need suggestion in option scalping

#11
Hi,
With low RR ratio, in a long run you will loose your account. Best to trade with high R/R ratio & better target. I do stock options, RR ratio greater than 1:1
Regards
 
#12
hi, this strategy does not require stoploss but i am doing for just to prevent and sudden change in direction.
i have tested this and earned 30,000 in a day with 50,000 amount. but next day i have lost it due to sudden change in direction and i didnt put any sl. and also because i had choose too much OTM option because of less available investment, so the fluctuation was less.

Nishant or any other experienced trader, could you please tell me what type of order you use for scalping, for both entry and exit? Market order or Limit order. How do you handle slippages and unfilled orders. If you could explain the process elaborately, it would be of great help.
 

vishal7176

Well-Known Member
#13
HELLO ,

for scalping /jobbing you need high speed internet speed terminal OR lease line .
you need speed for numeric typing speed.
you need practice for order place /cancle speed.

after all you have dedication to seat in front of terminal ....you have practice for all and you have good screen reading .
you have good knowledge about market depth window .

about order you can place both order .....market and limit both depends on you .
any query free to ask me u most welcome
 
#14
Also would like to bring to your notice a hidden cost called turn over cost.

its 0.05% of the turnover amount... ( rate * number of units applicable for either in buy or sale trades ).. so more the number of trades, more will be the turn over... if you have 400 odd trades. Turn over would take a good chunk.

eg. with 50k corpus, u r buying 1000 units for Rs 50 and attempt to sell at 50.5 and do this say 400 times

your turn over would:
100k * 400 = 4 crore.... making transaction cost of Rs. 20,000. Brokerage is apart from this cost!

keep this in mind....
 

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