Learning Curve in Day Trading

suri112000

Well-Known Member
#21
Today onwards i am not giving complete trade details as it is well understood by most.

SBIN
SHORT QTY 1 -0.20
LONG QTY 2 +14.10
SHORT QTY 1 +0.60

TOTAL = +14.90

VEDL
SHORT QTY 1 -3.90
LONG QTY 2 -1.80
SHORT QTY 3 -3.15
LONG QTY 5 +19
SHORT QTY 1 -0.80

TOTAL = +9.35

COMBINED TOTAL = + 24.25 BROKERAGE TO BE DEDUCTED.
 

suri112000

Well-Known Member
#22
Martingale is a recovery system. If we have two things in abundance ie fund and time, this system never fails. Unfortunately, both fund and time are limited. Fund is limited due to personal capacity. Time is limited due to Intraday timings. Martingale uses an averaging technique to avoid losses and result in profit when finally the chain breaks. The question is how to use martingale to benefit without consuming much of our fund and time.
1. We should not average a loosing trade as in case of pure Martingale.
2. We should not double up exponentially on next trades to save funds.
3. We should use Martingale both as profit spinner and recovery system.

Due to the reasons, I have devised the suitable quantity increase in the system.
 

suri112000

Well-Known Member
#23
SBIN
LONG QTY 1 -0.30
SHORT QTY 2 +0.30
LONG QTY 1 -0.80
SHORT QTY 2 +0.70

TOTAL = -0.10

VEDL
LONG QTY 1 0 POINTS
SHORT QTY 1 -2.65
LONG QTY 2 -2.00
SHORT QTY 3 -6.90
LONG QTY 5 +16.25
SHORT QTY 1 +.75

TOTAL = +5.45

COMBINED TOTAL = +5.35 BROKERAGE TO BE ADJUSTED.

THIS IS END OF FIRST WEEK.

WE HAVE MADE RS.77.40 GROSS PROFIT. ALL DAYS PROFITABLE.
1ST WEEK TARGET PROFIT IS RS.100 WHICH IS NOT ACHIEVED.
ALSO, NOT EVEN A SINGLE DAY LOSS LIMIT OF RS.50 IS MET EITHER.

AS PER THE SCHEME, WE GET PROMOTED ONLY WHEN WE MEET WEEKLY TARGET OF
RS.100 WHICH IS NET OF BROKERAGE.

OUT OF RS.10000 CAPITAL OUTLAY, WE HAVE USED ONLY MAXIMUM OF RS. 3200 IE WHEN BOTH SBIN AND VEDL ARE IN QTY 5 TRADES.

WE ARE INCREASING QTY SIZE FROM NEXT WEEK.
2,4,6,10,14,20..........

AS OF NOW, WE HAVE NOT CLEARED FIRST WEEK TEST.:)
 
Last edited:

suri112000

Well-Known Member
#25

Very nice, just what I was looking for... can you help me understand the betting sequence. Thanks
Martingale increases lot sizes exponentially.
1,2,4,8,16,32,64,124............
we cannot rule out 8th round of trade if the volatility increases.
By considering our capital outlay, if we need to bet on 124 qty size on both scrips, we need a capital outlay of Rs.81840. Unfortunately our capital is limited to Rs.10000. So, exponential increase is not feasible.
Whereas if we adopt conservative approach like I laid out, our capital is not exhausted.
My way of increasing size is as follows.
2,4,6,10,14,20,28, 40.
When 8th round is hit, we need a capital outlay of Rs.26400. Since our capital is limited to Rs.10000.
We are reverting back to initial qty ie 2, whenever last trade results in profit.
This profit need not to recover entire losses of previous trades.
Either VEDL or SBIN breaks the chain, bringing the position size under control.
There is a lot to explain about when to book profit for the day etc.

Hope it helps in your understanding.
 

suri112000

Well-Known Member
#27
Rule 1: Day trading is not a strategy to get rich quickly.

Rule 2: Day trading is not easy. It is a serious business, and you should treat it as such.

Rule 3:
Day traders do not hold positions overnight. If necessary, you must sell with a loss to make sure you do not hold onto any stock overnight.

Rule 4: Always ask, “Is this stock moving because the overall market is moving, or is it moving because it has a unique fundamental catalyst?”

Rule 5:
Success in day trading comes from risk management

Rule 6: Your only job as a day trader is to manage risk. You cannot be a successful day trader without excellent risk management skills, even if you are the master of many effective strategies.

Rule 7:
Experienced traders are like guerrilla soldiers. They jump out at just the right time, take their profit, and get out.

Rule 8: Profitable trading does not involve emotion. If you are an emotional trader, you will lose your money.
 

suri112000

Well-Known Member
#29
VEDL
SHORT QTY2
+2.40
LONG QTY2
-5.50
SHORT QTY4
-14.60
LONG QTY6
-11.10
SHORT QTY10
-5
LONG QTY14
-10.5
TOTAL = -44.30

SBIN
SHORT QTY2
-1.10

LONG QTY 4
-0.60

SHORT QTY 6
+5.70

TOTAL =+4.00

COMBINED TOTAL = -40.30 BROKERAGE TO BE ADJUSTED.
EXTREMELY SIDEWAYS DAY. NOTE THAT WE HAVE NOT HIT DAILY STOP LIMIT.
DEFINITELY A LOOSING DAY BUT IT DOES ADHERE TO DAILY LOSS LIMIT OF RS.50
 

suri112000

Well-Known Member
#30
VEDL
LONG QTY 2 -1.30
SHORT QTY 4 - 11.60
LONG QTY 6 - 8.70
SHORT QTY 10 +25
LONG QTY 2 -4.80
TOTAL = -1.40

SBIN
LONG QTY2 +1.20
SHORT QTY2 +7.80
LONG QTY2 -2.70
SHORT QTY4 +22.00
TOTAL = +28.30

COMBINED TOTAL = +26.90
 

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