Is day trading right for you?

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Is day trading right for you?

Post by vivek042 on Tue Feb 16 2010, 18:01

With the markets going up and going down every day you may be thinking about whether it's a good idea to take up 'day trading', but what is it and would it be right for you?
Day trading involves buying and selling shares on the same day. It is extremely difficult to do but if successful, the rewards can be substantial.
The flipside is that it is also extremely risky which means that you could see your capital wiped out very quickly.
It's easy to focus just on the potential profits to be made but most smart traders will tell you that day trading is all about risk management. The motto should be to plan for the worst and hope for the best. Your capital is the only thing that allows you to play the day-trading game. Without it there is no opportunity to trade. Unfortunately for most first-time day traders, they only focus on return and fail to preserve the one thing that allows them to play the market and that's their capital.
You want to have specific rules for entry and exiting positions. This is so that emotion does not get involved. Day trading is less about the "I want to make a profit" mentality and more about "Has there been a trigger for an entry or exit point." It's less about emotion and more about a plan for success.
And finally you will need to use tools. If you just rely on your gut instinct to trade stock then that's no different to gambling and you'd probably do better at a casino. Day trading is all about being about to anticipate where the share price is headed and when wrong to have risk management practices in place that protect your capital.
The most popular trading tools for day trading are charting or technical analysis tools. There are hundreds of indicators that you could use. The key is to choose ones that work for you and that means testing a system that works. You can buy ready-made systems but these tend to be very expensive. There are plenty of good books and I'd suggest that you start there, test your own system and then start with paper trading to build your skills.
In terms of choosing a broker, online brokers have made day trading accessible and quick. Most orders placed online hit the market in less than a second and Bell Direct has a 2 second placement guarantee which says that if your 'at market' order doesn't hit the market in 2 seconds, it is free you don't pay any brokerage.

Fortunate Management India

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Re: Is day trading right for you?

Post by pankaj joshi on Thu Mar 04 2010, 20:12

yes.for day trading i have heard good reviews about reliance money.
what about other platforms in the market?

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Re: Is day trading right for you?

Post by nitikasnv on Sat Mar 06 2010, 14:00

Hi,

According to me, I have heard about lot many things that shows, day trading is not that easy, you have to keep close eye on a market before jumping as you have to keep a clear and considerable thought and study as much as you can before you begin with it.

Thanks

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Re: Is day trading right for you?

Post by pankaj joshi on Wed Mar 10 2010, 14:33

thanks nitikasnv.
please help.which platform provides the best daily report to Track your financials and portfolio efficiently through various reports like Ledger Statements, Account Summary, Net Portfolio Report, Daily Transaction Report, Daily Transaction report etc among angel trading,reliance money super trade and sharekhan?

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Re: Is day trading right for you?

Post by pankaj joshi on Fri Mar 12 2010, 17:30

any new inf o about new ones that you guys know about?new platforms like money bhai investor and super trade?

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Re: Is day trading right for you?

Post by jimmy narang on Mon Mar 15 2010, 19:07

here is an interesting article
http://www.articlesbase.com/investing-articles/why-nris-should-invest-in-india-investing-reasons-for-pios489975.html

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Re: Is day trading right for you?

Post by pawankumar on Thu Mar 18 2010, 15:43

thanks jimmy.here i found out unlimited trading only for 6000 rupees..is it possible?
http://taojatukamramtep.com/reliance-money-offers-unlimited-trade-for-flat-fee.html

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Re: Is day trading right for you?

Post by pankaj joshi on Fri Mar 19 2010, 14:57

pawankumar,get more info here!
http://financialawarenessportal.com/brokerage-charges-comparison-%E2%80%93-an-overview-on-the-brokerage-structure-of-
reliance-money/

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Re: Is day trading right for you?

Post by pawankumar on Mon Mar 22 2010, 17:39

thanks pankaj!

Almost all the brokers offer free web based online trading applications but for trading through sophisticated online trading software, you may have to pay one-time or recurring license fees or subscription charges.

India Bulls has an online trading platform, known as Power India Bulls, in addition to a web-based application. I am not aware about the current practice but when I had opened my account with them sometimes in 2006, they had levied a one-time fee of Rs.1000.

HDFC Securities offers simplest web based online trading, which would suit best to the investors and casual traders. Asit Mehta (Investmentz.com) has two trading systems web based (free) and application based (with some charges or commitments). Sharekhan, Angel Broking, Religare, IL&FS (Invetsmart), and Geojit, among others, offer different types of online trading applications, chargeable and free both, depending upon the turnover, brokerage commitments and other parameters.

For instance, R Money has recently introduced Super Trade, an online software platform, for which they are charging a subscription fee of Rs.500 per quarter, though initially they had offered it free for some time. At present, R Money offers online trading through four different systems Easy Trade, Fast Trade and Insta Trade (web based), which are free and Super Trade, which is chargeable.

Like R Money, India Infoline had initially offered free online trading platforms but subsequently, they had introduced some schemes and advance brokerage in order to be able to trade through online trading platforms. I am not aware about the latest status of India Infoline and therefore you should check out yourself.

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Re: Is day trading right for you?

Post by pawankumar on Wed Mar 31 2010, 18:08

hope everyone get some good info of of it!compare between supertrade and sharkhan classic plus indiabulls platform..if someone can post more points!

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Re: Is day trading right for you?

Post by pawankumar on Tue Apr 06 2010, 15:20

more on day trading here!

Today Trading Trading rules" that consists of a set of rules and a clearly-defined step-by-step procedure that tells you

a) how and when to enter a trade,
b) how to exit at each target level,
c) what to do if a target level is not reached till closing time and
d) how to exit at stop loss level and
e) how to offset losses with overall profits. Please DO NOT commence trading before you have thoroughly read and understood the rules.Please follow the rules strictly. We do not want you to undergo losses on unprofitable trades which could often be avoided by following the rules.

1. Intra rule : These recommendations are for intra-day trading only - do not carry the positions overnight.

2. 5-minute rule : When the trigger condition is fulfilled, wait for 5 minutes, confirm that the trigger condition continues to be fulfilled and then take the advised action. Do not fear that you will lose the best entry price - more often than not, you will get the price again at the advised entry price.

However, you should not enter the trade if
a) in the 5 minutes, the price has already gone near the 1st target or
b) the scrip price is too wide apart from the advised entry price.

For "SELL AT HIGHER LEVEL", "BUY AT LOWER LEVEL" type of recommendations, when the trigger condition is fulfilled, take the advised action without waiting for 5 minutes.

3. 1st target rule : When the scrip price is around the 1st target , square off
50% of your position.

4. 2nd target rule : When the scrip price is around the 2nd target , square off the remaining 50% quantity; however, if the scrip price does not get near the 2nd target throughout the day, square off at 3.15 pm .

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Re: Is day trading right for you?

Post by pankaj joshi on Thu Apr 15 2010, 20:44

great info..thx for the post!

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Re: Is day trading right for you?

Post by pawankumar on Sat Apr 17 2010, 19:14

welcome...someone has any info on new methods of trading in intra day pls let me know!

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Re: Is day trading right for you?

Post by lakhvinder on Mon Apr 19 2010, 20:17

i am recently shifted my attention to online trading..plz suggest some tips and tricks!

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Re: Is day trading right for you?

Post by pankaj joshi on Wed May 12 2010, 17:25

lakhvinder wrote:i am recently shifted my attention to online trading..plz suggest some tips and tricks!

get a trust worthy platform first like sharekhan or motilal..and trade small in commodities..or you want to go big..trade in gold!

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Re: Is day trading right for you?

Post by lakhvinder on Thu May 13 2010, 15:51

pankaj joshi wrote:
lakhvinder wrote:i am recently shifted my attention to online trading..plz suggest some tips and tricks!

get a trust worthy platform first like sharekhan or motilal..and trade small in commodities..or you want to go big..trade in gold!

thanks so much for the advice.but can you please compare them and tell their speciality!

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Re: Is day trading right for you?

Post by akhi kashyup on Fri May 14 2010, 16:55

lakhvinder wrote:
pankaj joshi wrote:
lakhvinder wrote:i am recently shifted my attention to online trading..plz suggest some tips and tricks!

get a trust worthy platform first like sharekhan or motilal..and trade small in commodities..or you want to go big..trade in gold!

thanks so much for the advice.but can you please compare them and tell their speciality!

Sharekhan is one of the cheapest platforms and good on customer service and software while Motilal is one of the better platforms in the market,quality wise...also it has regained so much respect among the traders.

I advice you to check brokerage details with Motilal Oswal trading account.

Especially for stocks less than 10 Rs/- they charge 5 paise flat as delivery and 12% brokerage including ST, STT etc to trade in such a stocks.

Sharekhan is good while motilal is poised to grow big time!

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Re: Is day trading right for you?

Post by lakhvinder on Mon May 17 2010, 19:37

akhi kashyup wrote:
lakhvinder wrote:
pankaj joshi wrote:
lakhvinder wrote:i am recently shifted my attention to online trading..plz suggest some tips and tricks!

get a trust worthy platform first like sharekhan or motilal..and trade small in commodities..or you want to go big..trade in gold!

thanks so much for the advice.but can you please compare them and tell their speciality!

Sharekhan is one of the cheapest platforms and good on customer service and software while Motilal is one of the better platforms in the market,quality wise...also it has regained so much respect among the traders.

I advice you to check brokerage details with Motilal Oswal trading account.

Especially for stocks less than 10 Rs/- they charge 5 paise flat as delivery and 12% brokerage including ST, STT etc to trade in such a stocks.

Sharekhan is good while motilal is poised to grow big time!

great advice.thanks.i have heard Motilal is good on quality!

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Re: Is day trading right for you?

Post by pankaj joshi on Tue May 18 2010, 19:07

and what Equity schemes does Motilal has to offer?

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Re: Is day trading right for you?

Post by seenathkumar on Tue Jun 15 2010, 12:00

Is the current market situation comfortable for short term trading or is it still advisable to go with long term?

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Is day trading right for you?

Post by Bhanu on Mon Aug 02 2010, 16:51

Hai....
Good morning...

Thank you for sharing with us...

regards,
Phe9oxis
http://www.guidebuddha.com

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Re: Is day trading right for you?

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