Based on your experience, can you suggest mistakes which would eventually lead to a loss?

I know experience is the best way to learn from mistakes what we do.

Can you explain few methods you used, which eventually led into losses? Also mistakes that led into losses!

I will compile and add the summary here

Aastroguru

  • Buying a OTM Call option or Put down on expiry day, with 0.05 price. Once you buy, you will soon find there are no buyers to whom you can sell those. You cannot get priority over others who are waiting the queue with sell limit price 0.05
  • Placing a market order in F&O segment as AMO. You will find your executed at unexpected prices which is not even close to yesterday's closing price. Example, yesterday's closing price of Nifty is 26, Today's opening price is 75. The price will move immediately from 75 to a value closer to 26 in next instant. But you will get fooled with buying at 76 instead of 26.
  • Averaging down a losing call/put option which is OTM. At the point of averaging down it will make sense, but you should consider options as depreciating asset. After averaging the price will further down if there is only little or unsubstantial movement in the underlying in your favourable direction
  • When you watch the Market Depth window consistent for some time and you find one side of the Ask/Bid quantity is huge, say for example Ask quantity is very high for five consecutive Ask Prices, and you place a Buy call. The price will either be sideways or little increasing but will eventually fall sharply in some time, since the supply is huge. You order will be in loss.

 simplebuthard

  • Buying and selling the same position through different accounts because of the big move expectation. Then when it happens, closing the losing position soon and waiting for the winning position to run and finally that position reverses and turn into a loss. Totally big loss.
  • Call and put pair buying in Nifty and BNF options and expecting one of the side to make big moves. Market 70% of the time consolidates which means not trends(up/down). And the pair is loosing value over time and making big loss.
  • Buying intraday options positions and market does opposite to us and not accepting the trade went wrong and carrying the positions as positional trader.
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trading with zerodha…

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There are many

  1. Buying and selling the same position through different accounts because of the big move expectation. Then when it happens, closing the losing position soon and waiting for the winning position to run and finally that position reverses and turn into a loss. Totally big loss.

  2. Call and put pair buying in Nifty and BNF options and expecting one of the side to make big moves. Market 70% of the time consolidates which means not trends(up/down). And the pair is loosing value over time and making big loss.

  3. Buying intraday options positions and market does opposite to us and not accepting the trade went wrong and carrying the positions as positional trader.

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Why do you say so? Any specific reason!
Do not post unwarranted comments!

mr. astro do you know that there trading platform always hangs that’s why and some or the other day they face connectivity problem which is not good for day traders…

I agree, dis-connectivity issues could create huge losses. Hope zerodha will better themselves!

I don’t think this is Zerodha’s problem, it could be your internet connection, your slow PC, etc. reasons which are beyond Zerodha’s control and more so in your control. I would suggest some things here:

  1. Get a PC with higher RAM, (2 GB and above are good enough)
  2. If you are unable to do the above, please format your PC and reinstall Windows
  3. While opening NEST Trader uncheck the CDS Lots option, this will reduce the unnecessary load on your NEST Trader.
  4. Use a good enough internet connection (Broadband is more than sufficient for NEST Trader, and I believe it is basic form of internet in India)
  5. Do not open any other applications on your computer when NEST is running, unless necessary. This will give more RAM to your NEST Software.
  6. As much as possible do not keep your Browser or other applications running which downloads data continuously. Close your browser, stop surfing. This will give more Bandwidth to your NEST.
    Hope this helps.

Connectivity issues are there with zerodha, (based on posts from few tradingqna users)
Also zerodha faced some server side issues as well as evident from many posts in zconnect in which they acknowledge there were some hiccups but that has been resolved soon, (kind off)
Even with my office leased line, I sometimes have issues with web platform, which hangs for a while and recovers (mostly during 3 pm or when some huge market move is going on, pages other than zerodha work fine during that time), I suppose it is related to traffic.

@$ud3$h dude don’t say about computer and internet problem because i have 16 mbps internet connection (which never disconnects in between) and 8 GB RAM and i7 4770k 4-generation processor which i think it is more then enough for zerodha trading terminal…So don’t comment without knowing be frank let them know what problem their customers are facing so that they can correct it next time… And after all we are paying them boss to get error free trading…