SMALL PROFITS FREQUENTLY
jobbing or scalping in online daytrading
SMALL PROFITS FREQUENTLY
jobbing or scalping
When any trader enters and exit in a trade with speed and get small profits frequently, then repents minimum and gets maximum,
but there should be a time discipline and right technical reason.
If you are trading at anytime without enough reason to buy or sell, then it will be over trading, which is not suggested buy us at all.
In any type of online trading, may it be mcx /stock market/currency, we found this trick useful for big as well as small trader.
Many fellows are entering in to the trade,after 2 small profits,they become greedy or overconfident,
They wait for a huge profit in single shot without stop loss or with a big stop loss.
In any other traditional business, you are facing so many clients in a day. All are not getting converted. Some of them are giving you negligible volume and margin.
But a few of them are giving you a huge margin, which can justify your daily target.
In case of commodity trading, you may be entering in the trade of silver 3 -6 times a day.
may be at 10.54am ,2.29pm,4.29pm,5.54pm,6.54pm or 7.30pm.(see detail time slot in other post)
For above 6 times, you took stoploss of 100pt
3 time sl hit, you lost -100*3=-300pt
2 time very small profit+200*2=400 pt
1 time definitely a big profit=400 pt
so net profit will be -300+400+400=+500 pt
same is applicable in crude, copper or N G or any commodity.
In the same stop loss and same time (5 to 10 minute) you can get the biggest profit, because market moves in waves. So there is no regular movement. You can observe this fact in any chart of any commodity.
So, what is the right style?
Enter in to the trade, when there are enough reasons,
Put very strict stop loss every time,
and exit within 3 to 10 minutes.(even sometime it may be cost to cost)
Do not wait to hit S L after given time slot.
Because hitting stop losses creates a mental imbalance in a trader, which disturbs whole day’s trading finally.
When you have less wickets in hand(means small capital),
Then it is wise to take single runs until a good score.
Sixes and fours will come in obviously after that.
With the same system, there are jobbing desks, where so many salaried trader enter in to trade for multiple lots and book profit within minutes.
Many big companies are handling the trading account of international HNI clients.