Trading as a business

[toingpoing]

Oilman,your post is indeed very valuable.Thank!

 

[toingpoing]

Kabira,two lacs for Futures Trading is quite good.I suggest,you go for stock specific futures with initial margin of somewhere around 50 to 60k.Start with a single lot.Never do the mistake of taking entry in multiple lots at the same price.Avoid Nifty if you can. (Many viewers would not agree to my suggestion of avoiding Nifty!).All the best!

 

[toingpoing]

Very nice,Tlahuicole! Would you like to share with other viewers,when you started trading and average return per month you are able to generate.And also whether you trade in Nifty or Stock Futures.Other experience you would like to share,is most welcome...

 

[suktam]

hi
8% per month as per my view extra ordinary return ,it 96% per year and as per cumm. return it goes to much... u are doing very good

 

[LondonVisitor]

Kabira,two lacs for Futures Trading is quite good.I suggest,you go for stock specific futures with initial margin of somewhere around 50 to 60k.Start with a single lot.Never do the mistake of taking entry in multiple lots at the same price.Avoid Nifty if you can. (Many viewers would not agree to my suggestion of avoiding Nifty!).All the best!

I am one person who agree to your suggestion of trading Stock futures 1 lot at a time. Stocks have higher volatility and capable of generating good profit (and loss too if not stopped correctly). Challenge is selection of stock. Which stock will you select today is a big question.

Yesterday I selected ALBK and SYNDIBANK to short. ALBK did not trigger at my price - just 20 paise short of. SYNDIBANK made good money but I was afraid when it started raising and hence closed the trade bit early. Expected it to open SYNDIBANK again today for shorting but once again my price did not trigger - just fell short of 40 paise, which would have otherwise given me 20k of profit :-(

 

[toingpoing]

I am one person who agree to your suggestion of trading Stock futures 1 lot at a time. Stocks have higher volatility and capable of generating good profit (and loss too if not stopped correctly). Challenge is selection of stock. Which stock will you select today is a big question.

Yesterday I selected ALBK and SYNDIBANK to short. ALBK did not trigger at my price - just 20 paise short of. SYNDIBANK made good money but I was afraid when it started raising and hence closed the trade bit early. Expected it to open SYNDIBANK again today for shorting but once again my price did not trigger - just fell short of 40 paise, which would have otherwise given me 20k of profit :-(

LondonVisitor,I suggest that you better avoid banking and other high beta stocks for now.We have an uncertain political future now.Cipla,Tata Global Beverages and Hindustan Zinc appear safe for now.You can go forcalander spread for hedging.:thumb:

 

[toingpoing]

hi
8% per month as per my view extra ordinary return ,it 96% per year and as per cumm. return it goes to much... u are doing very good

Suktam,any trader can easily earn eight percent per month consistently,if he religiously follows hedging and has clear defined exit point.Greed stops timely exit,which is the main reason for loss.So for every trade have an predefined exid point and stick to the same.And ofcourse,trade in derivatives only!:thumb:

 

[suktam]

hi
thanks for reply...i am also belive same as u .. not put stoploss ,i hedge it current and next month..

 

[toingpoing]

Suggestion to all trader friends.... Liquidate all shares in this current boom.. After elections we are going to get fractured mandate. Expect hung parliament. AAP with its anti economic policies,will have a greater say.Chances of third front invariably with communists on board is a possibility. So expect lower circuits on election result day.. Now exit all positions while going is good. Write April month call options and make a fortune..

 

[Kodene]

Trading the Potato

If we compare trading with other traditional businesses, actually there is not much difference between them.

If I want to sell a potato (just the one, I'm in the middle of a binary mash-up here), I have to buy said spud (with, like, a currency) at a cheaper price, and then sell my tuber at a reasonable profit. You would hope.

Well, traders do the same thing. They buy hope with the base currency (and just a soupcon of fervent prayers) at a good price. When the price gets better, they sell it or vice versa. That means trading is just like other traditional businesses that we have around.

Except, of course, you can't parboil equity.

So, to earn money by trading one needs to understand the forex market. I need to study and apply learning (so many mistakes, so little time) over and over again to be able to turn the numbers around in my favor.

Gambling does not require a gambler to be well-trained – is this true? I dunno. What about poker, doesn't that require skill?

Anyways, in most cases, gambling is all about prediction - calculation or education does not play a part (did I mention poker? Oh, right...). In fact, the more illogical trend a gambler takes the more options he has of winning (and losing).

A forex trader does not need to do this. He can make money by taking a very logical route (trend trading strategy, say) with all kinds of safety and precautions, like a fire officer inspecting a Durex productions facility (a bit like watching Willem Dafoe copping it in Platoon, but with less Adagio for Strings and more Justin Bieber – whose straining, tight-collared enthusiasm for cutting-edge entertainment – think Mylie Cyrus draped in nothing but a transparent veil of mortification – is more redolent of a last-minute motivational speaker at a forex expo, exhorting us all to smash our quarterly trading targets and stop playing silly buggers with the COT Report).

See, gambling has no time for that nonsense, gambling is deadly serious.

But trading?

A trader needs to learn a lot of things, and he has to apply his experience and lessons to be able to make money, consistently.

It is the skill of trading that brings money for traders. Luck might play a factor to some extent. However, for gamblers luck is the main factor in most cases.