Comment on Mr Consistent returning incredible returns

Arun Prashanth commented on 24 Dec 2013, 04:34 PM

Hello Madan, First of all congratulations to you. I feel much more confident knowing consistant results can made trading. I would like to make a career of trading too. I am free right now with no commitments and I wish to make the best use of this time.

Note to Zerodha – I would also like to see an option where we can enter trades based on another security or index. Like Option Buy/Sell based on the price of Spot/Future Nifty. That would be a nice tool to have.

Thanks to Zerodha for making an initiative to help traders by connecting them to already successful and helpful traders. You guys are doing a great job. And a suggestion – More questions in the interviews will surely help us.

I have a few questions. I’ve been trading for about 3 years now and have not really made big money. And making up for losses with pocket money. So, it will help me immensely if you answered my questions. Thanks in advance.

1) On average how far are your stops? – I trade MOSTLY intra-day and I mostly keep 10 point stops and sometimes 20 point stops.

2) Do you vary position size with the level of confidence in the trade? – I vary them with the level of confidence in the trade and also according to how are my stops are (farther the stops, smaller the position)

3) Do you have positions in the market all the time or are there long periods of time (4+ days) when you think its better to stay out? – I am very selective and try to trade only when there is action. I usually put on around 7-15 trades a month.

4) I’m interested in this price action trading you spoke about. Is there an online resource or a book that helped you with it?

5) You spoke about using the SL-L order. How many points away do you place your limit price? What has worked best for you?

6) Is there one thing that you changed in your trading style or money management that helped you immensely? If so please share it with us.

Thanks again. And sorry for the long list of questions.

Regards,
Arun, Erode, TN.

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