Trade professionally rather speculative trader in NSE/MCX

This post is updated version of my previous post which were  only about equity  and option trading.

Well many of us are willing to or tempt to dive in the ocean of money so called stock market. But are afraid to be drown rather coming out with pearl. Here's an guide for beginners, check out really simple trading technique and trick you can follow to get most from your stock market intraday trading. 

Either you can follow the below strategy or you can have a SEBI Registered financial advisor to advise you for it. Financial advisor are the people who advise you making money in return of their fees. If you're not willing to spend money on paying them the following can help you.

Well you can do it in MCX and NSE, NCDEX is more complicated because technically it's not moving much but fundamentally; which is like going to take alot of knowledge and research work so let's not get into it.

First strategy to make money is to save on your brokerage first because your brokerage charges eat up your profit amount and increase loss amount alot. Lets say you make a profit of 2,000/- but your brokerage is 500/- for that trade what you made 1500/- only and if you make a loss of 2000 and brokerage is constant so your Loss is of 2500/-. And people make more loss by themselves than profit.

So saving on brokerage is a must as that is a constant expense or loss that cannot be escaped. If you have a good brokerage plan you have win half of the Battle already.

I have an account with Zerodha if you want you can open with them to simply dropping your details and click on xall back they'll call you and guide you. Open an online trading and demat account with Zerodha and enjoy the lowest brokerage

Now come trading well there are 2 types of trading:

1. Intraday or day trade: Intraday trading deals with buying and selling of stocks on the same day, during the trading hours that are stipulated by the exchange. An intra-day trader is a particular type of stock trader. This trader both opens and closes a new position in a stock in the same trading day. Intraday trading is the most popular thing in Indian stock market specially amongst new generations. Just come with small capital and use leverage to trade.
2. Positional or holding: Position trading is the opposite of day trading because the goal is to profit from the move in the primary trend rather than the short-term fluctuations that occur day to day. Its is conventional way of trading you just buy a stock or a counter and you keep it.

Talking about day trading or intraday trading is simple. Actually talking about it, it's better over positional trading because Return on Investment is good (approx 10% of your investment), risk is low if you are going put stoploss. Best part your funds are not getting blocked, not Time consuming. As you don't have a burden of your position what market will be tomorrow. You don't need higher investment as you get leverage over margin or limit over investment in demat.

So it's actually good to trade intraday or day trade rather than holding or taking delivery trades.

Now the question is how do we do it? Well for it we have 2 working strategy which don't need much effort. One is technically understanding stocks and trading accordingly. Second is working fundamentally. You can choose whichever you like.

Working technically you need to choose stock on the basis of technical parameters like 15 min candlestick of any stock you can choose. I am using Zerodha that and I do have charts available there on script only. If you don't have such terminal you can open account with zerodha via link mentioned in this post.

Now talking about MCX you can trade in base metal or energy segment for safe trading but not bullions as its going to take alot of investment and knowledge. Bullions are basically Gold & Silver those are High Risk High Return.

Now talking about Base metals & Energy, they have:

1. Aluminium, Lead & Zinc: Mega as lot of 5000 that's you're going to gain or loose 5000/- per 1 point movement. Its mini marke lot 1000
2. Copper: Mega 1000 lot size its mini market lot is 250
3. Nickel: mega 250 and mini 100
4. Crude oil: mega 100 mini 10
5. Natural gas: only mega contract with lot size 1250.

To learn technically trading you need to know basics of Candlestick patterns. You can prefer YouTube for learning candlestick patterns. And if you like, this channel is my favorite as they have 2 min videos that shows how to interpret candlestick and explained via applying on NIFTY chart.

https://youtube.com/channel/UCOsfkR98jZlYJpTGKs1fIsw

If you trade small even you can earn that much in these follow buy above high and sell below low strategy in these score for 1000/- – 2000/- only and exit. Make sure you are using stoploss and Target.

Similarly you can trade in equity also. In equity you have:

1. Cash Trading or Cash Market: In this buying or selling of securities is done by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made.
2. Derivative: It is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from shares or cash segment only.

Now, let's say you are tempted to trade in ICICI BANK just go to ICICI and open chart and see 15 min or 10 min candlestick there and if you get any buying signal or selling signal make a trade put a stoploss as per candlestick analysis and Target not higher than 1:1 ratio. That is risk reward ratio should be equal. If you're looking to take risk of loosing 1000/- you should be making a profit of 1000/-. It can go higher than that but it needs lot of experience. 

Well you can do fundamental trading also with minimum risk and less calculation. The easiest way of earning small. You need to know about options for it. I have a small trick that can work on options and get you some good return with less investment of time and money. Here I can educate only on working idea not in brief theory because that will be too much information. You need to do a basic research on options before moving ahead.

If you make a profit of only 2000/- daily per trade with this trick there are 22 trading sessions in a month on normal basis so with 1 trade per day you have a potential to generate 44000/- per month and this is in 1 single lot. The minimum I talk about now brokerage is not higher with option so for 22 trades I am not going to pay more than 4000/- and if I incurred loss even lets say 7/10 I make profit so its like I will make a loss of 6 trades 12000/- my potential profit after brokerage charges is like 40,000/- if I deduct loss part 28,000/- of profit a month with hardly an investment of 10,000/-.

Yes it is possible. Read it how I am going to make it done.

I will cover maximum of it so even a new to options trader can also work on it.

There are two types of options:

1. Call Option
2. Put Option

I am not going in deep details of these but just to clarify YOU BUY CALL OPTION WHEN MARKET OR THE STOCK YOU'RE BETTING ON IS IN BULLISH OR BUYING TREND. YOU BUY PUT OPTION IF THE STOCK OR THE MARKET YOU'RE BETTING ON IS IN SELLING TREND/BEARISH TREND.

MOST IMPORTANT THING YOU ALWAYS BUY AN OPTION NOT SELL IT. SELLING OPTION IS MORE DETAILED TOPIC TO DISCUSS.

Well best strategy to employ if you're talking about NSE options here is focus on news. Keep in touch with stock market news like

1. CNBC AWAZ
2. Zee business
3. NDTV Profit

Should be watched between 8:30–9:30 a.m. then you get to know the fundamentals of stock which are in buying trend and which are in selling trend.

Once you know which stock you're betting on simply go to nse website and that stock in search bar on the top of it. Once you're on that stock page simply look for “Option Chain”. Now you will get a list of option contract. It will have both Call option and put option. Here look for the maximum volume option WHOSE PREMIUM AMOUNT IS IN YOUR INVESTMENT BUDGET as higher the volume more safe the trade is.

Now let me explain you the complete process. Let's say you have heard a News about SBIN or State Bank of India. You Came to know how much the stock can go up or at least you know yes it will go up. So now what you do is open National Stock Exchange of India Ltd. Website specially the website has to be opened although you can see option price on terminal also but we are selecting option right now. So we're at NSE website now on the top there is a search bar and on the right drop-down box it says EQUITY. Type in State Bank of India there or SBIN if you know the code.

Now we're on our SBIN page where it has details about SBIN it will appear something like this:

Now you can see Get Derivatives Quote| Option Chain click on Option Chain. The you will have this window:

Now from here you can see volume in each open contract. We have seen on previous page SBIN cash market price is of 252/- approx and as per example we are talking here its price will go up. So we will look at call option segment on the left of the page. Now this segment is in 2 colors above 250 is in yellow and below it is in white. Reason there are three types of strike price:

1. In the money
2. At the money
3. Out the money

We're not discussing about it here again as it will be too lengthy and detailed discussion. So white part will be the OUT THE MONEY for call option. Now lets say you have 6000/- in your demat account. We know market lot of SBIN is 3000 so we have to look for an option that has a value below 2.00. there is an option whose value is 1.7. Look for the nearest option in your budget don't go too far. WE HAVE OUR COUNTER TO TRADE.

NOW OPEN THAT OPTION IN YOUR TERMINAL OR CALL YOUR BROKER AND TELL HIM YOU WANT TO TRADE IN THIS PARTICULAR OPTION. SIMPLY OPEN IT AND SINCE YOU KNOW ITS IN BUYING ALWAYS BUY ABOVE HIGH VALUE. FOR HARDLY 0.50–1.00 WITH SL OR STOPLOSS OF SAME AMOUNT.

Here it has a high of 2.5 already before we came on this so what we will do is. Buy SBIN 270 CALL MARCH CONTRACT ABOVE 2.5 that is 2.55 put target or exit position at 3.05 and stop loss of 2.05.

You need alot of skills, calculation and knowledge to trade in market in option if you're going to trade randomly at any price.

Things to take care of:

1. Listen news between 8:30 to 9:30
2. Be active or handy with laptop or desktop and mobile phone if you're offline trader.
3. Put your trade only above high value only.
4. No one is God in this market this trick is not 100% accurate and doesn't guarantee you profit always and loss is part of market but 7/10 it will give you profit only.
5. Don't wait or sit for huge target Rome wasn't built in a day.
6. You can implement Same strategy of working mentioned here on cash market and future also but again just don't aim too high.

Hope it will help you making some money daily making money. If you need a demat account with low brokerage there's link below please ask people to click on it if you're not looking for a demat account for making my day special.

Are you still Paying 0.03% or brokerage for intraday and 0.5% for delivery per lot/share? Get a discount broking account with 20/- Brokerage Flat per executed intraday trade (NOT LOTS/SHARES) and 0/- brokerage on delivery trades with Zerodha Broking. To know more register for call back:: CLICK HERE TO OPEN ACCOUNT WITH ZERODHA