i love day trading

[biyas10]

do you love day trading?????

 

[Luckytrader]

hey why you guys wasting your time in loving day trading

Why dont you explain your concepts or psychology in day - trading.

I really want to know something about day trading.

 

[biyas10]

hey why you guys wasting your time in loving day trading

Why dont you explain your concepts or psychology in day - trading.

I really want to know something about day trading.

about day trading:

to start your day trading business you need a computer, internet connection, bank a/c, small amount of capital, a broker, trading software, phone trading facility, phone/mobile & a complete day trading system.

a complete day trading system including entry point, stop loss exit point & profit booking exit point with proper money/risk managemnt. your success rate should be 50% or higher than that.

simple risk management: your risk/reward ratio should be 1:2 or better then that.
simple money management: keep your trading amount same for your each trade.

one can take maximum risk of 1% (including brokarage) on each trade & can book profit above 2.5% from buy price. after deducted the brokarage still you have more than 2% in your pocket.

look at the exaple below:

total trades on january, 07 : 10
trading amount/trade: 1,00,000/-
maximum risk/trade: 1,000/- (1% of 1,00,000/-)
maximum gain/trade: 2,000/- (2% of 1,00,000/-)
losing trade: 5, loss 5,000/-
wining trade: 5, gain 10,000/-
net profit: 5,000/-

so you can earn 5% on every month with these simple statistics.

hope the thread will continue .....

 

[Luckytrader]

Great
Can you explain me this

simple risk management: your risk/reward ratio should be 1:2 or better then that.
simple money management: keep your trading amount same for your each trade.

Thanks in advance.

 

[biyas10]

Great
Can you explain me this



Thanks in advance.

IF YOU BOUGHT A SHARE @101, THEN CUT YOUR SAUDA IF IT BREAK 100 ON THE LOWER SIDE, SO YOUR LOSS IS RS.1, NOW YOU CAN BOOK PROFIT ONLY ABOVE 103, SO YOUR PROFIT IS RS.2 & THE RISK/REWARD RATIO COMES TO 1:2. AT THE SAME WAY IF YOU BOUGHT A STOCK @240 THEN CUT YOUR SAUDA AT 238 OR BOOK PROFIT ABOVE 244.

KEEP YOUR TRADING AMOUNT SAME FOR EACH TRADE. IF YOUR TRADING AMOUNT IS RS.50,000 & THE STOCK YOU WANT BUY IS RS.360 THEN YOU SHOULD BUY 138 SHARES (50000/360=138). AT THE SAME WAY IF YOU WANT TO BUY A STOCK AT 795 THEN YOU SHOULD BUY 62 SHARES (50000/795=62).

 

[ratan jain]

factor in brokerage, and your risk reward ratio goes for a toss.

Winning trade = rs. 2 less brokerage
losing trade = rs. 1 plus brokerage

u need a minimum of 1:2.5 to consistently make money .

I have a 30 % winning system, but use a complex martingale to take care of losses.

 

[biyas10]

factor in brokerage, and your risk reward ratio goes for a toss.

Winning trade = rs. 2 less brokerage
losing trade = rs. 1 plus brokerage

u need a minimum of 1:2.5 to consistently make money .

I have a 30 % winning system, but use a complex martingale to take care of losses.

yes, you are right. but with a 30% wining system you need more mental strength, because many guys cant afford 7 losses in a row. a 30% wining system is profitable if your risk/reward is 1:3 (plus/less brokarage).

 

[ratan jain]

friend,
its not 7 losses in a row...
its 7 losses in a bunch of 10 trades
i could have made the following ---+-++---
3profits in 10 trades
not more than 3 consecutive losses

hope u understand.

 

[ratan jain]

using a particular type of martingale, i can be profitable with a 20 % system even with 1:2 ratio
although that type of martingale is ABSOLUTELY not advisable to trade, ABSOLUTELY not, just for record purpose.

want details? )

 

[biyas10]

friend,
its not 7 losses in a row...
its 7 losses in a bunch of 10 trades
i could have made the following ---+-++---
3profits in 10 trades
not more than 3 consecutive losses

hope u understand.

i understand your theory. but with a 30% wining system i have to prepare myself to see 7 losses in a row. can you say with 100% guaranty that you would;nt loss 7 losses in a row. if you are using a 30% wining system still there is a chance to win more than 3 trades depends on the situations & also you can suffer 8 losses sometimes. but i have to prepare myself to take 7 losses from 10 trades. it may come in a row or with your thoughts as you mentioned. but you are also right from your points.