How much profit does a Full-time trader deserves in a Month?
- Thread starter soft_trader
- Start date
what was the logic behind this?
Ventura Sec Sold all the customer holdings in one night-Reason ? ?
(2 years back i heared from other fourums)
Nick Stott
Everyone asks me that. When I first started trading, I thought (as a lot of people do!) that the markets were controlled by a secret 'insiders club' of powerful organizations who manipulated prices for their own benefit. I remember that at the time I was smugly sure that this was so, and was excited to be joining (as I then thought!) this secret 'cabal'. Of course, as I learned more about the markets, I realized that this was nonsense, and that the markets are far too big to be effectively controlled, even by gigantic financial corporations. However, it still looked to me as though there was a pattern in what was supposed to be the 'random walk', a pattern that matched very closely what I imagined a 'secret society' would try to implement in order to maximize their revenues. The obvious conclusion, of course is that if you have enough participants, statistically they start to behave in broadly predictable 'over-ways', and this leads to the patterning that the equation is so good at predicting.
Hi,
Now everybody must be curious to know how it was possible? I'll try to explain my view from present-day perspective. First, at that time brokerage for intraday activity was very high. To do counter trade activity, you need a good reliable data which can be obtained only from a brokerage house. You must do a thorough research before initiating a trade. That loosing trader must trade at most two trades per day. The most important point which I notice (which is also applicable to almost 100% cases today) was initially a client initiate a position on intraday basis but when it started to make loss, then that position converted to positional trade. Maximum times in those trades he suffered maximum loss. In fact, in recent times, I tried to replicate that type of trading activity again in my home town as I was posted as regional manager there. Believe me, again I got success and those counter trades were in commodity segment. But I can not continue it for long as my stint as regional manager was short.
Now come to my story. Gradually, brokerage rate for intraday trading started to fall. It was between 0.075% to 0.1%. More and more people chose for screen based trading. Their intraday activities were incresing gradually. So it was gradually became very very difficult to counter trade. In the next six month, I was not able to make any profit. To my surprise, the financial condition of my company was deteriorated very rapidly. I did not have any clue about that. Finally I decided to quit that company. Till that date, I was manually charted the graphs of those 5 scrips. Suddenly, I found a requirement from a brokerage house at Rajiv Chowk. It was a post for market analyst. Fortunately, I got that job.
Now my journey as a market analyst started from there.
Please have some patience for my next journey.
Have a good day.
Bye
Now everybody must be curious to know how it was possible? I'll try to explain my view from present-day perspective. First, at that time brokerage for intraday activity was very high. To do counter trade activity, you need a good reliable data which can be obtained only from a brokerage house. You must do a thorough research before initiating a trade. That loosing trader must trade at most two trades per day. The most important point which I notice (which is also applicable to almost 100% cases today) was initially a client initiate a position on intraday basis but when it started to make loss, then that position converted to positional trade. Maximum times in those trades he suffered maximum loss. In fact, in recent times, I tried to replicate that type of trading activity again in my home town as I was posted as regional manager there. Believe me, again I got success and those counter trades were in commodity segment. But I can not continue it for long as my stint as regional manager was short.
Now come to my story. Gradually, brokerage rate for intraday trading started to fall. It was between 0.075% to 0.1%. More and more people chose for screen based trading. Their intraday activities were incresing gradually. So it was gradually became very very difficult to counter trade. In the next six month, I was not able to make any profit. To my surprise, the financial condition of my company was deteriorated very rapidly. I did not have any clue about that. Finally I decided to quit that company. Till that date, I was manually charted the graphs of those 5 scrips. Suddenly, I found a requirement from a brokerage house at Rajiv Chowk. It was a post for market analyst. Fortunately, I got that job.
Now my journey as a market analyst started from there.
Please have some patience for my next journey.
Have a good day.
Bye
Hi
Sorry for my late post. In fact, my father was undergone a surgery. So I was busy for the time being.
Let us continue the journey again.
I joined the new company around December,1998 and my salary was 13000/-. When I joined the company, my boss told me to concentrate on both fundamental as well as technical analysis. Till that day, I did not able to differentiate between technical analysis and fundamental analysis. On fundamental part, I used Dalal Street & Capital Market magazines for analysis. On Technical part, I did not even know the basics. Although I manually drew the charts, I did not even know that it was a part of technical analysis. Generally I thought day trading in fundamentally good company will always end in profit. So I used to recommend him on basis of my raw charting technique and financial results. For me fundamental analysis meant strong book value, good dividend paying track, consistent profitability. My recommendation were just average. So after 10 days, my boss asked me to give recommendation on the basis of technical analysis only. In my office, there was a software lying near to a dealer terminal. Some clients glanced it occasionally but that software was lying there like an orphan in fact completely useless. When I inquired my boss regarding technical analysis, he took me to that software and told me from today onwards, you have to use it, so be conversant with that software in one week. The name of that software was Knight-Rider.
It was my real entry into the world of technical analysis. Although I officially owned that software, I did not even know how to use it. Again I was not so computer literate at that time. So it compounded my problem there. So I think they may fire me after one or two month. But I was not much worried because I had a personal back up of around 1,50,000/-. So I tried to know as much as possible regarding Knight-Rider. First I took the print out of the help file of that software. It was around 1000 pages. Knight-Rider was, in fact, like Reuter. It provided both fundamental as well as technical analysis. It also flashed breaking news during the market hour (Now Knight-Rider was merged with Reuters). From that print out, I was able to know something about support and resistance, Bar Chart, Candlestick Chart, Trendline and some indicators. The part which fascinating me much was Candlestick. So I concentrated entirely on candlestick charting. I used it with my old study of trend analysis. I was always looking for some candlestick reversal pattern after six to seven bars rally or a down move. My accuracy rate was so high, I gradually thought that I got my holy grail. My boss was very happy on my recommendation and he started to trade on my recommendation. He told me to concentrate more on analysis. In the mean time I found that my company was charging intraday brokerage between 0.03% - 0.05%. 0.03% rate was applicable for those clients whose intraday turnover was more than one crore. Before I was paying 0.15% as intraday brokerage. With new found success in analysis, I thought it was better to take another risk with such low brokerage. I had already spent two months in that company. In fact, I was not mentally prepared to do 9 to 5 job. So I told my father regarding my intention and almost forced him to support my view. He finally agreed to my proposal and gave 1,50,000/- to start my new career. Now I've 3,00,000/- as balance money and I required 2,000/- to 2,500/- as my monthly expenditure. I conveyed my intention to my boss, initially he was a little bit upset but finally he accepted my resignation. As a kind gesture, my boss fixed my initial brokerage rate at 0.03% and told me to negotiate in future after analysing my volume. Also I took permission from him to use Knight-Rider. In the last three years, I had gain a lot of experience. With the support of that experience and the new found knowledge, I started my career as a professional trader. It was around March, 1999.
Please wait for my next journey.
Till then
Good Bye.
Sorry for my late post. In fact, my father was undergone a surgery. So I was busy for the time being.
Let us continue the journey again.
I joined the new company around December,1998 and my salary was 13000/-. When I joined the company, my boss told me to concentrate on both fundamental as well as technical analysis. Till that day, I did not able to differentiate between technical analysis and fundamental analysis. On fundamental part, I used Dalal Street & Capital Market magazines for analysis. On Technical part, I did not even know the basics. Although I manually drew the charts, I did not even know that it was a part of technical analysis. Generally I thought day trading in fundamentally good company will always end in profit. So I used to recommend him on basis of my raw charting technique and financial results. For me fundamental analysis meant strong book value, good dividend paying track, consistent profitability. My recommendation were just average. So after 10 days, my boss asked me to give recommendation on the basis of technical analysis only. In my office, there was a software lying near to a dealer terminal. Some clients glanced it occasionally but that software was lying there like an orphan in fact completely useless. When I inquired my boss regarding technical analysis, he took me to that software and told me from today onwards, you have to use it, so be conversant with that software in one week. The name of that software was Knight-Rider.
It was my real entry into the world of technical analysis. Although I officially owned that software, I did not even know how to use it. Again I was not so computer literate at that time. So it compounded my problem there. So I think they may fire me after one or two month. But I was not much worried because I had a personal back up of around 1,50,000/-. So I tried to know as much as possible regarding Knight-Rider. First I took the print out of the help file of that software. It was around 1000 pages. Knight-Rider was, in fact, like Reuter. It provided both fundamental as well as technical analysis. It also flashed breaking news during the market hour (Now Knight-Rider was merged with Reuters). From that print out, I was able to know something about support and resistance, Bar Chart, Candlestick Chart, Trendline and some indicators. The part which fascinating me much was Candlestick. So I concentrated entirely on candlestick charting. I used it with my old study of trend analysis. I was always looking for some candlestick reversal pattern after six to seven bars rally or a down move. My accuracy rate was so high, I gradually thought that I got my holy grail. My boss was very happy on my recommendation and he started to trade on my recommendation. He told me to concentrate more on analysis. In the mean time I found that my company was charging intraday brokerage between 0.03% - 0.05%. 0.03% rate was applicable for those clients whose intraday turnover was more than one crore. Before I was paying 0.15% as intraday brokerage. With new found success in analysis, I thought it was better to take another risk with such low brokerage. I had already spent two months in that company. In fact, I was not mentally prepared to do 9 to 5 job. So I told my father regarding my intention and almost forced him to support my view. He finally agreed to my proposal and gave 1,50,000/- to start my new career. Now I've 3,00,000/- as balance money and I required 2,000/- to 2,500/- as my monthly expenditure. I conveyed my intention to my boss, initially he was a little bit upset but finally he accepted my resignation. As a kind gesture, my boss fixed my initial brokerage rate at 0.03% and told me to negotiate in future after analysing my volume. Also I took permission from him to use Knight-Rider. In the last three years, I had gain a lot of experience. With the support of that experience and the new found knowledge, I started my career as a professional trader. It was around March, 1999.
Please wait for my next journey.
Till then
Good Bye.
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