Finally, we are here in the Part-2 of How I started My Trading Journey on Stock Markets..
I think my first trade is way back in 2016 and I did a Reliance Communications Ltd, this company used to trade very actively and one fine day in fact one fine afternoon, I brought 1 share as Intra-day and I made a profit of ₹ 0.3 in that trade with a capital of ₹ 5.0 ( I felt that 6% profit on my capital in a span of 10 mins is good in fact really good) , I used only ₹ 5.0 because Zerodha used to give 11x leverage for Intra-day trades. ( Reliance Communications lost it’s value over a period of time and you check it here )
And I think, I did the pretty same thing for next 10 days, I mean I used to place order only for 1 share because I was still validating myself and preparing myself for the best possible and trade and worst possible scenario.
I started gradually increasing my quantity from 1 share to 10 shares to 50 shares to 100 shares for next 3-4 weeks and by that time I’m with around 15% profit on my capital after all the charges.
Now I place order for 1000, 3000 quantity depending upon the company and current news and traction about that company on stock exchange, because In Intra-day trading you have to square-off (close your trade) 10 mins before Closing bell ie; 3;30PM.
So, because of this time constrains I primarily bet on news because I feel Market react to news way faster than technical stuff but trading on News is one of the worst strategy you can ever make.
You Might be still wondering then Why the hell you trade on News?
The answer is quite simple – That’s what I know and It works for me!
So, the point I’m trying to make here is ‘ You do what ever you want to do and better try and test all the available strategies out their and then finalize which works best for you and stick to your strengths.‘
I trade on News because I don’t know anything about Charts (apart from very basic charts) and I place orders for news, volatility, Fluctuations for specific stocks on that specific time and It works for me and I’m making good amount of profit.
You do only what works for you and this doesn’t mean you have to stay away from trying new strategies. Trading is all about A/B testing.
After trading extensively on Indian Equity Markets, I realized that one of the Riskiest and Dumbest way to trade markets is on News.
But still my 80% trade orders are placed on news because I know more about this than any other one available out their and I’m pretty comfortable with this. (Stick to Strengths & overcome Weakness)
The one who understands this Makes Money and one who doesn’t pays it.
Because making profit in Markets is all about taking money from the other person. Every Buy order has parallel Sell order and every Profit has parallel Loss for every trade one does.
Above all these I’m making very little profit (6% – 15%) for Initial 3 months and all of a sudden I made 1000% (10 times) profits in next 2 months thanks to Modi for Demonetization and Trump for Wining as US President back in 2016.
Will discuss more on these events and how to place orders on these events for profitable trades and much more in coming blogs.
Read, How I Started My Trading Journey on stock markets Part 1 here.
Until then this is Rushi. Happy Trading!