I am very sure you are visiting this section for improving your trading skill...first practice what you preach ..why waste your time on visiting this thread if you yourself are doing what You have asked me to do...these suggestions were meant for Smarttradeonline...and from your immediate reply I can see how enthusiastic you are in preaching instead of improving your trading skill by visiting some other threads...hope that will make you a better trader...
I am not an active trader, my interest presently is on how brokers work, their balance sheet, customer support etc and put up a report on the future of broking business in India. I visit these threads just to see what these discount brokers are doing as they are vocal on these threads.
Also what I have realized after interaction with a lot of people on these threads, most of the people who are most vocal are probably the smallest of the active trading community in india. People who believe they know how to trade the markets, but don't. You guys probably have lesser than 1lk in your account and hope to make a living out of it and assume that lower brokerage will help you get there.
The first important thing for a professional day trader is to be well capitalized, in the US most brokers don't let a day trader open an account without 25,000USD in the account. With Rs 50,000 in your account and if you target to make Rs 50,000 every month, you know that there is no way in the world you will make it, even with zero brokerage.
It will also be very helpful, if someone on this thread can tell me that by shifting from brokers who were charging more, if any of you have actually made profits by shifting to the low cost brokers?
It is not preaching, I have seen over the last 6 months several people who day trade and make money, but I can assure you that they don't focus on lower brokerage, yes it helps but focus on the more important aspects like trading strategies etc.
Here is a place I give Zerodha a few marks, probably because they have the first mover advantage of starting all of this that today they are offering a bunch of tools which are very interesting. For eg, backtesting a strategy before implementing, I have been using Viratech which was charging almost 50k/year just on data for metastock. Last week I subscribed to AMibroker and data from globaldatafeeds for Rs 1000/month as a zerodha client. Tried the trading plugin and works like a dream.. Tools like these are helpful and if they can be done by saving costs...
I have studied the balance sheet of atleast 100 stock broking companies in India, I was the one to point out that achievers who claimed to be in the market for over 10 years and amongst the biggest brokers in the country actually had a revenue of Rs 10lks last year.. .. I was trying to find for smarttradeonline.in, realized only today that they are not really a company, the parent company is someone else.. Will post you here, how they have been performing over the last 3 years as a company.. Would you want to trade with a broker like achievers who in their first pitch itself are misleading their prospective clients or would you want to park your hardearned money with a loss making stock broker, what if he goes down??
Anyways, small thing I'd want to share, from the 100 odd profitable traders whom I have interacted, one common book suggested by 80% of them to read was Japanese candlestick Charting Techniques by Steve Nison.
Merry Xmas!!!