sir ITM money is high value compare than OTM & ATM if market is against you how you handle it sir.
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I trade with near ITM about 100 points away from ATM strike. So not much to loose in case market makes a move against my position.
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@ARun_93 if you think inr.10 share is 10X cheaper than inr.100 share, then you should read basics again.
Same applies to options, each have different deltas
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I donât know if these things will resonate with you. If you are looking for no loss strategy or things like that, you ll be disappointed. However, if you want to listen to traders talk about their experiences or reality, and in that way touches where you are/were on the journey, you ll find this quite worth your time.
People are all build different. For some meditation helps, and some cannot just do meditation yet perform well.
Anyway, check Chat With Traders. If you like connecting dots, you ll find lots of fuel for the soul.
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Day trading can be profitable if you learn to read charts and patterns correctly in order to identify the best time to make a move, when to enter and exit. There is a significant degree of risk involved, as many traders borrow or leverage funds to purchase additional assets every day, which can be risky. So it is up to you if you want to trade with leverage or not.
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Day trading is, without a doubt, profitable. Any strategy can be profitable if it is well managed. To begin, perhaps understand the basics of day trading and long-term trading, and then apply what works best for you. Even if some people are not suited to day trading, it is more promising.
Yes, definitely day trading is profitable for experienced traders but beginners should stay away from it. For trading by day trading strategy, you must be efficient in quick analysis and taking instant decisions.
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Risk management and knowledge are very important in day trading. If you have right trading skills then day trading might become profitable
It is profitable when you have good knowledge of the candlestickâs pattern, charts, and price action in short, technical analysis.
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Day trading is not profitable for 99% retail traders. It canât be due to structural reasons like high speed, slippage, stop loss hunting, spreads, news based quick reversals , Algo Bots, commissions.
I am seriously surprised when people blame failed day trading on Traderâs Psychology, Motivation lack of Discipline or experience. These factors donât matter as much as popularly emphasized. Even bots who donât need Psychology or Motivation find it hard to make profit over a period of time
And those day-traders who are profitable donât make impressive returns on their capital. It is most stressful kind of trading with least amount of returns.
Finally to be fair to day traders, I would like to know how profitable day traders here are by which I mean how much % on average they make in a month?
The short answer is lack of persistence with a well tested and rounded strategy. The success rate of 1% sync with success rate in most other fields. Not many are wired to persist in the face of inevitable failures they will find along the path to success.
I am mostly a trend follower. Markets trend only 30-35% of the time globally. I make most of my profits when the market trends. So I donât look for monthly positivity. I look in yearly time frame. I post my yearly returns here and on my website.
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George Soros has an apt saying:
Itâs not whether youâre right but how much money you make when youâre right.
So question is not profitability but how much profitability? Are top 1% day traders beating top 1% swing traders or top 1% positional traders or even Index Fund Holders?
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Its not just about how much we make when we r right. Its also about how much we lose when we are wrong and how often we are right and wrong.
My return % I have posted in the above link. I donât know whether I beat anyone. I just focus on my returns and on the process to materialize the same. But my aspirational goal is to do better than Jim Simons⌠
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Day trading is simply not profitable. But course sellers, bot sellers, signal sellers and your broker(s) will try hard to convince you that day trading is profitable. This is how they make money. You see conflict of interest?
Time and time I see same thing repeating: brokers and salesmen trying very hard to convince novices that day trading is profitable. Most people claiming day trading is profitable are there to sell you something : course, bot, signal, webinar, mentorship , personal mentorship and what not. Donât trust them. I repeat, donât trust them. Ignore them. Donât give them your ears, because if you do you will end up giving your money to them as well. Stay away from these dream sellers.
Now the main reason and only reason day trading doesnât works is this: the candle size is too small to make any real money , assuming you can catch whole candle consistently (which itself can be done only 50% of time if you are very good at TA).
And if you are over-smart enough to use leverage (via Futures and Options) to compensate for lack of candle size, you have failed to realize that your risk reward has not improved at all. It is exactly same, your 1:2 strategy is now only 10:20 strategy.
The essence of successful trading is this: Cut losses, Let your profits run. In day-trading you canât let your profits run and this is the reason day trading will never work. It canât work.
Finally the fact that top succesful day traders earn far less than top swing traders and top succesful investors, is another evidence for how day trading is waste of time. Plus constantly sitting and staring screens gives you myopia, hypertension, back pain , Prostatitis and various mental health issues. But salesmen , I bet will never tell you : Day Trading is best way to lose your wealtha and health.
Day trading is not profitable for the majority of the people not because it doesnt work. Its because the ROI expectation is beyond their financial intelligence.
There is a class of people who are minting money intraday, and I have had the luxury to befriend them on this forum!
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What was their monthly ROI , on average ? Devil is in the details as the saying goes.
I can tell you my mindset, if that helps!
Every time I take a trade, the min profitability I look is 7% ROI per year. So it translates into 7%/200 trading days per day. (ie beat the FD rate)
For eg: if I make a profit of 900 per day for a capital of 25 lakhs - I call it a win!
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so you are trading full time to beat FD returns?
hmm
I dont think thats bad.
Again I visualize 2 people in chair on my trading desk. One is me and the other the CEO of HDFCBank who is offering me 7% FD returns.
I will have to beat the other guy every single time to create alpha!
Imagine how hard that can be.
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certainly its not badâŚ
But if i am giving full time to trading business i would have like to generate descent returns comparing to other businessâŚ
If i am passive investor or trader then i am happy if annually ROI is more than FD