Intraday stock trader par excellence
Traders,
G. Bharadwaj is one of our oldest clients and has been consistently profitable. If I had to talk about percentage returns in terms of capital in his trading account over the last 3 years, it will be an obscene number, mainly because of his trading style. He has requested us to not disclose his first name and share only the photo given below. Bharadwaj, apart from being a winner in the Zerodha 60-Day Challenge, has also been up consistently over the 3 years he has been trading with us.
G.Bharadwaj
Name: G. Bharadwaj
Profession: Trader by the week and civil engineer on the weekends
Hobbies: Movie buff, in a theatre almost every alternate day.
Find following an interaction with him on August 24, 2013:
How did it start?
My father used to invest in stocks and I got exposed to the world of financial markets pretty early in my life. I started trading in 2001, a bear market which ran until mid-2003. This was also a time when there was a lot of trial and error, making less and losing more, actually losing my entire trading capital multiple times. The good thing was that at any point of time I would not have more than Rs. 10,000 in my account, so I could come back to trading again.
What happened next?
I realized that there is no point randomly betting on stocks, it was more gambling than trading. My enthusiasm for the markets was growing higher by the day; I started attending seminars, workshops and reading books on the markets. This is also when I realized that there is an interconnection between exchanges, sectors, stocks, news and global markets. I realized that my strength was to recognize an opportunity in a stock when there was a movement in any of the other factors mentioned above. I also knew now that such an opportunity would only be available for probably a few minutes, hence ended up being an intraday trader. What I also like about intraday trading is that you don’t carry any baggage or overnight risk. The preference for intraday trading was also probably because of quite a few hits I took on my long/buy overnight positions when I started.
So you are essentially a scalper? For everyone reading, a scalper is essentially a trader who is in and out of a trade within a couple of minutes or so.
Yes, I am. Today I take over a hundred trades in a week and only equity trades.
But why equity and why not futures or options? Why not the Nifty which is the most active or why not individual stock futures and options?
This is my personal view, when trading the Nifty, it reacts to every good and bad news that is out immediately whereas a stock might take a couple of moments to do so, just enough time for a scalper like me to get out if I feel I am wrong or get in if I see an opportunity.
Why not stock futures, is basically because it won’t give me the flexibility to vary the size of my trades.
I have tried my hand at futures and options a few times, but wasn’t successful at it and hence stick to only intraday equity trading now.
Can you share insights on your strategy?
I am usually tracking stocks that the tipsters, research desks and media are talking about. Usually these would be the ones which will be the most liquid and also giving you the highest volatility intraday. I typically would look for any divergence these stocks which are stronger/weaker display when the index moves.
Assume that Tata Steel is among the liquid stocks today and has been showing strength. To determine strength and the trend, I follow very basic technical analysis. During the day, if I see Nifty suddenly spurt up, I would get into Tata Steel knowing that it has the highest probability of moving up since it is among the strongest stocks today. Similarly on a bearish day for Nifty, I will look at the weakest stocks and look for opportunities to short.
I also sometimes take counter trend trades, when a stock comes down to its support I would buy expecting a quick bounce and when it comes to its resistance I would sell expecting a small dip. Again, this would be all on the most active stocks for the day.
What is the backbone of my strategy is watching the market depth window. Once I have narrowed down on the stock I want to trade, I open the market depth window and look at the Nifty chart to identify opportunities. No method for this, it is based on how I feel.
That is basically just reading the tape or gut based trades, has it worked for you till now?
Yep, you could say that the final decision to take my trade or not is gut, but there is a method that goes into choosing the stock I want to track and then trade. In between 2004 and 2010, though I was gross profitable, I ended up paying a lot of brokerage (more than Rs. 50 lakhs in this period) which ate into my trading account and didn’t allow me to pull out any serious net profits.
The profitability has gone up considerably since starting at Zerodha because of the extremely low costs. I typically would have only around Rs. 50,000 in my account at any point of time, but have managed to consistently withdraw trading profits of between Rs. 1 lakh to Rs. 2 lakh every month from when starting with you guys.
What is the reason for keeping only Rs 50,000, part of money management?
Typically, some of the rules I follow on my intraday trades is to exit as soon as there is Rs. 1000 loss and exit profits at Rs. 2000 or more. Usually when a position of mine is in profit, I ensure that it never runs into a loss by constantly moving up the stop loss.
At the end of every trading day any profit over and above Rs 50,000 is withdrawn to my bank account. The reason for Rs. 50,000 is because this is the size I am comfortable with and also ensures that I don’t lose more than Rs. 50,000 in a day since I am a very aggressive trader. At one time I am tracking just one stock and usually buying/selling the maximum possible with the Rs 50,000 in my account.
How will you scale your trading if you can’t increase your trading capital?
Yes, that is a problem, something that I have to personally work on.
Which stocks would you typically trade on?
Over all the years of trading, I have a list of my favourite stocks, but on a particular day I might end up trading a stock out of this list. I prefer stocks which are in the price range of between Rs 50 to Rs 500 like DLF, SAIL, RCOM, Tata Steel, etc.
What percentage of your trades are successful?
If you are talking about trades which meet my objective of getting profits of Rs. 2000 at least per trade, I guess around 40%, but since I don’t let my profitable position ever turn into a loss, I am usually right between 60 to 70% of the times.
I tend to keep it very simple: trade 1 stock at a time with maximum leverage allowed on my trading account. I can take such a risk knowing that there is only Rs. 50,000 in my account and I can’t lose more than that.
Your favourite books?
Reminiscences of a Stock Operator by Edwin Lefèvre
You Can Still Make it in the Market by Nicolas Darvas
Advice for others?
Take inputs from books. If you are lucky enough to interact with profitable traders like in the Winners section of this blog, analysts, etc., it’s good for you, but never copy. I guess it has to be a self-discovery on what works best for you as mentioned on Nithin’s feature.
Future plans?
My challenge is to be able to feel comfortable with a bigger trading capital in my account, only then will I be able to grow as a trader. Getting over this road block is the plan for now.
___________________________________________________________________________________
Reading the tape is how people used to trade when the business of stock exchanges started. Today it is an arm’s race with traders subscribing to fancy charting tools, trading platforms, etc. For all those who say that gut based trades don’t work, I guess Bharadwaj’s track record should break the myth.
Though the final decision of triggering a trade is gut feel, he has a very good money management strategy, keeping only that much in his trading account losing which won’t affect him much. He is also very aggressive but has a method to it by having rules to identify the stock and when to trade.
We wish he is able to break that 50k mental barrier and continue winning the Zerodha 60-day challenges in future.
Happy Learning,
Do check out the other Winners
How is this possible with just 50,000 in trading account now when the SEBI has slashed intraday margins?
Hiii Bharadwaja sir,
which type of order you use mostly.
Zerodha, How many such traders do you have on board who have been profitable throughout since joining you? I am just asking for count, names not a must.
Just curious to know if day trading can be that good.
Thanks
How do you apply stop loss to an MIS order ?
You can place an SL/SLM order with trigger price at the stoploss level of your choice.
How to contact Mr G Bhardwaj, need to learn more on scalping
Hey Ashoka, we can’t share contact details, but you can check out LearnApp where he’s done a video course on this.
Hi
i am trying intraday trading but it seems its not enable for me.
Hii
How could I find intraday stock. Pls suggest.
Hey Vishwas, not sure what you’re asking.
Congrats all the best
Thank you for this interview, its very useful to me and my hearty wishes for your future goals.
Thank you very much,received refund today
Sir, my 60 day challenge brokerage refund not given.
Daily saying that you will get refund by end of the day.
YQ7996.
Token number 477094
When will i get refund money? My first winning not bring down happy. Like this If my withdraw request not approved then to whom can I tell?
Hi Nithin ji,
Suppose I have 50k cash and 50k worth holdings in my account, and I taken full intraday positions on my cash, if some sudden bad news came and market fallen heavily then if I made a loss of 60k, pls explain what happen to my holdings ?
Nothing. Your acount would go into a 10k debit which you would then need to pay back. You would be expected to bay this back as quickly as possible as an interest of 0.05% per day is charged on the debit.
Mr nitin can i use iball laptop for zerodha pi software
Can i use i ball laptop for pi softwre
this the power of scalping. i think success of this guy is 1 mimute chart . you can do it only on 1 mimute chart at this chart you can easily place stop loss of .30% and easily can achieve target between .30 to 1%. so your trade goes in your you can make easily 1% a day means 20% a day by using leavrage of 20 times. i have earn many time 50% of my account.
Hi Nithin,
I am new to on this.recently opened account in Zerodha..
I have one doubt.
Example i have 100 rs and i am buying one rupees share 100 in intraday and ur giving 3x on this.so totally i can buy 300 shares rite?if that share value increased to 2 rupees totall value will be 600.I this what is my margin??300 or 100?
Thanks
Srikanth Ayala
ou can calculate this using the brokerage calculator.
Great write-up, I’m regular visitor of one’s website, maintain up the excellent operate, and It is going to be a regular visitor for a lengthy time.
wretye5ryabcd.com
I am new to trading. Need clarification for below:
CNC (in case of equity) or NRML (FNO) can be disposed on same day when it is taken. Intraday (MIS) is just for taking advantage of margin.
Thanks
Anup
Yes, correct.
Congratulations Mr. Bharadwaj !!!!
Dear Sir
में आपको धन्यवाद देना चाहता हू, क्योंकि
Zerodha सम्पूर्ण भारत में Share Market के लिए एक बेहतरीन और विश्वसनीय Platform है I
Is this type of trading is still working for him in 2017 ? I’m curious.
Nithin Sir..
i think, Bhardwaaj or zerodha only can explain if he is still in profitable situation.
namaste nithin and karthik sir, i had started trading from last 7 months, i was making consistent profit for first one month. after taking one bad trade which ate up my 30 % capital i lost my trading psychology has gone . then after i learnt many things through zerodha varsity and from videos and many other books like jessy liver more’s ,
now i have developed trading discipline , emotion and and risk management but still iam not making good profit and also even in worst case i only spend nse and brokerage charges , but iam looking for earn living in this world so pls help me , how to get consistency in this , pls help me out iam doing this for living. how to get back to form
Double trade means, suppose you hv taken a position in Stock, you need to place another order on your SL order. If your SL hit then next order execute immediately.
I read the comments from people. Most of then worried about SL. Guys use double trade style.which experience traders used like me.
What is double trade style? and you also mentioned you use some computer programming. Please ellaborate on this and guide us.
Mr. Bhardwaj. I know. U r using some algo and fast programing computer for trading. I am also using the same and getting instant profit in a month end. But it’s impossible to make a profit of 1 lakh using 50k without using fast computer programming. U she disclose ur technique. Don’t say it’s gut feeling and fools people.
Which algo you are using Raj?
Dear sir,
I am an opened in Zerodha account Rs 5000. small amount start,How can i do sir,
Pls Advice
Thanks & Regards
Niranjan
I read this interview very carefully.
I liked the way G.Bhardwaj is trading.As it seen,G.Bhardwaj is not replying many queries from a long time,I request Nithin Ji to reply my this simple query-
If I buy 10,000 shares of VEDL @ 250 and want to sell it at 250.40,then all my buy and sell order will be executed properly?This is 40 paisa scalp.
I am using SL-M order for both buy and sell(target order).
There will be some slippage,right?Then I wonder how G.Bhardwaj bro is achieving this??
10,000 shares VEDL is tough to exit without an impact cost. Whatever little of speaking to G.Bhardwaj, he trades smaller quantities but does a lot of trades during the day.
he replied somewhere above that-” i buy MAX i can in the given margin. For example say 10,000 JPA…”
I am trading just 1500-2000 quantity of VEDL like scrips and facing slippage,so I wondered how he trading 10,000 shares and scalping for just 30 paisa.
Even if the direction is 100% right,its very tough to cut the position in just 30-40 paisa.
Hope G.Bhardwaj will clear this very basic doubt of another Scalper.
Hello Nithin,
How you doing ?
Is there Time & Sales, Level 2 window, if a trader is sheer tape trader? It is not there on pie. For example Ninja Trader has DOM window. Similar to it on Pie?
Thanks
Siddharth
The level 2 data on NSE shows upto 5 market depths, available on Pi. But higher market depths currently not possible
how can i put
Day’s High ; Day’s Low ; Approaching Upper Circuit Limit ; Approaching Lower Circuit Limit….
scanner in Pi or other zerodha software in real time trade
Hmm.. not possible on pi.
then where i found days high and days low stock
My friend has Trade tiger – from shareKhan – we both trade on that scanner
yesterday we got IDEA nearly at 84.85 to 99.50 means we catch 17% moment due this scanner
so please help me or suggest any free software like that
Sir,
One more question….
If I get profit of 100 in intraday trading. Then how much time it will take to my demat account.
The profit will reflect on your trading ledger on the same day. You can withdraw it on T+1 day.
Sir, I appreciate your work. Your Blog give me huge knowledge about market.
I have a few questions. Because I am new in this. And I am waiting for my Pan card.
1) Can I put multiple buy table on different stocks in intraday.
2) can I put different sell table on these above different stocks in intraday.
3) If I have 10000 money in my demat account. And I want to buy stock of one company of 2000 ( 200*10) by using MIS , then how much my money is blocked. Or Can I buy share of 5 companies, each of 2000 (200*10) using MIS.
Thanks sir….
1. Not sure what buy table means, you can trade multiple stocks for Intraday.
2. Same answer as above.
3. Depends on which stock you’re trading, you can use the margin calculator to determine margins: https://zerodha.com/margin-calculator/Equity/
Sir,
In 1st question, I asked that, can I buy shares of different companies at same time…,
2) same as above but sell….
3) In 3rd question, I am fine with margin calculator. I mean ….
If I have 10000 rupees in my demat account. And I want to buy 10 share of X company of 2000 (200*10) with MIS, and in margin I get 100 share . Then after this… How much my money is blocked….
Thanks for quick reply…..
Yes, you can. As long as you have free funds, you can buy. For your last question, it depends on how many times exposure you’re getting on the stock. If you’re getting a 10X exposure for a stock whose price is Rs.200, then only Rs.20 will be blocked per share for MIS. So for 100 shares, Rs.2000 will be blocked.
I was in dubai for three years now i came back to india by canceling my visa can i trade in stock market (intraday, future and option and delivery) or do i need any permission from bank
joe
Yes you can trade as a local resident account by mapping your saving bank account.
Dear Bharadwaj sir,
Can please share some overview of your market depth strategy as you said it is the backbone of you strategy.
What you typically look in market depth such as size , no of buyers or sellers etc.
Please share some insights as this would be of great help.
Thank you.
Good luck bro. And well done….
Iam inspired from ur strategies for intraday, and thanks for sharing ur strategies with us.
IT REALLY WORKS MAN ???
Hi Nithin,
I have a query –
Suppose i have a stock XYZ in T1/Demat of 10 shares at buy price – 25 rs.
1-condition: if i again bought 10 shares @ 19 and sold during intraday @ 23, what will be the final demat holding after 3 days?
is it 10 shares @ 25 INR or 19 INR?
2-condition: If i sold 10 shares @ 23 and bought during the end of the day @ 19, what will be the final demat holding after 3 days?
is it 10 shares @ 25 INR or 19 INR?
what i heard is that shares follow “First in First Out” please share clarity on this. if you have some other post where you explained this, please share the link.
1. all intraday trades won’t affect your holdings stocks or average price.
2 Again, this is an intraday trade, so won’t affect.
It is FIFO only if delivery is taken or given.
Will it apply the same for T1 as well? will T1 shares are considered as intraday shares or demat shares?
T1 will be different, it will be considered as demat shares.
let me clearly understand finally..
suppose, if I have 20 shares in demat, 20 shares under T1 and 20 shares intraday.. if i sell the order of shares deducted will be : first intraday shares will be deducted, followed by T1 shares and then Demat shares – please confirm!
Also, will DP charges applicable for selling T1 holding shares?
First Intraday
Next Demat
Last T1
This is to avoid the risk of auction that comes with making BTST transactions. http://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
Hi Bharadwaj, Kudos to you!!!
Hi Nithin,
I always trade in days 5 top gainers/losers. I stays in the market for a min or two and do multiple trades. I always place Market Order after tracking Upward/Downward Movement, my guess with the stock movement remain 80% correct. I execute order at Market Price and noted Market Order always gives me very tight Buy/Sell Price hence my Profit remain small. How I can improve my buy/sell pricing by going with limit price (doubt it will miss chance available in that very moment) or trader like Scalper should go with Market Price?
Regards, Nikhilesh
Hmm.. Tricky answer, not using market might mean missing out on those trades which moves quickly in the direction of your trade. I’d say best to use market or limit with a slightly higher buy or lower sell as a scalper.
Hi Nithin,
I want to know how I can get the details of last executed trade(s) in our HTML platform. (I want to do tape reading.)
Checked out almost all the blogs and zerodha varsity, unfortunately I came up empty handed. Found we can use ctrl + K in old zerodha connect, but its not an option for me as I use Kite.
I see this question is already asked by Jimmy on July 8th, but not answered. 🙁
Please help us out, you know how important is tape reading in intraday…
thanks
abhishek
Abhisp, when you add a stock on the marketwatch, every price that is moving up/down is in itself a trade. Tape reading is like trading based on your guts. Takes a lot of experience before being able to identify how stocks could move just looking at the LTP.
Hi Nithin,
Thanks for the quick response.
Yeah it takes a lot of experience to successfully do tape reading, and I wanna take baby steps to there 🙂
Of course,LTP we will come to know in market watch, but it changes too fast, nearly impossible to keep track of the quantity traded at a given price.
Do we have an option to see it like a list below?
200 qty @ 300.5 INR
1500 qty @ 300.65 INR
500 qty @ 300.55 and so on..
I am sorry if I’m asking some thing stupid, I’m a novice here.. 🙁
Abhi, there could be tens to hundreds of ticks in a single second, so it is nearly impossible to track all of them using naked eye. If you want to trade intraday, I think looking at 1 min chart will be a good way to get started with volume panel. Suggest you to read this: http://zerodha.com/varsity/
Dear Mr. Bharadwaj,
It’s been so long since u have been on this thread . so i dunno if u still read this thread or not.
But, i m assuming that u do and hence want to ask u some questions because u r exactly where i want to be.
First of all i want to congradulate u for devoloping and trading ur own intraday trading strategy with financial success. i know how deficcult it is because i have taken the same challenge but without much financial success.
i understand the financial side of ur strategy .
but i would like to ask the following questions regarding the analysis and execution side.
1. you said if nifty suddenly spurts up . what do u mean by that.
i would like to know what are your triggers on nifty chart specifically. i m assuming you use nifty chart of 1 min .
do u use breakouts of certain levels or some longer than usual candle.
2. U mentioned using market depth window . i am assuming that this will be ur final trigger regarding weather or not to enter in a trade. But what do u look for in market depth window specifically. like very high volume at best bid or offer. or volume getting thinner etc.
thank you for ur answers in advance.
finally if you ever feel like sharing some valuable insight, specifics of ur trading style, book u read , or anything like that mail me on [email protected] . Frankly i will even read ur shopping list if u mail me.
hi i am new to options trading…i wanted to know if i can place cover or bracket order in options???
if possible can i choose the % of stop loss while placing order???? in case if the trade starts to loose money
Allowed only for index options
thanks for the answer nithin
so if i have to buy 1 lot of call or put of nifty ,lets take the example that the premium is RS 100(mis order – 100*75=7500) ,so how much money do i need if i am a using a cover or bracket order ?
Around 70% of that. Again, we remove this leverage when markets are volatile.
Is tradingview.com papertrading working just like zerodha kite or pi ? I mean can my orders be executed faster as I’m papertrading with tradingview.com or do I have to constantly check the ask and bid if I’m trading with huge shares.
Is it possible to place limit orders just after a breakout point will that be executed if the breakout occurs ? Please help
If you are placing market orders, it will get executed immediately. If you place a limit order, you will have to monitor to see if they are executed or not. Yes you can place limit orders with triggers after a breakout. Check this post.
Why not Zerodha subscribe to either Reuters or Bloomberg realtime market moving news and pass on the flashes on their kite platform ???
On our list of things to do, but for a fees 🙂
Nitin sir,
I have a query,
-If I buy 1000 shares of ICICI as delivery(long term, more than a year) at price X/share, they get added to my demat account.
-Now can I buy ICICI shares again for intraday trading tomorrow? without anyway affecting the demat shares’ amount(X) or quantity(1000)[AS THE SHARES WHICH YOU BUY FIRST, ARE SOLD FIRST!]
-Also what is the case in short term(within a month)
Thank you.
Assume you’ve bought 1000 shares and they’re being held in the trading account. These are your delivery holdings that you intend to hold for long term. If you do an Intraday trade in the same stock, it’ll get earmarked as Speculative trades and will have no bearing on the 1000 shares that you already hold. The reports on Q are built to this effect.
Anything that isn’t Intraday or more than a year old, is short term.
Fine.
Read and understood ways and methods you follow.
Stock market is essentially heaven or paradise for investor and always a pain for a trader.
Think of the treasure in options against your investment. It is a so cool method to make money leisurely.
Want to know more please increase your investment for a minimum of Rs 500 K (NIFTYBEES) and a cash of Rs
100K or more.
Best possible return 100% or even more.
Thanks
Myl
I have been trying to figure out how to get Market Tape on Zerodha web platform, as I am using mac and hence Pi doesnot work. I used to previously trade for a firm using Market Tape but finding it difficult without it in Indian Markets. Is there any way to get this information, allowing to see the movements of key market players?
Dear nithin sir,
Your this challenge very help full for both which is win and which is not win 🙂
So, please do many event like this, which are help full for all peoples.
Congratulation, mr. Bharadwaj sir.
yesterday i suggest to my friend to open account with zerodha. he was confused that is it safe to Trade with zerodha. i know how safe zerodha is. so i decided to show him something that can prove that zerodha is the best in market right now.
What is the turnover of other brokers in india ? is zerodha in top 10 ? please share numbers if anyone knows.
Thanks.
A single search on the Internet should convince your friend 🙂 . We have the track record of being the most retail friendly brokerage firm in the country. We’ve empowered the retail trader with tools & next-gen tech which was unimaginable a few years back. Being an insider, I may sound biased, but you should convince your friend to try us out and I’m sure he’ll love the experience.
The Exchanges don’t make the turnovers of brokers public, so there’s no report one can give to substantiate the fact that we’re one of the top brokers in India.
Nitin Sir,
In interaday mis how mant times we can sell Nd purchase shares ….
If I hv 10000 rs in my zerodha account Nd I trade in mis 100 times a day
Means trade 1 cr per day in mis There is any problem in tradind
No problem, you can do as much trading as you want.
Hi Bharadwaj,
You mentioned in one of the comments that a big order like the ones you place can get chopped up into 100’s of mini orders before they get filled. In such cases, how would you manage the stoploss orders and exits? I usually trade in futures, so I don’t know exactly how one would do that.
The Journey of this profitable path without the transaction costs(preferably Brokerage) and best interface/platform is just a fruit of your efforts Nitin Sir… I Just admire your near success of statement”team working towards breaking all barriers that I personally faced as a retail trader for over a decade”
Hello Mr Nithin Kamath,
*The hypothetical question is, what if I put 100 crore in my account, to trade intraday ? is it allowed ? (I heard u can only take 5% stocks…etc …etc…plus a lot of obligations)
*Now, the interesting part… What about the margin ? 11x? 1100 crores? Won’t the lender fall down? If not…,
okay what about 500 crores? 5500 crores? NOW?
* I always think about how Warren Buffet invests a billion dollars only in common stocks?(rest of the 50 bn…elsewhere) which broker? DAMN!
I am nifty traders for many years but the end of year was not favourable. I traded only on gut feeling and never on technical. now I have studied some technical on my own and listened few vedios. now I am trying with zerodha for last one month but till now not succeeded. I love to trade options. any one can suggest any nifty option strategy ? or any points which must be observed like RSI/Stockstics/cross over or any other .
or can you suggest where I can get authentic technical training ?
Option trading usually depends on market volatility and time decay and even risk ,there are lots of strategies but usually those who write options are one who make consistent money,buying call or put is used by institutional investors for hedging their cash portfolio,but if you want to trade, then rather than strategy focus on risk management as high leverage would eventually destroy you if you dont manage your risk
Hi Nithin ,
There are various real software avialble for technical analysis , giving various info on break outs, buying selling volumes , rsi crossovers, real time super trend line tracking etc . which according to you is best suited for intraday trading
regards
Hmm… donno.. IF you are starting off, I think the charting on Kite.zerodha.com is more than enough. If you want to do some advanced stuff like creating your own indicators, etc, I guess Amibroker is quite good.
50k become 1 lack to 2 lack in month
it mean 400 %
20 trading day
mean 20 % per day
may be possible in 1 time in year
not entire year
therefor congratulatin
Dear Bharadwaj,
Pls. tell us what Time Frame of Nifty you are using.
Hello Nithin Sir,
i was searching website or any software Which shows that highest number of buyers and least number of sellers or least number of buyer and highest number of sellers of all stock of (Nifty 50/Sensex 30)
Like TCS buyers 200000 Sellers 100000
Infy buyers 300000 sellers 200000
Highest ratio is 2:1 for tcs so it comes first
And infy 3:2 so it comes second.
Now for lowest buyers
Lupin buyers 20000 sellers 40000
Sun Pharma buyers 10000 sellers 50000
In this list Sun Pharma will come first as highest number of Sellers proportional to buyers for that company.
and ratio for Lupin is 1:2.
so i can see all companies list and thier demand & supply ascending/descending in single screen. And i can select any particular stock to Buy/Short very easily. say this companies has least number of buyers so signal is to sell & vice-versa.
i hope you got my question.
Ah.. no such tool that I know as of now.
What is the difference between equity and options? Aren’t they both the same ?
Can you please explain. I’m new to this field.
Here’s a good starting point: http://zerodha.com/varsity/ Varsity has everything you need to know about the basics of stock markets including the difference between Equity & its options. Happy learning.
It is possible to trade by mr g bharadwaj’ s style… only thing you have to be very very careful and alert, quick on taking decisions as he has mentioned…
Dear Mr. Bharadwaj
Look at the chart of Rushil Decor on 23 3 16.
Is it possible to confirm how you will trade this scrip – entry level, SL and exit with respective timings.
Also confirm the logical reasons and basis of each move
BR
DH
pullback from 10:59 to 11:38,possible entry 11:10
I am planning to do cover orders very soon. I have holdings of 3 stocks worth about Rs 38000/-. Can I do cover orders using my holdings? Earlier when I was doing intraday, I was getting 5 – 6 times of my holdings. Can you give me a rough idea? This will help to resume my trading.
You will have to first pledge your holdings, but yeah once pledged you can use it for taking intraday positions. Check this.
I would like to know –
what are the good settings for intra day trade
1. Time frame – 5 min, 3 min, 15 min etc ?
2. MACD settings
3. RSI settings
4. Bollinger settings
5. Any other settings you recommend.. charts..
6. Pivot points ?
7. EMA settings..
8. Pls suggest what parameters to follow etc..
As per example given by Madhumitha madam, It is not at all possible to trade in Bharadwaj’s way,God knows how he could be able to manage this kind of trading. Its a sure recipe to go bankrupt
Hi Bharadwaj,
Congrats for winning the 60 days challenge. It is possible for an experienced trader to make 10% profit everyday by using the margin. You have mentioned that you will exit the position as soon as the loss reaches 1000 ( assuming you are using the margin and total trading value for a trade is 10*50000). How can you exit the trade when it reaches the loss 1000 caused by a narrow change in stock value?
Please check the example below.
Buy 4580*121.3 = 555554/-
Sell 4580*121.1 = 554638/-
Loss = 916 + 228 ( Brokerage and tax)=1144/-
Could you please answer how this possible to exit in such a narrow point change in stock value?
Smart query and I guess you know the answer,its almost impossible to make money with that sort of stop loss and high leverage, volatility in market would eventually you end up taking huge losses, plus there are other factors such as fast execution,latency time etc, thats why scalpers are out and only algo trading makes money consistently
Hello Nithin Sir,
if i have 250 shares of Reliance in DP, then
Can i do Arbitrage Trade ? Sell on BSE @ 1005. and buy from NSE @ 1004.
Check this: http://tradingqna.com/2163/arbitrage-buying-equity-nse-and-selling-it-bse-is-it-possible
Sir i read almost all the question and answer, but still hv some doubt. Please clarify it whenever you get free time.
1. If i’ve 100 shares of reliance in DP. Then can i sell it on bse at 1004 on bse. And buy from nse at 1003 on nse.
And repeat same trade many time.
2. Sell reliance future at 1004 and buy at 1003 on bse and buy 1002 on nse. Is it possible? And how to squareoff both position and calculate profit.
3. If i have share on DP. And If i
want to trade on intraday basis then i need to trade as CNC or MIS for arbitrage trade.
4. If i have 100 shares in DP. Then can sell 1000 on nse as MIS and buy from bse as MIS.
1. Yes you can.
2. Reliance futures, actually any stock future is not very active on BSE. To profit from the above trade, the difference in price should reduce. Whatever the difference in price between contract reduces, that is your profit.
3. If you are looking at just selling and buying same quantity of shares that is in your DP, then MIS. If you are looking at trading more, then MIS.
4. No
Thanks you for prompt reply.
Mr Bharadwaj ,
It is only today that i have read your article, i too was drawn into stocks after following my dad.
Its been only 7 months and i follow the principle of being disciplined & do not loose sight of the trade screen in front of you .
Your article has only cemented my thoughts about intraday trading and will build more confidence in me.
I have left my full time media career to now earn my bread and butter in equity trade. I am glad i did so and wonder why i did not did it before. Maybe zerodha was god sent.:-)
Mr. Bharadwaj G:
1. according to intraday 10% successful trader and 90% unsuccessful trader is correct.
2.if 90% loss their money, and this amount goes to 10% success trader, that means the investors amount routinely.
3.ok, if you success trader then why you tell others about your success methods because successful traders dont information about this
4. for why if others lose their money and you get that money. if others will be successful trading your amount is going to them is right?
5.share market loss and gain money by two ways greed and fear of the investors.
6.if you success trader k.. then why you share in zerodha? zerodha is only low brokerage that’s all.
Your point is correct in that one man’s gain is another man’s loss. That is part of any trading activity. It is there in almost any activity related to earning money, though in most cases it is not very much visible. These things are unavoidable in the workaday economic world. Marketing is very much needed in the competitive world for organizations to sustain itself and the people it employs. It is for the persons losing to be careful and act judiciously. However I do not think Mr.Bharadwaj is marketing for Zerodha while he is narrating his story.
Question for Mr. Bharadwaj G:
Sir,
There is a point I do not quite understand about your system and wish to get it clarified. I understand you:
1. Trade with a capital of Rs. 50,000.00
2. Use max. leverage (which is about 20X I think, since you talk about using a trailing SL, which is a feature of BO, which offers upto 20.8X)
3. Utilize full amount in each trade
4. Exit if loss amount is about Rs. 1000.00
The first 3 points together says that in each trade you are buying (or selling) shares worth more than Rs. 10 Lakhs (50,000 x 20.8). On an order of this size even the slighest movement will translate to Rs. 1000.00 So, if you for example, buy shares, you are expecting the price to go up. But prices never go CONSISTENTLY up; it falls a little, goes up, becomes flat for a while, falls, again goes up, etc. On such a large trade, even these minor fluctuations will translate to over Rs. 1000.00 For example if you buy 2260 shares at 460, even a slight backward movement to 459.7 translates to a loss of Rs. 1065.00 approx.
I guess I have not understood it right because it appears to me that you’ll be tapped out too often this way.
I have the same question. How could anyone be so right to enter a position and move forward or exit the position for such a narrow change because the price is fluctuating every second.
Perfect Question!!!
Sir, suppose I have in my account 10000 and want to trade in intraday using mis product type………but I want to buy shares of two different companies……so is this possible? …….if possible then how my margin will get separated for trade
Yes possible, u can trade in as many different companies as u want. Margin gets separated by the software automatically.
Hai Nithin ,
I want to learn Market Depth. 5 Bid and 5 Ask price Coming on terminal Can’t read .Is there any other way to read ???? Or with the help of chart ?
Not too sure what your query is. Could you be elaborate? If you’re wanting to ask how to analyse the Market depth window, here’s what Nithin has to say
“Personally I don’t believe that looking at the bid/ask volumes in the snap quote really works, especially if you are trying to do this manually and not really without a strategy that is backtested. In the many years I have been trading the market, this is actually the most popular way a retail trader decides to get in and out, if total bids are more than ask buy and if not sell.
What needs to be kept in mind while seeing this is that firstly it won’t capture any market orders that will be placed, and secondly most of these bids/asks could be at prices which are way before or ahead of the current market price, making those quantities insignificant.”
Source: http://tradingqna.com/1705/how-to-use-snap-quote-window?show=1705#q1705
I get opened account in zerodha by seeing bracket order for fno but i knew that it is not available in web plateform. I can not use ZT in my office so kindly request to implement bracket order in web plateform also.
Bracket order isn’t available on web yet. We’ll let you know once its there.
Hai Nithin,
Thanks ur replay. Where can I get Open Interest intraday Data for NSE Scripters. I am watching NSE site in Live Market _OI spurts. But its not correct .I am looking total increasing open position and decreasing.
Thanks
Asu, the OI dat on NSE is correct.
Who is charging lowest brokerage in India? Which is best & cheapest brokerage house? Please tell me. Thanks.
😉 http://www.zerodha.com
Dear Nitin,
I have query related to specific scrip. Since you were active trader initially will please guide me? I need your e-mail address if you do not mind. So that I will send you excel file of that scrip. Only one page. My observation in that. And what I want to do in it and if I am right or wrong. If I have to win what should be my strategy like that. I know you are very busy and big man. It will not take your more time.
Thanks.
[email protected]
Hai Nithin,
How to get plug in Amibroker with Zerodha ? How many days Back fill Available ?
Asu, check this. The bridge is only for firing orders, no data will be available through this.
Hai Nithin ,
Thanks u r replay
I want to Learn Some thing about Market
1.Market Depth
What is Market Depth in stocks and how to read it ? ?
2. Bid size
3. Ask price
How to read this and is it available in terminal ? ?
4 Impact cost
What is Impact Coast ??
5. Cover order
How to effect in Market ?
6. Bracket order
How to effect in Market ?
7. NRML
Wts is NRML
Plz Explaine
For orders click here, for Brackets click here, For cover click here, . Also check this.
Market depth shows you the best 5 prices at which people are buying/selling. Bid is basically the price at which someone is ready to buy, and ask is at which someone ready to sell. Read about impact cost here.
Hai Nithin,
Thaks Nithin Your servicing is appreciating. I am having one more Question ,
Tape Reading Means Graph reading ?
How can I learn for intraday Trading ??
Tape reading is basically just seeing the prices (bid ask) and trading. Seeing the graph is technical analysis. Check Varsity http://zerodha.com/varsity/ to start learning.
I want to earn from intraday trading. I have computer with internet. I can sit in front of computer from 8.30 am to 3.30 pm without leaving computer. I want to trade in only one scrip. I have own capital of Rs.50,000. I need your help & guidance please. Waiting for your reply. Thanks.
Have you checked this: http://zerodha.com/varsity/, good place to start learning trading.
OK. THANKS A LOT.
It is really sad that despite lot of revolutionary measures – Zerodha has NOT done these important things:
1). One can not call-and-trade Bracket orders 🙁 what a pity! If I have taken a trade using BO facility – I just can not go away from my system!! As call-and-trade is not allowed here yet…………..when will it be done Nithin????
2). Similarly in Cover Order – one can not have a target!!! One can just put the SL. Why???
3). One more important point is that many a times one would like Zerodha’s team to trade on sms provided by the customers…………I think here lies a huge potential in personalized service accounts where Zerodha can charge extra for such clients who would like their orders get executed by Zerodha-team by sms-and-trade just like call-and-trade. Similarly messengers can be used for personalised trading.
4). Smartphone trading still does not allow BO/CO facilities – what is the use???
5). Why can’t MIS margins be kept the same as BO/CO Margins??
Zerodha has still a long way to go and I can only hope that it implements above features asap
1. Bracket order technically is like an algo as the SL prices move automatically. Hence the client has to initiate it on their own as per exchange requirement.
2. If you put a target on cover, it becomes like a bracket order. But yes, get your point.
3. We are not allowed by exchange rules to take orders via sms. There have been issues where certain brokers executed this via SMS, and clients came back saying they never sent the SMS, someone else did.
4. Have you looked at Kite, our in-house web app. We will soon have BO/CO on this. Check http://kite.trade/
5. When you trade BO/CO, there is a compulsory stoploss that has to be placed. This reduces the risk of the trade, and hence the margin required is lower than normal MIS trades.
Hi,
G.Bharadwaj sir how you choose which share buy for intraday at opening stock market you buy or wait for movement?
You decide which share buy for intraday before opening market ?
Hi, Nitin
I’ve query about Intraday trading if I buy share for intraday it will automatically sell after 0330PM or it will be hold and how many days or convert into delivery and can I convert intraday share into Delivery? thanks
It will automatically square off at 3.20pm.
thanks for the reply….. í ½í¹ can I convert into delivery if I buy intraday trade…??
Yes, but you will need to have full funds in the account to convert.
Hi Nitin,
Pls help us interact with these traders. If possible pls arrange a discussion forum with top traders.
Does Zerodha allow to do intraday trading for shares <100 rs ?
Need to figure out what exactly is the meaning of these terms and how they affect an NSE Equity Intraday trade?
As I also have similar scalping plans, once I finish my research and start the day trading.
Market Depth
Bid size
Ask price
Open Interest
Impact cost (Incase you are trading higher volume)
Cover order
Bracket order
NRML
Reading the tape [ as in live graph line?)
Great intraday strategy. ..
i have just open a trading and demat account in zerodha, so please tell me can i buy all shares in intrady ?
like smallcap, midcap (LML, LANCO INFRATECH) ?
i dont want margin or leaverage, i only want to buy LML, LANCO INFRATECH such type of shares.
Yes, you can buy all stocks without any leverage (use the product type as CNC while buying) for intraday.
how to keep stop loss or trailing stop loss in nest terminal
Hi
You have to predict it as per the volatility of market and react accordingly when u r initiating ur trade.
Have you seen these two posts, on SL and Trailing SL?
do u trade till a specific target( eg. 10 k for a day ) is reached or u trade till 3 : 20 . ?
have question on MIS trade : If I have 1lac in my account and on the basis MIS, I buy more than the actual worth of my account and incur loss, how does the account handled in such scenario?
Because you trade using MIS, with 1lk you can buy upto 20lks worth of stocks for intraday. All such positions are squared off at 3.20pm. Whatever is the profit/loss you make is credited/debited. Say if you take a position with 1lk, and you lose 50k as loss on that trade, our risk management team will square off your positions to the extent your remaining 50k can hold.
sir, thanks for sharing this wonderful strategy that you are following. I burned my whole a/c 2-3 times till now. It was very very hard earned money. But your this posts give me a hope to again start trading after a long time. If any doubt will be there, then surely i will look out help from you.
Sir,
How do you decide which stocks to trade in? Cud you pls share how stock narrowing procedure..
Karan
Inspirational story!
Even I do follow nifty and watch the stock of my choice to identify turning points.
I make quick quick profits and exit, but the problem appears when the stock moves against me and give more tolerance for loss and square off with a larger loss. Since my losses are relatively larger than profits, 4 or 5 profits tally up to cover a single loss.
I should develop a discipline of square off at 1000 rs for loss and profits around 2000 as u suggested.
Mr.Bhardwaj,
Do u use limit orders or market orders? Since u are trading around 2000 stocks, using a market order may sometimes end up in unexpected average prices.
If u are using market prices, why can’t u take up cover orders instead of MIS?
Dear Bhardwaj sir
Please suggest us which order is preferable for entry & exit for this kind of trading.
Thanks in advance
Regards
Sudhansu
Dear Bhardwaj Sir
Please suggest on above query. Which type of order you are using. Is it limit order or market order.
Regards
Sudhansu
Sir
Please reply .I am eagerly waiting for your response.
Regards
Sudhansu
Dear Sir pls suggest which type of entry & exit order u r using.pls pls reply this time.
Hi Team Zerodha,
Please post more stories of successful day traders in this section. It’s been a while since I have seen a new story here.
Thanks
Dear Mr. Bharadwaj,
Your article is quite an inspiration and I’ve been trying for quite some time to use your advice for intraday trading.
I do have a request though. Could you please share an example of any stock on any given day which you have traded with details of entry, exit and stop loss and have made a profit…
Thanks in advance.
Royston
what Mr Bharadwaj is doing is is making sure to keep the wind at his back , He uses relative strenth/ weekness of underlying stock vis a vis the Index. 80 % stocks follow Nifty in their movement . Hence he follows the line of least resistance with active trade management..
Thank you Maan Pratap Singh
Hi Bharadwaj,
Can you please guide me for the above mentioned question?
Thank you in advance.
Hi Bharadwaj,
How you will conclude that the price of a stock is not moving in your direction with in couple of sec/min once you take the position?
you said you square up by taking .3/.5 % profit or 2% loss how do you manage it? do you use bracket orders? by entering stop & target simultanously?
Vinay,
You can consider enrolling for the online trading academy – sharekhan initiative in Bombay.
hi Baradwaj ,
Thanks for your suggestions ..
can you please guide me, is it better to join training centers to learn about tech analysis stuffs.. i want to learn day trading skills
Check this link for training , its really good. http://www.ascncfmacademy.com/
thanks for your suggestion..
actually i am looking for more than certification, i want to become full time trader,there i dont see any good tech analysis or day trading course content,
have you heard of this one.. http://technical-analysis-course.in/
Hi
most trading academy course are very basic and useless.have idea on IFTA journal rather than trading academy.do paper trade with that.get data from gfdl monthly basis.develop an own method.implement good money management. the stock market is a more tougher ruby cubic problem.it has a algo that u has to solve by urself only But u need to be different from other to get a “market value”.
IFTA 2014 / 2015 very precious indicators and setup mostly based on simple TA and PA stuff.
Not only OTA but IB(interactive broker ) has good courses.but most discount broker do not have course.OTA is a good mentored program nothing more or less.
Hi GBharadwaj,
Congratulations on your Achievement as an intraday Trader ! Really an inspiring story. can you please clarify a question while doing Intraday trading.
Bid Size is 100,50,120,90,140( these figures keep changing but not more than 200)
and Ask Size is 110,120,80,20,39( these figures keep changing but not more than 200)
during Intraday, when Buy/Short a stock ,if Bid Size and Ask Size are like above. What will happen if i buy/Short 2000/4000 Shares at one go? can i trade for 2000/4000 shares?
Rajiv,
As long as the stock is among Nifty 50, Nifty junior or Nifty Midcap (in short say the top 200 traded stocks) you wont have any problem placing orders in 1000s or even 10,000s OFCOURSE there will be an impact cost say 0.1 or 0.2%. But the order will be ‘filled up’ not in 1 go but in 100s of mini orders but u need not worry about that. ALSO its better to place orders say 500 or 1000 @ a time rather than 5000. This way your impact will come down a bit.
Thanks buddy, as same was in my mind.
Thanks Bharadwaj 🙂
Could u pls clear this up for me:
If for eg I buy 5000 shares of Tata Steel at Rs.500 with a stop loss of Rs.499 & target of Rs.501. So in lieu of the impact cost what could typically be the net rate that I may get for both buying and selling. For the sake of this example in theory while i would be looking at a profit of Rs.1/- per share, what might the actual profit be in a realistic scenario if we introduce the impact cost into the picture.
Sir,
My only goal in intraday trading is to gain only 0.5% in single trade/day. How can achieve this with high accuracy. I found that you gain between 0.3% – 0.5%. I want to do only one trade for a gain of 0.5% successfully. Pls help sir…
thanks
Outstanding
Excellent trading methodology without using F&O and just MIS orders. Very encouraging.
0
excellent….
Thank You Bharadwaj Sir
Your trading style encouraging me a lot.
I have some queries
(1)After seeing strength on a stock are u taking positions again & again on a particular stock i.e. in & out to the stock again & again in a single day or u r choosing different stocks each time.
(2)I have marked from several times that a stock is getting more active whenever it is crossing the last bar high or low in any time frame.Are u taking advantages of such oppertunities or ur trading entry/exit is purely based in nifty movement as u have mentioned earlier.Please clarify.
(3)By seeing your interview/comments I am assuming that u are getting out from the stock as soon as possible if it is not moving in ur direction.Is it true.
Thanks in advance.Waiting for ur advice/answer.
Sir please please reply.
Thanks in advance
1. Sometimes I do get in & out of same stock couple of times in a single session.
2. Often i take advantage of breaching highs / lows of the day provided its in tandem with nifty movement as well.
3. Yes getting out ASAP if not moving in the desired direction is the most crucial mantra for a intraday trader of this kind.
Hello Sir
(1) Could you clarify how are u choosing an active stock.Can I choose some stocks from gainers & losers list of Rediff money.
(2) Other question is with how many points up or down of NIFTY u are buying or selling a stock.Suppose on a particular day NIFTY & TATAMOTORS are moving up.Suddenly NIFTY moved 10 points up (say it jumped from from 6000 to 6010).In this case will u buy TATA MOTORS.
I mean to ask generally with how many points up/down of NIFTY will affect other stock.Is it 5,10,15,20 ?
Waiting for your valuable reply.
Thanks in Advance.
Sorry for keeping you waiting.
1. You can choose active stocks by checking out top gainers, top losers, top volumes, those near 52 week highs, lows etc
2. Every single point up & down in nifty will have its corresponding impact in all stocks. See you need to create a mind map of the market direction, levels, supports, resistances before & during any position you take / hold. This process cannot be taught as each persons thinking, each persons greed, fear, psychology will be unique.
I repeat, do not multitask. Intraday trading requires your 200% attention & single minded devotion. What working people need to try is to say take off completely 1 or 2 hours between 9:15 to 3:30 ONLY for intraday. The duration can be increased with the growth of your comfort level.
Thank U very much Sir
Dear Bharadwaj Sir
Please give your valuable suggestion on the above queries.
Thanks & Regards
Sudhansu
Dear Bharadwaj Sir
Please advice me on above queries,
Everyday evening after coming from my workplace I am eagerly opening my laptop to to see either you have replied or not.
As I am new to trading & recently opened trading a/c through ZERODHA,your advice will be helpful for me.
Thanks & Regards
Sudhansu
Hi GBharadwaj,
Could you point us to “seminars, workshops and reading books on the markets.” ?
Regards,
Ajai
I would recommend Mr.Deepak Mohonis workshop. Its done in various cities around India atleast once a year or 2. To get a feel of indian markets with indian stock examples you can read both Ashwani Gujrals books.
I was comfortable with the huge leverage and most conveniant payin payout system of my long standing earlier brokers and as i was making good monthly income irrespective of brokerage ‘loss’ i did not trust or bother much to explore the outside world till Zerodha founders contacted me and explained everything. I MAY be among the first 5 signups of Zerodha !
Target & stop loss is something which has to be changing LIVE each second with your position and cannot be prefixed at the time if taking position. When i say i never allow a profit position to turn into loss its natural ‘cos the moment price goes up my stop loss too would change from the original to higher in line with the rise. If you are trading hard from years you would know by now that philosophies & fixed strategies Dont work ! Presets and formulas can work only in an ideal scenario but you know markets are unique each single day ! But your question is not naive it is THE most important & deciding factor between a loss making trader and a successful one !
My exit would be :
(1) 1000-1012-1010-1021-1018 (Exit: 1018)
(2) 1000-1012-999-1025 (Exit :1008 )
(3) 1000-1008-995-1030 (Exit: 1005 )
(4) 1000-1119-1008-1024 (Exit: 1116 )
(5) 1000-1004-1000-1020 (Exit: 1020 )
(6) 1000-1002-990 (Exit: 997 )
(7) 1000-1012-990 (Exit: 1009 )
In short not more than point 3 % down from the moment it starts coming down (in case of buy & reverse in case of short)
GBharadwaj, Thanks for your prompt response! Thanks for guiding on a very crucial aspect! Just one more query related to an important scenario I missed : 1000-991-1002-998-1050 (Exit : ). Would it be reasonable to assume that once you are -9 down (90% of SL limit), getting out at BEP is also good enough?
And also once one has exited at 1000, I assume one shouldn’t sulk seeing the same stock going to 1050 in next few minutes (but I do sulk since I find difficult to re-enter, say, even at 1010. Re-entry is also an issue I face and am working on it. I understand that would not be possible for you to teach over comments-forum.
Best regards, nitin
Hi GBharadwaj,
Congratulations on your amazing feat! Really an inspiring story.
I have been actually facing issues with exits and your post seems to be having a clue for it. Earlier I used to have fixed tgt and SL exit : either -1x (loss) or 2x(profit). In your case x ~ 1000/-. But I see you target about 2000/- a trade but at the same time you don’t let a profitable trade turn in to loss. This captures crux of my query because though some philosophies may say you shouldn’t exit unless your exit targets are hit, psychologically, seeing at +1000/- profit turn into -1000/- loss is bit damaging (atleast for me) . So at what point you move your SL to BEP (break even point). Example : Consider a scrip trading at 1000 . Suppose you go long at 1000, So your SL would be 990 and expected target would be 1020 (or some higher level depending on momentum). Say transaction cost is 0.5/- for a round trip B+S (so your BEP is 1000.5/).
Can you please guide on your exits (which are path dependent) for the following scenarios regarding price movements?
(1) Example : 1000-1012-1010-1021-1018 ( I would assume would exit at 1020). So you Ans would be (Exit: 1020)
(2) 1000-1012-999-1025 (Exit : )
(3) 1000-1008-995-1030 (Exit: )
(4) 1000-1119-1008-1024 (Exit: )
(5) 1000-1004-1000-1020 (Exit: )
(6) 1000-1002-990 (Exit: )
(7) 1000-1012-990 (Exit: ).
GBharadwaj, I understand such queries are too naive, but Exits is the thing I am struggling with. Atleast over time I have realized I too don’t prefer a profitable trade turning into loss, the indecision around whether I should let the profit run or let either of the exit points be hit causes lot of confusion. Since you have been practically and successfully dealing with the thing, you guidance would be of immense value.
Best regards,
nitin
Hi Bharadwaj, congrats for your stupendous success…would like to know and i m interested in if you provide any advisory services…if not request you to provide some training for novice and small traders like me…
Certain things cannot be taught at all. Like balancing a cycle ! Experience alone can make you a good / better / best trader. Moreover my kind of trading requires utmost concentration maybe equal to that of a surgeon on the operation table ! So no way i can trade & talk & explain at once.
Hi Bharadwaj,
Congratulations.
I would like to know how is your room/environment where you sit for trading.
Because you need a peaceful place to have such a deep concentration mind.
Thanks,
Suresh.
Thank You Bharadwaj Sir
Your trading style encouraging me a lot.
I have some queries
(1)After seeing strength on a stock are u taking positions again & again on a particular stock i.e. in & out to the stock again & again in a single day or u r choosing different stocks each time.
(2)I have marked from several times that a stock is getting more active whenever it is crossing the last bar high or low in any time frame.Are u taking advantages of such oppertunities or ur trading entry/exit is purely based in nifty movement as u have mentioned earlier.Please clarify.
(3)By seeing your interview/comments I am assuming that u are getting out from the stock as soon as possible if it is not moving in ur direction.Is it true.
Thanks in advance.Waiting for ur advice/answer.
Sir i have one doubt in trading futures
Let say i buy 1 lot nifty at 5890 in CNC today. let say tomorrow it price changed to 6000. And lets say day after tomorrow it price changed to 5800. and let say after 5 days i sold it at 6000. so my profit should be 110×50. but i have a doubt. will i get this profit or everyday some amount will be deducted and added to my account means when price fell to 5800 will any amount get debited or when price rise to 6000 will my account get credited(if i didnt sell only i hold it till i get a good price). Means will my profit or loss be calculated only when i sell nifty lot or everyday i will be charged or credited as per the price fell or rise till i hold it????
Praveen,
Firstly when trading nifty you need to use product type as NRML to hold overnight. Check link for margins required.
In your case when it went from 5980 to 6000, your account gets credited by Rs 5500(50 x 110), when it goes to 5800 Rs 10000 gets debited and when it goes back to 6000 10000 gets credited again, at the end of everday there would be a marked to market done either crediting or debiting your account until you exit your positions.
Cheers,
HI
G bHARADWAJJI
It seems you have made intraday profitable trades consistently.
If thats true, Over a period of 6 months/ a year whether the net result of your trading activity is positive?
Please clarify. and If answer to this question is Positive, it should be supported by details of trading journal as you have won the challange.
Shirish
Zerodha has launched this section to highlight the fact that against popular public perception that people always lose in the stock markets, there are people who consistently make money.
Like answered in the first question on top of this page, i too lost my entire capital dozens of times during my early years. God somehow made me continue rather than quit trading. And then slowly AFTER 3-4 years i began seeing profits month after month & year on year. Daytrading is my full time job & the ONLY thing i do between 9:15 to 3:20.
Good to hear
1. Like already pointed in the main article itself, i buy MAX i can in the given margin. For example say 3000 RCOM or 10,000 JPA or 150 Infy or 1000 PNB
2. Will use up all the leverage i can in each trade.
-Some guts dear…Congrats !
-0.25 % SL? you must real quick. With vedl,adanient,dlf,hdil you seriously leave after 15 paise deviation? i would possibly not manage that in my rest of the life. Try displaying your skills on a India got talent equivalent platform.
-Thanks for sharing your experience and spreading hopes. Regards,
Can somebody explain whats exactly MIS trading? What is the difference between MIS-FUTURES and FUTURES. Its got something to do only with intra-day trading or the margin amount also ( like 5 to 10 times the amount). Please explain everything possible about MIS. I dont have a demat account and can I trade to trade in MIS-cash? I only have a F&O account.
Thank You.
MIS stands for: Margin intraday square off, when you mention the product type as MIS while placing your order:
1. For equity, you can both buy and short based on if you are bullish or bearish. Since MIS is only good for intraday we give give you upto 10 times margin. So if you have 1lk in your account, you can buy upto 10lks, but all MIS positions get squared off at 3.20pm.
2. Similarly when you mention MIS while trading futures, you will need only 40% of the overnight margins, again will get squared off at 3.20pm. This blog explains everything on product types.
I differ mr Nitin… on fryday I traded in MISand Leverage which I got was 3time only. stock was Arvind pharma…
The leverage given varies with stocks, check this link: https://zerodha.com/margin-calculator/Equity/. You can use Bracket or Cover orders if you need higher than this.
Congratulations,
I want to know, is it possible to short equity similar to futures, where to get the details of margin for the equity and what is the time frame?
Yes it is possible, you need to use product type as MIS while shorting equity for intraday, you can trade unitl 3.20pm.
Read this for more: http://www.zerodha.com/z-connect/blog/view/zerodha-margin-policies
Congratulations Bharadwaj ji,
Sir,i want to know that what time frame you are using for your trading (scalping) ?
Congratulations Bharadwaj ji,
Sir,i want to that what time frame you are using for your trading (scalping) ?
congrats bharadwaj…im little confused at your trading strategy…
1. suppose u pick up a mid cap stock whether u would corelate the midcap index with midcap stock or corelate it with sensex r nifty index with the scrip?
2.do you even take consideration of technicals levels into your plan?
3.r depend on hourly charts..
Nifty Index is my mother. I do not open corresponding sectoral index chart for the position i take. I dont find the need to do so ‘cos am concerned only about the few seconds or maximum 1-2 minutes movement post taking position. My kind of trading (scalping) works ONLY when things are kept as simple as possible. Focused concentration on each second nifty tick, stock tick & market depth is all thats needed.
sir is it possible to trade live under your guidance….can u help me?
It is a very inspiring story. I wish my wife sees/understands this and lets me to bet big on equity markets 😛
Anyways, I had a doubt Bharadwaj on intraday short selling of shares. Could you please clarify that?
Suppose I do not hold any Axis bank shares in my demat account. And I short sell 100 shares of Axis bank on NSE at say 1050/- per share. Now by the end of the day the share price in BSE for Axis Bank has come down to 1040/- per share. Can i buy back the 100 shares in BSE? 1) By doing so, does it mean that my initial trade of short sell in NSE is squared off?
2) Or does it mean that, by the end of day, after the market hours are closed, I am net short of 100 shares on NSE and long by another 100 shares in BSE? And if I do not transfer 100 shares from some other demat account, the shares that i short sold in NSE will be bought back by the exchange in the Auction window?
Generally I have seen that there is difference in price of shares in NSE and BSE by 1-2 rupees. By doing a trade like I have mentioned above, my intention is profit from the arbitrage available because of the difference in pricing in NSE and BSE. Hence, please clarify if it is allowed to do such kind of a trade.
Rakesh,
You cannot buy on one exchange and sell on other or vice versa for intraday, what you have said in point 2 is correct.
If you see a price difference between NSE and BSE, buy it on BSE wait for 2 days get delivery and sell on NSE, that is the only way to play this out, which would not really make any sense because you would be taking a market risk for those 2 days.
Cheers,
Congratulations to Mr. Bharadwaj!!!
Great trading style and discipline.
I want to know how he managed to used his 50000/- for intra-day trading. I mean he invests in futures? or options?? or both???
And I appreciate Zerodha for its all round support and inspiration.
As written above, i do not trade F & O. My positions are Equity Only. For the 50k buying in MIS enables us margin of 5 to 10 times which is used in entirely for each trade.
Bhardawaj you say you wait for nifty (index) to move up or down to buy or sell the liquid stock you selected to trade but many a times nifty don’t much move for hours and just consolidate in a short range. Then how come you make 10-20 trades a day in that case.
I have same Question. sometimes nifty is in range between some 20-25 points for few hours and suddenly goes 100 points high/low in 5 minutes. then how you decide stock to trade ?
Thank you Mr. Bharadwaj. Now I understand whats MIS. I didn’t know about this product before. Now I understand that you invest in MIS-cash and not in MIS-futures.
Thank you Zerodha for this knowledge.
Hi Bharadwaj,
Firstly many congratulation on becoming a Zerodha winner!
If its ok with you, can you tell me how you place your stop loss entry. I used to trade intraday months back, but even before I could place my stop entry, price would have gone below my stop.
Thanks!
Hi Rahul, if the stop is being hit even before you click it means the stock you have chosen is not liquid enough for intraday. Choose stocks which are generally stable & trade huge volumes. If you still face the same problem, dont set a SL, keep concentrating & manually exit the second your threshold is breached.
Hi
I read the trading style part.raw Tape reading and reading the buyers/seller in our screen what is given as a default tool is different. you precisely need a DOM/T&S. And this scalping method is a bit riskier than normal way of trading.
Very nice and good strategy Bharadwaj.
Liquid stocks with large volumes from Nifty, Nifty Junior & Midcap 50 are my bread & butter. All the usual suspects like Reliance Group, Jindal Group, Tata Group, Realty, Banking, Metals, Pharma etc.
I like the simple style of trading giving away a pittance as charges from profits,but it is an eternal pipe dream for me while he realises every day my dream.
Great inspiration .for me to know that my idea is o.k. but only execution is lacking.
I am curious about his list of stock.
Three different successful trading styles of winners so far – nifty future,options and equity cash.Positional as well as intra day players.
I can understand shyness of them to reveal every thing but Nithin may perhaps put a review in a seperate write up later as detailed guidance for those groping in the dark.!
Thanks
Excellent…
Congratulations on your achievement Mr. Bharadwaj.
Dear Abrar & Arcus,
I can share you my views on the write up about Bharadwaj.
This one line by Bhardwaj says it all ” I tend to keep it very simple: trade 1 stock at a time with maximum leverage allowed on my trading account.”
With a 50,000 capital if cover trades are taken, one can take trades above 5 lakhs on intraday basis.(correct me zerodha if i am wrong in quoting figures). So a 1 -2 % gain in intraday of Rs.500000 comes to 5000 – 10000.
Many of the traders must have earned more than that % return in a single day.
I do understand that Bhardwaj has a very good and simple trading logic but what i appreciate the most is his discipline to stick to his trading plan each and every hour of the trading day.
Kudos to Bhardwaj and to all traders who have the grit to hold on to a simple higher winning trade logic than loosing trade and repeat the discipline over and over again.
I highly appreciate Zerodha’s effort to bring such real inspiring acts of real trading hero’s to the trading community..
Thanks and Happy Trading.
5lakhs MIS,10 lakhs cover order.
For scrip of 500 rupees trade size can be 2000-4000. one rupee gain,5 winning trades
10-20k/day.
100 trades per week ,60-70% winning trades 2k/per trade …count!
Really fantastic Bharadwaj
Yes, I have seen some good traders make 15% per month and it is very much possible.
With cover orders and 20 times leverage, earning 1.5 lakh average pm with maximum leverage can compress the required “working capital” (50K) and make it a fraction of the actual trading capital (10L).
But many traders fail to understand that and may start to act recklessly watching such apparent 200% returns pm.
Both Zerodha and the trader should mention explicitly that this is only a portion of their actual trading capital. What some traders would like to refer to as “working capital”.
Without that, the interview itself becomes a mere sensation rather than a guiding voice.
All of the Market Wizard interviews and even the book by Alexander Elder called “Entries and Exits” which is a series of interviews of profitable traders measure returns as a percent of the “trading capital” as opposed to just the “working capital” with the broker.
arcus,
We have mentioned it a bunch of times, one of the reason we have not mentioned percentage returns on this blog.
But definitely get your point,
Cheers,
Hi nithin.. is there any practical game by zerodha that i can use to practice my trade as i am new to stock trading?
Vimal, we are building a mock trading platform.
When it will upload on zerodha platform like mock excersize on separate server..?
We are working on this Ashok. Probably in the next few months.
nithin i have some questions to ask from Gbharadwaj….how can i contact or ask him?
Hi Nithin, Is there a Mock trading platform available on Zerodha to practice our strategies?
Not yet.
Hi,
how to use margin in Intraday ? im confused. I have account balance of say 10000 say example : Stock ‘SBIN’ price is 200 and Margin is 3x … I selected ‘MIS’ option for intraday and ‘Regular’ option in advance option and i did not put stoploss (because i did not wanted)then , actual i can buy 50 stocks of SBIN because 200*50 , since margin is 3x i should be able to order 150 stocks correct? but when is tried to order 150 quantity the order was rejecting with message “available balance in your account is RS. 20,000”. WHY it is so?
So, Please can any 1 guide me how to order in intraday with margin.
Mahi, the margin requirements are dynamic and based on volatility. If the volatility is high, the leverage offered is lower. It’s possible that when you were placing the order, the margin requirements were higher.
Change from CNC to MIS and then try
Hi Bharadwaj
1) How many trades on average do you get in a particular day.
2) You also said that you take maximum leverage with your 50,000 risk capital, then your profits should be more that 2000 I guess, or you book out very early, with profits of 10-20 paise?
1. 10 – 20 trades per day. Number of trades will obviously be inversely proportional to market volatility !
2. I usually exit if it moves .3 to .5% in my favor, if not i exit at maximum .25% loss.
Gbharadwaj sir can i have ur
your mail id for contacting u.
Do you change your strategy in a volatile bear market like we have seen recently, December 2015 and January 2016, specifically? How do you trade in these markets? I think it would be difficult in these markets.
Dear bharadwaj
How you are analyzing market depth window while placing order for trading.
sir is it possible to trade live under your guidance ….can u help me?
If he is making 1-2 lakh every month on a trading capital of 50,000; then he is probably the best trader on this planet.
Arcus,
One of the reasons why we avoided mentioning percentage returns in the post above is because this person is not your typical trader, he just keeps money which he is comfortable to loose. When you look at absolute returns in this case, you cannot look at it based on how much is in his trading account.
That said he is a special trader, there are a few other clients we have who follow similar money management strategy.
My first day with zerodha how would I trade intraday
Hey Mnaisha, I suggest you check out the Kite user manual.
Hi,
how to use margin in Intraday ? im confused. I have account balance of say 10000 say example : Stock ‘SBIN’ price is 200 and Margin is 3x … I selected ‘MIS’ option for intraday and ‘Regular’ option in advance option and i did not put stoploss (because i did not wanted)then , actual i can buy 50 stocks of SBIN because 200*50 , since margin is 3x i should be able to order 150 stocks correct? but when is tried to order 150 quantity the order was rejecting with message “available balance in your account is RS. 20,000”. WHY it is so?
So, Please can any 1 guide me how to order in intraday with margin.
Mahi, the margin requirements are dynamic. If you’re placing an order and it is getting rejected, it means that the margin requirements have gone up. It generally takes a few minutes for the margin calculator to update.
HOW CAN I SEE INTRADAY CHART AND WEEKLY CHART IN OUR TERMINAL
Narayan,
Check these blogs : Charting and adding multiple indicators.
We must call him as the best trader the world ever found, if he could monthly profit of 1-2 lack using 50,000/-. Nithin Kamath would have left Zerodha and join with this guy if it is true……
Hi Sashi and Nitin ji,
We should never leave “Saraswati” just because of “Laxmi”, here he is making profit/money (Laxmi) majorly because of technology aspects (saraswati) of Zerodha.
Congrats Bharadwaj!!!
Very Nice.
Congratulations Mr. Bharadwaj !!!
Congrats on winning ! All the best for future.