Comment on Intraday stock trader par excellence

Question for Mr. Bharadwaj G:

Sir,

There is a point I do not quite understand about your system and wish to get it clarified. I understand you:

1. Trade with a capital of Rs. 50,000.00
2. Use max. leverage (which is about 20X I think, since you talk about using a trailing SL, which is a feature of BO, which offers upto 20.8X)
3. Utilize full amount in each trade
4. Exit if loss amount is about Rs. 1000.00

The first 3 points together says that in each trade you are buying (or selling) shares worth more than Rs. 10 Lakhs (50,000 x 20.8). On an order of this size even the slighest movement will translate to Rs. 1000.00 So, if you for example, buy shares, you are expecting the price to go up. But prices never go CONSISTENTLY up; it falls a little, goes up, becomes flat for a while, falls, again goes up, etc. On such a large trade, even these minor fluctuations will translate to over Rs. 1000.00 For example if you buy 2260 shares at 460, even a slight backward movement to 459.7 translates to a loss of Rs. 1065.00 approx.

I guess I have not understood it right because it appears to me that you’ll be tapped out too often this way.

View the full comment thread »