Is earning in Day trading so very easy?

[4xpipcounter]

As an additional note, let me review the 1st 2 steps you need before entering the markets. Your methodology needs to be such that as soon as you enter a trade you can say why you took it, how you entered it, what was the setup based on your entry, and then give at least a conceptual idea of where that market is headed.
As far as margining and money management is concerned, if your lot size is so big that you sit nervously in front of the screen watching every tick of the market, then you are putting too much on the trade. The margin you use needs to be such that you can set the trade, walk away from the computer, and if your stop is hit, the amount of money you loss does not faze you. If you a er losing too much, then it is your methodology that needs another look at.
In Trading School 101, those objectives need to be met and you get a passing grade, before you even think of going live.
I'm telling you for a fact that I see it happen on a regular basis where someone has for example, $50,000, and lose most of it in one month. That should never happen. When that happens, they flunked those first 2 objectives.
Trading is this simple. The market will only go up or down. You pick the direction it will go, ride it out, and collect your profits. Yet, it is so complicated that even after you have finished the 1st 2 critical steps, you are still not guaranteed success until you have conquered that space between your ears.

 

[veluri1967]

As an additional note, let me review the 1st 2 steps you need before entering the markets. Your methodology needs to be such that as soon as you enter a trade you can say why you took it, how you entered it, what was the setup based on your entry, and then give at least a conceptual idea of where that market is headed.
As far as margining and money management is concerned, if your lot size is so big that you sit nervously in front of the screen watching every tick of the market, then you are putting too much on the trade. The margin you use needs to be such that you can set the trade, walk away from the computer, and if your stop is hit, the amount of money you loss does not faze you. If you a er losing too much, then it is your methodology that needs another look at.
In Trading School 101, those objectives need to be met and you get a passing grade, before you even think of going live.
I'm telling you for a fact that I see it happen on a regular basis where someone has for example, $50,000, and lose most of it in one month. That should never happen. When that happens, they flunked those first 2 objectives.
Trading is this simple. The market will only go up or down. You pick the direction it will go, ride it out, and collect your profits. Yet, it is so complicated that even after you have finished the 1st 2 critical steps, you are still not guaranteed success until you have conquered that space between your ears.

:rofl::rofl::rofl::rofl::rofl:

 

[sachin928111]

i m confused here while zerodha is saying that beark even for nifty future for 10 lot is 1.87 points that is less than 100 rs incluidng all taxes should it not mean that with 7 points win profit sud be 3500-1.87*50
where i m wrong pl tell me

 

[piedpiper]

- Be ready to burn some money before earning anything during learning phase. Learning is by actually trading, not doing it on paper or spreadsheet. Do not expect to become a master overnight.

- Look at monthly earnings rather than daily profit. Even if u make a small amount of profit every month you should be happy & should improve upon your method. When you are just starting do not depend on day trading income for your living.

- Day Trading is not for those who lose their balance quickly. Sometimes you have to forgive yourself for making mistakes.

- Finally, even after sometime (you decide how long) if you do not start making money, just quit & try your luck in long term investing. If required take a loooooong break (months, years) & come back fresh. I came back to online trading after 15 years before which I did physical trading. So nothing comes to an end forever. Trading is a powerful magnet. Sooner or later you will be back.

 

[Learnerforlife]

Thanks to all for valued opinions. I feel the ideas shared in the thread are great with respect to every trade market. I am new to the market too, and i've been able to grasp a lot (mostly on being patient and disciplined parts).
:thumb: :thumb: :clapping: :clapping:

 

[krab]

Anyone trading 10 Lots of Nifty futures with a trading capital of Rs 1 Lac is sure to blow up his trading account. A 7 point loss on this position when you add brokerage, STT and slippage, it will knock off 5 % of your account and if you have 2-3 losses consecutively then the 15 % of your account is down in a single day......very high leverage even for a day trader......

7 point profit.....great idea...but what happens to losses ?? suppose you hit a first trade of the day as a looser, then you need 10 +7 =17 points on your next trade.....suppose next trade makes 7 points profits...will you book it or wait for 17 points profits ? If you dont book, and the trade goes say 9 points in profit and starts going in reverse direction....then what do you do ?? If you book, you are still in a loss considering brokerage,STT,taxes etc....If you book 7 points and the trade goes to make 70 points....how will you feel as you are still sitting with a loss.....?

The assumption here is we make a single trade in a day ....all trades are profitable and so it appears simple....but in practice things are not that simple....you will soon discover that. Can it be done with certainty ? The answer is NO.....

Instead if you ask can 35-50 points ( 7 X 5 trading days ) be made in a week day trading nifty ? The answer is definate YES.....and if you start thinking on these lines, you will succeed as a day trader.And remove that 10 lots idea from your mind....your position should not be such that you are risking more than 1 to 1.5 % of your trading capital on a single trade...this is necessary if you want to survive in this game for long.

The above are my personal views based on my experience as a day and swing trader ......there will be many trading wizards who claim to be making 200 % return per month on their capital of Rs 25,000 and I wish them good luck and I hope to see them trading after one year in the market......

Best wishes for your success.....

Smart_trade

sir,
please share any strategy to make 35 to 50 points per week instead of day trading, because from seniors i understood that day trading is very difficult for new comers as well as i have full time job, so if you share any strategy for nifty which will help me as well as new comers in trading.

 

[jeffrulz]

Try this

Invs:Rs 2000

Brkge: 20/lot or 9/lot

Buy Options @ 40

Sell Options @ 42

Profit exlding brkge : 50

Profit % : 2.5%

100 days % : 250%

100 days profit : 5000

 

[Smart_trade]

sir,
please share any strategy to make 35 to 50 points per week instead of day trading, because from seniors i understood that day trading is very difficult for new comers as well as i have full time job, so if you share any strategy for nifty which will help me as well as new comers in trading.

There are many systems which will give you 35-50 points in a weak after considering losses and brokerage/taxes etc. Some of them may be in this forum.So look around and work on a method which you like.

Getting a winning system involves hard work....you need to put in that hard work and make your own system from the basics you get here.

Smart_trade

 

[ashwani chadha]

As an additional note, let me review the 1st 2 steps you need before entering the markets. Your methodology needs to be such that as soon as you enter a trade you can say why you took it, how you entered it, what was the setup based on your entry, and then give at least a conceptual idea of where that market is headed.
As far as margining and money management is concerned, if your lot size is so big that you sit nervously in front of the screen watching every tick of the market, then you are putting too much on the trade. The margin you use needs to be such that you can set the trade, walk away from the computer, and if your stop is hit, the amount of money you loss does not faze you. If you a er losing too much, then it is your methodology that needs another look at.
In Trading School 101, those objectives need to be met and you get a passing grade, before you even think of going live.
I'm telling you for a fact that I see it happen on a regular basis where someone has for example, $50,000, and lose most of it in one month. That should never happen. When that happens, they flunked those first 2 objectives.
Trading is this simple. The market will only go up or down. You pick the direction it will go, ride it out, and collect your profits. Yet, it is so complicated that even after you have finished the 1st 2 critical steps, you are still not guaranteed success until you have conquered that space between your ears.

dear paul.thanks for your above post

 

[ashwani chadha]

There is no such thing as any company or individual giving "sure hit calls". I regularly track 28 forex pairs, and literally any other market someone wants me to that I can apply my methodology to. I never suggest anyone to trade my forecasts, even though I'm real good. Most of my calls are within a few pips of the week's dips and peaks. I could never expect anyone to get the same results I do with their trading, as it should only be used as a learning tool. The reasons are simple:
1. I'm not right all the time. What if someone takes a trade where I was wrong. I know how to react, but do they?
2. Mindsets, margining, and lot sizes are different.
3. I can never expect for anyone to have the same confidence in my forecasts as I do. It's just common sense.
4. For the most part, in entering other people's trades it is an emotional decision rather than a practical one. When you read my Weekly Previews every week, and then see the accuracy of the forecasts, you would be tempted to say, "Wow! I'm going to trade his picks and be rich, so the trader gets to bold with the lot sizing, leaves no practical room for pullback, then eventually bankrupts.

You can use other people's forecasts and trades to learn from, but never use them to trade from as a set methodology. Also, no one has "sure hit cals". I know only one that has 100% perfect calls 100% of the time, but he does not trade. His name is God.

dear paul,thanks for your above post