Which is best for the pocket?Day-Trading, Futures Trading or Options trading?

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  #1  
Old 20th March 2007, 09:16 PM
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EARTHY8 is on a distinguished road
Default Which is best for the pocket?Day-Trading, Futures Trading or Options trading?



Which is best for the pocket?
Day-Trading, Futures Trading or Options trading?
Hi,
I want to know the benefits of all these three trading on the NSE/BSE and come to a conclusion for the best and most economical trade /trading strategies except short-term or long term buying of shares,which i feel is the most economical and reasonable equity investment option.
My trading platform is Motilal Oswal, and i give the break up of charges of my trading done in futures on March 20,07.
Total lots traded :-200/ Lot of 50 traded 4 times.Net gain 4-5 points in each session.
Profit shown =Rs.1500. Actual profit= Rs.369!
Break-up of charges:=
1)Commission of trading brokerage=@0.05 ps for buy/sell=Rs.92.50 each for buy and sell.
2)Service Tax=Rs.11.32.
3)STT=Rs.31.57 for both buy and sell.
4)Transaction charges=Rs.34.
5)Stamp duty-Rs.33.21

See, how it 'sucks' your profit.What you see on your screen is not believing!!
Day-Trading:=
Buy 61 Century textiles at Rs.526.75 and closed the position at.Rs.528.15.
Total Profit =Rs.85.40
What you get =Rs.7.30!
1)Commission-trading brokerage=Rs.13 approx
2)Service Tax=Rs.5/-
3)STT=Rs.8-
4)Transaction Charges=Rs.2.5
5)Stamp Duty=Rs.1.5

This too becomes a 'costly afffair!'

Options/NiftyBuy 3700 CE at 57.70 and close at 59.
Gross gain =Rs.100 approx.Actual profit(loss)=Rs.79i.e=-7!

Break-up of charges:-
1)Commission for trading brokerage=Rs.63/-
2)Service tax=Rs.7.50
3)STT=RS.32
4)Transaction charges=Rs.3
5)Stamp Duty=Rs.1.5
Thus it becomes imperative to trade with more lots thereby decrease commissions on brokerage,hold profits longer(in anticipation of markets being favourable ie, speculate more?)
Is it feasible???

earthy8
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  #2  
Old 21st March 2007, 06:29 PM
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beginner_av will become famous soon enough
Default Re: Which is best for the pocket?Day-Trading, Futures Trading or Options trading?

not trading is the best for the pocket...till u have a plan, a system and capital.
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  #3  
Old 21st March 2007, 06:34 PM
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beginner_av will become famous soon enough
Default Re: Which is best for the pocket?Day-Trading, Futures Trading or Options trading?

larry williams also said the same things that u r saying...and showed many examples too...strange that he did it in a book that talks about short term trading...

only i dont believe that...
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