How do I start trading?

Hi,

I am really grateful to Hari aka TFL for the beginer's guide. However I have more basic queries, because I am extremely new to trading.

If I want to groom into a full time trader(ie trade for living or bread and butter) what is the best way

1) Intraday or delivery(I think also known as positional trade, correct me) ?

I was really confused by going through how many different types of venders we have to subscribe, trading, charting and data-feed which seems to be very big investment if taken separately.

2) are there broker firms which provide complete package?

3) is there a cost effective way to start intraday or positional trading?

4) I plan invest 1 Lac for trading by splitting it into 20K for intraday and 80K for positional trading, for now I want to start as a part time but gradually turn into full time, will this strategy work?

5) I wish to use candlestick charting for both intraday and positional trading calls, is it right?

6) How does the system know that an order is for intraday or for positional trade?

I think these are more question to digest in one go. will have more question later on

Thanks

The best way is to Paper trade for 6 months, if you make money in paper trading then go for live trading.

Do you have some tips regarding Paper trading?

Hi

First decide a system you want to follow - EMA crossover / Bollinger Band / Stochastics/RSI/Parabolic SAR, etc or a combination of these. For information on these, you can search this forum. Remember there is no perfect system, it depends on you!!

Then decide your trading rules - how much you will trade, what is your target and stop loss, entry-exit rules.

Once you decide this, take up paper trading for some time till you are satisfied that your system gives small losses and reasonable profits. Only then you can get into trading. If you jump in too soon, you can burn your fingers.

Coming to your queries:
1) Intraday or delivery(I think also known as positional trade, correct me) ?

Depends on you, if you have a big account and have the patience to wait for days/weeks, you can go for positional, else stick to intraday

2) are there broker firms which provide complete package?
What do you mean by package? Better you stick to low cost brokers like Zerodha so you can make more money

3) is there a cost effective way to start intraday or positional trading?
Follow what I mentioned above

4) I plan invest 1 Lac for trading by splitting it into 20K for intraday and 80K for positional trading, for now I want to start as a part time but gradually turn into full time, will this strategy work?
Good plan, but first paper trade and then start part time for positional - for intraday you need to devote full time

5) I wish to use candlestick charting for both intraday and positional trading calls, is it right?
Right

6) How does the system know that an order is for intraday or for positional trade?
That depends on the platform you use for trading - ODIN, NOW, etc. Your broker will tell you how to do that

Happy Trading :thumb:

taurus27,

Thanks for your response, and really good advise for a newbie like me. As mentioned above I am currently doing paper trading using MoneyControl. However, I am getting frustrated by two things:

First, The order execution takes more than 2 minute and it doesn't seem like intraday trading. Many times the prices come above and below my order limits but are not executed.

Second, I don't understand how it is working, for example, I bought one stock and then next day I try to sell, it doesn't show in sell list.
Whereas the shortsell stocks which are supposed to be squared off automatically by end of the day show in my portfolio and also in short cover list.

Therefore I am having a feeling that it will not be be a good paper trading platform to learn intraday trading, because I am getting no idea what will happen if I do not sell off before market closes.

Is there a better platform to practice?

I really read a lot about Zerodha, I think it is a good broker for Amateurs like us. I will seriously consider it for trading once I jump into actual trading.

One more question, does it matter whether you are trading from NSE or BSE?

I bought one stock and then next day I try to sell, it doesn't show in sell list.

The best paper trading platform I've found is Think or Swim.

Sign up for a TD Ameritrade account and you should be good to go.

Next basic question

If I buy shares as delivery stock however end up selling them on the same day. Will the STT be still levied as on delivery?

On the other hand if I buy/short sell shares as intraday stocks and do not sell/cover them before end of the day, will additional charges be levied?

Also can someone explain what is automatic square off?

try nse paathsala it is good platform for paper trading and very fst execution

sangy , adam and taurus ,

please give the path to get into it and also mention whether it is a online app or downloading application....................regarding paper trading or real testing.