What is your profit % expectation per trade ?

smartboy1jan1982

smartboy1jan1982

Active Member
#1
#1
Hello fellow traders. I am new to intraday trading and I trade only in 39 stocks (these are stocks on which my broker, Kotak securities, gives the maximum leverage of 6 times) , which are all Nifty 50 stocks. I was wondering about certain facts pertaining to it like what is the average price change in a stock the intraday traders look for exiting the trade. :eek: For me 0.8% to 1% profit per trade is optimum but the problem with such large profit expectation per trade is that I have to enter the trade very close to last trading day's close price in order to get the 1% price fluctuation in my favour i.e. to hit the exit price for profit.

To acheive my target of 1% profit per trade I have to actually bet that the price for the stock is absolutely going up or down 1% according to my buy or sell position from the last day's closing price, which is very hard thing to predict with surety. :( If I wait for the stock's price to take a definite direction [whether up or down ] next day before entering the trade then I miss the opportunity and then it never gets traded. :mad:

This confuses me that whether my profit expectation per trade is too large for my style of intraday trading and I should lower it to say 0.5% to 0.6% per trade or should i change my trading strategy completely? :confused: Your honest opinion is more than welcome.
 
L

lasty66

Active Member
#3
#3
smartboy1jan1982 said:
Hello fellow traders. I am new to intraday trading and I trade only in 39 stocks (these are stocks on which my broker, Kotak securities, gives the maximum leverage of 6 times) , which are all Nifty 50 stocks. I was wondering about certain facts pertaining to it like what is the average price change in a stock the intraday traders look for exiting the trade. :eek: For me 0.8% to 1% profit per trade is optimum but the problem with such large profit expectation per trade is that I have to enter the trade very close to last trading day's close price in order to get the 1% price fluctuation in my favour i.e. to hit the exit price for profit.

To acheive my target of 1% profit per trade I have to actually bet that the price for the stock is absolutely going up or down 1% according to my buy or sell position from the last day's closing price, which is very hard thing to predict with surety. :( If I wait for the stock's price to take a definite direction [whether up or down ] next day before entering the trade then I miss the opportunity and then it never gets traded.

This confuses me that whether my profit expectation per trade is too large for my style of intraday trading and I should lower it to say 0.5% to 0.6% per trade or should i change my trading strategy completely? :confused: Your honest opinion is more than welcome.
Click to expand...
smartboy... calculate ur breakeven cost (after adding the brokerage) and dont have a fixed % profit taking...whenever the price is in profit.. start booking in parts.. there are lot of intraday system u can follow here..:)
 
nac

nac

Well-Known Member
#4
#4
Why are you fixing your profit target?
How are you expecting that your stock will surely move 1% everyday? Even if it does, Its hard to pick them @ top/bottom.
Better build a system/strategy which suits your attitude/psychology, and follow that. Many members here in this forum repeatedly saying this...
Trading system, Risk mgmt, money mgmt....

If you are into day trading, you can book your profit in parts (as lasty66 said) and accumulate it with bit by bit. Like, built it brick by brick, don't expect big (I am not saying 1% is big, but still you can't expect this swing in each and every day and every trade).

Read Linkon's signature. That'll tell you something. :)
 
smartboy1jan1982

smartboy1jan1982

Active Member
#5
#5
First of all, I would like to thank all of the responders for their opinions. :cheers:

Since my transaction costs(brokerage+ st+ stt ) comes to 0.12 % per trade that means that i can exit a trade at 0.2 % with a very small profit in my account. :eek: If I am understanding your replies correctly then you all think that expectation of 0.8 to % 1 % profit per trade for my style of trading is a bit too much to expect consistently per trade, day after day, month after month, year after year, and I should lower my profit expectation to 0.4% to 0.5% per trade. But to do so, that is to half my profit expectation per trade, I have to double my trading volume per day to make the same return on my capital that I would have been making at 0.8% to 1% .

Btw, Is there any good thread here in which other day traders discuss their average return on capital per trading day or per trading month. :p
 
nac

nac

Well-Known Member
#6
#6
smartboy1jan1982 said:
Since my transaction costs(brokerage+ st+ stt ) comes to 0.12 % per trade that means that i can exit a trade at 0.2 % with a very small profit in my account. :eek: If I am understanding your replies correctly then you all think that expectation of 0.8 to % 1 % profit per trade for my style of trading is a bit too much to expect consistently per trade, day after day, month after month, year after year, and I should lower my profit expectation to 0.4% to 0.5% per trade. But to do so, that is to half my profit expectation per trade, I have to double my trading volume per day to make the same return on my capital that I would have been making at 0.8% to 1% .

Btw, Is there any good thread here in which other day traders discuss their average return on capital per trading day or per trading month. :p
Click to expand...
Your transaction cost seems to be too much. I guess you are doing day trading. In this case your cost other than brokerage is .0186% (assuming 1L buy and 1L Sell). The balance .1014% of brokerage is too much for day trading.

I am not saying you are expecting too much. I am saying don't expect. I think you didn't read Linkon's signature. If you didn't here it is...

"
Assumptions is the mother of all screwups
“Don’t get in the hope mode!” That leads to the what so ever mode and that leads to dammit mode.
"

I don't think many would discuss their returns in numbers may be in %. Try dig this forum. You could find 'em.
 
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