no one going to earn even single rupee day trading

[abhiwhy]

true !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
day trading is one of the toughest task in the world , most of the people specially in our country do not participate in stock markets ,most among them are very long term traders , among them very few are swing trader , even less people are indulged in day trading and what the real figures are 95% of day traders are losers .
every one considers himself among 5% , but what is reality we all know , so the simple question is who earns ? , most of the day traders who earns , belongs to
institutional traders and professional day traders .
i have a friend in institutional trading firm he actually works for a investment banker as a trader , he trades in uk markets .
he told me that , they are provided with access to unlimited capital and are
allowed to trade in any volume but their managers keeps a close watch on them
and does not allow them to hold any positions their main target is to earn one two or max 3 tick price movements . they actually use more than 200 million ponds per day and what the earn on an average about 100,000 ponds /day so that is called actual risk management , shorter is ur position lesser u face competition higher is the profit potential and that's the mantra .

think it indian context will be out of markets in a single day due to huge brokrage , transaction ,and stt charges .

so what to do .?
main problem with us is we are always in search of always earning system and we r the most greedy people .
you can earn more than 1 crore with one thousand capital only in just 98 days . figures are looking great like websites claiming such wonders .but here i don't have any profit making motive so u could have little bit faith on me .

now lets come to topic .
what we need is
1. Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline & Discipline.
2. avoid greed and applying your mind (must )

so ! what we have to do is not to apply our great minds here u can do what ever u like , trade ur way how u use to but just donate small part of ur traing a/c fund to abhi fund
means do what ever u like , just trade with rs . 1000 as i am telling ,

requirements:

1)select any stock of ur choice better if volatile scripts like tatamotors ,adlabfilms ,rcom etc.
2) open a account with farms with exceptional low brokrage and high exposer
3) use exposer of (8-10 )x indiainfoline , indiabulls or any of ur choice
4) maximum brokrage u pay should not exceed 2 paise in intraday basis .
5)order execution should be very fast means as u entered the order it should be executed as per my knowledge indiainfoline and indiabulls are better for these purpose.
6)u should have a trading terminal , avoid browser based systems .
7)broadband connection.

technique :
1. buy when 5 minute di+ ( pdi) (period 14) cuts 5 min di-(mdi 14)
2 short when just opposite as mentioned above

i know u all have tried this technique and have got losses
the ony difference with my technique is exit

set exit target as .50% of price of script in limit order terms (dont think when prices would come i will exit by market order )

it was the main theme of the system so never my exit rule .

if prices goes against u exit again when di+ and di- again cuts each other in opposite direction .

u will gain around .50% trade per day and
.50*10X=5% so in a single trade u are earning 5%
do it 2-3 times max 5 times try avoid trading in inside and choppy markets

your target is 10% per day
after removing expense u will be left with 7-8%
which is more than enough
add ur today earned capital to 1000 (base capital ) per day and increase ur no. of share and go on .
i m posting a possible results(if u not applied ur mind) here .




capital total profit/day 10%
1000 100
1100 110
1210 121
1331 133
1464 146
1611 161
1772 177
1949 195
2144 214
2358 236
2594 259
2853 285
3138 314
3452 345
3797 380
4177 418
4595 459
5054 505
5560 556
6116 612
6727 673
7400 740
8140 814
8954 895
9850 985
10835 1083
11918 1192
13110 1311
14421 1442
15863 1586
17449 1745
19194 1919
21114 2111
23225 2323
25548 2555
28102 2810
30913 3091
34004 3400
37404 3740
41145 4114
45259 4526
49785 4979
54764 5476
60240 6024
66264 6626
72890 7289
80180 8018
88197 8820
97017 9702
106719 10672
117391 11739
129130 12913
142043 14204
156247 15625
171872 17187
189059 18906
207965 20797
228762 22876
251638 25164
276801 27680
304482 30448
334930 33493
368423 36842
405265 40527
445792 44579
490371 49037
539408 53941
593349 59335
652683 65268
717952 71795
789747 78975
868722 86872
955594 95559
1051153 105115
1156269 115627
1271895 127190
1399085 139908
1538993 153899
1692893 169289
1862182 186218
2048400 204840
2253240 225324
2478564 247856
2726421 272642
2999063 299906
3298969 329897
3628866 362887
3991753 399175
4390928 439093
4830021 483002
5313023 531302
5844325 584432
6428757 642876
7071633 707163
7778796 777880
8556676 855668
9412344 941234
10353578 1035358


some detailed explanation to directional movement

Directional Movement

The Directional Movement System is a fairly complex indicator developed by Welles Wilder and explained in his book, New Concepts in Technical Trading Systems.
Most indicators have one major weakness - they are not suited for use in both trending and ranging markets. The key feature of the Directional Movement System is that it first identifies whether the market is trending before providing signals for trading the trend.

Directional Movement System measures the ability of bulls and bears to move price outside the previous day's trading range.

The system consists of three lines:
• The Positive Direction Indicator (+DI) summarizes upward trend movement;
• The Negative Direction Indicator (-DI) summarizes downward trend movement; and
• The Average Directional Movement Index (ADX) indicates whether the market is trending or ranging.

Trading Signals

A number of different trading systems have developed around Directional Movement. The following rules are based on the system presented by Dr Alexander Elder in Trading for a Living:
Go long when +DI is above -DI and either:
• ADX rises while +DI and ADX are above -DI; or
• ADX turns up from below +DI and -DI.
Exit when +DI crosses below -DI.
See ADX below for further details.
Go short when -DI is above +DI and either:
• ADX rises while -DI and ADX are above +DI; or
• ADX turns up from below +DI and -DI.
Exit when -DI crosses below +DI.


ADX:


Declining ADX shows that the market is losing direction. When ADX falls below both +DI and -DI it signals a lifeless market. Do not trade with DMS until ADX has clearly turned off the bottom. Dr Elder suggests waiting until ADX rises 4 steps off its low (e.g. ADX rises to 19 from a low of 15). The longer that ADX has remained below both +DI and -DI the stronger the subsequent trend is likely to be.
When ADX rises above both +DI and -DI it signals that the market is becoming overheated. Take profits when ADX turns downwards from above +DI and -DI.


1. -DI crosses to above +DI so trade only short.
2. Go short when ADX rises above +DI.
3. Take profits when ADX turns down while above +DI and -DI.
Exit short trade and trade only long as +DI has crossed to above -DI.
4. Go long as ADX starts rising while above -DI.
5. Take profits when ADX turns down while above +DI and -DI.
6. Exit long trade and trade only short as -DI has crossed to above +DI.
ADX continues to fall so there are no trades.
7. Trade only long as +DI has crossed to above -DI.
ADX turns up while below +DI and -DI, but does not rise by the recommended 4 steps, so no trade is entered.
8. One view is that you should go long whenever ADX rises above -DI, but ADX has remained very low and flat and it would be advisable not to trade until ADX has risen by at least 4 steps above its recent low.
9. Trade only long as +DI has crossed to above -DI.
10. Go long when ADX rises above -DI.
11. Exit long trade when +DI falls below -DI.


example chart . icicibank.

best of luck and once more maintain descipline .
happy trading
abhi:thumb:

 

[siri_sha]

Hi Abhiwhy,

Ur exit strategy looks good, But i feel it is risky to trade in live market with our predefined stoploss. That is a drawback. Can u come up with a solution for this!!

Because we cant confirm the crossover untill the completion of the bar. As far as my experience, any thing below 5mins gives lots of whipsaws.

Also having a target set for the day will lead to overtrading.

Thanks,
Siri

 

[abhiwhy]

Hi Abhiwhy,

Ur exit strategy looks good, But i feel it is risky to trade in live market with our predefined stoploss. That is a drawback. Can u come up with a solution for this!!

Because we cant confirm the crossover untill the completion of the bar. As far as my experience, any thing below 5mins gives lots of whipsaws.

Also having a target set for the day will lead to overtrading.

Thanks,
Siri

take a look over intraday chart
u will find a .50% target whether in up or down direction comes within 1-2 minute it is like 1/2 rupee fluctuation for rs 100 script, 5 rupeese for a thousand rupee share ur target is very very low so it has maximum cchance of getting executed .
also di+ and di- cut are considered one of the best conventional entry and exit levels people considered it as good entry signals
only problems is there its exit signal is generally near to buying signal so the overall profit goes in vain
also if u talk about stoploss answer me what should be anybody's stoploss for a target of 50 paise for a stock of 100,
the system has an inbuilt stoploss that is if after taking the position and before touching ur target if di+ and di- again cuts each other u will have to make an exit , so considered it as ur stoploss because for a 100 rupese share and for a 50 paise target one can not put 25 paise stoploss because u willneither get even so much time to put and if u did it would get executed in 2-5 reverse ticks .
earn about 10 % totaland stop trading further
morning session is quite volatile and with volume better u complete it before 11.30 because afterwards market becomes choppy or after 2.00 to 2 pm are some of the best timings for the technique.
happy trading
abhi .:thumb:

 

[abhiwhy]

i would not suggest a complete bar formation
if using 5 min chart wait a little check for volume if it is good the probably u r right other solution may be let the bar complete and put a limit order at level just some small points or ticks above or below di+,di- cut level as u think .
di+ di- cut in five min time frame could be considered as a good signal and if even u lose and it signals again take that position u will win for sure .
better paper trade this strategy per day for at least 1 week
i m using it per day and has already converted my 980 in to 605679 rupese in 3 months i also not obeyed the rules strictly or so called used my mind so my results do not match with the data posted above probably .
happy trading
abhi

 

[rohangawale]

i m using it per day and has already converted my 980 in to 605679 rupese in 3 months i also not obeyed the rules strictly or so called used my mind so my results do not match with the data posted above probably .
happy trading
abhi

So you will be the 1st person who will become a crore pati in next few days and that too with a capital of RS 980.

Do let us know once ur tgt is acheived.:rofl::clap:

 

[siri_sha]

i would not suggest a complete bar formation
if using 5 min chart wait a little check for volume if it is good the probably u r right other solution may be let the bar complete and put a limit order at level just some small points or ticks above or below di+,di- cut level as u think .
di+ di- cut in five min time frame could be considered as a good signal and if even u lose and it signals again take that position u will win for sure .
better paper trade this strategy per day for at least 1 week
i m using it per day and has already converted my 980 in to 605679 rupese in 3 months i also not obeyed the rules strictly or so called used my mind so my results do not match with the data posted above probably .
happy trading
abhi

Will try as you said nd let u know the results..
U multiplied ur money by 618 times in just 3 months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[cvadan]

Dear Abhiwhy,

I am new to share market, but I am impressed with your idea and article andd ready invest 1000 Rs., only thing is I do not understand the terminology what is period 14, If you can explain me, by giving the example I would be oblidge, suppose today at 10 am prise of any share is @ 100 rs what I have to do? I have on line accout I can trade any share vary fast.

Thank you

cvadan

 

[abhiwhy]

So you will be the 1st person who will become a crore pati in next few days and that too with a capital of RS 980.

Do let us know once ur tgt is acheived.:rofl::clap:

for sure my friend i would let u all know if it happens ,
:gunsmilie:

 

[abhiwhy]

Dear Abhiwhy,

I am new to share market, but I am impressed with your idea and article andd ready invest 1000 Rs., only thing is I do not understand the terminology what is period 14, If you can explain me, by giving the example I would be oblidge, suppose today at 10 am prise of any share is @ 100 rs what I have to do? I have on line accout I can trade any share vary fast.

Thank you

cvadan

it is a tem of technical indicator if you have any solution for intraday tick chart(better if u have one day previous data )
there are various softwares such as metastock , amibroker or f chart and various data feeding solution better u see data feeder section in traderji and software section also, there are two indicators named di+ and di- and they can be drawn with any period such as 14 period 15 period 30 or whatever u want .

 

[abhiwhy]

i know figures look imaginary but i would only suggest u people , if u don't believe me just trade with a single share of tatamotors , or bpcl etc, (i think best suits the purpose), never use costly shares like reliance , sbi ,hdfc etc , and find the results in just one trading week i.e; 5 days .