The 2% Ledger

sridhga

Well-Known Member
#1
I am recording some trades here based on the approach described below.



The capital that I allocate to this approach is Rs. 15000. I will isolate these trades from my other trading activities and record them here.



Over a period of time I found that it makes better sense to buy cash segment over FnO



Advantages of Cash segment over FnO:

If the trade goes against you it may not wipe out your capital.

You can buy as many shares unlike pre-determined lots in FnO

Zerodha charges zero brokerage if you are not trading intraday (But STT is higher)

If you are taking small trades and are in a loss, you can average if you still believe in your trade.

Bigger universe of stocks available for trade.





Advantages of FnO over cash segment:

Shorting option available.

Less transaction charges including STT

No DP Charges (Rs. 15.93 per scrip when you sell. As the number of shares increase, the impact of this comes down.)

Leverage (But this goes against you if you are stuck with overnight positions during geo-political news flare-up.)





Here I buy shares in cash segment. These are swing trades and not intra-day. I sell the shares when I make 2% profit. I sell them if they are on 2% loss and I exit that trade. Since I allocated small capital to this experiment, I will not add any other money management rules for these trades. Sometimes, I may reduce my target to 1% if I feel the market is not conducive. I plan to do these trades just based on daily candle stick patterns. I select shares based on favorable candlestick patterns. I will try to avoid penny stocks, bad repute managements, less liquid stocks and stocks hitting circuits often. Most likely I buy after 3 pm.



The transaction charges on Zerodha are Rs. 0.0021 for every Rs. 100 sale + Rs. 100 purchase. The transaction charges including DP charges (Additional Rs. 15.93 per scrip sold) may eat up this account. Just to keep oneself afloat, one has to identify stocks that give higher strike rate. Also, one cannot buy many different shares in this model as that increases DP charges. Further, one can only go long in this model. So, one may have no trading days as well. These are the challenges. I do not expect this to be easy.
 
Last edited:

pannet1

Well-Known Member
#4
I am recording some trades here based on the approach described below.



The capital that I allocate to this approach is Rs. 15000. I will isolate these trades from my other trading activities and record them here.



Over a period of time I found that it makes better sense to buy cash segment over FnO



Advantages of Cash segment over FnO:

If the trade goes against you it may not wipe out your capital.

You can buy as many shares unlike pre-determined lots in FnO

Zerodha charges zero brokerage if you are not trading intraday (But STT is higher)

If you are taking small trades and are in a loss, you can average if you still believe in your trade.

Bigger universe of stocks available for trade.





Advantages of FnO over cash segment:

Shorting option available.

Less transaction charges including STT

No DP Charges (Rs. 15.93 per scrip when you sell. As the number of shares increase, the impact of this comes down.)

Leverage (But this goes against you if you are stuck with overnight positions during geo-political news flare-up.)





Here I buy shares in cash segment. These are swing trades and not intra-day. I sell the shares when I make 2% profit. I sell them if they are on 2% loss and I exit that trade. Since I allocated small capital to this experiment, I will not add any other money management rules for these trades. Sometimes, I may reduce my target to 1% if I feel the market is not conducive. I plan to do these trades just based on daily candle stick patterns. I select shares based on favorable candlestick patterns. I will try to avoid penny stocks, bad repute managements, less liquid stocks and stocks hitting circuits often. Most likely I buy after 3 pm.



The transaction charges on Zerodha are Rs. 0.0021 for every Rs. 100 sale + Rs. 100 purchase. The transaction charges including DP charges (Additional Rs. 15.93 per scrip sold) may eat up this account. Just to keep oneself afloat, one has to identify stocks that give higher strike rate. Also, one cannot buy many different shares in this model as that increases DP charges. Further, one can only go long in this model. So, one may have no trading days as well. These are the challenges. I do not expect this to be easy.

it is your wish what to do with your money. i am no one to comment on that.

just my few cents: wise traders say that anything with 1:1 R:R will eventually turn out to be a blow account. adding to that you sometimes take 1:0.5. Was the cost of tax + brokerage counted in.

please ignore if it is not helping you.
 

afin

Mechanical Trader
#5
For a start, I bought Bata 6 shares for 1767 on 18th Oct
So a 2% target is 1802.34.
This is a big target considering that it has to cross 1800.
1% target would be 1784.67

52 week high is 1782 on NSE and 1789 on BSE
All the best!
 

sumosanammain

Well-Known Member
#6
it is your wish what to do with your money. i am no one to comment on that.

just my few cents: wise traders say that anything with 1:1 R:R will eventually turn out to be a blow account. adding to that you sometimes take 1:0.5. Was the cost of tax + brokerage counted in.

please ignore if it is not helping you.
Even if 1 trade per set of 10 trades is missed due to whatever reason, it becomes a loosing proposition. Been there, done that. Multiple times.
 

sridhga

Well-Known Member
#9
I made a mistake. I sold the position in Glaxo at 1578.15. I made a profit of 980 after transaction charges. But I should have continued holding it though the target was hit. The reason why I am saying this is that the funds have to be reinvested anyways and the same stock held the potential for another 2%. It made no sense to sell since selling and buying again merely results in transaction charges. I sold when I panicked that the stock may have taken a downturn on 30 th during an intra-day fluctuation. This position if held for another day would have added another Rs. 1500. Even now I see good potential for this stock.
However, on 31st, I entered long positions in BankIndia 80 shares at 71.56 and BankBaroda 116 shares at 96.48. I am still holding BalramChin 60 shares at 162.63, NovartisInd 6 shares at 696.83 and IndianB 161 shares at 133.51. Also holding cash of about Rs. 7000 which I may deploy into any one of these shares or am even looking at Allahabad Bank.
 

siddhant4u

Well-Unknown Member
#10
Here I buy shares in cash segment. These are swing trades and not intra-day. I sell the shares when I make 2% profit. I sell them if they are on 2% loss and I exit that trade. Since I allocated small capital to this experiment, I will not add any other money management rules for these trades. Sometimes, I may reduce my target to 1% if I feel the market is not conducive. I plan to do these trades just based on daily candle stick patterns. I select shares based on favorable candlestick patterns. I will try to avoid penny stocks, bad repute managements, less liquid stocks and stocks hitting circuits often. Most likely I buy after 3 pm.
No. You didn't made any mistakes. You just followed your rules
 

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