How unrealistic is expecting 1% per day gain in serious active intraday trading ?

[theinformant]

@bonnieb Here's why it's unlikely to work:

You are not generating any net alpha with your trading strategy. For example if you hold a basket of stocks which are representative of the overall market. For simplicity, let's assume the stock prices follow a random walk. Meaning prices can go up or down at a given point with equal probability. In this case, the expected value of your gains is 0. I can try working out the math if I sit on it for a few hours.

In the real-world, you will still make gains is if the market is going up - but you're not making any alpha over the market because you don't have any specific information the market doesn't know about. A simple way to try it out is to backtest your strategy on historical market data and see what results you get

 

[resjudicata]

@bonnieb Disclaimer: Do not take my advice as professional advice
But, instead of trading in Stocks you should try trading in Indices such as NIFTY, BANK NIFTY, and that is only after you have understood some Technical analysis and have a good strategy. You should first learn a lot about TA and good startegies.
I would suggest you to watch some content by youtubers namely:
1). pivotcall

2). BoomingBulls

Both these guys do provide amazing content and are the only two youtubers on trading I would recommend to anyone. Go through their content first, learn a thing or two and then try paper trading on Indexes and if you make a strategy, do backtest it and THEN and THEN ONLY Should you start trading.

And Regarding the broker, GO with Zerodha, and I repeat never never Sign in with Upstox, they are fucking loaded with glitches(you can read about them online, how they made people lose money due to glitches)
Have a good day and Good Luck.

 

[ffffffffff10]

@resjudicata Thanks for those YouTube suggestions. Any more channels you would recommend ?

 

[resjudicata]

@ffffffffff10 I honestly don't think that there's anyone better than them on YouTube talking about trading in India. They are honest traders who do not intend to profit from others but who share knowledge.

 

[gopinkmk]

@bonnieb Did you considered commission ? & tax. You have to seat constant in front of screen and have to exist as soon as its -0.5% but immediatly next tick could be +1%. I have tried in past. Lot of stress and end up loosing more then earning.

 

[momof2labs]

@bonnieb I would say don't. I tried intraday for last 6 months. Mostly loss above 50%. Being profitable intraday sounds easy but in truth its hard. The main issue is leverage. The more you take the more you believe you can turn it around it when you are going opposite direction.

I would suggest try long term investment or swing trading instead. In swing trading you can expect to be profitable by around 10% per month in your best months.

 

[bonnieb]

@momof2labs I'll be taking a look at what this "Swing trading" is. And what does "mostly loss above 50%" exactly mean ?

The more you take the more you believe you can turn it around it when you are going opposite direction.

I'm not really the kind which would fall for this.

 

[momof2labs]

@bonnieb Neither does anyone believe they would fall for it. Intraday trading isn't easy. There is psychological aspect to it that takes time to master. You can always try paper trading and see how much success you have. But if don't back test your strategy properly you will lose money.

By mostly loses I meant last month onwards I have been profitable but I am still at massive loss overall.

 

[resjudicata]

@bonnieb I understand the desperation you are in right now...

Though I would say if you are serious about earning extra, stocks / intraday will jot be the first thing I'd do...

To be honest, with the picture you paint, for now I'll suggest investing in safe assets...

I would also go as far as saying don't use your complete savings into trading.. use only your play money, that you would not care even if you loose it all.. we all make mistakes...

This is not the answer for this subreddit but the best thing I believe for you to do is find a second job or find freelance projects to lift you up...

Remember, if it's easy money it will not stick...

 

[tonedr]

@bonnieb This sounds like a terrible idea given your situation. I think you should focus more on getting a better suited job to your skill set. Depending on your strengths you could consider starting your own side gig and /or freelancing. Opportunities abound!

 

[vortex777]

@bonnieb It's about as unrealistic as pigs being able to fly. And I am not even wrong.

 

[jwilder9]

@bonnieb What's stopping you from being the 10% profitable Wiz kid : Probability distribution and greed / fear.

 

[russmarshall]

@bonnieb Give it a try using free paper trades with virtual money and see it for yourself if it works for you. I believe there are websites which provide such type of facilities.

 

[chrisfollowerofchrist]

@bonnieb You would make more money by investingduring opportune times rather than day trading. If you had invested your capital during the crash last year, you would be up 100-200%. That’s extremely difficult day trading.

Learn technical analysis and invest in either index funds or large/mid cap stocks at the right time.