Is Daytrading dangerous?

Originally Posted by sharantaka

Dear Global Gyan,
I am only a two days ago registered member of the forum. Unfortunately I am using icicidirect.com as my on line broking house. After reading this string I want to request you to suggest a better on line broking house, can you oblige? Thanks

Originally Posted by kgsirasangi

I have come across following interesting article on day/futures trading strategy in the following thread

http://www.profitfromus.com/ForumRea...pic=185&page=2

quote

from aryanshare

Day Trading Strategy


Despite what some people may lead you to believe trading is not anywhere as difficult as they would like you to think. It really boils down to two key components. FEAR & GREED.Once you have these two emotions under check, everything else falls in place.. I am listing out my views and my system of trading. It has worked 8/10 times for me, which is good enough for me.

The first and basic step prior to becoming a day trader is “ apprentice period “.

First and Foremost buy a 292-page book. Select Five stocks, which you would want to trade. I would recommend ONGC, RELIANCE, INFOSYS, TISCO, and SBIN. Divide your notebook into 6. Note down the open, high, low, volume, average traded price, %, closing price studiously everyday. The sixth stock would be Nifty.

Once a week note down in a different book the weekly high, low, average traded price and average volume of the stocks you trade. Repeat the exercise on a fortnightly and monthly basis.

In about 3 months time, you would have weekly, fortnightly and monthly data to identify a breakout, either on the upside or downside. It would also give you a hang of the stock, you would start understanding the price pattern. It would also enable you to interpret the stocks based on volume. If a stock is coming down with thin volumes, there is a clear indication of a price reversal and vice versa.

For Starters those interested in Day trading can make this effort. I am sure you would be able to feel a lot more confident once you start to follow this routine of noting down things. Believe me after few years this data which you would have, would be a virtual goldmine.

Ninety five percent of everything you hear from everyone about the markets and the markets "reasons" for doing what it did or will do are lies. Neither you, anyone nor me can predict the future. You can only make educated guesses about potentialities.

There is success to be found in both bullish and bearish views of the market. I believe that the trader who becomes active in both bullish and bearish positions has more fun and finds more opportunities for success.

If 90% of all traders lose money, they must be following generally accepted trading rules. The 10% who win do not!



My Futures trading module.

I pick a Future lot at its monthly support. For ex I got into ONGC at 830 levels. Everyday I sell it and buy it back at a profit of 3-4 rupees. I trade around 4-6 times and I make about 15-20 rupees per share. A lot size of ONGC is 300, hence a daily profit of 5-6 thousand. I buy shares worth 5-6 thousand in cash. ( 6-8 shares ), which are zero cost !!. I repeat this exercise everyday, My concentration is only on ONGC and I study the charts pretty in depth for the stock and watch the market movement and try to sell it a resistance point and buy it a support. In one month of trading in ONGC futures , I have added about 140 shares of ONGC in CASH !!. The investment that took me to buy shares worth 1.25 Lacs in less than a month was 26 k ( span margin for one lot of ONGC ). 400 % returns in a month.

I shall let you all ponder on this for the next few weeks and hopefully all the interested day traders would have entered 10 days of data in your books.

Enjoy the Weekend.

....I count him braver who overcomes his desires than him who overcomes his enemies, for the hardest victory is victory over self.

unquote

note : paragraph in bold is highlighted in bold by me.

Originally Posted by beginner_av

If you do not know how to swim, you will drown whether its a pond, river or a sea.