30 stocks and managing there data also it did not suits me.

As far as the news/tip or momentam based trading is, I have enough bad experience and don't want to repet ai again.

 

[munde_77]

No need to think or guess here, it is a reality with available statistical data that more than 90% of day traders get out after losses

http://www.crbtrader.com/trader/v09n01/v09n01a01.asp
http://www.psc.state.pa.us/newsroom/cbulletin/winter99.html
http://www.investorhome.com/daytrade/profits.htm

data is compiled and available at many sources

THANKS VERY USEFUL LINKS FOR (NEW) TRADERS LIKE ME..

 

[deepsa52]

May I add keep it simple. A simple trading system would work wonders in any time frame.

No, the commissions and emotional stress will eat up a person. There are a lot more successful position traders than day traders. In fact a vast majority of day traders go bust.
Most of the great traders ( New Market wizards, Turtles by Curtis Faith , Van Tharp , all must read books) trade with longer time frame