How to become a full time trader
- Thread starter newuser_RK
- Start date
Dear OI,
You said you lost due to high leverage...but what you traded is too high leverage...almost 1:30 ...you traded 30 lakhs worth of futures when your trading capital is 1 lakh.
Generally speaking if we classify trading activity as scalping, day trading and swing trading....the scalper takes highest leverage and targets tiny price movement in his favor to book profits...where as day trader takes lower leverage when compared to scalper but much higher leverage than a swing trader and targets half or less than half percent move in his favor to book profits....
First think and design a consistent winning system ....try it with no leverage i mean you should have full value of contract to trade a single contract...if you are consistently profitable gradually increase your size....
Your first priority should consistent profit making...once you achieve that you can increase the size and leverage gradually to your advantage...this part comes at a later stage ...so first things first ...
Many seasoned traders trade 1:5 leverage means if they have one lakh capital they will trade a single lot (Contract value five lakhs)...
Please think about the quality rather than quantity
You said you lost due to high leverage...but what you traded is too high leverage...almost 1:30 ...you traded 30 lakhs worth of futures when your trading capital is 1 lakh.
Generally speaking if we classify trading activity as scalping, day trading and swing trading....the scalper takes highest leverage and targets tiny price movement in his favor to book profits...where as day trader takes lower leverage when compared to scalper but much higher leverage than a swing trader and targets half or less than half percent move in his favor to book profits....
First think and design a consistent winning system ....try it with no leverage i mean you should have full value of contract to trade a single contract...if you are consistently profitable gradually increase your size....
Your first priority should consistent profit making...once you achieve that you can increase the size and leverage gradually to your advantage...this part comes at a later stage ...so first things first ...
Many seasoned traders trade 1:5 leverage means if they have one lakh capital they will trade a single lot (Contract value five lakhs)...
Please think about the quality rather than quantity
On the first page rkripal sir in point no 3 has said something golden. Please start off with swing trading only and the reasons he has given are most valid.
Intraday trading is whole different ball game and is usually done best by experienced traders. ( who are also on positional swing trades at that time).
Intraday trading is whole different ball game and is usually done best by experienced traders. ( who are also on positional swing trades at that time).
Dear OI,
You said you lost due to high leverage...but what you traded is too high leverage...almost 1:30 ...you traded 30 lakhs worth of futures when your trading capital is 1 lakh.
Generally speaking if we classify trading activity as scalping, day trading and swing trading....the scalper takes highest leverage and targets tiny price movement in his favor to book profits...where as day trader takes lower leverage when compared to scalper but much higher leverage than a swing trader and targets half or less than half percent move in his favor to book profits....
First think and design a consistent winning system ....try it with no leverage i mean you should have full value of contract to trade a single contract...if you are consistently profitable gradually increase your size....
Your first priority should consistent profit making...once you achieve that you can increase the size and leverage gradually to your advantage...this part comes at a later stage ...so first things first ...
Many seasoned traders trade 1:5 leverage means if they have one lakh capital they will trade a single lot (Contract value five lakhs)...
Please think about the quality rather than quantity
You said you lost due to high leverage...but what you traded is too high leverage...almost 1:30 ...you traded 30 lakhs worth of futures when your trading capital is 1 lakh.
Generally speaking if we classify trading activity as scalping, day trading and swing trading....the scalper takes highest leverage and targets tiny price movement in his favor to book profits...where as day trader takes lower leverage when compared to scalper but much higher leverage than a swing trader and targets half or less than half percent move in his favor to book profits....
First think and design a consistent winning system ....try it with no leverage i mean you should have full value of contract to trade a single contract...if you are consistently profitable gradually increase your size....
Your first priority should consistent profit making...once you achieve that you can increase the size and leverage gradually to your advantage...this part comes at a later stage ...so first things first ...
Many seasoned traders trade 1:5 leverage means if they have one lakh capital they will trade a single lot (Contract value five lakhs)...
Please think about the quality rather than quantity
So more clearly I'm putting this,Pls Sir guide me on this-
I have 60-70k rs(1 Lakh actually) and I want to trade 1 lot of say State Bank of India Stock Fut.I will catch only 1 trade a day,a most high probability trade like Breakout,Breakdown or anything.Just 1 trade a day and I am done for a day.This way I will try to catch atleast 10 points profit monthly.This way my capital will grow slowly and I will add next lot on only 1.5 Lakhs profit.
Is this plan a good?
That is why I ask how much capital one should have to trade 1 lot 3000Q stock fut?1 Lakh,1.5Lakhs,2 Lakhs,2.5Lakhs??
Hope I'm not diverting RK's thread to other dimension.
Dear OI trader,
It depends upon your stoploss, say if your stoploss is 1rupee away you are risking 3000on the trade before comissions and slippages that is approximately 5% of your 60K...do you think it is prudent to take 5% risk on a single trade?
The problem with futures trading is you can not control the size, i mean you can trade in multiples of lot sizes only like 3000..6000...9000....
My advice is increase your capital so that you take 0.5% to 1% max risk on each trade...
First try your system in cash market where you can vary size according to risk...say your risk is 1 rupee for the trade and you want to take 1% risk on the trade (a high probability trade) buy 600 shares (assuming your capital 60K) ...and once you are confident increase your trading capital to trade in futures...
A traders first priority is to preserve his capital...to control his risk and 2nd priority is maximize your profits...
To be clear you are expecting to make 3000X10 , 30K on a 60K capital which is far from reality in my view,wish trading is that easy but it is not...
And i think it is better to trade CM than Fut for your current account size you can try fut trading once you increase your account size to at least 3lakhs...keeping in view 6lakh contract value of SBI
PS: Before taking a trade every trade appears high probability but many trades end result will be otherwise...
Best Regards:clap:
It depends upon your stoploss, say if your stoploss is 1rupee away you are risking 3000on the trade before comissions and slippages that is approximately 5% of your 60K...do you think it is prudent to take 5% risk on a single trade?
The problem with futures trading is you can not control the size, i mean you can trade in multiples of lot sizes only like 3000..6000...9000....
My advice is increase your capital so that you take 0.5% to 1% max risk on each trade...
First try your system in cash market where you can vary size according to risk...say your risk is 1 rupee for the trade and you want to take 1% risk on the trade (a high probability trade) buy 600 shares (assuming your capital 60K) ...and once you are confident increase your trading capital to trade in futures...
A traders first priority is to preserve his capital...to control his risk and 2nd priority is maximize your profits...
To be clear you are expecting to make 3000X10 , 30K on a 60K capital which is far from reality in my view,wish trading is that easy but it is not...
And i think it is better to trade CM than Fut for your current account size you can try fut trading once you increase your account size to at least 3lakhs...keeping in view 6lakh contract value of SBI
PS: Before taking a trade every trade appears high probability but many trades end result will be otherwise...
Best Regards:clap:
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