Above is a snapshot of chat message today while trading the stocks in morning and helping learn other trader how to trade.
As you can see, 2 out of 3 trades made profit. The trade which lost, lost very minimum. Total profit of trading like this in the morning couple of hours generated a profit of around Rs. 5000 on a small capital.
|Date||Scrip||Avg. Buy||Avg. Sell||Qty||P/L|
There are certain advantages with stock trading like this. Let me explain,
1) Most of the traders are not able to make consistent profits. Also they start trading in F&O with the dreams of making big profits and majority of them end up with big losses.
Trading in stocks allows us to risk very less. We can trade for Rs. 1000 also in the learning process and not lose more than Rs. 20 per day. Couple of cups of coffee or tea costs more than that. Once we get comfortable and develop enough experience, we can always start ramping up and make this much of bigger profits on a small capital requirement.
2) Risking less and trading with the discipline develops consistency. The consistency in trading like this is very much essential. You would appreciate a strict discipline of exiting at SL and booking out at targets in above trades.
3) Less time involvement. Only 2 hours are required. Rest of day we are free to do anything and enjoy our life.
Minimum capital requirement - minimum risk - minimum time requirement
In nutshell, I believe trading like this is the only answer to consistently profitable day trading.