Will this strategy work


#21

It is always wise to accept your mistakes ie it’s good to book a small loss and not to carry it forward. Next day again you will get a chance take a position.
I don’t get one thing :thinking: There are many stocks in which you can earn profit so why to stick with one particular stock?


#22

Here, the topic owner is new to trading and my suggestion for his intraday is to start with 5k and scalp small quantities many times and make profits… just to get used to the heavy weather in this trading sea.

Also with a small capital, new traders will be forced to have risk management and money management in place.


#23

Anantray- For new traders risk management /money management and discipline is not possible.
after paying fees in a way of losses it may come gradually. It will be better to start small, observed and initial paper trading may be helpful.


#24

Ok… Lets assume…

You have 10000 Rs.
Stock price 200
Intraday margin 20 times
So, actual stock price in intraday Rs.10

Option (1) : You can purchase 1000 Stocks by using margin facility (This is called intraday trading)
Option (2) at the end of the day, you are going to convert delivery mode if the stock falls down… so you can purchase 50 stocks only. (This is delivery trading)

Stock goes down 198 around 3pm.
Now you have two option

If you chosen Option 1
Bought at morning - 1000 Stocks
Stock price - 198 at 3pm
you have to exit at 198 (Loss 1000*2 = Rs 2000 + Brokerage & Tax)

If you chosen Option 2 : (As per your strategy)
Bought at morning - 50 Stocks
Stock price - 198 at 3pm
You are going to convert your stocks from intraday to deleivery
so, 50 x 190 = 9500 You have to pay.

Either you can go home with loss of 2000 or have to invest 9500 from your investment of 10,000 Rs.

Now you haven’t any money to do trading next day …
Just you have to watch your existing stock…
you have to wait to cross your 200 buying price.

It may happen in the next day, next week, next month, god only knows.

So conclusion

I have 10,000 rs.
I loss 2000 rs in the first day.
learnt a lesson…
Started fresh trading next day with 8000 Rs.
This is intraday

I have 10,000 rs.
I am going to loss 2000 rs in the first day.
Decided to convert delivery mode
Ready to wait to see the profit
This is delivery

So as per your logic… it is not strategy

If you have 1 lac
Take experts advice
Choose the stock wisely
Invest in delivery mode
Wait and watch the growth

If you have just 10,000
Learn basic intraday trading, and simple strategies, watch lots of youtube videos, read candle patters…
Then invest 500 Rs.
Do only one trade
Set target, stop-loss
just watch the movement
Just exit whichever hits first. This is the basic discipline you have to follow in intraday.

Hope i shared some useful info.

Thanks


#25

You are mixing 2 Most dangerously Risky things in the world

  1. Taking Loan for Trading
  2. Intraday trading - Riskist of all trading!

You seem to be a new entry into the Stockmarket Jungle!