Journal : Day Trading for fun

trader15

Well-Known Member
#1
Have been primarily trading in options mainly as option buyer (both call and put).

After playing for quite some time in options segment, thought of trying my hands at day trading equities. Idea is to start with low capital, and high leverage and try for couple of days.

I'm an experienced trader with discipline, and decent risk appetite. That implies strict stop loss, and strict profit booking strategy in place. No deviation.

Couple of details :

Capital : For few days: Rs. 5000 post that: 50K

Intra day Trading Brokerage: 0.07% both legs

Margin Available : 10X

Margin using: 10X

Stop Loss: 1% of total leveraged capital

Profit Target: 1% of total leveraged capital

(Using 10X leverage, will imply 1% profit/loss of leveraged capital translates to
10% profit/loss of original capital deployed)


Minimum Stocks across capital deployed: 2

Maximum Stocks across capital deployed: 5

 

trader15

Well-Known Member
#2
How to identify stocks for Day Trading



Post you talk about learning trading basics of discipline, money management, risk management, the million dollar questions comes : How do i pick stocks which i need to trade on a particular day.

At high level, there are few ways one gets started with:

1. Trade on calls provided by broker. (Obviously not blindly.. read chart,
and previous data to take call)
2. Trend Analysis : Based on Sector, Stock, Capitalization (Large/Mid/Small)
--- Identify trend and identify key stocks based on trend and analyze those
3. Technical Analysis: Again identify pivots for various stocks and play
using support/resistance (Need broker to update you with basic data)
4. FNO Analysis: Watch CNBC etc and see FNO Trends for open interest
data to identify stock movement


There would be few others, which i would update later.

Which one of these i use: None. When i started off day trading today, i was sitting in front of TV in morning, going through rediff business section, but could not identify stocks which i wanted to play into.

I wanted spread of 1% on leveraged capital, and by the time market opened at 9.15 am, it was difficult to view any stock which would give me 1% movement.



 

trader15

Well-Known Member
#3
Trades: 4th April 2011



Capital: 5K
Leveraged Capital: 50K
Split: 25K

Pick Criterion: Brokerage Calls

Stocks: Havell, Fortis

EOD: Loss of Rs. 200 i.e. 4% (Capital) and 0.4% of Leveraged Capital

Lessons Learnt:

1. For brokers call (I read candlestick charts live before putting my money),
by the time you put in order, the real spurt is over. One needs to wait
for next 30 min for it to stabalize and come lower number and then
put in money.

For e.g. I placed my bet on Havell at 393, when it spurted from 387. Then
it got stuck at lower price at 391 for next 1 hour before moving to 399.
I had to move out by quaring off before 3 pm.

2. Max potential for money in day trade is not in unidirectional movement betting. Rather the max money is in maxing the spread. So betting on
stock which can move from -ve to +ve will give dual spread.

An example. DLF was on my watch list. Before i could place money, it
went down by -0.5%, and then lowered even to -1.3%.
In second half, it moved back to 0.4%. So see spread of at least 1%.

3. Time out: Along with stop loss/profit booking, one needs to practice time
management. Your time is precious. If a particular trade is not blooming,
time out, look for another trade, and move out of hanging trade.

Remember frogger video game. Logs are like trade. If you keep sitting on
one, you'll die at 3 pm.

Learnt by burning out on Fortis. Entered at 163, then stock kept hanging
till 3 pm between 161.50 - 162.50. With no clear direction. Result: Loss


 

trader15

Well-Known Member
#6
Trades: 5th April 2011

Capital: 4.97K (Eroded capital of Rs.288 yesterday)
Leveraged Capital: 49.7K
Split: 25K

Pick Criterion: Brokerage Calls & Self Analysis

Stocks:
HDIL: Short : Brokerage Call : Open Price: 179
Sobha : Short: Self Analysis : Open Price: 307

EOD: Loss : Rs. 700

End of Diary and Experimentation with Day Trading. Wiped off 25% capital. (Rs 1K out of Rs. 5K): Tough to identify stocks and define price movements. Sticking to options trading ....
 
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trader15

Well-Known Member
#7
2900 IDFC@ 138.25 : Buy : For intraday trading

5400 CE @ 94.45 : 3 Lots: Buy : For Target of Nifty@5430

------------------------------------------------------------

Got chance to sell IDFC @ 139 : Profit: 3000 and 5400CE@ 100 : Profit of Rs. 1000

Kept waiting to ride the momentum

End result: Markets crashed and Net:

-- Loss: Rs. 6000 for IDFC
-- CE : Still holding at Loss, since Nifty is at support level of 5330
 
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TraderRavi

low risk profile
#8
2900 IDFC@ 138.25 : Buy : For intraday trading

5400 CE @ 94.45 : 3 Lots: Buy : For Target of Nifty@5430

------------------------------------------------------------

Got chance to sell IDFC @ 139 : Profit: 3000 and 5400CE@ 100 : Profit of Rs. 1000

Kept waiting to ride the momentum

End result: Markets crashed and Net:

-- Loss: Rs. 6000 for IDFC
-- CE : Still holding at Loss, since Nifty is at support level of 5330

what about your " strict stop loss "...:mad:...why this kolavari di...?
 

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