Actually few years ago I started trading / investing, started with 28K and lost all. Lately one of my friend introduced me to technical analysis and I have been predicting and earning or atleast not loosing in paper trading. If I do well, Can I rely on Trading as a full tike career? Also give any specific tips if any!!!
You won’t loose money with proper risk management like taking appropriate stop losses and such. If you are doing that then good. The reason why most retailers loose is because they don’t know when to give up. As far as making a career in the market goes, that doesn’t depend on you lol. The extent to which you can trade depends solely on the regulator itself. They have a strong stance against retailers in the market. You never know what they gonna do next to push retailers out. So, one shouldnt consider a career in a field if the government doesn’t agree. And most importantly, look at the time you have in your life. If you meddle around with trading and keep trying to make a career in this field where little scope exists, you are losing your valuable time. It’s much better to invest your time into some other lucrative business. Just my 2 cents.
You can give this a read, will help you.
Hey! That’s a great advice!
I don’t understand the regulator part? Do you want to say that government may stop the retailers from traiding? Or the retail trading is going to end in few years?
One more thing I wanted to know is can we generate enough income from trading (if done properly) to make our living?
To become a full time trader this is not enough , 1. you need minimum capital of , at least money equal to 1lot of any FNO contract.
2. TA is very helpful but it is around 35% of trading part rest depends on ,mainly Money management &psychology
3. Paper trade won’t help you much , instead try to do live trading , say buy 1 share & sell 1 share , this way try& test your trading skill & get experience , its mainly controlling your emotions.
Paper trading is not the same as real trading. When your money is involved, the emotions are different. That is not to discourage you from pursuing it as a full time career, just that u need to adjust your expectations of what it could be like.
Alot depends on your trading capital. If you have less than 1 lakh to trade, it’s going to be difficult. Your emotions will kick in when u start losing money. I don’t know what you’re living expenses are like, so u have to keep that in mind. Provided that’s taken care of outside trading, then u might have a better start.
Eventually, you will learn if you keep at it, and practise proper risk management. So wish you all the best.
Don’t bother much about that regulator part!!
This is just his frustration speaking!
Except for sarkari naukri of chaprasi, there is no stability in any job or any business!
If you start a shop of readymade cloths, and tomorrow suddenly people stopped wearing cloths altogether!! What will you do?
So reinventing is only way out.
You aren’t making a good comparison here. What happens in reality is that progressivism kills older technology and takes away jobs and businesses that rely on it, thus forcing people and entrepreneurs to become more innovative and adapt to the current environment. What Sebi did was neither logical nor progressive. It actually pushes retailers out rather than bringing them in. It’s a regressive system. So, my point still holds.
I think we must be happy for at-least being able to short-sell and trade a multi-legged option spread. In Australia for instance, you cannot short-sell stocks and you need to be at Level4 to trade a straddle for example. So, enjoy this while you still can Regulations are only getting tighter, and they are supposedly helping to protect the interest of retailers.
Are you trying that imply SEBI is more lax than their Australian counterpart? Cause last time I checked CFD brokers are a legal and a big thing over there. And you know what that means. Yeah ASIC is considering clamping down on the leverage provided by such brokers and that’s a good thing. I never said that standardization of leverage/margins is a bad thing. I am in support of it in fact. The problem lies with being overly protective. If you are gonna standardize leverage, then no more what is required for adequate risk coverage should be charged.
Kinda points to my fear that future scope in this occupation is in gloom.
I have highlighted the word that reveals the unsurety in your argument and hints that my opinion might not be so invalid after all.
Actually this is the problem in India every thing being compared to foreign country’s, we cannot compare us with their wealth & quality of life. here we need our own solution for our own problems keeping in mind that in India we have the problem of Capital & no privilege to have it and also regulators are just having communist mind set and they do wrong thing in the name of protecting Retail traders.
Are you suggesting that comparing with other markets is a greater problem than ‘the problem’ itself?
Well, every country is a foreign country for some one or the other. And human problems are similar everywhere, beyond the boundaries my friend. And trust me, comparing and contrasting are great tools.
Yes! Here are the keys:
- Knowledge (of markets, trends, regulations)
- Skills (Data analysis, Bit of programming, EQ) and
- Reasonable Capital.
Didn’t mean to highjack this thread, sorry for digressing a little.
Not just CFDs, betting is legal too In Aus. But that doesn’t mean a thing. Regulations are regulations.
Look mate, I’m nota fan of regulations either, but whining about it doesn’t do any good either. These regulations affect everyone one way or the other. Irrespective, trading opportunities will always exist as long as the markets exist. Conditions keep changing, and taking a position to profit from these changing conditions is what traders do isn’t it? So, either ‘go long’ or ‘go short’ or ‘sit this one out’ Cheers!
I think you missed my point by skipping next lines, Well my point was that about the " Affordability "
I do agree regulations should be in place. I said that earlier as well. What I do have a gripe with is irrational or overly protective regulations. I am simply asking for a sound regulation framework. Too much to ask for?
That kinda is true. Because comparing yourself to others and then deciding what’s best for you on the basis of what others have is gonna make your problem worse. And this happened with Sebi as well two years or so back. They were trying to compare themselves with the foreign market and concluded that India too needs a networth criteria for deciding who can trade what in the market. It didn’t get imposed ultimately due to backlash but it had, you’d have a stupid regulation that required you to maintain a minimum balance of 20 lakhs rs with your brokerage account just to trade. So yeah I know what i am saying.
That’s not even true. Every country has their own distinct problems that should be solved what what’s best for that country’s citizens.
Why are you not taking up these issues with SEBI. why don’t you take some people and protest there?
Discussing the issue here in this forum is pointless and nothing will come out of it.
Lots of people come here and complain, but i have yet to see one person protest this issue infront of SEBI office.
Which means this really is NOT an issue.
I tried doing that back in 2018 when all this started to roll out but no was willing to provide financial aid to hold up a PIL in court. Out of utter disappointment, I decided that if I were financially well off enough at some point later in life, I would take up the responsibility of doing it using solely my capital. And then you what happened, pandemic and stuff. Things are not financially stable right now. So, I am just waiting for the right time.
And to your last point, it is indeed an issue whether anyone acknowledges it or not. I feel like why no one has taken it up with the authority has several reasons. It could be due to the lack of financial resources, or it could be the lack of knowledge or it could just be that retailer community itself is so small that not enough number of people are coming together so as to have an impact.
Yes, trading can be a full time career. If you know what you’re doing in the name of trading.
What one expects from a career? A reasonable regular income to meet expenses.
To make regular income from trading that’s enough to support your livelihood first thing you need to know is
1. how much you need.
Let’s say you need 30k per month. Next you need to consider inflation and calculate how much you will need in coming years
2. How much you should expect? .
To make 30k from risk free bank deposits per month @6% you need approx 62 lakhs in fixed deposits.
Now you’re talking about trading so obviously you are talking higher risk and would expect higher returns. But, how much higher? 10% 15% 20%?
Say you’re a trader who makes 2-3% per month (annually 24-36%, 6 times that of bank deposits) you’ll need 15 lakhs. Making 2% per month is a big thing in my personal opinion.
Point is, bigger the capital easier for you to trade stress free and with realistic returns expectations.
**3. Position sizing and risk management: **.
Out of 15 lakh how much you want to bet on one trade? Let’s say 5% i.e. 75k and say you put 1% SL then maximum loss of capital on one bet would be 750 rupees
With such calculated approach and simple but effective trading strategy one can become a trader who trades for living. Listening to Twitter and telegram traders who make crores everyday won’t be of any use. Read some quality books on trading, pan your financial journey and live it. Good luck
I am not full time trader but few tips (I have sticked in front of my system and trying to follow)
- instead of losing all money in one go, invest money somewhere and slowly transfer money to trading accounts.
- Follow proper risk management, never loose more than 2% in a single trade and whenever you loose more than 6% in a month take a break and review all your trade and identify mistakes.
- Look for high probable trade setup or breakouts only for trading.
- Reduce number of scripts you trade
- Maintain trading journal (why you have taken trade, screenshot of entry and exit)