Zerodha Part 2

[Smart_trade]

First off . . . Thanks Zerodha for these inputs :thumb:




Agree . . . so should we conclude if someone has a good system that he/she can trade . . .
then money will find him/her and they will not remain under capitalized for long . . .

So is having 5 L plus in the trading account 'cause' or 'effect' of being a good trader with trade-able system/method/skill etc. etc.

Happy

It is both.....a good trader with good method will not remain below Rs 5 L for long....and unless he /she is a good trader with good method and discipline, he will not retain Rs 5 L account for long....

On serious note, capital is no entry block for a good trader.....but if he has to run his household on trading income on Rs 1 L capital, then that is where the problem starts.....

If any trader can show 8-10 % monthly return for 1 -2 year, there are guys ready to fund for large amounts....but the catch word is " consistantly" and not sporadically....

So guys perfect the craft....money will follow you...

Smart_trade

 

[sumosanammain]

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[futures]

Undercapitalization is not a hurdle. Lack of a system having a positive edge, and lack of discipline to trade such a system is the hurdle.

If you know your max dd, over 100 trades, you can trade with margin plus 2 times max dd. Thats not much nowadays in current margin scenario

I agree with you completely..no MM technique would make money if there is no positive expectancy(edge)..but when i say undercapitalized,i meant the following three points:

1. It is assumed that the serious trader has positive expectancy and good discipline to follow through with his system..this assumption is a must...if the first point is not true, undercapitalisation is one another excuse ofa losing trader...that takes us to the second point.

2. Lets say a trader wants to trade 1lot of Nifty for every 2 lakhs in his account( i personally don't recommend this fixed fractional MM idea)...and he starts with a 2L capital...so, to move to two contracts he has to make 100% - can take a quarter or any 3 yrs to reach there...

but, if his account size is 50L, then the same 2lks/lot MM can let him increase the size from 25 lots to 26 lots in no time(ofcourse within his risk parameters)...good capitalisation is a beast in itself and it works in our favor when edge and discipline are taken care of..

3. As ST said, Undercapitalisation screws up the traders psychology if he has to use the profits to buy Onions and tomatoes (personal expenses pressure forces a trader to lose discipline)..on top of this issue, he has to increase his acct size as well...lot of balls to juggle at a time..very tough!! Having said that, it is very much possible to build a decent size account(more than a 1cr) from scratch but it will take good amount of time - say 10 yrs..not sure how many people would wait that long(even in serious traders category)..

 

[sumosanammain]

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[DataRam]

Some played the guitar, some played the Piano. There were a whole lot of instruments used But these two were the dominant theme So, get a good system, and learn either the guitar or the piano.

PS: Dont use the flute, or people will say... teri to pungi baj gayi

A Flute musician can be the Pied Piper too. Sabki Pungi Baja di.

 

[akrsrivastava]

This number is pretty disappointing, the under 1lks in the account. around 4% who are winners presently..

A large number of those in less than 1 lakh category will be newbies who are still testing the waters and practising with really small position sizes. The success rate for such traders would obviously be much lower. Of these, some traders who taste success will probably add more funds into their trading accounts later on. They will then move into the 5 lakhs+ account size category and will have a much better success rate because now they are more experienced. This possibly could be one reason of why traders with larger account size are doing better than traders with lower account size.

 

[anand14may]

Hi Fellow traders

Wanted to share with y'all my recent account opening and customer care experience with Zerodha.

I recently placed an account opening request to Zerodha and received my a/c details and login credentials. Was very happy with there prompt turn around time. Post that I installed ZT and NSE mobile, while roaming through ZT I faced couple of navigation issues which I resolved visiting there Zconnect thread but couple of issues are still there like I can only see CDS/NFO segment whereas I filled the form for all the segments except Commodity. So good so far, now I called there so called amazing customer care and shocked to see there unresponsive behavior. Asked them if they have any practice of providing walkthrough DEMO for new customers and they replied that most of there customers are seasoned traders and well versed in NOW and NEST (seriously, I think they should put a disclaimer on there website that newbies must stay away)
Then I asked for in-person verification, again they said that someone from CS will call you for that, till that no one called. An open violation of SEBI guielines, I can trade without going through 'in-person' verification.
Wrote couple of emails on '[email protected] and [email protected]' regarding my issues and till date not received a single reply.
A last I decided to share my feedback with you all in public forum so that someone from Zerodha's customer friendly staff might see this and provide some help.

PS: Wanted to add on important point - Zerodha don't have any automated complaint logging system, said that they don't provide an ticket # if you send email to '[email protected]' which makes it difficult for you to do a follow-up.

 

[sumosanammain]

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[Gaur_Krishna]

ST da, I have done exactly like this for last one full year. Trying tp improve ...

The very fact that there are a few winners making over 10 % in sub 1 Lakh capital catagory means that money can be made even by small account guys in trading.....

The low number probably means that low capital account holders are not serious traders or they are trying to make large returns on small capital and thereby taking larger risks and blowing up their accounts.

One very successful large trader with more than 30 Cr trading capital shared his trading success with me.....he said "Most guys try to make 30 Lacs on Rs 3 Lacs capital and take larger risks and fail....and I try to make definate Rs 30 L but on 1 -1.5 Cr capital in a year and hence go for only safe trades with much lower % of capital risked on each trade. I therefore have much larger chances of success than a guy trying to make Rs 30 L on Rs 3 L capital".

Smart_trade

 

[Ram Shanker]

Hi Zerodha,
could you discuss pl trading styles of successful traders to improve our techniques?