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Q. What is Day Trading? |
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A.
Day Traders usually buy and sell (or sell first and then
buy) securities (including Stocks, Bonds, Commodities,
currency, options, futures etc) during the same day and, as
a general rule, do not hold the securities overnight. They
are therefore said to have "Zero Position” at the end of the
day. (However some Brokers have started providing facility
to square up the Buy-Trades on next market day). Many Day
Traders make dozens of trades every day hoping to capture
profits that arise from small intra-day price fluctuations.
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Q. What is Swing
Trading? |
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A.
Swing traders usually hold a security from
one day to 2 weeks or so. Most of the swing traders
concentrate on Breakouts on just a few selected High Volume
stocks that they believe will likely make a significant move
in price in the near-term.
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Q. Many people think that day trading is just
gambling. Please comment. |
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A.
No! That is a misconception.
Day trading has large potential
rewards, and it also has large potential risks involved.
Generally in any form of gambling the odds for winning or
losing are 50-50, where no strategy or tools may
influence your chances of winning except your luck, which
may play an important role. But in day trading, with the
help of Technical Analysis, Proper Trading Strategy,
discipline, Patience, use of stop Loss mechanism the odds
can be turned in favor to extent of 80-20 or even higher.
Even with 50% trades going wrong and hitting stop loss, day
trader can make profit and turn out to be a winner. Day
Traders must follow successful trading rules and avoid most
common mistakes to remain in profit consistently.
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Q. In brief, what services are you offering for Day
traders/Investors? |
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1. Highly Active Day-traders
can get real-Time Intra-day Trading Calls in comfort
of their home or office though our
”Message Room” (like
MSN/Yahoo Chat-Box). If you are a busy executive or a person
on move but do not want to miss any trading opportunity, you
can get live trading calls on your mobile via SMS and profit
from every short term fluctuation in the Market.
(Additionally to assist you formulate a trading strategy for
the day we have Daily Morning
Newsletter specially designed for Day and
Swing Traders, a trading guide like Bullish or Bearish
Patterns, Breakouts, Candlestick Patterns, Overbought/
Oversold stocks, Support/ Resistance Levels for key stocks,
Trend change Levels, Bar Reversals, Highly volatile stocks,
A/D data, Stock Likely to move (both Bullish & Bearish) with
Targets/ Stop Loss Levels and lot more…)
2. Semi-active Day Traders, or those expert
themselves want second opinion or want additional tips, can
go for economical ‘5-SMS a
day’ plan with a
Basic Newsletter
giving important support resistance levels of 50 most active
scrips including leading “F&O” scrips.
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3. High Net worth Investors may avail our
Portfolio Advisory Service
to track their portfolio and make best use of Technical
Analysis to profit from Trading in scrips in hand. Such
investors may send separate mail giving their contact
numbers.
4. For those, who wish to have Technical
Analysis of a specific Stock, we offer detailed
Technical Analysis Report at a nominal Fee, payable
in advance.
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Q. What is the difference between 2 services plans named "5-SMS
a day" and "Intra-Day Live SMS Calls"? |
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A.
”5-SMS a day”
is basically a service in which SMS will be sent at ‘Fixed
time’ like first between 9.30-9.45 am with trading
recommendations, if any followed by at 11.00, 12.30, 2.00
and at 3.15pm or before closing hours if extended. While in
“Intra-Day Live SMS Calls”
plan you get SMS as soon as there is a Buy/ Sell Signal from
Charts. Number of SMS may vary depending upon trading
opportunities to the extent of 15-20 calls a day. These will
be time-sensitive for active traders.
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Q. Please clarify as what is the difference between "Basic
Newsletter ” (BNL) and “Detailed Daily Newsletter”
(DNL)? |
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A.
”Basic Newsletter (BNL)’
as the name suggest gives basic trading information to the
Day Traders like Important Support/ Resistance Levels/ Trend
Change Levels/ 10 Period High/Low/ Bar Reversals/ AD data.
This information is very useful for Day traders who trade
only on Support/ Resistance Levels. The “Detailed
Daily Newsletter (DNL)” Contains all the reports
useful for all Day Traders and Investors using
1/5/30/ 60 Minutes & Daily Charts, like Bullish or Bearish
Patterns, Breakouts, Candlestick Patterns, Overbought/
Oversold stocks, Support/ Resistance Levels for key stocks,
Trend Change Levels, Bar Reversals, Highly volatile stocks,
A/D data, Stock Likely to move (both Bullish & Bearish) with
Targets/ Stop Loss Levels and lot more……………..
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Q. What is “Free Newsletter & Tips” on your web site? |
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A.
As part of promotion of our services and to help traders and
investors from time to time, who cannot afford our regular
services, we give useful information through of Newsletters
and other articles on Technical Analysis. Most Part of these
newsletters is reserved for Paid Subscribers, however the
Disclaimers/ Privacy Statement shall be applied to
subscribers of Free Newsletters also.
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Q. I am willing to subscribe to the services offered by you
but can I have “Free Trial”
for few days to test your skills? |
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A.
We can realize your apprehensions but you will appreciate
that we are in this field since 1990 and proved our
performance in all the best and worst periods of Stock
Market hence do not require any testing. Moreover there are
many cases in which people keep on asking for Free Trials
under different names with different identities and mobile
numbers. Therefore as a matter of policy, we do not give
FREE TRIALS. You may try our “2-Week” Paid Trial offer.
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Q. Can I cancel my Membership/ Subscription
any time due to any reason? |
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A.
Yes! You can cancel your membership/ subscription any time
by giving 7 days’ advance notice in writing, however the
running month will be charged full and refund will be
sent to you within 15 days after deducting the charges on
the basis of ‘Monthly
Subscription’ multiplied by the number of months
the service was used. For Example if you intend to
cancel Yearly subscription of a Plan (whose Yearly
subscription is 22500/- while the Monthly Subscription is
Rs2500/) after using it for 5 months. So you will get
(Rs.22500/- minus Rs.2500x5 months= Rs.10000 minus full
taxes if applied)
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Q. "I want to start day trading, but I don't
know the first thing about it." |
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A.
If you not sure about day trading, please
don't just "jump in" take the time to read up and learn the
basics of trading. Day trading is NOT easy and not a "get
rich quick" strategy. A great way to start into day trading
is to paper trade or use a trading simulator (without
involving actual funds). These strategies don't take into
account all the possible risks that occur when trading with
real funds, but it can give you a sense of what it's like to
trade. Please make sure you have a strong foundation of
knowledge before using actual funds
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Q. What is ‘BTST’ offered by many Brokers of NSE/ BSE?
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A.
Taking advantage of the Settlement Procedures of Stock
Markets, which requires settlement of Trade on 3rd
Day of execution, many Brokers have started offering their
Clients / Day Traders the facility of BTST (short form of
‘Buy today Sell tomorrow’) at nominal extra
cost (or NO Extra Cost by few) provided the financial
interests of brokers are protected. These trades are to be
sold on next day (or before 12.00 noon on 3rd
Day). However ‘Short Selling’ under this facility is not
possible hence not available.
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Q. 'How much capital is
needed to begin day trading?
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A.
Generally, any day trader should have enough
trading capital to enable him or her to buy at least few
hundred shares of any given stock on any particular day
- preferably without having to use margin or using only part
margin. In addition, the new day trader should treat this as
100% risk capital and should not have to unduly worry that
the whole amount of this capital may be lost very quickly.
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Q. How many On-Line Buy/ Sell Advises do you give in a Day? |
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A.
On a Normal Trading day with usual fluctuations, you can
expect 5 to 10 calls, however on a good volatile market
these calls can go up to 20 also where as on a Non-trading
market, these get reduced to 1 to 3 only.
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Q. What is your criteria of selection of stocks for
Day-Trading? |
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A. The very first criteria are ‘Volume’. We select only ‘High
Volume Stocks’ only for easy entry and exit (even in Stop
Loss case). Second criteria are ‘Volatility’. It has been
seen that Volatile stocks give better Trading opportunities
for Intra-Day.
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Q. What is the number of stocks, you analyse for Day
Trading? |
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A.
We follow about 200 High Volume Stocks of ‘Nifty’, BSE ‘Sensex’,
‘F&O’ stocks including select high volume stocks. Apart from
that we ‘rotate’ 10-15 stocks from time to time, which get
into limelight on some news/ results/ media or on Technical
Breakouts.
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Q. How do you give
Real-Time Buy/ Sell advices to Day Traders? |
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A.
We give real-time trading advise using ‘Message Room’,
‘Pop-Up Alerts’ and by ‘SMS’ on your Mobile
Phones during market hours. Message Rooms has facility to
only receive messages. For Message Room and Pop-Ups, you
need to have internet facility during market hours to be
On-Line.
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Q. Which of ‘Message
Room’ or ‘Pop-Up Alerts’ or ‘SMS’ is suitable for me for
real-time trading advise? |
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A.
Message Room is for those Traders who have Internet
facility, to be on line all the time during trading hours
and they trade through internet/or Broker’s terminal
instantly. ‘Pop-Up Alerts’ are useful for those busy
investors/ traders/ HNI (with internet facility) who want to
trade only when there is an opportunity. A small ‘Message
Window Pop-up’ on their computer screen notifies them as
soon as we send a message. And SMS is for those active
traders who are mobile and can get their trades executed
over phone or otherwise but do not have access to internet
facility all the times.
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Q.
How do I decide as how many shares to buy? |
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A. You should try to use the same amount of money on
each trade, NOT the same number of shares. You should decide
before you begin the service how much you will trade with.
Let's say you decide on Rs50, 000/- per trade. If you are
buying XYZ, and it costs Rs50, you should buy 1000 shares.
If you are buying ABC and it costs Rs25, you should buy 2000
shares.
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Q. Is every stock suitable for day trading? |
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A.
No. A day trader should never trade low volume
stocks. These stocks have poor liquidity and hence a higher
price volatility. This may make it hard for you to exit your
position quickly at a fair price. Trade only high volume,
well-known stocks.
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Q. What does it mean to "short" a stock? |
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A.
To "short" a stock, you simply sell the stock without
actually owning it. You will have the obligation to buy back
the stock on the same Trading Day in order to "cover" your
short sale to make you have ‘zero position’. When you short
sell a stock, you are hoping that the stock price will drop
so that you can buy it back at a lower price than what you
sold it for, thereby making an Intra-Day profit on the
transaction.
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Q. Is it possible to keep Short Position ‘open’ for more
than a day? |
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A.
No, in Cash Segment all the trades are settled on ‘Delivery’
basis on End-of-Day position thus Blank Short Positions must
be covered on same day to avoid covering of stocks in
‘Auction or Spot’ otherwise, normally at much higher price
than prevailing market prices. However position in stocks
traded under “Futures & Option Segment” (known as ‘F&O
Segment’) can be carried forward to the extent of 3 Months
(under different contracts of 1 Month/ 2 Months/ 3 Months)
provided such shares are traded under ‘F&O segment’ (at
present there are only few stocks under this category. Check
with your broker about F&O dealings/ Margin Requirement/
Brokerage and settlement procedures. For more details and
latest list of such stocks you may visit
www.nseindia.com).
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Q. What is the
difference between a market order, a limit order, and a stop
loss order?
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A.
Here are the key differences between each
type of order:
1.A market order instructs your Trading Terminal or
shares broker to buy or sell shares immediately at the
current market price. This will usually take place at the
"ask" price
2. A limit order instructs your Trading Terminal or
shares broker to buy or sell shares at certain price
specified by you. When (and if) the price of the stock
reaches the price you previously specified, your order will
be executed at that price.
3. A stop loss order instructs Trading Terminal or
shares broker to liquidate your position if the share price
drops or rises above a certain amount specified by you.
(Imp. Note - Give sufficient spread between
Stop Loss limit and Trigger Price to avoid any
non-materialization of Stop Loss Order)
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Q: Should I Trade without using Stop Loss
Orders |
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A.
Never!
Never trade without Stop Loss however you may be sure of
your success. In one stroke it may wipe off all your capital
(may be more on Margin Trading) if anything goes wrong. Your
‘Stop Loss’ order should be initiated along with your
Buy/Sell order without fail. Even if 50% of your trades
are met with Stop Loss, you can still make profit on winning
trades. (Imp. Note - Give sufficient
spread between Stop Loss limit and Trigger Price to avoid
any non-materialization of Stop Loss Order)
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Q: I have tried day trading but with high brokerage charged
by my broker, I end up negative despite successful trades.
What should be reasonable Brokerage in ‘Day Trading’ to
catch small price movements profitably. |
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A. Normally brokerage is linked with the Trading
Volume/ amount of Margin and the services provided by the
Brokers. 5 (Five) Paise per share of any amount, on
each side of Buy or Sell is the kind of brokerage advertised
by few popular On-Line Brokers. Normally High Volume Traders
pay brokerage of 0.015% to 0.04% of traded shares
while Low Volume Traders may have to pay more brokerage.
There is a practice of Fixed Brokerage per month also
with some brokers irrespective of Volume or Number of
Trades. Also it may be kept in mind that brokerages are more
competitive in big cities than smaller cities/towns due to
competition and other infrastructure costs involved.
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Q. I am a Businessman running my own business. Though I am
an active Investor and Trader, but at times I don’t get
much time to follow my trades. Is Day-Trading suitable
for me? |
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A.
Basically Day Trading is Suitable for those who are trading
on-line, have direct access to Trading Terminals or brokers
to get their orders executed instantly. Every minute (rather
second) matter in Day Trading. If one cannot track his
trades, must not involve in day trading, which at times
require prompt decisions.
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Q. What rules do you think are the most
important for day traders? |
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A. There
are many important rules that day traders should adhere to
but the most important of these are (You may also check the
web-site for most common mistakes committed by day traders):
1. Always do your own due diligence (Research) before
entering any Trade
2. Always Trade with the money you can afford to lose
3. Divide your Capital in 10 equal Risk Parts
4. Never Over Trade
5. Always use ‘Stop Loss’
6. Never Average your Losses
7. Sell Short as often as you go Long
8. Don’t Change your Strategy after initiating a Trade
9. When in doubt, simply get out.
10.Buy on Bad News & Sell on Good News
11.Don’t follow the crowd, they are usually wrong
12.Ban wishful thinking in the Market
13.Hope, Wish, Fear, Pray are all 4-letter words, obstacle
in successful trading
14.Many small profits are equal to Big Gains.
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Q. Do you give ‘Technical Analysis’ of any
stock on Subscriber’s request during Market Hours? |
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A. No! Strictly
Not! To remain focused on our research and analysis, We
do not appreciate any phone calls or entertain any query
during market hours.
Our suggested calls are clear with Volume/
entry level/ Target/ Stop Loss Level that no body should
have clarification or confusion or misinterpretation of any
kind.
However if such stock is in the list of about 100-125 High
Volume stocks, which we follow on daily basis, such requests
can be considered but after Market Hours or on Weekends.
Any one seeking our Technical Report on any stock may
contact us through ‘Technical Query’ section after paying a
nominal Fee.
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Q. Do you or your associates Trade in any of your
recommended Stocks? |
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A. No! As a matter of policy, we maintain high degree
integrity and to give unbiased advisory, we (employees,
associates, partners, analysts, promoters of
Team.trade4profit) do not trade ourselves in the Stock
Market. It has been noticed that many analysts, who are
traders themselves, though wrong technically, try to justify
their recommendations and try to create hype about any stock
to create Exit route for themselves.
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Q. Do you get any compensation from any company you
recommend in your Chat-Room Service or in Newsletter? |
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A. No. We have never received, and never will
receive, any compensation of any sort from any company we
cover in the newsletter or our Chat-Room Service. All stocks
we cover in our service are selected because we feel they
stand a chance at making a profit for our Subscribers/
Members and for no other reason.
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Q. What time is the Daily Newsletters sent to
Members? |
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A.
All members should receive the newsletter(s) before the
markets open. Normally it is sent any time between 11.00 pm
to 7.30 am, however, owing to reasons beyond our control it
can be delayed further a few times a year.
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Q: Will your Service be available on all the
trading days throughout the year? |
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A.
No! You should be prepared for ‘No Service’ for about 10
Trading Days in a year due to various reasons beyond our
control (like failure of Web-site Server, Failure of Service
at Data Provider’s end, Failure of Internet connectivity,
Power Failures, Technical Faults at our Computers, Viruses,
Social Compulsions etc). We shall keep you informed in case
of such Force Majure situations and try our
best for alternative arrangements if possible.
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Q. What are ‘Futures ’? |
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A.
It is an Agreement between the Buyer and the Seller for the
Purchase or Sell of a Particular Asset (like Equity Stock/
Index etc) at a Specified Price and on a
specified future date (1
Month/ 2 Months/ 3 Months). It conveys an OBLIGATION on both
Buyer and Seller to Fulfill the Terms of the Agreement.
Futures are Settled on Last Thursday of the Specified Month
and both buyer and seller have to pay minimum Initial Margin
as per the requirement of stock exchange and account between
buyer and seller is settled Everyday till the expiry of the
Futures contract.
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Q. What are ‘Options’? |
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A.
An option is a contract, which gives the Buyer of Option
(holder)
the right, but not the obligation,
to Buy or Sell specified quantity of the underlying assets,
at a Specific (Strike) Price on or before a Specified Time
(expiration date) i.e. 1 Month/ 2 Months/ 3 Months etc.
The underlying may be physical commodities like wheat/ rice/
cotton/ gold/ oil or financial instruments like equity
stocks/ stock index/ bonds etc.
There are 2 types of Options i.e. Call Options and Put
Options.
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Q. Can any one Day-Trade in Futures &
Options? |
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A. Yes!
Any one can do that and square-up his position at the end of
the day, but as the name suggest these instruments are meant
for Position traders who anticipate a substantial price
movement in stocks coming under ‘F&O Segment’ (limited
numbers as on date). Trading in ‘Futures & Options’ is more
suitable for Swing & Position Traders who can maintain their
Long/ Short positions by paying Margin Money as per
requirement of the Stock Exchange.
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Q. "I forgot my password, now what?" |
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A.
There is a facility below “Member Login” area on Home page
to get ‘Lost Password’ automatically emailed to you but in
case of any difficulty, all you need to do is email us and
tell us who you are. We'll get back to you shortly with
your password. To avoid this situation, be sure to write
your username and password down and keep in a safe place. |
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If You feel that your question is not answered above, you
may use our CONTACT US service so that we can include your
query for future also. |
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