halo everyone,
i would like to clarify a few things. I think my post conveyed the message that you have to trade intra day trade only. I take most of the time positional trades. In cash if i am caught on the wrong side, i hold it. in futures and options i do both positional and intraday, but what i wanted to convey was my targets are small and compounding is my friend.
to make one percent a day is not easy, obviously you have to be good in technicals. but what i noticed was that my friends used to make 40 to 50 k in a day, percentage wise you can say even upto 10%in a day. And they will brag on the day they made the money, but when they lose they will not tell you. And for the last six months most have left the market.
whenever i smell a move , i go hedged only or if not hedged i have sufficient money left in my account to rectify the mistake , e.g. take next month future in the opposite direction. Now the question is why my account had money, basically because i was looking for a small return of one percent, so i would have naturally taken a small position. now imagine most of the traders , when they take a big position(and ninety nine percent of them) and when the market moves against them, they dont have enough money to cover themselves.
in the current upmove in nifty, i was looking for a move upto 200 day avg, and on thursday the dow broke the channel around 8040. so now its clear market is going up either to 3800 and or more. now i will not try to play my analysis without sufficient cover. two day back i had purchased both 3100 puts and 3400 calls on nifty. on the last trading day i sold them in the opening my puts gave me losses , and calls profit. my purchase price was 132(for both put and calls) and my selling price was 149. so this way i covered my profits for two days after excluding brokerage , taxes etc. the move from 2800 i have been playing like this only , and i am doing like this because the adx is very high . in options you can play only when the adx is very high, otherwise your strategy will backfire.
So my humble suggestion to everyone is follow your own trading methods, but do not be greedy. Those who wanted to make more than ten percent in a day are out of the market and are in deep debt. I hope i have clarified . In the last ten years of my trading experience i have realised there is no holy grail in technical analysis. But money management is the only holy grail.