|
Intraday
trading provides leverage to your trading capital, ranging
from 5 times to 10 times or even more.
This means, if your trading capital is only Rs 50,000; you
can actually use it as Rs 5,00,000. Therefore, the profits
you could make on investing Rs 50,000 can now become 10
times more, thanks to the leveraging.
Mind you, your losses could also be more. So it is basically
a double-edged sword. Use it carefully.
Novice traders can trade initially in Minifty which is a
derivative of Nifty, the index of National Stock Exchange.
But you do not buy or sell Nifty. You transact on Nifty
Futures or Minifty Futures. The difference between these 2
are one of lot sizes. While Nifty Future represents 50
stocks, Minifty lot size is 20.
The price for buying or selling Futures has been set by the
stock exchange. For instance, Nifty with its 50 lot size is
worth (5300 present level x 50 lot size) = 2.65 lacs.
However, the exchange allows the trader to buy it at Rs
24,000 approx. This figure may vary as exchange may change
various margins as it may seem fit during volatile trading.
Also, change in Nifty level also plays a role.
So in this case, a Rs 24,000 capital is leveraged to buy Rs
2.65 lacs worth of contract.
For Minifty, the calculation is 5300 x 20 = 1.06 lac. The
exchange has fixed Rs 10,500 approx. per lot of Minifty.
A capital of Rs 50,000 will buy approx. 2 Nifty lots.
Suppose the trader has bought 2 lots at 5300 and NIfty
Future price moves to 5320, the trader has a profit of (20
points x 50 lots x 2 lots) = Rs 2,000.
These days, a 20 point movement is coming after hours of
wait. More likely, the trader has to make several small
trades and take smaller profits of 10-12 points each time.
So in a day the trader is able to have 3 profitable trades,
on an average garnering 13 points per trade, s/he earns (11
points x 50 lot size x 2 lots x 3 times) = Rs 3,300. This
income is gross income. After deducting brokerage and taxes
(around 2 points per lot on an average), one is left with
around Rs 2,700. The brokerage varies between brokers while
there is a talk of Government reducing tax on intraday
trading.
Another easy way of making quick small amounts several
times a day will be by Bank Nifty. It moves very fast
compared to Nifty and at any small movement delivers
some 25-40 points. On a lot size of 25, that translates
into Rs 625 - 1000. Not bad for a movement that takes
maybe 10-20 minutes at the most. One can trade 4/5 times
a day on Bank Nifty.
As a rule of thumb basis, you can
take a daily income of Rs 1,200/1,500 on a capital of Rs
30,000 and Rs 2,000/2,500 daily on a capital of Rs 50,000.
HOWEVER, WITH STOCK MARKET EXPECTED TO RISE FURTHER
AND SCALE NEW HIGHS IN COMING MONTHS, THESE CALCULATIONS
WILL CERTAINLY CHANGE AND CAPITAL REQUIREMENT WILL GO UP
AS BOTH STOCKS AND INDEX FUTURES BECOME MORE EXPENSIVE.
For subscribing to Intraday training, please call
Arunangshu M Lahiri on
097400-76212 (Bangalore) or
933087-6212
(Kolkata).
For booking or additional queries, Email to:
sharebaba@gmail.com.
INTRADAY
TRADING AS FULL TIME CAREER
Intraday trading has been ridiculed as 'phatka' - a slang for
gambling. And not without reasons.
|
IGNORE WHAT
IGNORANT PERSONS SAY ABOUT STOCK MARKET TRADING.
THEY DON'T KNOW HOW TECHNOLOGY HAS CHANGED
THINGS AROUND. Dead Ideas and Myths... |
People have been trading Intraday as pure speculation to make
HUGE PROFITS . But like all speculations, one can be right or wrong.
Most have been wrong because of lack of knowledge and
understanding.
 With technology now available, PRISM 100% Accurate Intraday Trading system* has
made Intraday trading much easier. It is up to the live analysis software used by the
PRISM system to inform you when to buy or sell and which
stock/s.
NOW TECHNOLOGY ALSO MAKES IT
POSSIBLE FOR LEARNERS FROM
ANYWHERE IN THE COUNTRY OR EVEN
ABROAD, TO LEARN INTRADAY
TRADING FROM HOMES AND TO AVAIL
STEP-BY-STEP SUPPORT AND
BUY/SELL CALLS ON DAILY BASIS.
SEE DIGITAL LEARNING...
However, the system for spotting these
Buy/Sell set-ups require
a proper training and lots of practice. That's why, PRISM has training system especially for those opting for Intraday trading
as a career option. After completing the training, the Learner
can confidently begin a whole new career on full time basis (only 9-15 am
to 3-30 pm) as Intraday Trading Specialist.
WITH A SMALL TRADING CAPITAL
OF R. 30,000, LEARNER CAN EXPECT
TO EARN R. 1,500 TO R.2,000
EVERY DAY, PROVIDED S/HE TRADES
WITH COMPLETE DISCIPLINE,
FOLLOWING THE BUY AND SELL
SET-UPS AS EVIDENT IN THE LIVE
ANALYSIS SOFTWARE, WITH UTMOST
DISCIPLINE, WITHOUT LETTING
SPECULATIVE TENDENCIES TO
INFLUENCE HIS/HER JUDGMENT.
SEE NIFTY TRADING CALCULATION...
The Learner can increase his
/her daily profit potential by
50% - 80% by doubling the
trading capital. However, the
Analyst suggests not to have any
more than R. 1.50 lac as trading
capital at any point of time as
that could lead to overtrading
and over confidence. Both have
disastrous consequences for day
trader.
For more details on the
PRISM Intraday Trading system, please call 9330876212
(Kolkata) or 9740076212 (Bangalore) or write to
sharebaba@gmail.com. |
