[SmartCat]

Originally Posted by kd_r16

1) Which software/website to use for charting, analysis, tracking stocks?

Zerodha's watchlist and charting is good enough. TradingView.com is the largest charting platform - you can check that too, although Zerodha itself uses TradingView.

3) As a beginner which segment should I begin with Futures/Options/Equity/Commodity/Forex or a mix ?

Cash market first and Options later. With options, you get the additional flexibility of taking a neutral view. That is, you can have a view that NIFTY will close between 19000 and 20500 in Oct, and make (or lose) money on that view.

4) I am very good with fundamental analysis, how do I use it to my benefit?

Make a watchlist of fundamentally sound stocks you want to buy and hold anyway. Apply technical analysis and buy such stocks. If your view works out, stick to the targets and book profits. If your view does not work out and stock starts dropping, just move the stock to your 'long term holdings portfolio'

Once you get the hang of things though, start following stop loss, as traders usually do.

5) How to develop mindset for trading any books/video.

Might not help much if you are a newbie. But after a few months, start reading up on this.

[kd_r16]

Thank you for the advice, I'll work on the aspects you have suggested.

[thirugata]

Does any one use any screener that involves technical indicators?
I currently use chartink and looking for an alternative to it.
I need something where I can write my custom screeners using Technical indicators.

[SLK]

Originally Posted by thirugata

Does any one use any screener that involves technical indicators?
I currently use chartink and looking for an alternative to it.
I need something where I can write my custom screeners using Technical indicators.

Between tradingview and streak, one of them may work for you.

[VWAllstar]

Has anyone of you done a SWOT Analysis of Margin Trading?
In Upstox you can hold your stocks purchased with MTF for 365 days and shall be shown under position. It can be then converted to holdings. Charges are Rs. 20/day for a slab of Rs. 40,000. Example: If one purchases 100 stocks of Rs. 10 each then he will need to have only Rs. 500 and the remaining Rs. 500 will be provided by Upstox. In this case one wil be charged Rs. 20 per day till square off or converted to holdings. Another example for charges are, if one purchases stocks worth Rs. 2,00,000/- then he would be charged Rs. 20/day for the first Rs. 40,000, Rs. 20/day for the next Rs. 40,000 and Rs. 20/day for the remaining Rs. 20,000. In total he will be charged Rs. 60/day for the Rs. 1,00,000/- borrowed under MTF.
I understand the risks of MTF which is that like your profits, your loss can be doubled. However, these platforms have validations on stocks which can be purchased using the MTF. It could be a good strategy to swing trade with MTF for large caps?

[DigitalOne]

Originally Posted by VWAllstar

In total he will be charged Rs. 60/day for the Rs. 1,00,000/- borrowed under MTF.

60 * 365 = INR 21,900 simple interest for a loan of 1,00,000. It would be more if you calculate on compounding basis (assuming rs 60/- gets deducted daily).

Do you think any stock would definitely rise 24-25% (post capital gains tax) in an year? My opinion, keep away.

[SmartCat]

Originally Posted by VWAllstar

Charges are Rs. 20/day for a slab of Rs. 40,000. Example: If one purchases 100 stocks of Rs. 10 each then he will need to have only Rs. 500 and the remaining Rs. 500 will be provided by Upstox. In this case one wil be charged Rs. 20 per day till square off or converted to holdings.

wow, what a complicated system. Most brokers charge 10% to 20% per annum annualized for MTF

I understand the risks of MTF which is that like your profits, your loss can be doubled. However, these platforms have validations on stocks which can be purchased using the MTF. It could be a good strategy to swing trade with MTF for large caps?

Good for short term trading and that too, only if you have a stop loss.

For longer term trading or investing, the returns will get a boost in a bull market and take a huge hit in a bear market/correction.

[VWAllstar]

Originally Posted by DigitalOne

60 * 365 = INR 21,900 simple interest for a loan of 1,00,000. It would be more if you calculate on compounding basis (assuming rs 60/- gets deducted daily).

Do you think any stock would definitely rise 24-25% (post capital gains tax) in an year? My opinion, keep away.

If you see the other way, you only need the stock to grow by 12% which with MTF would give 24% returns (MTF charges excluded)

Example: (let me give a real life example)
1. Bought ITC (1000 shares @ Rs. 320/-) in November 2022 with MTF so costed Rs. 1,60,000/-
2. Sold ITC (1000 shares @Rs. 480/-) in July 2023
3. Profit Rs. 1,60,000/-
4. Charges Rs. 20,000 (Rs. 80/day for 240 days)
5. Total Profit Rs. 1,40,000/- (approximate without Short Term Cap Tax)

In case without MTF, the profit would have been Rs. 80,000 (without tax deductions)

Ofcourse this is an ideal scenario and if ITC had gone down then the loss too would have been doubled.

[ashkamath]

Guys, I just stumbled upon this thread while browsing some other threads of interest. This appears to be a treasure trove of trading wisdom that I missed entirely.

I was a day trader for some time and have completely stopped trading since January 2023 ( it's been 14 months now) after losing a substantial amount of money to the tune of a couple of million INR. The financial loss was so severe that I have stayed away from the market for last 14 months but the lure to return has always been there.

Perhaps, I will spend more time in this thread and pick up a few pearls of wisdom and start again on my quest for financial freedom through stock trading.

Are you guys fundamental analysts or technical analysts?

Are there anyone who day trades profitably in this thread? I would love to hear a few words of advice from them as to how they go about it.

Is a positive and hopeful mindset absolutely necessary for a successful outcome in trading?

How many stocks do you follow (keep watch on)? I believe there must a couple of thousands of active stocks on NSE/BSE and it's it's virtually impossible to track all the stocks. Moreover each one has their own preference such as Nifty 50 stocks or Nifty midcap or nifty small cap etc. I have heard of one person in USA who only trades in Apple stock only and never a different stock.

What type of charts / patterns do you use in your trading? Any timeframe that you particularly recommend?

What's your opinion on trading in options & futures?. would you advise to trade derivatives or plain vanilla stocks ?

How do you prep your mind before starting trading?

How long does your average trade last? How often do you trade? How do you handle a big loss?

There are lot many more questions I have with me. That's for another day.

[thirugata]

I am not a day trader and wont call myself a F&O trader too. So might not be able to answer all of the questions you have asked. Will try to answer whatever I can with the limited knowledge I have. I hope others int he forum who are better suited to answer your questions will chip in with their thoughts.

Answers in line with the questions below.

Are you guys fundamental analysts or technical analysts?

This thread is about TA, so probably here you will bump into people who use charts for their trading.

Is a positive and hopeful mindset absolutely necessary for a successful outcome in trading?

Right mindset is everything when it comes to trading. All other skills come second to mental skills.

How many stocks do you follow (keep watch on)?

This probably is for a day trading, otherwise you can write set of conditions in chartink kind of screener websites and it will give a list that matches the condition, you dont have to keep a track of list of stocks.

What type of charts / patterns do you use in your trading? Any timeframe that you particularly recommend?

I use candlesticks, trade of daily timeframe. I also refer to weekly and monthly time frame for more clarity.

How do you prep your mind before starting trading?

A difficult to answer, I guess everyone has their own way of dealing with this. It is certainly difficult to answer in a post.

How long does your average trade last?

short term trades - 3- 6 weeks
medium term trades 4 - 6 months
long term trades - depends on how long the trend lasts.

How often do you trade?

Depends on how many opportunity my screener throws up

How do you handle a big loss?

By not having big losses. I have stoploss and trade with fixed and equal risk per trade.



Hope that helps.

[ashkamath]

Originally Posted by thirugata

How do you handle a big loss?
By not having big losses. I have stoploss and trade with fixed and equal risk per trade.

Hi Kiran Rao, Let me first thank & appreciate you for the time and effort in replying to my queries. It takes immense patience to reply a multitude of queries and that definitely shows the sign of a good trader attributes as patience and discipline are very important virtues in this profession. I am sure you are a profitable trader. May you see more success in this profession.

I use chartink for screening my trades and I generally limit the stocks to Nifty 50 or upto Nifty 200. No particular reason for the same, except that I get a better handle on the stock movements of these stocks over a period of time.

As it happens with most traders, I have a string of small profits and then one large loss wipes out all the profits and more. The cycle continues and the account is wiped clean. That's the trend that I have observed with many stock traders.

Do you subscribe to the "buy Low, Sell High" principle in trading. I am unable to grasp the meaning of it as one cannot predict the low or high of a stock movement, so I sort of don't get the gist of it.

(Off Topic: I noticed that you are an amazing photographer and also an avid birder and a travel enthusiast. Kudos on that )

[SmartCat]

Originally Posted by ashkamath

As it happens with most traders, I have a string of small profits and then one large loss wipes out all the profits and more. The cycle continues and the account is wiped clean. That's the trend that I have observed with many stock traders.

This usually happens when positions are scaled up at the wrong time. Start with 1L or 10L or whatever and stay at this amount for a few years or cycles. Do not add money to it, especially when the strategy is doing well. While that is running, try to come with a different strategy and allocate separate capital to that too.

Basically, select an initial capital and stick to it. Track individual strategy's P&L over many months. You will then have an idea about returns & drawdown. Only after you are sure that a particular strategy works across different market environment, scale it up.

[thirugata]

Originally Posted by ashkamath

As it happens with most traders, I have a string of small profits and then one large loss wipes out all the profits and more. The cycle continues and the account is wiped clean. That's the trend that I have observed with many stock traders.

Do you subscribe to the "buy Low, Sell High" principle in trading. I am unable to grasp the meaning of it as one cannot predict the low or high of a stock movement, so I sort of don't get the gist of it.

Thank you very much for your kind words and wishes.

I do not restrict myself to Nifty 200. I use average volume traded as a safety net to pick the pool of stocks I want to trade.
Anyways there is nothing wrong in sticking to top 200.

I am not clear if you use technical analysis or FA. Because you mentioned large loss, I am assuming you do not use stoploss for the trades. So having some sort of risk management is very important to avoid big losses. Stoploss is my choice, but there are multiple ways to manage risk so one can choose what suits each.

I do buy low and sell high for medium and long term trades, but I buy when I see turn around after a fall. So buying low does not mean buying a stock when it is falling. And selling high does not mean selling at the peak. Selling high for me is selling at the target I have decided before buying.

For my short term trades I prefer buying high and selling higher.

I look for 1:3 risk to reward for short term trades, 1:10 for medium term trades.

[ashkamath]

Originally Posted by thirugata

I am not clear if you use technical analysis or FA. Because you mentioned large loss, I am assuming you do not use stoploss for the trades. So having some sort of risk management is very important to avoid big losses. Stoploss is my choice, but there are multiple ways to manage risk so one can choose what suits each.

I do buy low and sell high for medium and long term trades, but I buy when I see turn around after a fall. So buying low does not mean buying a stock when it is falling. And selling high does not mean selling at the peak. Selling high for me is selling at the target I have decided before buying.

For my short term trades I prefer buying high and selling higher.

I look for 1:3 risk to reward for short term trades, 1:10 for medium term trades.

I use Technical analysis for my trades and not Fundamental analysis for the simple reason that I am (Or rather was) a day trader and for the daily volatility, FA is of no much help. Infact I have zilch knowledge about FA..

I have stopped trading for last 14 months to recover from my earlier loss that amounted to a significantly large sum. I want to believe that I have learnt my lesson (albeit the very hard way) and planning to get into swing trading that lasts multiple days instead of the day trading that I have been doing all the while, till early January last year when I stopped trading altogether.

I subscribe to your short term trading principle of buy high and sell higher or sell low and buy lower. I believe that's the way to go about it.

Do you have a mentor or did you attend any trading workshop or mentorship as there are plenty of mentors on internet.

Let me see if I can get started and moving on my trading journey again. Thanks for listening.

[thirugata]

Originally Posted by ashkamath

Do you have a mentor or did you attend any trading workshop or mentorship as there are plenty of mentors on internet.

Let me see if I can get started and moving on my trading journey again. Thanks for listening.

I do not have any mentor as such. I have learnt mostly by watching you tube videos and reading books. Also quite a few traders whom I have met on twitter have helped my by answering my queries.
But the best way to learn is to take very small quantity and lose very small amount when you go through the process of building your trade plan. This is how I learnt to trade. It is a discovery process where I understood what is my risk appetite and what time frame suits my mindset.

All the very best for your second innings.