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View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 219 32.02%
26 - 50% -- I have a few stocks. 302 44.15%
51 - 75% -- I'm an active trader. 113 16.52%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.31%
Voters: 684. You may not vote on this poll

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Old 7th May 2010, 20:15   #1411
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Default Day trading:

True that intraday trading is a risky venture. But I believe that if you operate within a rigorous set of guidelines and keep your greed in check at all times, it will be a safe play. Never dream of making a fortune in one single day.

When I started dabbling in the market, I never indulged in day-trading for quite a long period. But whenever I sold some shares, if the share price drops drastically the same day I used to sqaureoff by buying them back at the lower price.The same applies when shares are bought. If the share price goes up substantially the same day, sell it off and realise the profits. Isn't a bird in hand worth two in the bush? This carries no risk whatsoever and you are only making use of the opportunity when it comes your way.

There are atleast three cardinal rules which one should apply to avoid deep burns.

1. Never sell a share that you do not have in your kitty, thinking that you will buy back at a lower price the sameday and make a profit. Market movements are unpredictable. To a certain extent it is also manipulated by big players (atleast I think so).

2. Never buy a share if you cannot pay for it and take delivery.

3. Never borrow money to play in the stock market.

Today I bought 11500 Unitech shares at an average price of Rs.73.17. I could have taken delivery considering the fact that a fortnight ago I had sold 16000 at Rs.85. But I do not want to since I feel the share price may drop further. At 15.27hrs I manage to push them all out at Rs.73.60 (Price drops to 73.30 at close). It was just a scrape-through. Net Profit Rs.4945. This in a way illustrates safe daytrading.

As long as the market is in the downtrend I intend to indulge in this day trading. The buy and accumulate strategy will come into play only when the market satabilises and starts moving upward. I have a long list to buy: Ultratech cements, HDIL, Sintex, Bartronics,Tata Coffee,Tata Steel, Hero Honda.

Last edited by Ponmayilal : 7th May 2010 at 20:27.
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Old 7th May 2010, 20:15   #1412
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Originally Posted by jagan0677 View Post
Exactly. What is interesting is that there was a momentary 10% drop in the Us indices during Thursday trading. Whether it was asustem-glitch or something larger is an interesting question.
Here is the real reason why the markets fell today. Soshdot quoting CNBS. ;-P

Slashdot News Story | Stock Market Sell-Off Might Stem From Trader's Fat Finger

TSK - "Squaring off" is day trader's jargon for closing a position - sell if purchases were made, or buy if sale was made earlier in the day. A Day trader never "takes delivery".

They are a bit like the guys who used to book M800s and other cars in the days of licence - permit - raj, and more recently, the Nano hungama for selling the booking at a premium. Since their "positions" are "squared off" same day, they are called "day traders".

IMHO, day trading is a bit like street racing.
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Old 7th May 2010, 22:34   #1413
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hi ponmayilal
i think you have mixed investing with day trading. in day trading one takes a view on a stock for few minutes to hours and compulsorily closes the position same day. thats why its called day trading.

Quote:
1. Never sell a share that you do not have in your kitty, thinking that you will buy back at a lower price the sameday and make a profit. Market movements are unpredictable. To a certain extent it is also manipulated by big players (atleast I think so).
in trading one is ready to take risk and trades his opinions. so one can simply sell(short) and cover it in profit if he is right, or exit at stoploss if it moves otherway.

Quote:
Quote:
2. Never buy a share if you cannot pay for it and take delivery.
now you have to decide it first- before putting the trade. whats your view on the stock. if you are paying it and taking delivery, your homework should be done about company fundamentals, the value proposition, management etc. you are investing means your are becoming a partner of the business itself. so proper ground work should be done beforehand. if its for daytrade no need to worry about payment as it will be closed intraday only.

Quote:
3. Never borrow money to play in the stock market
.
it depends on ones capabilities and confidence in their TRADING SYSTEM. i think almost every company has a side called liabilites in their balance sheet.

T
Quote:
oday I bought 11500 Unitech shares at an average price of Rs.73.17. I could have taken delivery considering the fact that a fortnight ago I had sold 16000 at Rs.85. But I do not want to since I feel the share price may drop further. At 15.27hrs I manage to push them all out at Rs.73.60 (Price drops to 73.30 at close). It was just a scrape-through. Net Profit Rs.4945. This in a way illustrates safe daytrading.
now it is difficult to call it a daytrading strategy. if it goes up, fire it, goes down-take home. what if unitech fell by 2points. it becomes investment. risk- dont know. reward-40paisa?? it is ok for you only because you soothe yourself as you have sold it at 85 and covered now at hefty profit. but definitely not for a day trader.

ponmayilal-pls dont take it as an offense to your ideas. it is working fine for you and all is well as far as you are making money. this strategy has an assumption. you should already have a good old portfolio inherited from parents. then you can play it as you wish. risk is low as you have not put a dime there. but for any other person entering the market(who dont have THE PORTFOLIO), rules and strategies change definitely.
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Old 8th May 2010, 09:06   #1414
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Quote:
Originally Posted by vsh View Post
......ponmayilal-pls dont take it as an offense to your ideas. it is working fine for you and all is well as far as you are making money. this strategy has an assumption. you should already have a good old portfolio inherited from parents. then you can play it as you wish. risk is low as you have not put a dime there. but for any other person entering the market(who dont have THE PORTFOLIO), rules and strategies change definitely.
I knew for sure that you are going to come up on my post . There is nothing in your post that could offend me. So don't worry.

As a matter of fact, I wanted to add one last line to my previous post, but then decided not to and bring it up later if needed. And this is it.

"Invest, invest and invest for years and build up a base. You will then be in a better position to play in the stock market with confidence and with little risk"

The strategies I adopt is based on this and for anyone who had gone through all my posts, it should be evident.

There are habitual day-traders who enter with nothing in their basket with the only intention of striking a fortune. Some do succeed but most perish - even if the stop-loss limits their loss .

That said, your post should definitely help others to devise their own strategy, be it investment or daytrading with nil intention to invest taking into account their risk-bearing capacity.
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Old 9th May 2010, 00:17   #1415
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used to! Not now!
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Old 11th May 2010, 01:03   #1416
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Question Udayan @ TV18 ??

What happened to Udayan Mukherjee ? He is not to be seen on the morning show for more than a week now. Is he joining any of the other business channels ?
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Old 11th May 2010, 19:04   #1417
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What happened to Udayan Mukherjee ? He is not to be seen on the morning show for more than a week now. Is he joining any of the other business channels ?
Even I was wondering what happened to the Managing Editor of CNBC TV18. Cant see him for a while now.
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Old 11th May 2010, 21:55   #1418
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What happened to Udayan Mukherjee ? He is not to be seen on the morning show for more than a week now. Is he joining any of the other business channels ?
He is probably enjoying his vacations abroad like he does every year.
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Old 13th May 2010, 00:44   #1419
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Unhappy Hmmmm!!

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He is probably enjoying his vacations abroad like he does every year.
It is getting almost 2 weeks now, and there is no trace of him. I have a feeling it is much more than a vacation. Hope am wrong.
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Old 14th May 2010, 15:30   #1420
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Icicidirect has a feature where we can buy some shares today and INSTEAD of taking delivery or squaring off the same day, We can carry that position for 2 days (t+2) and then we can square off or take delivery. This option is under Client square off position.

Does any other brokerage offer such features or other new features? It will be very helpful in volatile markets.

The only problem in Icicidirect is that its costly.
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Old 15th May 2010, 09:46   #1421
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Default Options or Future

Can anybody please explain Future and Options!?
wrt NIFTY please (as e.g. I mean)
all the call/put and what is with the last Thursday of every month?

Care.

Ace.
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Old 15th May 2010, 19:27   #1422
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Can anybody please explain Future and Options!?
wrt NIFTY please (as e.g. I mean
If you do not understand it, better stay away. ;-)

Futures - you enter into a contract to buy / sell in the future.

See
http://en.wikipedia.org/wiki/Futures_contract

and

What are futures and options?

There is much more to it; huge amounts are involved, and you will almost always trading on margins. This means you will be heavily leveraged, and even small lossess can wipe out your capital.

The contracts are to be performed (ie, you need to deliver the shares, if you sold, or take delivery, if you purchased) on last Thursdays of each month.

This causes heavy fluctuations in normal (cash segment) of the market towards end of the month.

There is something called "open position", which is published by most trade publications. This figure will give some hints about the degree of volatility.

Futures and options are pure punting / betting, and is best avoided, unless you want to live on the edge.

Last edited by bblost : 15th May 2010 at 19:43. Reason: The url was appended to the word See. Put a line break in between. Thanks
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Old 15th May 2010, 23:08   #1423
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Originally Posted by BaCkSeAtDrIVeR View Post
Futures and options are pure punting / betting, and is best avoided, unless you want to live on the edge.
Its actually fun.I made my first million in a month when I shifted from the cash market to future trading

But its true it living life on the edge.But if you are a disciplined future swing trader then you are really rewarded.
The otherway round and life can be hell.
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Old 15th May 2010, 23:53   #1424
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Any one trades Foreign indices online from India? Icicidirect offers US trading, though I have not used it. Any inputs/thoughts please?
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Old 17th May 2010, 10:48   #1425
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Originally Posted by Alter_Ego View Post
Its actually fun.I made my first million in a month when I shifted from the cash market to future trading

But its true it living life on the edge.But if you are a disciplined future swing trader then you are really rewarded.
The otherway round and life can be hell.
Very True! Good or Bad, these times are very fit for futures, given the high volatility. Of course, goes without saying, that it works both ways - you have to be careful that you dont get caught on the wrong side.

A look at currency fluctuations(euro especially) will give you an idea of the volatility around.



Cheers
Jagan.
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