Trading as Profession

Hi Shaju

I am also a software professional and learning stock market from 2005(around 3 years). All I wanted is to learn what stocks are and how things work, but the more deeper u go in it, the more interesting it sounds. Theres no free lunch, so in return I lost the shine of my technical edge in my job. Today, I make little money from market and gaining my technical strength too. So its like you should enjoy the wonders of stock market, but do not forget your job. Its equally important in earlier stages of life. My plans are to see atleast bear market twice before leaving my job and engaging into full time trading.
and, you can advise me too ;-)

Thanks
aman

If You Are Aware Of Nifty Future, Where Lot Size Happens To Be Of 50, In The Same Way MiniNifty NSE Symbol Is MINIFTY & Lot Size Is 20 & The Underlying Is Nifty Index, Only Difference Being That The Margin Requirement Is Proportionately Lower For Mini Nifty.

Total Margin Requirement For 27th Feb 2008 Is As Follows:
1) Nifty Future Rs.40401.80 (Initial Marging 12.31%+Exposure Margin 3.00%)

2) Mini Nifty Requirement For 27th Feb 2008 Is Rs.16128.25 (12.29%+3.00)

If You Have Not Been Trading Derivatives, My Suggestion Would Be To Familiarise Yourself With Concept & Its Pros & Cons & Do Not Get Taken In By The Relatively Small Margin Requirement.

Happy & Safe Trading

SavantGarde

Hi Savant,

Thanks... sorry i am not aware of Nifty Futures also... What is it.. and how do i trade on these...

Cheers,
Shaju

Dear Friends
If you want to choose trading as a profession or any other profession there are four steps or I say there are four E's to become a professional

E :EDUCATION
E : EXAMINATION
E : EXPIREMENT
E : ETHICS
To become a professional just like a Doctor,C.A. or an Advocate one has to study a particular subject for a particular period and get educated.

After the EDUCATION one has to take EXAMINATION . If he fails he has to again go for the education so that he can pass his examination successfully.
After passing EXAMINATION one is ready to EXPIREMENT, just like a doctor one can perform operations ,practice like an Advocate or C.A.

But while truely professional.

While in the case of a stock market a person talks about leaving his job and going straight to the trading .Now you can think what a person will do if he goes straight to an operation theatre without any Degree and performing an operation or an Advocate going to courtroom or a person filing a return of a client without getting any knowledge of the trade.

This happens to most of us or I can say with me .Seeing some friends gaining from the market I too opened an online trading account and jumped to day trading without any knowledge well I realized my mistake quickly and lost only Rs. 8200 in about 14 intra day trades(I invested minimum 75000 and maximum 100000 during this period share khan gives leverage of about four times) .Now days I am going through all those technical books and keeping a watch on fundamentals of companies I sit for hours going through various threads on the forums ,watchin CNBC reading technical books suggested by the forum but I depend on my own findings though I take the leads from various sources .Now I do swing trading simultaneously with my study .I am not loosing any more I do not go for big trades.My goal is to learn for three more years then I will leave my job.

Initialy I depended on tips by broker and forum .Now I do my own research

It is well said by Oliver Wendell Holmes
"The average person goes to his grave with his music still in him."


Here I have a story to tell you.

Many years ago there lived a poor farmer in a village
All of his life he was poverty stricken
One day while working on the fields his fortunes changed
He discovered oil in his field
The discovery of oil made him a very wealthy man
One of the first thing he did was buy himself a big mercedes benz car
Every day he would drive into the town.He wanted to see everyone and be seen by everyone
He was a friendly person so while riding he wished and spoke to every one in sight
Some times he turned right to speak to some one
Some times he turned left to speak to some one
As a matter of fact,he would turn all the way around and speak to folks
Interestingly enough,he never ran into any body.
He never did any physical damage or propert damage.

WHY ?



Because the car was driven by two horses.
There was nothing wrong with the car's engine but he never learned to insert the key and switch on the ignition.
Many people make the mistake of looking outside to find two horsepower( Just like this farmer we too never switch on the engine we depend on rumors and luck )
when they should look inside where they have over a hundred horses-ready willing and raring to go.

SO TURN IT ON or OTHERWISE

Your "natural resources,' unlike the natural resources on planet earth,will be wasted and "used up" only if they are never used at all.

fantastic explanation
really helpfull

well I left out something


Dear Friends
If you want to choose trading as a profession or any other profession there are four steps or I say there are four E's to become a professional

E :EDUCATION
E : EXAMINATION
E : EXPIREMENT
E : ETHICS
To become a professional just like a Doctor,C.A. or an Advocate one has to study a particular subject for a particular period and get educated.

After the EDUCATION one has to take EXAMINATION . If he fails he has to again go for the education so that he can pass his examination successfully.
After passing EXAMINATION one is ready to EXPIREMENT, just like a doctor one can perform operations ,practice like an Advocate or C.A.But while doing so he has to follow certain ETHICS .

While in the case of a stock market a person talks about leaving his job and going straight to the trading .Now you can think what a person will do if he goes straight to an operation theatre without any Degree and performing an operation or an Advocate going to courtroom or a person filing a return of a client without getting any knowledge of the trade.

This happens to most of us or I can say with me .Seeing some friends gaining from the market I too opened an online trading account and jumped to day trading without any knowledge well I realized my mistake quickly and lost only Rs. 8200 in about 14 intra day trades(I invested minimum 75000 and maximum 100000 during this period share khan gives leverage of about four times) .Now days I am going through all those technical books and keeping a watch on fundamentals of companies I sit for hours going through various threads on the forums ,watchin CNBC reading technical books suggested by the forum but I depend on my own findings though I take the leads from various sources .Now I do swing trading simultaneously with my study .I am not loosing any more I do not go for big trades.My goal is to learn for three more years then I will leave my job.

Initialy I depended on tips by broker and forum .Now I do my own research

It is well said by Oliver Wendell Holmes
"The average person goes to his grave with his music still in him."


Here I have a story to tell you.

Many years ago there lived a poor farmer in a village
All of his life he was poverty stricken
One day while working on the fields his fortunes changed
He discovered oil in his field
The discovery of oil made him a very wealthy man
One of the first thing he did was buy himself a big mercedes benz car
Every day he would drive into the town.He wanted to see everyone and be seen by everyone
He was a friendly person so while riding he wished and spoke to every one in sight
Some times he turned right to speak to some one
Some times he turned left to speak to some one
As a matter of fact,he would turn all the way around and speak to folks
Interestingly enough,he never ran into any body.
He never did any physical damage or property damage.

WHY ?



Because the car was driven by two horses.
There was nothing wrong with the car's engine but he never learned to insert the key and switch on the ignition.
Many people make the mistake of looking outside to find two horsepower when they should look inside where they have over a hundred horses-ready willing and raring to go. ( Just like this farmer we too never switch on the engine we never try to learn skills but totally depend on rumors and luck )

SO TURN IT ON or OTHERWISE

Your "natural resources,' unlike the natural resources on planet earth,will be wasted and "used up" only if they are never used at all.

hi all,
very great thoughts from all members which will reallly help newbies like me,
i also left job and trading from last 6 mths, my entry was wrong as when i entered when mkt was 21k. but i was wrong mainly because i was not knowing abc of trading and i entered and i loose nearly 3.5lacks. i was believing in tips only. few days i earned and then i became greedy, i started trading in heavy volumes and started loosing heavily. then i realise tat this is not the way to trade as my intention is trading for living and this will not help me, then i started learning tech analysis and i started many other things which i was not doing earlier like, discipline, limited trade in a day, less intraday, less volumes, not believing on tips, etc etc.
as i have decided and left my job only for this purpose, i invested whole funds whicch i was having and today im having only 1/3rd of tat remaing in my pf. but as i have changed my trading stratergy now im confident tat i will recover all my losses from mkt itself and will earn a descent amt for my family and all monthly exps.
still im in learning phase and i have to do wery much .
all members pls guide how to go abt further.
thnx
what i think is there is no harm in leaving ur job and taking trading as professional as if we do it dedicatedly and with help of tech analysis, we will easily make what we use to earn in our job and can live good life with out job pressure.

pls guide

nothing interesting here.

Thank God.I got a mate here!

its really very nice thread.