Most of the traders lose the money in market due to Emotional control and no trading discipline. If i lose 10000 rs Today, someone is gaining that 10000 money. so why cant a same person Buy and sell.
For examble if i want to Buy Banknifty futures at 38400. Another person who is known to me should sell 2 lots of banknifty futres at an approximate prrice of 38400. So if market goes up , the buyer will get money and Seller will loose twice the money. But in long run, due to more and more trades, the person who initially bought the Banknifty 1 lot will start loosing the money due to over trading and no discipline. The person who intitially boguht the BankNifty is the decision maker. Other person will always trade opposite to Himā¦
We can do the above by diferent methods.
We need to create a algo which links twp zerodha accounts. if the decision maker buy, another account will sell automatically.
we can give our trading account to anyother person who handles the trading account with a small charge. we should not tell, that we are going to do the opposite trade to him.At one day the trading account person who handles the account will loose all the capital. since we taken 2 times his trade, we will get profit around 50 to 75 percentage after the losses and tax.
We need to get a subbroker friend, who can give us the trading details of anyone person who looses the money, we need to trade oppsite to him.
we need to try this experiement with a small capital. Please let me know your suggestions. How we can take this step forward.
More than 90 percentage of the trader will loose all the capital. we will trade againste the 90 percentage ad win.
I donāt understand all the details of what you have said, but I think what you are saying is illegal. Sounds like insider trading, operator driven type
Also, when something is digital, or has a paper trail, people will be caught.
The reason why traders lose money over long term is because tradingās a negative sum game (when all related charges are considered).
So in this experiment, sum total of the gains in the 2 accounts will be negative. And I have a feeling that over a long duration, both the accounts will eventually lose money after charges.
Thank you for the Comment.
You are Right.
if both the accounts handled by a single person, failure is for sure, Both account will become negative.
My method 2 and 3 will have more success rate. Since method 3 is illegal we can leave it.
My point is , if a trader makes a decision and puts a order, the other person , who trades should get that order information without the knowledge of the trader. then only the trader will trade as usual emotionally and will take more bad decisions.
there are several methods to do that.
By method 2, We can give it to some person , who handles our account, since we know the password of our account, we can also login and copy the trade in reverse.
If both Husband and wife are traders, they may share the passwords. so one person can login without the knowledge of the other and copy the trades.
the speed in which we duplicate the order in reverse way matters, there may be a small price difference.
Instead of #2, why dont you create a fake app and provide it to the ātraderā and anytime he does a trade, you ignore it and do the opposite. Basically, the ātraderā is papertrading and you are actually putting the inverse orders.
The reason why traders blow their account is not because they are very bad at picking trades but rather the crucial point of not stopping the losses and letting it run. Solving this weakness would be the key to trading, not doing the āopposite Georgeā.
yes we can try this method also. However the success rate is low, But we can also try this method.
In long term trader will loose the concentration and will start trading emotionally. we will start getting profit , at that point only.
so there will be days with losses also. However one final day as you said they wil; not stop the losses and will loose everything. the opposite trader will get the profit
Because this is like moving Rs.10000 from your left hand to your own right hand, and giving Rs.5 to the (broker + exchange + government) for providing the opportunity to do so? So you end up losing Rs.5 for one such āleft hand to right handā transfer.
I donāt see what the point of doing this over and over is, except of course if your goal is to make the broker wealthier.
