Hi All,
Here is my journey with equities so far.
I opened my first Trading account with Reliance Money when I was around 18 and did my investments in Reliance Growth and Vision fund back in 2007 period.
However, never found the capital to trade and finally that account went into dormancy. Then again in 2008 I got an ICICI direct account since I had an ICICI Bank account and that was when I started by first trade. Since I was short on capital and wanted to leverage I choose Margin and Margin Plus to trade and it proved costly for me in the beginning although I had quite few successful trade as well. However the crash in 2008 eroded my capital and I lost around 20k.
One thing I have always noticed that in Trading you need to stick to your instincts and never follow someone else's brain. Everything apart from your brain is just an input however the final decision and responsibility is yours.
I have mainly used ICICI direct margin trading recommendations, not all of them but some where I find some logic as well.
One of the main reasons for my capital erosion in 2008 was that I used to follow my Dad's tips in Intra Day which proved costly, whenever I follow my instinct I used to have a gain.
Finally after being beaten by the game I thought that I should try to learn the rules of the game and try to win again.
Finally in 2011 I closed my ICICI Direct since now I knew for any Trading you need a software, it is very hard to use a browser based app for trading and ICICI direct was costly as well.
Got an account with Geojit and currently using their Flip Platinum software to trade.
Started with an initial investment of 10k and bought Intra Day PTC when their results were announced during the April 2011 period, thought since the results are good stock should go up but it never did and touched intra day lows and out of the 500 I bought I squared off 400 and took 100 as delivery. Now the price is 65-70 ranges. Realized Loss: 1500 Un Realized 2500.
However I started doing more research and after April 2011 entered the market this month and so far in the last 5-7 trading sessions I have been consistently avoiding any loss and making it a point to be in profit since the greatest learning is to preserve capital.
Currently in the last 5-6 trading sessions I started with 100 quantity and capital 10k and my total profit now stands at 3k which is around 30% of original capital.
This is how I start a Day. In the night I check the Global Markets and finds a cue where our Markets will go. Morning around 7 I start the CNBC Channel and see all the global news and cues.
Then I look at the stocks in the F&O space cue in CNBC and make a note of it. Then comes the super 6 I make a note of all recommendations and keep it in a notepad and also look at charts. Then just wait till the market opens, closely watch the pre-opening. Once markets open in the first 15 minutes I decide which are the stocks I am going to trade today.
Few things I learned during the last 5-6 trading sessions, you need make a balance between Greed and Fear, and both are contraindicative. If you are greedy, you can focus on fear and you will greed will come low. If you are Fearful focus on the greedy aspect of profit and you will tend to lose your fear.
I learned that in intraday always place your cover order and decide your price target as soon as you enter a position, since you never know when the stock will hit that price and if you are just waiting on the screen looking at LTP and then placing the order you will fail in the faster execution side.
Calculate the Risk to the profit ratio. This is where the fear and greed comes into the picture.
My strategy is now to learn the technical analysis part of it and probably will start with a book and continue my small trades till I acquire knowledge in the analysis and then I could bring fresh capital and then start a bit more full fledged. Also I have decide to bring some part of my profits always into the investment. My trades for the past 5-6 sessions are below. Your comments are welcome on it and also provide more guidance on how I can start learning and improving my techniques.
Here is my journey with equities so far.
I opened my first Trading account with Reliance Money when I was around 18 and did my investments in Reliance Growth and Vision fund back in 2007 period.
However, never found the capital to trade and finally that account went into dormancy. Then again in 2008 I got an ICICI direct account since I had an ICICI Bank account and that was when I started by first trade. Since I was short on capital and wanted to leverage I choose Margin and Margin Plus to trade and it proved costly for me in the beginning although I had quite few successful trade as well. However the crash in 2008 eroded my capital and I lost around 20k.
One thing I have always noticed that in Trading you need to stick to your instincts and never follow someone else's brain. Everything apart from your brain is just an input however the final decision and responsibility is yours.
I have mainly used ICICI direct margin trading recommendations, not all of them but some where I find some logic as well.
One of the main reasons for my capital erosion in 2008 was that I used to follow my Dad's tips in Intra Day which proved costly, whenever I follow my instinct I used to have a gain.
Finally after being beaten by the game I thought that I should try to learn the rules of the game and try to win again.
Finally in 2011 I closed my ICICI Direct since now I knew for any Trading you need a software, it is very hard to use a browser based app for trading and ICICI direct was costly as well.
Got an account with Geojit and currently using their Flip Platinum software to trade.
Started with an initial investment of 10k and bought Intra Day PTC when their results were announced during the April 2011 period, thought since the results are good stock should go up but it never did and touched intra day lows and out of the 500 I bought I squared off 400 and took 100 as delivery. Now the price is 65-70 ranges. Realized Loss: 1500 Un Realized 2500.
However I started doing more research and after April 2011 entered the market this month and so far in the last 5-7 trading sessions I have been consistently avoiding any loss and making it a point to be in profit since the greatest learning is to preserve capital.
Currently in the last 5-6 trading sessions I started with 100 quantity and capital 10k and my total profit now stands at 3k which is around 30% of original capital.
This is how I start a Day. In the night I check the Global Markets and finds a cue where our Markets will go. Morning around 7 I start the CNBC Channel and see all the global news and cues.
Then I look at the stocks in the F&O space cue in CNBC and make a note of it. Then comes the super 6 I make a note of all recommendations and keep it in a notepad and also look at charts. Then just wait till the market opens, closely watch the pre-opening. Once markets open in the first 15 minutes I decide which are the stocks I am going to trade today.
Few things I learned during the last 5-6 trading sessions, you need make a balance between Greed and Fear, and both are contraindicative. If you are greedy, you can focus on fear and you will greed will come low. If you are Fearful focus on the greedy aspect of profit and you will tend to lose your fear.
I learned that in intraday always place your cover order and decide your price target as soon as you enter a position, since you never know when the stock will hit that price and if you are just waiting on the screen looking at LTP and then placing the order you will fail in the faster execution side.
Calculate the Risk to the profit ratio. This is where the fear and greed comes into the picture.
My strategy is now to learn the technical analysis part of it and probably will start with a book and continue my small trades till I acquire knowledge in the analysis and then I could bring fresh capital and then start a bit more full fledged. Also I have decide to bring some part of my profits always into the investment. My trades for the past 5-6 sessions are below. Your comments are welcome on it and also provide more guidance on how I can start learning and improving my techniques.