Come on man. Of course i want things to be better. But from what i know its very very hard to change their minds you know. The only thing that will happen for certain is that you may lose even more money paying the lawyers, courts, and what not.
Now yes if this becomes a real movement. Like if this has huge support and petitions from retailers from all around the country then yes this might change things for good. And i’m up for it.
Well you can get legal support from the court if you don’t have money on you. I just need people to come together.
If the rules change, then fine. But with the current rules, as I told, anyone below 5 lacs should stay away from futures.
Intraday predicting is very difficult. And then if you go for positional, then that can be even more problem. Stocks open 5% down, 10% down just randomly and that would be the end of a trader. Recently TITAN opened 5% down one day and that was the day I decided FNO Futures is a waste of time, if a so-called good and safe stock like TITAN can do this, god knows what will happen if you go for other FNO stocks.
Options (Bank nifty) and few stocks can be good bets I feel. This is from my FNO experience until now.
I will tell one example of how to make money safely in FNO (options), ofcourse these situations are tough to find, and sometimes buying options can be waste of money, but atleast you can keep stop loss.
Reliance had Jio conference on 5th July and that day stock fell 2-3%. If you are even average trader, you could understand that intraday fall was to make fool of intraday retailer traders. And one could predict from then, stock would go up.
Now see how 1020 CE option price went up within next 2-3 weeks. Just by putting 10K at risk you could earn 1 Lac.
Whereas lets say if you bought in Futures, and if operators decided to make it fall 1-2 day more, u could lose 20-30% of your capital and book loss within next 2 days, and then stock would later go up.
Ok, I can most definitely understand that indirectly making people underutilize their funds reduces negative impact on their account but at the same we have to see that it also reduces the profit that you could make by utilizing your funds to the fullest and also it reduces market volume which means less money for brokers, the exchange, and taxes to the government.
I just think that we should get to utilize our funds to the fullest by not charging a penalty on the shortfall which is obviously unfriendly to the trader and everyone.
How many traders/investors in this forum have relatives (close relatives) in Ministry of Finance and policy makers circle of IAS Officers. They are the ones who frame the rules and laws are made by elected leaders.
Each one in the forum has to catch the local MP or an influential bureaucrat to frame the rules and laws according to the likes and dislikes of the traders. After all Zerodha’s founder(s) started from the same viewpoint. The usual trade and commerce is cheating all round by mutual consent. That is how one man’s gain is another’s loss.
We need to stand up against things like this is all I can say. We can’t have the authorities decide our lives for us. All I know is that those who trade are mature adults responsible for their money and we should be allowed to use our money the way we want without having to pay unreasonable penalties on top of losses.
Mr. Garg, be happy you are not born in Russia and can do whatever the mind and heart urges us to do. You are born in free India where politicians are elected by us so that we can express dissent.
Consider the penalties as the price for the freedom of not being in a straitlaced political environment.
Except you are not really allowed to do as you please. You see people are like sheep. They’ll do whatever the shephard says. Now you may have the sheep choose their shephard but that doesn’t really change anything because they still have to do whatever the shephard says without objecting to it. This puts us in a situation where the shephard can control us in all the ways as long as he doesn’t lose his shephardness for if the shephard were to directly harm the sheep he would be viewed as a monster and that means the power of the people is limited. However, I believe communication is the key. We can at least talk to the authorities. No harm in that. We might even take them to the court as we have the right to do so. The thing is that it isn’t real freedom if you have to pay for it.
Someone thought me this long back and I agree to what he thought as a risk management technique. If you are dealing in futures then apart from the margins you should have atleast 10 to 12 percent or more( depending upon historical volatility of the stock ) of the position as buffer in ur account. For eg if I buy one ITC future and pay 85k as margins, then I would additionally keep 10pc of buy value as buffer ( although you might have a stop loss of let’s say 2-4 percent for this trade) By doing so, you will not only avoid penalties but also provides a decent risk management mechanism.
Doomed to be duped by the laws, commerce and the law-makers. Use the knack of using ‘influence’ in the corridors of power. Think about it.
The solution is simple. You have to keep margins considering your drawdown into effect. Even if you take a position with the bare minimum margin, ensure that you fund your account every day with negative mark to market amount if any. When the MTM is positive you enjoy the funds. Similarly when it is negative you should be ready to fund it.
Why do you think futures markets are unfair to you?.
Exchanges and brokers have clearly mentioned the margins and penalties and its the same for anyone , be it retail or institutional.
I don’t see what the issue is.
It’s unfair to everyone really compared to the previous rules we had.
Yeah that’s what I am doing right now but consider this. That margin I am leaving is underutilized which could otherwise be used to make more profit.
Lol you are talking as if its like a Bank FD and you have profits guaranteed by SEBI on each rupee of your capital.
I dont know why people are so excited to use their entire capital and trade all days, anyways most make losses overall in FNO.
Why so much excitement to do FNO, first build your capital. First you reach a comfortable capital then think about what you are losing out on by keeping capital idle
It’s about choice. It’s about the fact that we are being indirectly forced to underutilize our capital.
So do you agree with what I’m trying to say? That we are being forced to do whatever the authorities say.
Like I said, it’s about choice. We should be allowed to use our money the way we want. If I want to use all of my capital while trading then I should be allowed to buy now that is not case. You have to leave out margin to avoid penalties.
kindly explain how is it unfair now?
