Will this strategy work


#1

I have an account with Zerodha.

I buy a stock in intraday. If the price of the stock goes down, I will convert it to delivery and then sell when the price goes up. I will never get any loss. What you guys think of this strategy. Will this work. If no then why?


#2

Its a good strategy, only two issues -

  1. Stock never goes up above your buy price - Usually this doesnt happen, but depends on your discipline. Some traders chase faltu moves in faltu stocks, so in those cases, price may never come also

  2. You will get bored of waiting for your price, and you will see other good trades missing, and u feel your money is stuck in this dud and you book loss - This is more possible


#3

Thank you for the answer Newbie.

What if take loan and then do intraday trade


#4

How much money to start with, do you think I should have


#5

You can trade with as less as 5000… choose low volatility stocks and try safe scalping using small qty and repeat.

Aim for a winning habit and soon you will understand your style and temperament.

in case you lose, you have not lost everything in life.

Once you are confident, you increase your book size.

But if you are still not confident, please paper trade and don’t take a loan.


#6

If you are not experienced, better to settle loss and not carry forward to delivery.

It could sometimes take months for you to recover your losses.

I had a similar situation in Feb (Nalco dropped like a rock), in June ( Coal India I bought at monthly high and it took me 3 months I guess to come out in the green… I lost patience and sold it off at a loss that I did not imagine)

There were success stories as well… but my experience is bitter.


#7

For your strategy some rules to be followed.
1.you can not short on stocks because you can’t take delivery on long time.
2.you have to only trade large caps because if small caps go down you have wait for long time to come back. Or no come back.
This strategy successfully used for investing not for day trading.best of luck


#8

People do intraday only for margins. I don’t see any point in your strategy


#9

The main aim of my strategy is not to have any loss in intraday trading.


#10

You have to take good stocks then.

I will tell you my example - I once took Sangam India intraday - it usually hits 15-20% intraday randomly many times.

I followed your strategy of turning my intraday into delivery. After I took at 170, it fell to 150 soon. Then I opened its price chart (I didnt even check stock history until then imagine my stupidity). One glance at its price chart, I knew this CRAP is going to price of 50 by end of this year 2018.

I threw that stock in dustbin and booked loss. And was very happy to see when it hit a low of 55 proving my thinking.

Contrary if you do such trade in good stocks like Reliance, Britannia, TCS, etc. If you hold in demat, within 2-3 months max your price will come.

But for dabba midcap stocks it may be 2-3 years or maybe never.


#11

Hello @Mohammed_Zeeshan, First of all this is not a strategy this is not a plan simply you would take delivery if stock price get down!
You have not mention your capital amt. ???
You have also not describe your return expectation.???
One of my OLD friends friend BUY YESBANK on SEP’18 and on 21SEP2018 we all know what happend he take delivery of 100qty shares and has gone into depression as this money is of his hard SALARY INCOME. So think twice.
THIS is not story this is real.
NEGATIVE BALANCE/ LESS VALUE will cause weak emotions.

BUILD some strategy hedging you definitely get win.
:slight_smile:


#12

You need to first ask yourself if you are an investor or a speculator?

If you are an investor, then your strategy posted above is akin to financial suicide.

And if you are a speculator, you are doomed from day 1 as all other speculators who have gotten doomed since the beginning of this game.


#13

Please Elaborate


#14

Do you have money to pay upto 14x, to carry forward an intraday trade to CNC?


#15

I think this is stupid move. Bcoz trading n investing is completely different . In First scenario u must have target n stoploss. In second one. U don’t need it at least for the short period. Now imagine banks stock u bought n have to convert in delivery . they have large move for short n long periods. They may swing 10-20% in 6 months. So be as trader or investor. Or both like invest from ur. Trading profits. Not from ur capital.


#16

Please try and report back after 6 months! (in case you still have the mood to write…)
I do not know how long you are trading - but I am getting shiver reading your ideas of intra day trading…


#17

people like you not even suit to open a PPF Account


#18

@nigam_Patel don’t underestimate others.

@Mohammed_Zeeshan ur strategy will work but not for heavy intraday positions. U have to buy low quantities in large cap like TCS. Profit is limited. U may use this to learn. Don’t ever do this strategy in small caps.

U open Icicidirect because their u can enter margin position and keep for 180 days with pledged shares in bse and pay minimal interest. This will suit for companies like TCS reliance only


#19

This fellow ask us to buy Stock in intra day then he convert it to CNC if he fails to achieve his target.

Why don’t he do it in cash (cnc) ??? Does it smell like strategy from any angle ?


#20

Hi, when you say one can start scalping with as little as 5000, do you mean intraday equity trading?