My Trading Journal @ Capstone Securities Analysis Pvt. Ltd.
- Thread starter anirudh_singh87
- Start date
Hello to everybody
I just want to say something to those who wants to pursue trading as a career. Although I don't have any experience with Capstone but have huge experience in prop. trading line. Whatever I will discuss here, it will be in light of Capstone.
After reading all the posts, I found Capstone is better than Indian prop firms. Why?
Let us first see the commonality.
1. Attrition rate is very high in these type of companies (more than 95%).
2. Fixed salary part is very low (for Capstone, it is 2000 - 8000 with free transportation and launch and for Indian companies, it is around 5000-7000), and with this salary it is almost impossible for anybody(outsider) to live in any city.
3. They all share a profit sharing ratio starting from 70% (trader)-30%(Firm)
4. All farms want traders to be fast on keyboard so that they could paunch orders without see the screen. So they train accordingly.
5. In the training part, they all impart basic knowledge, not any specalised skill. That means you have to develop your own method.
6. You will not find many highly qualified in this field in India. Most of the traders are just graduates or below with age group 23-30. Many of them are locals.
Now the advantage,
If you are successful, then Capstone is more rewarding than Indian firm as it earned in $ and pay in rupee. Although it pays 70%, but its 40% component is more than enough to make a huge amount.
In my next post, I will write, how do you survive in this line.
Till then
Goodbye.
I just want to say something to those who wants to pursue trading as a career. Although I don't have any experience with Capstone but have huge experience in prop. trading line. Whatever I will discuss here, it will be in light of Capstone.
After reading all the posts, I found Capstone is better than Indian prop firms. Why?
Let us first see the commonality.
1. Attrition rate is very high in these type of companies (more than 95%).
2. Fixed salary part is very low (for Capstone, it is 2000 - 8000 with free transportation and launch and for Indian companies, it is around 5000-7000), and with this salary it is almost impossible for anybody(outsider) to live in any city.
3. They all share a profit sharing ratio starting from 70% (trader)-30%(Firm)
4. All farms want traders to be fast on keyboard so that they could paunch orders without see the screen. So they train accordingly.
5. In the training part, they all impart basic knowledge, not any specalised skill. That means you have to develop your own method.
6. You will not find many highly qualified in this field in India. Most of the traders are just graduates or below with age group 23-30. Many of them are locals.
Now the advantage,
If you are successful, then Capstone is more rewarding than Indian firm as it earned in $ and pay in rupee. Although it pays 70%, but its 40% component is more than enough to make a huge amount.
In my next post, I will write, how do you survive in this line.
Till then
Goodbye.
Before going in details, anybody who wants to pursue trading as a career, should know that it is the most hardest job in the world with very high failure rate.
Let us now come to the topic. In my view there are four major criteria to pursue trading as a career.
1. You should not have any major family liability. That means it will be better if you are a bachelor.
2. You don't have any financial liability.
3. You have the guts to work hard with no reward for at east two years.
4. You must have some financial support apart from your salary.
Consider the above factor very seriously.
Still if you are interested, then first try to join a company as an inhouse trainee. The idea to join a company is to protect your own capital and not to take any undue risk in the market. Remember, if you are new to trading and start to trading on your own, then prepare to loose your entire capital for sometimes, It is almost certain. So it will be better to join some company like Capstone Securities.
To survive in this ruthless world of trading, please consider the following facts.
If you are an outside (resident other than Pune) and want to join Capstone Securities, then you will undergo through three phases.
1. Initial Phase (As a Trainee for Six months)
2. Payrole Phase as an inhouse trader for one and half year (18 months)
3. Professional Phase (After two year)
So you have to struggle for two years(an assumption) without any noticeable gains.
Now the question comes, how do you survive in these two year.
Suppose at Pune, your monthly expenditure is Rs.10000 for first year and Rs.12000 for second year. Here I assume that you will live in a rented single room with sharing basis at 5000/- per month. Your dinner and transportation to your office is free from Monday to Friday (which are provided by your company).
For the first six month, you will need Rs.60000/- to survive. But you will get Rs. 12000 (2000X6) as stipend. So your require Rs.48000/- for the first six months.
When you enrolled into their payrole after 6 months and stay there for 1 and 1/2 years, then you will get 8000/- as monthly salary. Then you will need extra 60000/- {(2000X6) + (4000X12)} for next 1 and 1/2 years to survive. So for the first two years, you will need Rs.1,08,000/- (48000/- + 60000/-) to survive.
Before going to join such type of organisation, first you have to arrange this amount. Consider this amount as your tution fees towards market.
Can anybody tell me about a profession where you do not spend any money to acquire that profession. Again to acquire that profession, he will have to spend some years as a learning process. After that phase, a person will be able to make money for himself.
So please think about this seriously.
I will write more about the survival in this trading line in my next post.
Till then
Goodbye
Let us now come to the topic. In my view there are four major criteria to pursue trading as a career.
1. You should not have any major family liability. That means it will be better if you are a bachelor.
2. You don't have any financial liability.
3. You have the guts to work hard with no reward for at east two years.
4. You must have some financial support apart from your salary.
Consider the above factor very seriously.
Still if you are interested, then first try to join a company as an inhouse trainee. The idea to join a company is to protect your own capital and not to take any undue risk in the market. Remember, if you are new to trading and start to trading on your own, then prepare to loose your entire capital for sometimes, It is almost certain. So it will be better to join some company like Capstone Securities.
To survive in this ruthless world of trading, please consider the following facts.
If you are an outside (resident other than Pune) and want to join Capstone Securities, then you will undergo through three phases.
1. Initial Phase (As a Trainee for Six months)
2. Payrole Phase as an inhouse trader for one and half year (18 months)
3. Professional Phase (After two year)
So you have to struggle for two years(an assumption) without any noticeable gains.
Now the question comes, how do you survive in these two year.
Suppose at Pune, your monthly expenditure is Rs.10000 for first year and Rs.12000 for second year. Here I assume that you will live in a rented single room with sharing basis at 5000/- per month. Your dinner and transportation to your office is free from Monday to Friday (which are provided by your company).
For the first six month, you will need Rs.60000/- to survive. But you will get Rs. 12000 (2000X6) as stipend. So your require Rs.48000/- for the first six months.
When you enrolled into their payrole after 6 months and stay there for 1 and 1/2 years, then you will get 8000/- as monthly salary. Then you will need extra 60000/- {(2000X6) + (4000X12)} for next 1 and 1/2 years to survive. So for the first two years, you will need Rs.1,08,000/- (48000/- + 60000/-) to survive.
Before going to join such type of organisation, first you have to arrange this amount. Consider this amount as your tution fees towards market.
Can anybody tell me about a profession where you do not spend any money to acquire that profession. Again to acquire that profession, he will have to spend some years as a learning process. After that phase, a person will be able to make money for himself.
So please think about this seriously.
I will write more about the survival in this trading line in my next post.
Till then
Goodbye
Hello.
Now come to trading.
In India, such type of trading firms are indulge in very short time frame trading which lasts from seconds to some minutes. There are three types of such trading.
1. Jobbing (Scalping - which lasts from few seconds to couple of minute)
2. Arbitrage (Although it is called arbitrage but most traders action indirectly point towards jobbing)
3. Pair Trading (same as arbitrage)
But now due to high tax structure (STT, Stamp Duty,), jobbing is not profitable where as arbitrage, pair trading and High frequency trading (mechanical form of jobbing) have taken the place of jobbing. Again the efficiency of manual arbitrage & pair trading has been greatly reduced due to the advent of algo trading.
One more important thing, most of the trading firms in India do not interested in any type of positional trading, swing trading etc.. They also do not interested in technical trading. But at Capstone, it is heartening to see that they encourage technical trading. So those who interested to learn technical trading, must select Capstone Securities like trading firm to start with.
Once you join Capstone securities, from the very beginning dedicate your first two year to learning process. Since you will get the entire day time as your free time, so don't indulge in any type of trading activity in Indian market, rather read good trading books and materials related to trading, psychology and money management etc..You may do some other works like any part time job or some private tution type work but not any work related to trading.
Now the question comes, is it possible to stay there for long two years without any noticeable gain? My answer is, YES, it is possible. For that to happen, always try to finish the month in green (as little it may be). If possible try to cover your monthly stipend/salary. After covering that amount, go slow. Believe me, it will make a huge impact on the company's impression towards you. Another fact is, if you made it possible for 6/8 months, it will greatly enhance your performance.
Regarding any trading method, always try to master one/two tricks only. It will be better, if you have laptop and internet. In that case, open a demo account with some FX broker & practice your method for at least 3/4 hours daily.
Also while in your training phase, give most of your time to learn from senior experience trader. Their experience and companion will make your learning process much easier and shorter. Initially don't think too much about the percentage sharing or income. Believe me, even you master one trick, even 40% share will make you crorepati. By the God's grace, if you stay there for two years, then you will see the result.
Have a cool attitude, patience and be honest to yourself and believe in yourself.
Now I don't want to say anything. If you want more, then please go through the thread (Post no. 11).
http://www.traderji.com/words-wisdom/77291-life-journey-trader-2.html
Finally, one more advice, just have patience and believe in yourself, definitely success will follow you.
With Best Wishes for your successful trading career.
Goodbye
Now come to trading.
In India, such type of trading firms are indulge in very short time frame trading which lasts from seconds to some minutes. There are three types of such trading.
1. Jobbing (Scalping - which lasts from few seconds to couple of minute)
2. Arbitrage (Although it is called arbitrage but most traders action indirectly point towards jobbing)
3. Pair Trading (same as arbitrage)
But now due to high tax structure (STT, Stamp Duty,), jobbing is not profitable where as arbitrage, pair trading and High frequency trading (mechanical form of jobbing) have taken the place of jobbing. Again the efficiency of manual arbitrage & pair trading has been greatly reduced due to the advent of algo trading.
One more important thing, most of the trading firms in India do not interested in any type of positional trading, swing trading etc.. They also do not interested in technical trading. But at Capstone, it is heartening to see that they encourage technical trading. So those who interested to learn technical trading, must select Capstone Securities like trading firm to start with.
Once you join Capstone securities, from the very beginning dedicate your first two year to learning process. Since you will get the entire day time as your free time, so don't indulge in any type of trading activity in Indian market, rather read good trading books and materials related to trading, psychology and money management etc..You may do some other works like any part time job or some private tution type work but not any work related to trading.
Now the question comes, is it possible to stay there for long two years without any noticeable gain? My answer is, YES, it is possible. For that to happen, always try to finish the month in green (as little it may be). If possible try to cover your monthly stipend/salary. After covering that amount, go slow. Believe me, it will make a huge impact on the company's impression towards you. Another fact is, if you made it possible for 6/8 months, it will greatly enhance your performance.
Regarding any trading method, always try to master one/two tricks only. It will be better, if you have laptop and internet. In that case, open a demo account with some FX broker & practice your method for at least 3/4 hours daily.
Also while in your training phase, give most of your time to learn from senior experience trader. Their experience and companion will make your learning process much easier and shorter. Initially don't think too much about the percentage sharing or income. Believe me, even you master one trick, even 40% share will make you crorepati. By the God's grace, if you stay there for two years, then you will see the result.
Have a cool attitude, patience and be honest to yourself and believe in yourself.
Now I don't want to say anything. If you want more, then please go through the thread (Post no. 11).
http://www.traderji.com/words-wisdom/77291-life-journey-trader-2.html
Finally, one more advice, just have patience and believe in yourself, definitely success will follow you.
With Best Wishes for your successful trading career.
Goodbye
u| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
|
Creating a Trading Journal. | Trading Diary | 6 | |
| O | Options Scalping Trading journal (option.seas) | Trading Diary | 2 | |
| A | AKJ trading journal | Trading Diary | 84 | |
|
My trading journal in CEFs | Trading Diary | 0 | |
| S | How to create a trading journal | Trading Diary | 4 |