Is my decision correct or wrong

[sartaj]

Let me tell you what will be the problem you will face. The strategy you want to follow can backfire. You would definitely have days when your strategy would not work. You would lose money and hence confidence as you would not be able to work on your strategy as you don't know any technical analysis.You will lose confidence as your strategy has not worked. Suppose you lose next day as well. You will be disheartened and disappointed.

Something which is luck dependent and lacks pure technical analysis can work for a while but not for long.

My Friend trading is not easy & Day trading is even tougher. You can learn the Technical analysis and start with a small amount.

So, I would strongly suggest not to go for this strategy .There is a high probability that you will lose money and your confidence.

thanks for the reply dear...
plase suggest me what should i learnt to become a good (day) trader .i have the stuff and confidenceto do any thing to become a good day trader . because this is only the way to earn money for me with out speaking any body.because now in my business iam earnig very well.but i have so mucch tensions and responcibilities. and i have to talk with so much peoples and have to explain.

 

[vinodkiyer]

nac has got it all wrong his calculations are wrong

 

[nac]

nac has got it all wrong his calculations are wrong

When you said mine was wrong, naan shock aayitaen!!!
Perhaps, you are seeing too many numbers during trading hours. You could have confused a bit. Please check it again and write if you find any error or mistake in my calculation. :thumb:
I ain't see any error/mistake in it. Please correct me if I am wrong...

 

[vinodkiyer]

your quote:


Code:


But they would calculate like this and the brokerage would be Rs. 3000/- i.e.,
Buy Qty 50000 * 3 paise = 1500
Sell Qty 50000 * 3 paise = 1500

In this case, your Gross profit is 2500/- But you have to pay 3000/- as brokerage apart from this you need to pay other statutory levies like service tax, STT etc...

For assumption I took 3 paise as minimum brokerage. If your broking firm says minimum 5 paise, you would be paying 5000/- as brokerage.

And one more thing when you are doing it in real live market. When you are trading virtually, you would get your order executed as soon as price hits, irrespective of size of your order(no matter its 10 shares or 50000 shares) But when you are trading live, this could not happen. Its very hard to get all the 50000 shares get executed at once and cover them in another 5 seconds. Practically, its impossible to get in and get out with this much order size.

Don't think its foolish, its just ignorance. You would get to know about lot of things when you start swimming in trading pool.

Hope you would understand something from this post.

Take care and Happy Trading...

unquote

where is the price and 0.03 is the percentage, so the following is correct

Type Qty Price Amount Brokerage
Buy 50000 20 1000000 300
Sell 50000 20.05 1002500 300.75

 

[vinodkiyer]

for your info, i am very systematic in trading and keep stops etc very strictly and follow afl's which give me entry exit and trailing stops which i follow to the book. I dont use calculator while trading

 

[loke4300]

HELLO EXPERTS,
if i buy large volumes like 50,000 shares and i sell with a profit of 5 paisa.i mean i will get 5 paise on each share .i caluc lated with brokerage percenta of .03 and also add all the service charges lime SST,STT,STAMP DUTY which are requird. than also i will get for 50,000 shares (with the profit of 5 paisa on each share) 1450 RS. so if can trade for 20 times on each day the profit will be good for me .
THIS IS ALL I EXPECTING, PLEASE TELL ME SUGGITIONS FOR THIS .AND CORRECT ME IF I HAVE ANY MISTAKES.

you "small" expectation of 5 paisa from each trade sounds nice, but you'd have to consider the "big" loss possibility.

what about losing trade?...If you have to exit - you'll have to exit at 5-10 paise loss. ADD to that the brokerage + SST,STT,STAMP DUTY.
then, it will take atleast 2 profitable trade to recover your loss.

what you can do is - either increase the profit traget to 20 paisa with 10 paisa SL. AND then scale out every 5 paisa. EX. you bought 50000 shares at 100.00, you might place exit order for 30000 at 100.10; 10000 at 100.15, 5000 at 100.20, and use the last 5000 to probably ride the trend with TSL.
i hope this exit [in small qty] will not increase you b'age.

else, reduce your volume and trade for profit targets for around .50 to re.1 atleast.

your current strategy looks similar to jobbing. If jobbing is your interest, you might want to check with dedicated brokers on jobbing who offer very attractive brokerage.

 

[sartaj]

you "small" expectation of 5 paisa from each trade sounds nice, but you'd have to consider the "big" loss possibility.

what about losing trade?...If you have to exit - you'll have to exit at 5-10 paise loss. ADD to that the brokerage + SST,STT,STAMP DUTY.
then, it will take atleast 2 profitable trade to recover your loss.

what you can do is - either increase the profit traget to 20 paisa with 10 paisa SL. AND then scale out every 5 paisa. EX. you bought 50000 shares at 100.00, you might place exit order for 30000 at 100.10; 10000 at 100.15, 5000 at 100.20, and use the last 5000 to probably ride the trend with TSL.
i hope this exit [in small qty] will not increase you b'age.

else, reduce your volume and trade for profit targets for around .50 to re.1 atleast.

.
your current strategy looks similar to jobbing. If jobbing is your interest, you might want to check with dedicated brokers on jobbing who offer very attractive brokerage.

tahnks for the suggitions.keep encouraging new members.some ppl expects they r only genies .dont think like that.......

 

[nac]

where is the price and 0.03 is the percentage, so the following is correct

Type Qty Price Amount Brokerage
Buy 50000 20 1000000 300
Sell 50000 20.05 1002500 300.75

Yeah, this is right when they calculate it in %. But when things fall into minimum brokerage per unit, following calculation will be used:

Buy Qty 50000 * 3 paise = 1500
Sell Qty 50000 * 3 paise = 1500

I guess, you would take back your word on me that I was wrong. Now you know I ain't wrong, I was right.

for your info, i am very systematic in trading and keep stops etc very strictly and follow afl's which give me entry exit and trailing stops which i follow to the book. I dont use calculator while trading

Machi! I was just saying with too many numbers we would get confused sometimes. It happens to all of us when we grow old or with confused state of mind. I ain't comment about your system or method. I don't from where the usage of calculator came. Cool...

I got a doubt regarding this term AFL. What do you guys mean by AFL? I have already raised this query, but I ain't got reply. Do you care to reply on this?

 

[vinodkiyer]

well, dont know of any brokerage charging minimum brokerage on per share basis intraday which case you are right but no one will open account with them. They usually have minimum turnover.

afl is amibroker formula language.

Sartaj's method is viable if strict RRR is used at 1:2 immediately upon entry , but can lead to disasters quickly with WRB's

 

[nac]

well, dont know of any brokerage charging minimum brokerage on per share basis intraday which case you are right but no one will open account with them. They usually have minimum turnover.

afl is amibroker formula language.

Sartaj's method is viable if strict RRR is used at 1:2 immediately upon entry , but can lead to disasters quickly with WRB's

Thanks for accepting I was right.
And Thank you very much for the abbreviation. I was guessing words like this... Arithmetic, Algorithm etc...

I am sure here in this forum we do have some threads discussing about amibroker. Can you please suggest me in which thread I can learn about amibroker (free/trial version). From where I can get the data directly to amibroker.