Senior scalpers and day traders , plz comment on my money&risk management system .

Discussion in 'Risk & Money Management' started by hedgefudge13, Jan 20, 2015.

  1. hedgefudge13

    hedgefudge13 Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    hmm ... True , I guess From feb 1st , I should Paper trade for 15 days by picking up 2-3 scripts from different sectors to see how it works . :)
    Thanks for the suggestion .

    And you said , you dont use charts for scalping ..... then what approach do you use ? only volume analysis ?


    Regards,

    HedgeFudge
     
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  2. anuragmunjal

    anuragmunjal Well-Known Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system



    hi Pav

    after the advent of bots, I have not seen a single 'pure scalper' making money trading manually.. with algos working on co located servers, it is impossible to beat them manually.

    therefore to succeed, I believe you must either take that route or as I have suggested earlier, trade on a slightly higher tf where you do comparitivley lesser trades and aim for bigger profits on favorable trades. go through ST's thread 'thoughts on day swing trading'. he has given many good examples on that thread.

    regards
     
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  3. anuragmunjal

    anuragmunjal Well-Known Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system



    the only problem with paper trading, especially when you are trading a system,which has high number of trades is that you can never be sure of what actual executed price you may get. hence, would suggest trade live mkt. with half the qty. you intend to trade in order to get the real feel.
    hypothetically speaking, while scalping many things can change the equation. there is a possibility that one may have a good system when he is trading 50 qty of a share as his slippage is around .1 paise, whereas the same system may not look so good if one were trading 500 qty of the same script as the slippage now increases to .4 paise. I once devised a system which was unbeatable on paper, but in actual mkt. conditions, inclusive of slippage, stt, various charges and comm., it cost me 7000 rs per crore of turnover, and it was not even a pure scalping system. it had fewer trades. I had to shelve it.

    the second part of your ques.. I left active scalping a few years back, once the bots took over.. when I was scalping, it was only thru screen reading and intution.

    regards
     
  4. puma30

    puma30 New Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    Hello friend,
    I have a question that if you were successful in all types of trading and investment then why are you switching to scalping. My view is that you should not go for it if you are looking for few thousand rupees at the end of day. Even one good trade in a day could earn you that much of profit. Scalping is not everyone's cup of tea.
     
  5. shirajroz

    shirajroz Active Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    Anurag Ji,
    Which is/are d most Liquid F&O scrip/s in d present NFO Market according to your experience ?
     
  6. PUCHU_2500

    PUCHU_2500 Well-Known Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    bro, do u think that u can trade successfully in most liquid stock ? unitech is the most liquid stock......!!
    ideal trading counter> sbin, axisbank,bpcl, recltd, maruti, tatasteel and other top blue chip companies which is having daily trading volume more than 10 lac.....
    wish u to be a successful trader
    thanks
     
    Last edited: Jan 26, 2015
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  7. shirajroz

    shirajroz Active Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system



    Baby Steps.

    Thank u bro & Thank u a ton in advance as going to pester u bros for guidance in every Trading steps ahead.
     
  8. J_Smith

    J_Smith New Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    u will need to correct me if i am wrong..

    unitech = 7.15 inr = 0.107 usd
    todays range = 0.20 inr = 0.003 usd

    sbin = 241.10 inr = 3.51 usd
    todays range = 4.10 inr = 0.061 usd

    image attached for both stocks..i do not know how much you pay per share to trade these stocks..but the values are so low they would not be looked at by serious traders..

    the chart for unitech is terrible..the chart for sbin is much better..but again..with suck low values..and depending on commission charges per share..it might not be worthwhile trading these stocks if you have to pay too much to trade them?

    J_S
     

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  9. TRADERSM

    TRADERSM Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    friends please help me

    1.difference between risk mgt & money mgt please explain point wise with (eg)

    2.myself understanding is it on
    risk mgt is how much % you will risk on single trade

    eg total capital 45000*2%=900

    money mgt is don't use leverege

    eg trade around 45000


    is it correct
     
  10. vijayanscbe

    vijayanscbe Well-Known Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    If you are Day trader then consider both MM and RM as same.
    If you are short term trader, even if you take overnight position.
    Then you have evaluate more things, example 20 point SL work in day trading. That wont work for over night positions.

    RM is more technical thing which used by Institutions like DII , FII, HNI etc.
    They use Var, Cvar, VIX, etc, to analyse the portfolio risks, exposers etc.
    They consider all the risks, like country's, world's economical, political, policies etc which going to affect their funds. Accordingly they alter their exposers and reserves in various instruments.

    RM and MM are more subjective terms.
    So I consider both as same and wont go deeper untill I become an HNI. :D
     
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