Month: March 2018

Steps To Start Share Trading In India

Posted on by blogger

In order to start share trading in India three types of accounts are necessary, a trading account with a broker, a Beneficial Owner account with a Depository Participant and a bank account. It is advisable to go for an online trading account rather than an off line account with a broker. Online share trading allows trading of a single share as well. Online share dealing is possible through banks that offer online banking or core banking facilities. Most online stock trading companies have tie-ups with banks for online transfers; therefore once you select your online stock broker, even they will also guide you through the process.

The account opening form of the broker has four components. The Know Your Client (KYC) Form, separate agreements for share trading on BSE and NSE, Risk Disclosure Document and certain power of attorneys that are given. Ensure you read the power of attorney carefully and you are authorizing only for delivering shares to exchange on your behalf against your sale trades and not for any thing else. The KYC form captures your contact details and your financial worth. This Form is also accompanied with Proof of your identity, proof of your residence and Permanent Account Number (PAN) card. Proof of identity can be given by submitting a copy of your Passport, Voters card etc. You need to get your photograph attested by your banker. Proof of address is ration card, latest electricity bill etc. All documents should be produced in original for verification.

The next document is a set of agreements between the share broker and the client. This agreement has to be separately signed for BSE and NSE. Both the agreements are identical and have been prescribed by SEBI. There is also a separate agreement for Depository operation between the Depository Participant and the Beneficial owner. If you are working through a sub share broker then there is a tripartite agreement between the share broker, sub share broker and client. This agreement allows you to do only cash market trades; in case you want to deal on derivatives market then a bipartite agreement is required. All these agreements have to be stamped.

You have a choice of opening your depository account with an entity who specializes only in rendering depository services or with the share broker with whom you are about to register. But if you opt for online share trading facility than the aforementioned choice will not be available and invariably you will be asked to open depository account with the share broker you opt.

It is easy to maintain, simpler and hassle free if the depository account is with the broker because it allows them to deliver shares to the exchange on your behalf.

Make sure you read the risk disclosure document before signing and submitting to the share broker. This document will explain the different risk involved with your transaction for which you will be responsible. There is an inherent risk of price variation (volatility) of the securities you have dealt in, risk due to low liquidity in a particular company, risk due to more than normal difference between a person wanting to buy and another wanting to sell. The document also explains certain risk mitigation measures that can be used by you.

On submitting the completed set of document the broker will scrutinize and if found everything in order will allot a code normally referred to as client code to you. You may need to furnish this code every time you want to transact. In case you have opted for Internet based account you will also be allotted a password against your login id that will be mapped to your client code. Normally you will be forced to change the password immediately on the first log in. You must take care not to part with your log in ID and password to anybody including any person from your broking office to avoid misuse of your account.

Having got your client code you can share dealing or trading. However you need to ensure you have paid the requisite margin money as stipulated by your broker to place any transaction. Initially you start with placing orders in small quantity between 1 to 10 shares. Once you have understood the system in full you may gradually increase the size of your transaction. On mastering investing in equity cash segment then you may gradually look at derivative segment to gear your capital and for hedging your portfolio.

Day Traders Are Turning To Scalp Trading

Posted on by blogger

Scalp trading is a very fast method of trading where you buy and sell a stock within a time frame of seconds to minutes executing a lot of trades within a day. Even though you will be looking for profits of only 1 or 2 cents per transaction/trade, when you take into consideration the amount of trades you will be executing, your results can be substantial. In addition, you can still make a profit even when your trade breaks even. how come Because when you add liquidity to the market, the ECN will rebate back to you a portion of the trade. Exercising just this simple strategy could generate a nice daily return. In short, scalp traders work at exploiting the bid-ask spread. They purchase a stock at the bidding price then quickly sell the same position at the asking price. Since this method of quick investing does best with equities that are priced low that are slow moving, scalp traders generate revenue by making hundreds of trades. Scalp trading has no big one time profits, but at the same time there are lesser not being profitable thus it is a safer method of trading the stock market. But wait, not just anybody can scalp trade.

There are tools that are necessary and you must have discounted commission rates. It requires deeply discounted scalp trading commissions and direct access to NYSE floor routes. Both of which you would have a hard time finding at your E*trade or Scottrade broker. So how can you do this? There are proprietary trading firms that accept you as an experienced trader. And if you are not, there are some proprietary trading firms that will school you.

Looking for the right proprietary trading firm is about finding a company that will let you to trade their money and provide attractive trading fees. Most prop trading firms will allow you join their firm with deposits as low as $5,000. For that, they will let you trade with $100,000 or more depending on your experience. It’s not unheard of for a proprietary trading firm to take a $10,000 deposit and provide you with the ability to trade with $300,000 but you must know that Prop firms are paid a percentage of your profits. The profit sharing scale can range from you getting 50 to 95% but that will depend on your experience. The more profitable you are, the less they will ask for.

The most important decision when finding a prop trading firm for your scalp trading method will be transaction cost and order routing advantages offered. Inquire as to what floor routes they offer and if they can assign personal access to a floor specialist. Any good proprietary trading firms will do this if you are consistent in trading good volume. Next, see what their commission rates are. You will want to find a firm that will charge .0005 to .0007 per share. On a 2,000 share trade, that would be 1.00 to 1.70 dollars in and out; much better than your $8.95 per trade rate at Scottrade. Be sure to also confirm that they pass the rebates back to you because as you will learn, the rebate is just as important to your scalp trading.

There are many courses available that teach the art of scalp trading. Get educated so you can improve your chances for success. In addition, if you are looking for a place to trade, the proprietary trading firm below offers the above rates, direct access to the floor and scalp trading seminars. Happy trading.

How to select a prop trading company

Posted on by blogger

With an unending supply of people and late night infomercials that want to help you learn how to trade, one option you might consider is a proprietary trading company. Proprietary trading is an old concept that is resurging in today’s complex financial environment.

Why? Proprietary trading companies give investors an opportunity to learn how to invest by providing everything they need to get started. And when we say everything, we mean everything – even the money! Imagine – you can actually learn how to invest on someone else’s dime. Proprietary trading firms like ApiaryFunds.com are giving inexperienced investors a chance to learn how to trade like the pros by providing the systems, the technology, training and funds needed to learn how to invest successfully.

Proprietary trading companies are money management companies who search out successful investors and provide them an opportunity manage their fund. In the case of the Apiaryfunds.com, they bring on board inexperienced traders, show them how to trade their system, and then when the investors invest successfully, they get to keep a percentage of their profits! This way new investors can create an income while they learn to master different investment strategies and systems.

According to Shawn Lucas, head trader at ApiaryFunds.com, choosing which proprietary trading firm to work with can be tricky and offers this advice:

-When you choose a proprietary trading company, you want to make sure that your incentives are aligned. There are five ways that proprietary trading companies make money: education, risk deposit, commissions, fee’s, and performance. You want to make sure business is structured to provide the you the best systems, technology, resources, and compensation to help you trade successfully.-

Fortunately, you don’t have to look too hard to discover the proprietary trading company’s motivation. Here are a few rules Shawn Lucas suggests when choosing a firm to work with:

Education Costs. How much does the company charge to help you learn how to invest? It’s reasonable to pay a little bit for training, but try to avoid companies that charge more than a couple thousand dollars for their training.

Risk Deposit. Does the company require a risk deposit? A risk deposit indemnifies the company against any losses generated by your trading activity. When you lose money, the company will deduct the loss from your risk deposit first. Here again try to avoid companies that charge more than a couple thousand dollars in risk capital.

Commission. Does the company charge a transaction markup? You should expect to pay a smaller commission rate than your typical retail brokerage firm – not more. Some prop firms are just glorified brokerages who charge a markup fee on any trade you place. Try to avoid companies that charge high commission rates.

Desk Fees. How much does the company charge for monthly technology, data or desk fee’s? There are significant costs in running a money management firm and its reasonable to ask traders to help offset those costs, however, the fee should be less than a couple hundred dollars a month.

Performance. What percentage of profits does the company share? You don’t want to work with a company that gives you 100% or 0%. When it comes to profit splits, we suggest the 80/20 rule – look for companies that payout less than 80% but more than 20%.

Proprietary trading can be a fun and exciting way to learn how to invest successfully. You will be working with people who know how to trade well. You will have access some of the best tools, resources and information in the market. You can avoid the seminar and book club crowd and experience first hand how to manage money in a real-life environment.

—————————–

About ApiaryFunds.com – The Apiary Investment Fund uses crowd-sourcing techniques and strict risk management technology to help manage their proprietary trading fund. The fund provides the systems, technology, training and money to help inexperienced investors get started in a successful trading career.

—————————– Christopher Downing is a freelance writer who is recognized for his work in the financial industry. Chris writes articles for financial newseletters, blogs, and corporate communications for companies in the financial industry. Contact Chris at:

Gold Trading, Gold Forecast, Gold Tips, Gold Analysis, Gold Spot Price, Gold Silver Trading

Posted on by blogger

Gold Trading Forecast is the highest service level combined with the best trading conditions on Gold forecast market. Gold Trading Forecast offers attractive conditions for your successful trading on Gold and other financial markets. Gold Trading Forecast’s individual traders benefit from the simplicity, speed and efficiency of electronic trading and the ability to perform global gold currency trading operations at rates formerly enjoyed by corporate clients. We must confirm that every Gold signal went for double confirmation through experts Gold traders, we just want to inform you that we have quite less rates for gold signals which are based on market testing parameters collected from the gold signals which were send in the past. If you are interested in making some money then you might be very interested in trading. You are going to see that there are a number of different ways that you can make money with an account.
We send gold signal and 25 to 30 trades per month and you can get easily money with spot markets and commodities market with these signals .We post the new gold signal every day in the users section of our web site. It will also be emailed to you, so you will not miss any signal.
Success is inside you! And you are the only one that makes himself successful and billionaire. It all about your mind and style of thinking that you are positive of not, and your attitude is acceptable of not. Here are some tips about gold trading that make your successful but you should act upon these all. And your trading money is 100% risk free.
Your personal attribute is most important for risk free trading in gold world. If you have personal attribute then its fine, otherwise you should have to be developing the personal attribute inside you like your style of thinking, your positive attitude, and behavior discipline is the most important factor of successful trading.
Behavior is most important element of your personal attribute and trading. If your behavior is positive then your decision about buy and sell the pair of money is correct and accurate according to the present trend
You need discipline to develop your trading method, to fix to your trading method, to follow the rules of that method and to close down your trading platform if you cannot see a trade, Close it down and don’t open it again until the next day’s session is start.
Like traditional marketing system GOLD trading works. All trader either they are buy or sell intangible or tangible assets are focus on market rate either it”s low of high. In GOLD trading trader purchase or sell metals, and performed particular action when they think that it”s time to sold of buy the gold. In other marketing system it is very famous phrase that “Buy low now and sell high later”. And in GOLD trading though, you can also “Sell high now, and buy low later” so in Gold trading you can sell the gold in high rate and buy it again when its rate is low. And you can also hold the gold for long time according to the situation of the spot market.

How To Start A Day Trading Business-seven Steps To Day Trading Profit

Posted on by blogger

Before everything else, what exactly is day trading? As per Wikipedias definition, Daytrading represents the practice of selling and buying financial instruments (such as stocks, futures, options, etc.) as a way to generate a return within the same trading day. Traders that practice day trading are called active traders or day traders.

Day trading, like any other business professions, needs serious education, quality planning, and plenty of practice. Numerous beginners enter the daytrading business each day in hope of making quick cash. But just a few of those who get properly educated, possess a good trading plan and self-control can survive and thrive in the business. Many of them make lots of money every day trading only for a couple of hours, and spend the remainder of their days freely with their family and friends, doing whatever they love to do.

But how to become a good day trader and make real money in the market? Lets take a look at the idea:

Step 1. We need to give ourselves a thorough education on the financial market. We should find out what financial instruments can be found in the market, and what instruments go well with our day traders best. Next we need to familiarize ourselves with the various day trading strategies and try to find one that fits us the best. Search engines including Google and Yahoo are great places to find day trading courses and strategies. We’ll need to carry out our in depth analysis and utilize our own judgment to find the right one that fits us most. We should also equip ourselves with the trading tools such as market research tools, realtime trading software, and find and sign-up with a trustful discount broker.

Step 2. Once we have determined our trading strategy, the next task is to write up a trading plan. Yes, we should put our trading plan in paper. Within this trading plan, we will outline our mission statement-what we wish to achieve in day trading? What are our short term and long-term objectives? Do we want to get a little extra income aside from our regular job, or will we wish to turn into financially independent by doing day trading? We will also want to prepare an in depth plan on our daily trading activities that include pre-market research, our entry and exit strategy, and our after-market groundwork.

Step 3. Set up an account for paper trading. Once we have written up our trading plan, we are set out to test the water by paper trading or carrying out trading simulation. This is very essential as we do not wish to risk our real money before we’re comfortable with the game. There are lots of trading simulation software readily available for free on the market and we may also check out with our broker to see if they provide a real-time trading simulation platform. When doing simulation, attempt to consider ourselves as trading with our real money and act according to our trading plans.

Step 4. Set a daily limit, both for profit and for loss. After we have built up self-confidence in day trading, we try to trade once or twice a week with real money. It is very important set a daily limit for both profit and loss. For example, we can set a daily profit target at $200, and a loss limit of $100. Once we have reached either limit, we should stop trading. Turn off your computer, go out and take a walk or have a cup of tea. Never over-trade.

Step 5. Have a good money management system in place. Before we enter each trade, we ought to evaluate our worst case scenario. How much money we can afford to lose in each trade we enter if we happen to lose in every single trade we made for the day? Knowing our maximum affordable loss for each trade is important as we will deliberately limit our size of entry and set up our stop loss even before our trade. This can prevent us from losing big and keep us in the game.

Step 6. Fix our emotion issues through writing trade logs. For day traders, keeping our emotions in check is a big challenge and need much disciple and exercise. Every day, we may be distracted by numerous emotions such as fear, pride, ego, etc. These emotions may prevent us from following our trading plans and eventually deteriorate our confidence. An effective way to fix this issue is to write trade logs regularly on a daily basis. When writing logs, we will analyze each trading action and record the actual logic or emotion behind trade. When we see ourselves fall in the trap of emotions, we will remind ourselves not to make the same mistake the next time. By practicing this plenty of time, we will train our mind to follow the logic and keep our emotions in check.

Step 7. Reward ourselves when we abide by our rules. Whenever we follow our strategy or trading plan to the letter, regardless of a winning or a losing trade, we need to give ourselves a big pat on the back, because we have conquered our emotions and made a big leap toward day trading success and financial freedom. When we have achieved our short term target, we should not forget to reward ourselves for the hard work and achievement. Be it a trip to Las Vegas or a cool iPad, put this in our trading plan as it will motivate us to achieve our goal. In the end, we deserve it anyway.

Copyright © 2025 Trading POC . All rights reserved. |