So, I hear that there are people who are scalpers. They buy at Rs. 10 and sell at Rs. 10.3 or 10.5. My question is that there are many charges on buy and sell side both like STT, brokerage etc. Then how is this strategy profitable?
Any insight will be helpful.
Yes, I know that beginners should not scalp. I am trying to understand the thought process.
Scalping operators do on retailers heads in the market
Like in that movie of Brad pitt they had shown 
It is profitable only when trading large quantities. Also with low brokerage.
If you are trading with Zerodha, you can calculate the profit in this strategy with high and low quantities using brokerage calculator
https://zerodha.com/brokerage-calculator
As others mentioned, if you are a beginner it’s good to avoid this strategy.
Their win rate is usually high with small R/R ,which covers the losses/brokerage/taxes.
Again , the whole point of trading intraday ,be is scalping or swing is that you make more than 100-200% a year on your capital. Otherwise it makes no sense, just invest and do something else.
nice
@Gaurav_Chandra scalping is possible in Icicidirect even for retail trader. But whether u win or lose is our fate.
With Icici bullet brokerage plan u pay zero brokerage for positions squared off within 5 minutes. Combine this with a high volatile scrip like Baja finserv (5000 range scrip)
Now simply buy 10 quantities and u make 100 in minutes.
Are you really serious??? 100% to 200% year on year in trading???
What do you think should be the CAGR in investing?
well with a good strategy scalping can be very profitable ONLY!! if it is compatible with your personality but than so again other things like swing or investing too can earn you big bucks i have seen people who only trade 4 or maybe 5 times a month and earn in lakh’s and on the other hand people glued to there screens all day only (me included ) to just make it . design a strategy that suites your personality best thats the step one only after that anyone has a reasonable chance to make it in the market
yes i m serious.
Why is that hard to believe?
Many HFT firms make more than 200% a year.
So an expert scalper should easily make atleast 100% a year, otherwise whats the point of doing it?
Nothing shocking in that, a scalper can continue only if they have consistent daily profits
So a scalpers profits should be on the higher level than a positional traders profit
Ofcourse i am assuming ideal trader on both fronts, in reality we know who makes more profits
Please check what would the result be if you could get 50% returns year on year for 10 years, 15 years and 20 years. Start with a decent amount of 2 Lakhs.
Seriously, the major problem with most of retail traders is unreal expectation (I’m also a retail trader. I’ve learnt the hard way to keep it simple).
My personal opinion, if you can average 30% to 40% year on year CONSISTENTLY (important word being consistently) on big enough Capital, most fund managers will give you their right hand to manage their money.
I’m sure not only a scalper, but all kinds od traders / investors will continue only if they see consistent profits periodically.
Why separate the poor scalper? The trading style is only a reflection of the trader’s personality. There is no theory that a scalper should make more money than a positional trader. A scalper might loose money in positional trades, since it doesn’t suit his / her personality.
Each trading style has it’s own pros and cons and the trading gains are just a reflection of the trader’s skill / abilites.
That said, I know some traders who have averaged 100% year on year in the last decade. After a point in time, their returns became simple interest than compound. That’s part of the game, can’t help it. Trading can only take you so far. But there might be one trader like that in few thousand traders.
Aspiring to reach that level is awesome (probably we all should), but expecting all trader’s to reach there or quit, is like saying all engineer’s should be from IIT. Any other engineer might as well quit.
There are many firms doing decent returns. 50% is nothing.
For retail traders , i cant comment how much they make YoY.
I m not sure if retail traders can CONSISTENTLY average 30-40% YoY. if they could they would be working for funds.
As for 30%-40% NOT YOY, simply investing in midcaps is sufficient to make this, Why trade then?
Ofcourse every single human being on this planet thinks he is smarter than markets and can beat it. Every retail day trader thinks he can beat the professional institutions, but guess what? LOL.
All i m saying is, your reasons(RETURNS) for trading should be very very good otherwise don’t bother with it. Simply invest and do something better with your time.
As per Advisorkhoj.com the best performing Mid Cap Mutual Fund is HDFC Mid cap Opportunities Fund and it has given CAGR of 23,67%.
I couldn’t find maximum Drawdown for the same period anywhere in the site. But Mid Cap funds are very volatile and it’s very difficult to see 50% drawdowns (lumpsum investments). Ofcourse they will comeup and give stellar returns also in due time. Not everybody has the stomach to digest 50% Drawdowns.
So probably any return of above, say average of 35%, must be worthy of the endeavor. But then again, trading returns is probably like finding a spouse (This is also a very risky endeavor 
). What one hates, the other loves. So each to his / her own.
But make sure the returns are worthy of the risk taken. Higher returns with lower risk is always welcome, but higher returns with higher risk??? For 200% returns what should be the ideal risk?
Yes consistency is the key…Even I used to do daytrading , my target was 20% monthly which I easily managed to make for 2 months 30% & 20% but third month I made loss & gave all my profits & some of my capital back to market…
Then stopped since then…Now I am following a guy in YouTube… He is making profit s consistently…around 30-40% per month … He has a capital of 2 lakhs & he dont increase it. He withdraws profit every month… My mistake was money management was not there…& secondly I started compounding profits into capital, as capital grew fear started to mount…& mistakes too…
My point is it is indeed possible to earn 100-200% per annum from intraday trading but don’t expect to compound…With a fix capital, discipline & strategy we can earn that…
It can be an additional source of income, but for wealth creation we have to go for investing route only. …
Any business, if it doesn’t grow, will fall. One has to keep running to be at the same place. Growth has to be a part of the basic business plan itself. These are few things I’ve learnt. Trading is also business (Now, I’m assuming that trading is the main source of income i.e. the trader is a full time trader. I’m a full time trader, I don’t know what works for part time traders).
Scaling up has to be a part of trading plan. I’m not saying making 400% per year is an easy job (Assuming the claims of the trader you talked about is real and it has been verified by authentic sources), I’m sure it is a spectacular feat in itself, but the real challenge comes with scaling up.
Any full time trader will vouch, it is very important to scale up. Ofcourse, the process of scaling up, has to be a part of the overall trading plan. A part of the profits, if not all, has to be put back to increase account size and ensure growth.
Now, if a trader having an account size running in few crores (atleast half crore, with plans of scaling up, maybe slowly but steadily), is still able to show 100% returns year on year consistently, please guide me to them, I want to learn from them.
Thank you
Yes trading is indeed a business…The guy I am talking about doesn’t claim that he can earn 30% or 40% every month…
He does trading truly as a business…He is full-time trader… He just have a simple normal strategy with around 55-60% success rate, he simply follows it… He do make losses also, but with discipline, money management & risk reward he manages to be in profit…
In business also calculated risk has to be taken & there may be loses also in some quarter but must be in a position to carry on business… (That was not the case for me my loses were more)
I have not done his course, nor I think of doing any of his course as I already have done many…
But I do learn from his videos & I get inspiration…
Can you tell us the name of youtube channel?