How Many Of Us Do Full Time Trading?

[sudhee_70]

ya Many of day traders silently do they job either + or -

 

[sudhee_70]

may I know that pl any one tell that which sector is suitable for short term and which scrips are best for long term I want invest few some saved hard money kindly advice

 

[sudhee_70]

may I know that commondity market is safe or cash market is safe or F&O for 3 years period if I choose both on which scrip to select pl now days banks and post office returns are very less Max 9%

 

[thestarvingtrader]

Wow! Great idea for a poll. And just 309 full time traders - well at least, out of those that have voted on this thread. Good to know! The Starving Trader is glad to have found this wonderful forum - he is in good company here.

 

[Raju]

I am a part time trader.Mostly scalping/daytrading I did for last 4-5 yrs.Made some profit and huge loss.
Due to job constraint am planning for to buy , hold for some days and sell.

 

[ashwani chadha]

i am a full time trader that is why i am available at my thread from 10 a.m to 11.30 p.m.but i am very much dis satisfied with the result of the poll,as if 1000trader take the dream to become a successfull full time trader(trading for living as profession,no other business at all) only one is sucessfull,trading for living is the most difficult profession to adopt.if i assume their are 20000/-member/regular viewer at this thread who voted,even then trader with (trading for living)as profession can not be more then 20,thread is very very good but voting result are not fair,absolutly wrong,i dont know why?

 

[ashwani chadha]

There is a basic flaw in the logic of calculating returns on your capital and both futures traders and options traders make wrong calculations while calculating the returns on trading capital . Illustrations as under :

Futures Traders : Most standard flaw in the calculation of returns by futures traders is that they calculate returns on the margin required to be kept with the broker and not on their total trading capital . Suppose you have Rs 10,00,000 trading capital allocated to a method.....and you decide to risk 1.5 % of your trading capital on a trade. That gives you an amount of Rs 15,000 to be risked on your trade.so if your stoploss is say 40 points away from your entry point, you can take a trade of say 350 Nifty Futures or 7 Lots. Suppose you make 100 points profit on this trade, your profit is Rs 35000 . And here comes the flaw.....the margin required for maitaining 350 Nifty Futures position is say Rs 2,00,000 then calculating the return as (35000 /200000) x100 or 17.5 % is incorrect. The return has to be calculated on total capital of Rs 10,00,000 ( here we can add risk free return on balance Rs 3,00,000 kept with us....but not considering that as it will be a megre amount anyway ) so the return is (35000 /10,00,000) x100 or 7%.......see the difference in calculations....

Options Traders : Considering same example of Rs 10,00,000 account and here even if you decide to put 5 % of your capital on a trade and you buy a call or put of Rs 100 as a premium you can buy 500 Nifty options or 10 lots. Assuming the premium goes to Rs 300 ( every option trader knows that such trades are not too common but still ......) so you make a profit of Rs 1,00,000 from this trade.For calculating returns you have to calculate on Rs 10,00,000 so it becomes 10 % of the capital .Calculating the returns on premium paid of Rs 50,000 and saying we made 200 % returns on the capital is incorrect. I am sure no option trader who wants to survive in the market will put all Rs 10,00,000 in premiums paid and buy calls/puts of the entire amount .

Another flaw is showing that you buy deep out of money options at low price and show high returns percentage. But in practice will we ever put Rs 50,000 on 300 -400 points out of the money options ?

I am not debating what returns are possible but just pointing at the logic flaws which I see most of the times in showing inflated/unrealistic returns calculations. One can certainly make very good money in trading but when I see /hear talk of 200 % returns per month I know that such things are possible only on Excel sheet calculations.

Smart_trade

i am very much thankfull to you for above usefull thoughts given,i do agree that at a very small amount say 5000/- to 10000/-it is possible to give100% to even 400% return in a single month,one may repeat it for two to three time,but after 3 to 4 months ,when capital base will be enlarged then return will come down very fast from 100% TO JUST 10 OR 20 % AND AGAIN FURTHUR DOWN ON A MORE LARGER BASE SAY AT JUST 2 TO 5 % LEVAL THANKS

 

[nutasha]

I trade options full time. I agree that you shouldn't start doing so until you've replaced your existing income (and then some) in all types of markets.

regards
hionstocks

 

[mayur7777]

I Am also trade full time,

 

[mayur7777]

Hello Sir, i am aslo daily trader but, recently i open my demat account, so please give me some tips and tricks, i normally play equity trading, so plese suggess me intrady trading,???
sir, please reply as soon as possible i am waitng for urs reply???