who are you

hello friends i have a few questions for all of us so that we know what kinda community we're in.the reasons i would like to share these facts is to create mental satisfaction that we are a very good community, as i personally believe if you are a member of a good peer group, then u have nothin to loose.
we dont have to disclose any personal information, and you dont have to answer all d questions if u dont feel like.just some general things like..
1. age
2. gender
3. profession(if not a pro trader)
4. citizenship
5. current country of residence
6. if you personally know any body who has done pretty good in trading
7. what do u think about using leverages in daytrading
8. what kinda trading u do
Myself:
I am 27 male, originally from haryana india. currently in vancouver canada, i am full time excavator operator(demolition).
I personally dont know anybody who could be a role model for me, but heard a lot of success stories, where people going from rags to riches.
I believe in using upto 5 times leverage, i believe we are here to trade and make profits, if we have the skills to make even i% in one month then by using leverage i could be 5%, but the key is we need to be in the right direction, i am aware that using leverage may even ruin our account in just a couple days.
I would really appreciate if i get any feedbacks
Cheers!!!!!

Answering to your Question 7) - In my view, before looking at leverage we need to set our personal risk management rule in this game (it is lot more important for daytrader becaues of the high spead of trading in shorter timeframe, chances are high that we will make costly mistakes). So lets say, my rule is not to risk more then 1% on any single trade. so for a $10000 account, maximum I can risk is $100 (i.e. 1% or 10000).
For a new trade, say I am entering at $44 and my stoploss is at $42.5 i.e. my risk per stock is 44-42.5 = $1.5.
So the number of shares that I can buy is (=max risk per trade / risk per stock) i.e. =100 /1.5 = 66 stocks. So even if my account permits to buy 1000 shares, I need to limit the urge to use leverage and focus on risk management and buy only 66 stocks.
Otherwise, the dangarous side of leverage may hit our accout with bigger loss. And if we still don't learn from it then very soon, we wil blow the account.

If we can find great entry in same transation at 42.75 with stop loss at 42.5.. then our risk per trade is $0.25.. With this risk, we can buy =100/0.25= 400 stocks. So now we can use the leverage and buy 400 shares and place the stop at 42.5 So even with more number of stocks, we are still risking the same $100.

Thats is as simple as it can get about position sizing and risk mgmt for beginner.
Only suggestion is - focus on proper risk mgmt first so that your account can remain live for longer time.
Leverage is given by broker so that they can collect more brokerage. But we need to understand how to use it. It is like - if we goto buffet dinner party, we don't eat all that is availble there. We eat only as much as our body can digest /accept.
Same is true with leaverage = don't use it beyond your risk appetite.

Happy Trading.
(sorry - I don't think other questions make any difference to the trading. In this game, everybody is equal. If you are ready to buy a stock at price better then Warren Buffet or Goldman Sachs, the market will fill your order before Buffets/Goldman. )

Rightly said

thnx guys, no hard feelins

one more thing, friends, dont take me wrong its not a matter of equality or inequality, as i said we dont have to answer all d questions if we dont feel like.
regardless of what i am doing and where i am. i am going thru the hardest part of my life and i am trying to find out ways which can help me achieve my goals in life. d reasons to ask these questions was to get the idea what kinda people we are what brings us here, is it for fun, to make it a career, some extra money, or may be something else that i cant even think of.
i'll look forward to ur comments and answers

thnx bro

Dear friend,

Just ask yourself "Why do I want to trader?" Get the honest answer from you.
Check your answer whether it is reasonable or you want to trade for excitement, thrill or something else.

If your answer is reasonable, then proceed to learn how to trade reasonably within reasonable premises.

If not, think over should you really trade?

And it is not so hard to mold your mind reasonable, IMO.

Cheers

1. age : 55
2. gender : M
3. profession(if not a pro trader): Full time Trader since 7 Yrs
4. citizenship : Indian
5. current country of residence : India
6. if you personally know any body who has done pretty good in trading : Atleast 7
7. what do u think about using leverages in daytrading : Full Leverage (but when diversified in 4-5 different scrips trades,in a gap of 5-10 mins // 2 Opposite Trades in 2 different scrips in a gap of 1-2 mins)
8. what kinda trading u do : Intraday & Swing

Asish

now thats what i was lookin for, thanx asish sir
about me i want to be a full time trader trader, using full leverages, but not now after some time when i know what i am doing only then.
i believe that to be a successful it will need 99% skills and 11% luck, i mean if we give it our 110% things will be pretty good, i also think it could be stressful in the beginning but over the period of time it'll be ok
i really appreciate ur answers hope to learn from u more and our other seniors too

asish sir how long it took before u actually started making money on regular basis?
sir, asnwer only if you u r comfortable.