Trading Journal ( For Absolute Beginners)

[Ankush Gode]

FONT="Georgia"]Hi

Greetings ! iam Ankush. I have just started doing trading and I dont have any experience in stock trading or intraday trading. I have gained some basic knowlege by observing and reading post and threads in traderji and accuired some theory knowlege and now its best time i use the knowledge into practical use.

I will be posting my daily trading journal (profit /loss) explaining how i gained or lost money in trading. i will also post the stocks which i traded each day.

For those who are new to stock trading may find this thread very useful because iam starting every thing from scrach.You guys can track me how i progress day to day. (This thread is primary dedicated to baby traders :lol: )

For those who here to seek advanced trading tips or advice , im sorry, as i said i am no expert in stock trading (if i get better in trading i might give idea after a period of time). Expert or experienced traders can give tips and advice in simple language are most welcome :thumb:
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[Ankush Gode]

Hi all,

Greetings and welcome. If you are a beginner and want to do stock trading and still confused how to do trading because lack of experience or unfamliliar terminology in trading software, fear not, iam also a beginner and knows just basics and planning to write what I learned on the intraday trading daily and hopefully as I get better in trading you will get some tips and advice, so iam in adventure of gaining trading knowledge and experience and you can join me in my journey by learning from my downfall and success without even risking your money. By 'adventure' I mean serious adventure not like fairy tale adventure were everything is of eyecandy lolipop bullshit . Its very important to say what first timers expecting from this adventure because most of the first time traders get wayyy too over exicted about the returns that stock market can provide in single day instead they loose money in the excitement.

so let me make this straight if your expectation is very high then prepare for the bitter reality!. This is the main reason why first time traders becomes last time traders and leave trading with bad horrible experience and share this experience with others so they also get nervous or never try stock trading(after all its theirown hard earned money nothing can be done if it is gone in minutes!). so best advice from me is not to expect anything, keep your expectation to very low ,that said you will be better prepared and feel less guilty if you loose a portion of your money.

In stock trading not every day you will earn handsome money there are time you earn just 10rs or 8rs or just nothing. Just like cricket batsman, some day he gets out in 0 or under 15 Runs or some day he makes decent score like 50 or 80 and there are some days where he make 150+score or 200+. same goes with traders earning perday some day they get more then 30,000 (depends on the capital invested) someday just 200 or 50 or even in loss.But the most important thing is consistency, this is a skill every trader needs to learn'how to consistanly make money from the stock market'. This skill can only be achieved through experience and dedicating more time in learning stock movement.

Stock trading is very fun and exciting not because of your money involved but when you get in to trading mood and see stock prices move its very satisfying to eye and mind. And you wont belive you might even get additcted to it ( its good productive additction better then fb addiction or game addiction). But before that you MuSt learn certain trading skills to earn good profit(i will talk about this in next post). I recommend first time traders to open trading account with nearest stock broker , learn about their brokerage rate and their software then only join with that broker. Some broker can if they are good in nature can teach some basic trading. If not then dont worry you can make use of this blog as a tool to learn.Ok! thats it for now.

In Next post.. i will be guiding readers who want to do trading but dont know anything about stock market.. 'How to open a trading account' to 'how to buy and sell a share in stock market'. All the thing will be explained in detail dont forget to check my blog daily.

Please Note: I will be doing trading in NSE Equity stocks only as it is safe for beginners.. I wont talk anything bout commodities, forex,or futures in this thread as it is more risky and unpredictable.

 

[Ankush Gode]

Hello All,

For beginners this post may be very useful. I am going to answer some of the basic questions that comes in the minds of people who wants to start trading in stock. So here it goes ( I will just answer questions with very simple answer, If you want in-depth knowledge please refer online or YouTube videos there are many site which explain it in detail).OK so let’s begin.

Why do company issue shares? What are shares?

A company issue shares when it wants to raise money for expansion purposes, and when investor buys shares of a company, they become owner proportional to the shares they buy. The company in return gives dividend, bonus etc.

Shares are units of ownership in a company. In stock trading you buy 'share' of a company at a price and sell it when the price of the share rises to make profit (you won’t receive dividend when you buy and sell it in a day).

If you buy 51% of company share will you be the new owner?

Technically you are the owner, but in the eyes of law there is no owner of a company. Every share you buy in company you get that much number of voting rights. SO suppose you somehow manage to own more than 51% of shares, then you have 51% voting right, So that said, you can basically control every decision in a company by your vote alone. It’s impossible to buy that much shares alone as a individual. But companys buys the shares of other company and take over.

What are sensex and Nifty? why are they often talked about in news?

Sensex and Nifty are two main Stock Exchanges in India.They connect Company with buyers and sellers.The Sensex also known as BSE Sensex which means (Bombay Stock Exchange ‘SENS’etive Ind’EX’) it has 30 major listed companys. NIFTY also known as NSE-FIFTY (because it has 50 listed companys) NIFTY means "N'ational stock exchange f 'IFTY". When you hear in news Sensex or Nifty is up, it means that the prices of the stocks of most of the major companies on the BSE or NSE have gone up. If the Sensex and nifty is down, this tells you that the stock price of most of the major stocks on the BSE or NSE have gone down. It’s just an overall indicator of market situation in a day.


Do I need to be employed or woking to do online trading?

No not at all,Most of the online traders dont have jobs. If you have job and you can manage to make time for trading then that’s great( If you cant then better not do trading because you will loose money if you are not careful, instead ask your stock broker to do trading in your behalf).Any one(must be over 18) can do trading Students,shop keepers,unemployed,housewifes. basicly every one who has some basic knowlege and improve as you trade. Also you don’t need any qualification, If you are non-business field can also do trading.

What All things do I need to do share trading?

You Must have this:
1.Trading A/c and Demat Account
You can open Trading A/c and demat A/c by approaching Stock broker nearby or by online some stock brokers are Zerodha,Angel broking,SherKhan etc. Before selecting Brokers check out their Brokerage rate and fees.
For account opening all you need is Copy of Pan card, Address Proof (Better to give Bank Passbook as Address proof), Last six month transaction in your Bank A/c, a Passport size Photo and a Cancelled Cheque.And finally you can give amount Cheque to put in your trading A/c (or you can trasfer money from your Net banking). It usually takes one day to open but some brokers can open it in just 1 hour.

2. A good Computer system with decent internet connection.
A good Laptop with good battery backup or good desktop with UPS(which can run the computer at least one hour during power failure. Install a good antivirus software too.
A decent Internet connection 64kpbs is more than enough but if you are extreme trader then Faster is better.
Optional:
1.Good mobile app to track your stocks
2.Business Newspaper( I believe newspaper covers stories better than online news portal)
3.Business news channel ( you can get expert advice plus you can see company executives give their view on their company performance)
4.A good ventilated room (because it gets tense and frustrating some days)

How much money needed to start doing trading?

You can Start doing trading with any amount 500 or 1000 but remember trading with such little money will bring you less return but it’s a good thing for beginners who need knowledge and gradually increase the amount after gaining knowledge.

How much money will I lose if a stock I brought is down? Will I have to empty my wallet, savings or Sell my house?

Lol NO!. . Your liability to a company is limited to your shares you hold(Commerce students must have read this in their textbooks) It means maximum money you lose is the amount you spend to purchase that particular companys share. Suppose you spent 1000 rupees and brought 100 shares(10 rupees for 1 share) if the company goes down by 10%in a day then that means you loose 10% of 1000(ie.100 rupees you lost )and now you hold 100 shares of 900 rupees (9 per share now).In rare case if company goes bankrupt you might loose 1000 rupees not more than that.
Important piece of advice: Only put money in share trading which you are comfortable with, don’t put your entire savings.

How much a sharetrader earn in a day?

This question dont have any fixed answer. Earnings can vary depending upon the amount a trader put in share trading.The more you invest the more the returns. Some traders earn more than one lakh ( if they trading with appox 10lakh to 15lakh) and some traders are happy if they earn 2000 to 10,000 a day.The reverse is also true they may loose 1 lakh or more!. It is advisable not to be greedy and put a earning limit say 2000 perday or loss limit perday.


What is day trading/Intraday trading, Swing Trading,Position trading?

Intraday trading/Daytrading:- The shares are brought and sold during a day.
Swing trading:- The shares are kept on hold for period 1-30days
Positional traders:- shares are kept for weeks and months.

In This Thread i will be doing Intraday Trading.

 

[Ankush Gode]

Hi every one,

17- Feb - 2016

This is my first day in sharetrading.Today only my trading a/c got activated.
I have cashed in 2000. Being new to online trading i only know how to buy and sell shares ( F1 to buy and F2 to sell).I searched lot of stocks to find a suitable, safe stock to trade with. BHEL was the best one because it was going up and down ranging between 101 to 104.40 price.Initially I started with 5 shares and tried to increase it as the time. and finally after scalping 9 or 10 times i managed to get 33.32 rupees as profit after tax and brokerage charges net profit is 28.18. I was happy for the day as it was my first day and managed to get 28.18 is not bad.

below is my trading statement for the day.

 

[Ankush Gode]

srry for the statement broken image. here is the link

https://drive.google.com/open?id=0B33-Qua1P8RBYzRIUlp5aDB5MnM

 

[Ankush Gode]

Hi all,

I am going to post on daily basis but before that I must complete posting my previous tradings to date. I am putting up all in this post.

18-Feb-2016 Thursday

This is my second day in stock trading. After yesterday’s trading in just one stock(BHEL) as I am familiar on how to buy and sell shares, now I want to trade on other stocks and this was the basic things which I looked when searching for good stocks.
1.The stock which has more buyers than sellers
2.The stock which has good volume(volume means number of times the shares been traded in that particular day)
3.The stock which is not changing much (just 3 or 4 values in change)
4.and finally a stock reasonable price which I can buy with my 2000Rs

So as usual I traded with BHEL , Not much profit could be extracted from this stock because it wasn’t moving much, it was more like stable, So no use of trading in this stock for the day.
Next I moved to IDEA this stock looked good at first place and I buyed 5 shares and made some 2.50 Rs profit but second time I buyed 10 shares and nooo... IDEAS stock fell.!!. Damn..! So had to sell on loss( loss of 6.79 rupees).. THIS IS MY FIRST LOSS :S I left this stock.
Third stock was JUSTDIAL it was in news on the day that Company is buying back shares. And Its Stock was very active. It was incredible it moved up 15 or 16 points and came down like 8 points..It was fun by just watching this stock and i took my chance and traded for a profit of 44.61 rupees.. uhooo!! great ..:thumb::thumb:

Here is my summary for the day
https://drive.google.com/open?id=0B33-Qua1P8RBdzNPYjBQMk5JRTQ




19-Feb-2016 Friday

This Day I hadnt had any loss all went good.

I traded in BHEL as always no good movement to take advantage, made just 1 ruppee from it.

ICICI bank seemed good but movement got slow, made 1.55 rupees.

Quick heal had got some nice movement a day after the It got listed in NSE. But I only traded with small quantities because I didn’t want to take risk on Quick heal because just after Quick heal was listed in stock market its shares skydived to very low. anyways i made 4.50 profit out of it.

And finally last stock was ZEEL (ZEE entertainment) it was looking good very steady in movement so buyed 10 shares on 381.350 and sold it on 382.500 so yaa 11.48 profit..

So No loss today.. All good! 18 rupees for just 2 hours of trade Not bad for Third day .. good for the day but have to increase my returns to minimum 100 rupees.:clapping:

Here is my summary for this day
https://drive.google.com/open?id=0B33-Qua1P8RBaWMyYkR3ZzVWZ1E


[20-Feb-2016- Didn't trade - 21-Feb-2016-Sunday Market closed lol]

22-Feb-2016 Monday

Its Monday and don’t know which stocks I should trade so asked a stock broker for advice and on his advice I took 50 shares of L&TFH and its price is expected to rise in few days. So I am holding it for some days. Meanwhile I traded In AXISBANK,COALINDIA,INDIGO,MARICO,SBI and made reasonable profit amounting to 17.17 Apart from that I traded in Voltas which I made a loss of 11.29 and plus the brokerage charge which ate up the profit. So couldn’t catch a thing today. :fatigue:
Here is my summary for this day
https://drive.google.com/open?id=0B33-Qua1P8RBaHRWSVN1NTFFY2s


23-Feb-2016 Tuesday

Today I was really trying hard to get profit But ’gai bhias pani me’ :rofl: means Buffalo went in to water which is common term in Hindi which refer to hard work gone vain So heres how :

An ESCORT seemed good but was not that good slow movement managed to get 1.80 rupees
JK Cement: Good movement in this stock but it too expensive to buy greater quantity(472 rupees considering I have only 2000 in account) so didn’t proceed with this stock..
ZEEL : (Zee entertainment) The movement was bit stable but I squeezed out .70 paisa out of it.. pheww!
According to my Research KCP and TATASPONGE had potential to rise.. but it didn’t I buyed KCP 20 shares and waited for it to rise instead it went backward.. I kept it till end of the day and has loss of 36.04 ruppees and same goes with TataSponge and had to face another loss of 18.60
This day didn’t well for me..Hope I Learn something from this day.
Here is my summary for this day
https://drive.google.com/open?id=0B33-Qua1P8RBck02TTIzSk5YdlU



24-FEB-2016 Wednesday

This day I will never forget. Traded on BFUTILITY stock and initially I made profit of 30 rupees something and it went all weird. It was around 2.20PM .. when I buyed 5 Stocks of 522 and it was moving down to 519 and it stayed there around 20 min and back to near 522 and I sold it marginally above purchase price and made 5ruppees profit.. but after few mintues the stock sky rocketed to 533.40 OMG.. How come I was shocked becoase if I had waited few more minutes I would have earned appx 75rupees ..Damn I didn’t see that coming. Later I buyed some more shares at 529.70 and after that the stock fell and reached 514 and loss was around 163 rupees .. I thought better leave the share and wait to rise minimizing my loss and it did, instead of 163 ruppeed I had faced 104.56 as loss.
I am still confused why it happened.. If I had made right use of this opportunity I would have got very good amount like 200 or 250 ruppee..But still I don’t give a damn.. I am just on a learning curve.. Better to view money as a number, and better not involve emotions in share trading :lol:

Heres my summary for this day
https://drive.google.com/open?id=0B33-Qua1P8RBMzFOSzg5N0ZRQlU



25-FEB-2016 Thursday

Today was railway budget day So nothing special in stock market.. Even though I brought some shares in DISHMAN and my bad the prices fell.. So I Waited all day for the price to come up but it didn’t. I had to do do something about it before the market close or I might face big loss.. So decided to keep the stock for next day. Lets see how this stock behave.

Here is my summary for this day
https://drive.google.com/open?id=0B33-Qua1P8RBMFdOZzhpMDBhUmM


That’s It guys. Now I am Free to post daily. Do check out and you valuable comments are most welcome.

 

[mdmahanti]

Very interesting. No more trades?