Which segment of traders are most profitable, intraday, short term positional traders, investors?

General
1

which segment of traders are most profitable, intraday, short term positional traders, investors?

2

In every segment you profitability is equal but the time frame is changed.

3

Depends on the time frame, if you are looking over multiple years - investors (assuming there was a bull run in stocks some time). Shorter term, traders.

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4

Only option writing

Regards
StocksRin

5

By ‘Shorter term, traders’, you mean positional traders or intraday?

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who ever keeps booking their desired profits are always profitable…

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so one must trade with stop-loss or not? if we trade with stop-loss sometimes we won’t be able to book profits at our desired level as stop would have hit before we book our target.

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if you trade with proper stoploss and proper risk reward ratio you will be always profitable…

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waht do u mean by ‘proper stoploss and proper risk reward ratio’? please elaborate

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stoploss should be a meaningful stoploss not predetermined for example if you buy a share at Rs. 100/- and you simply decide your stoploss of @ 1% or 2% i.e. at Rs 99/- or Rs. 98/- then its not going to work. so stoploss should be a meanigful stoploss.
Risk Reward :- if you trade with risk reward ratio of atleast 1:1.5, and evenif 50% of your trades are successful you will always be in profit.

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You can simply determine the stoploss based on ATR value. See the varsity

See the extract below

  • What should you know?

  • Average True Range (ATR) is an extension of True Range concept

  • ATR is not upper or lower bound, hence can take any value

  • ATR is stock price specific, hence for Stock 1 ATR can be in the range of 1.2 and Stock 2 ATR could be in the range of 150

  • ATR attempts to measure the volatility situation and not really the direction of the prices

  • ATR is used to identify stop loss as well

  • If the ATR of a stock is 48, then it means that on average the stock is likely to move 48 points either ways up or down. You can add this to the current day’s range to estimate the day’s range. For example the stock price is 1320, then the stock is likely to trade between 1320 – 48 = 1272 and 1320 + 48 = 1368

  • If the ATR for the next day decreases to say 40, then it means that the volatility is decreasing, and so is the expected range for the day

  • It is best to use ATR to identify the volatility based SL while trading. Assume you have initiated a long trade on the stock at 1325, then your SL should be at least 1272 or below since the ATR is 48

  • Likewise if you have initiated a short at 1320, then your stoploss should be at least 1368 or above

  • If these SL levels are outside your risk to reward appetite, the its best to avoid such trade.

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yes, you are right. there are many other ways to find a proper/meaningful stoploss.
that’s why i said that one should use proper/meaningful stoploss and risk to reward ratio.

thanks for explaing it with the example of ATR.

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Ok, i get the point of meaningful stop loss. can we discuss meaningful target now. how to place targets?

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risk reward ratio will help you find your target

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what would be a meaningful risk to reward?

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i personally trade @ RR of minnimum 1:1.5

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17

In order to write options, make sure you only choose far OTM contracts, and preferably only index options, because they are less affected by market volatility. Otherwise you can lose money even in option writing

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Yes Abhijit
i agree what you mentioned :slight_smile:

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There are different ways to determine Targets.

  1. Look at the nearest peaks the stock had traded in the recent past.
  2. Look at the Resistance levels
  3. Use Fibonacci projections
    4.Do not fix a target, You just trail your stop loss continuously upward until end of the day.
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20

r u an intraday trader or swing trader?