To answer this question you have to consider Reward/Risk balance of the trade....BNF moves 5 points in no time but the same holds good when it moves against us. Ideally if one can make 5 points if the trade goes in favour and looses 2 points if it goes against us then it is great but it is not practical. You need 20-25 points to understand that the trade is going against you. So even if you make 7 correct trades out of total 10 trades ,you make 7x5= 35 points on correct trades but the 3 trades which are going to be loosers are going to take away 3X20=60 points and we have not considered brokerage and taxes in this equation which if considered , make the things worse. So it is a loosing proposition even if you make 70 % successful trades.

For traders this concept of Reward /Risk is very important in deciding how we trade.

Smart_trade

Sir, u r very right with the RR concept.. I am asking, in a scrip like BNF which has enough liquidity and there are opportunities when the 5 point trend is clear.. With this I wish to mean that BNF moves around 50 points in 2 mins when its going in any direction.. And that happens atleast 5 times in a day.. Considering this, if 5 points are to considered(thrice in a day), out of say 25 or 30 points move which happens several times in a day.. Is it so very difficult.. GIve ur views on this.. Regarding brokerage and taxes, I have got a plan.. Will get to that only once, I can assure myself with this.. Also lemme know the chances of such 5 pointer trades in every 10 trades..

Idea is 3 5-pointer trades a day, giving 15 points and 20 trading days, giving 300 BNF points every month..

Total 60 trades.. 5 point each trade.. 300 points per month..

(Brok and Taxes not considered)