Invictus Trading Diary

[Nikhil Dogra]

1. Trade smaller i.e Only 1 Lot In Nifty OR Bank Nifty , pick any one OR shift to Options (again not more than 3 Lots)
   
2. Trend following approaches work relatively better at a "portfolio level" & not at a individual level.
3. INR 170000 Capital & Risk Per Day Should Be INR 3400, for a day trader.
4. In view of the second point - Apply your craft at a portfolio level on crudeoil mini/copper mini/nickel mini/silvermicra [Dividing 3400 risk on 4 markets]
5. Trade cash market stocks with less risk as opposed to a derivative
6. Change your broker to a better discount broker

 

[Invictus]

Who is your broker.

Trade smart online

 

[Invictus]

1. Trade smaller i.e Only 1 Lot In Nifty OR Bank Nifty , pick any one OR shift to Options (again not more than 3 Lots)
   
2. Trend following approaches work relatively better at a "portfolio level" & not at a individual level.
3. INR 170000 Capital & Risk Per Day Should Be INR 3400, for a day trader.
4. In view of the second point - Apply your craft at a portfolio level on crudeoil mini/copper mini/nickel mini/silvermicra [Dividing 3400 risk on 4 markets]
5. Trade cash market stocks with less risk as opposed to a derivative
6. Change your broker to a better discount broker

I am with TradeSmart online,m which I believe is a discount broker. By the way its not about brokerages, its about the other charges which are calculated from turnover and I guess they are mostly same for all brokerages.

For 1 lot of Nifty with my current plan, the breakeven point comes around 2 points. If I increase the lot size to 3/4 the breakeven point will also increase. So a breakeven or a small profit day today or from backtesting will be counted as a lossing day tomorrow with higher lot size. In cash market STT is even more its 2500/Cr where as in derivative its only 1000/Cr. So cash market is out of question. and restricting the lot size will keep the charges minimum., But the question is til when.. One day you need to increase lots, as you want to scale in your trading business.. I hope you are getting my point of view

 

[Nikhil Dogra]

Point is your turnover will cross 1cr in futures easily whereas it won't cross 10lac in cash or options even! My turnover was less than 13lac in options today (4650shares or 62lots in options), had i used futures it would have crossed 9cr.

 

[traderniftybull]

Trade smart online

If your brokerage is reasonable (as per you), that is 9 to 20 R per trade or upto 2000 R per month for unlimited trading,
then there is no way to reduce other charges like STT, Stamp duty, as these charges are more or less same with other brokers also.
Only thing is you can reduce your brokerage, if it is more. Do not pay per trade brokerage opt for monthly charges (as you are a regular trader). There are few brokers who charges zero to 2000 R per month for unlimited trades per month. use your discretion and select one as per your requirement (leverage etc)

 

[Invictus]

Point is your turnover will cross 1cr in futures easily whereas it won't cross 10lac in cash or options even! My turnover was less than 13lac in options today (4650shares or 62lots in options), had i used futures it would have crossed 9cr.

Okay got your point. Since options are less priced their tunr over will stay low, and even if we pay even higher STT that future our charges will stay low. RIght ?

1. I have heard (not sure) that they add the option sell value while calculating turnover for taxation purpose. This will increase the taxataion turnover dramatically.

2. Since you trade option regularly, you can guide me on this.. Are they liquid enough to be traded intraday on 1m chart and are they flexible enough for scaling in ?

 

[Nikhil Dogra]

1. I have heard (not sure) that they add the option sell value while calculating turnover for taxation purpose. This will increase the taxataion turnover dramatically.

2. Since you trade option regularly, you can guide me on this.. Are they liquid enough to be traded intraday on 1m chart and are they flexible enough for scaling in ?

1. Honestly i don't think about taxes when i am trading, Its a CA's job to cook books , mine is to ensure being profitable over and beyond break-even expenses (use a calculator your broker offers to know yours)
   
2. Very very liquid if your chosen strikes are At the money , better to observe them yourself.

 

[traderniftybull]

Yes, what you have heard is right
While taxable TO for futures are calculated by adding negative and positive difference (that is add up of profit and loss)
but for options, it is add up of profit and loss and also the sell value of option. And its ridiculous to add option sale value for option buyers. But who cares.

You may visit various threads on taxation section of forum for more details.

 

[Invictus]

Hi Manoj,

You have been trading intraday in index future with 1m chart for quite some time I guess. Have not you faced this problem.. What you have to say on this ??

 

[Pradeep Narayan]

I see you make around 8K as profits... where the cost is around 1K. Roughly your cost to profit ratio is 1:8.
Why don't you maintain a cost to loss ratio at 1:8 & cost to profit at 1:13 or more with Equities, you may fare much better. And when your position size in Equity increases to equivalent Lot Size, move that trade to F&O.