Daytrading
- Thread starter shrees
- Start date
Re: Daytrading-Four major precautions ARE MUST
Hi friends
If you want to day trade,first check these four factors then begin
1.DO YOU HAVE A GOOD BROKER WHO OFFERS YOU LOWEST BROKERAGE,say somthing like 0.03% or less?
If The answer is yes, then go ahead . If no, go back
This brokerage thing is a major repeat expense and will kill your profits if you are careless.
If you pay Rupees X AS BROKERAGE, 12.2% OF X is your service charge.
Higher the brokerage,higher the service charges.
Does it mean something?
hurdle one crossed
2.Do you have a broker who has auto square up facility by 1510hrs?
This helps square up all pending positions automatically.
OTHERWISE IF POWER FAILED,INTERNET FAILED,BROKERS SERVER CRASHED-YOU WILL BE FORCED TO GO FOR AUCTION-TIME TO GO NAKED
If yes,ok go ahead
iNDIABULLS,ICIOCIDIRECT HAVE IT, 5paisa.com does not have,but on request they provide a daily auto squareup-otherwise you go for auction every once in a while.
Hurdle2 crossed.
3.Do you have a telephone contact with your broker to tell him-Look I lost power and my pc crashed-you please square up all pending positions.
If you dont have this knowledge and facility,then dont daytrade.
iF YOUR BROKER KEEPS ON ASKING A 1000 QUESTIONS AT THIS POINT,yOU KNOW WHAT TO DO, and why you have to do it?
If your broker cannot help you when you need his help,get rid of him.
Once,my broker said we cannt see your orders,we cant do this we cant do that. I changed the broker.
Hurdle 3 crossed if you are prepared.
4.Do you know and use how to feed stoploss?
This prevents most loss problems fast.
If your answer is yes, ok you can daytrade.
Hurdle4 cleared.
IF YOU FALIED IN CROSSING ANY ONE OF THESE 4 HURDLES,
aLL I SAY IS -dONT LOOSE THE MONEY IN MARKETS, GIVE IT TO ME.
There are other minor things which can become major problems at times.
1.Are you STILL using an old outdated pentium2 pc? wakeup, use PENTIUM 4 PC.
2.Do you use WIN98? Too old, man--- Go for Win Xp etc
3.Do you have a UPS?
now if you say what is a U P S, ALL I CAN SAY mAN WHERE ARE YOU?
4.Do you use a cable internet? If so, does it fail often during trading hours?
Go for another internet supplier, or get a vsnl broad band etc.
If you dont have stable internet, that alone will take you to big losses.
5.Are you capable enough to find if while your internet is ok, if brokers servers failed? dONT KNOW ? THEN LEARN IT NOW.
6.LAST BUT LEAST,System restore action
iF YOU ARE USING A win xp SOFTWARE, EVEN IF A VIRUS ATTACKED YOU, YOU CAN GO BACK AND USE SYSTEM RESTORE FUNCTION AND RESTORE THE PC TO A BACK DATE WHEN IT WAS FUNCTIONING GOOD.
Have an antivirus, a good one and be safe and dont have crash during trading hours.
Are you using a 8GB old hard disk? God--Go for 80GB HARD DISK.
mORAL BE UPTO DATE.
and those dial up guys-listen if you are using a modem,have a spare adapter for power supply in case exsting eliminator fails .
hOPE YOU SEE THE WISDOM BEHIND THESE POINTS.
RVLV-wishes you happy trading
Hi friends
If you want to day trade,first check these four factors then begin
1.DO YOU HAVE A GOOD BROKER WHO OFFERS YOU LOWEST BROKERAGE,say somthing like 0.03% or less?
If The answer is yes, then go ahead . If no, go back
This brokerage thing is a major repeat expense and will kill your profits if you are careless.
If you pay Rupees X AS BROKERAGE, 12.2% OF X is your service charge.
Higher the brokerage,higher the service charges.
Does it mean something?
hurdle one crossed
2.Do you have a broker who has auto square up facility by 1510hrs?
This helps square up all pending positions automatically.
OTHERWISE IF POWER FAILED,INTERNET FAILED,BROKERS SERVER CRASHED-YOU WILL BE FORCED TO GO FOR AUCTION-TIME TO GO NAKED
If yes,ok go ahead
iNDIABULLS,ICIOCIDIRECT HAVE IT, 5paisa.com does not have,but on request they provide a daily auto squareup-otherwise you go for auction every once in a while.
Hurdle2 crossed.
3.Do you have a telephone contact with your broker to tell him-Look I lost power and my pc crashed-you please square up all pending positions.
If you dont have this knowledge and facility,then dont daytrade.
iF YOUR BROKER KEEPS ON ASKING A 1000 QUESTIONS AT THIS POINT,yOU KNOW WHAT TO DO, and why you have to do it?
If your broker cannot help you when you need his help,get rid of him.
Once,my broker said we cannt see your orders,we cant do this we cant do that. I changed the broker.
Hurdle 3 crossed if you are prepared.
4.Do you know and use how to feed stoploss?
This prevents most loss problems fast.
If your answer is yes, ok you can daytrade.
Hurdle4 cleared.
IF YOU FALIED IN CROSSING ANY ONE OF THESE 4 HURDLES,
aLL I SAY IS -dONT LOOSE THE MONEY IN MARKETS, GIVE IT TO ME.
There are other minor things which can become major problems at times.
1.Are you STILL using an old outdated pentium2 pc? wakeup, use PENTIUM 4 PC.
2.Do you use WIN98? Too old, man--- Go for Win Xp etc
3.Do you have a UPS?
now if you say what is a U P S, ALL I CAN SAY mAN WHERE ARE YOU?
4.Do you use a cable internet? If so, does it fail often during trading hours?
Go for another internet supplier, or get a vsnl broad band etc.
If you dont have stable internet, that alone will take you to big losses.
5.Are you capable enough to find if while your internet is ok, if brokers servers failed? dONT KNOW ? THEN LEARN IT NOW.
6.LAST BUT LEAST,System restore action
iF YOU ARE USING A win xp SOFTWARE, EVEN IF A VIRUS ATTACKED YOU, YOU CAN GO BACK AND USE SYSTEM RESTORE FUNCTION AND RESTORE THE PC TO A BACK DATE WHEN IT WAS FUNCTIONING GOOD.
Have an antivirus, a good one and be safe and dont have crash during trading hours.
Are you using a 8GB old hard disk? God--Go for 80GB HARD DISK.
mORAL BE UPTO DATE.
and those dial up guys-listen if you are using a modem,have a spare adapter for power supply in case exsting eliminator fails .
hOPE YOU SEE THE WISDOM BEHIND THESE POINTS.
RVLV-wishes you happy trading
Its sad that a thread on day trading has witnessed lack of intersest among members.
As for the very fundamental(of day trading technicals) question put by prakash, i'd like to say that the indicators have to be tweaked for diffr. types of scripts. I am yet to find general rules 4 the application of indicators. for 10 min intraday data, i rely on candlestick patterns, suuprt/resistance levels, and of course the trendlines.
Senior exp members pls post notes on using the most trusted indicators for intraday trading.
regards,
lohiya.
As for the very fundamental(of day trading technicals) question put by prakash, i'd like to say that the indicators have to be tweaked for diffr. types of scripts. I am yet to find general rules 4 the application of indicators. for 10 min intraday data, i rely on candlestick patterns, suuprt/resistance levels, and of course the trendlines.
Senior exp members pls post notes on using the most trusted indicators for intraday trading.
regards,
lohiya.
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