I use a dedicated account to trade stock futures. I trade at most 4 or 5 positions at any point of time. The capital I deployed is INR 500K. I intend to pump in more once this stabilizes. I do face frequent whipsaws. So far it is working out thus: https://console.zerodha.com/verified/80f5c7a3
Today VBL is giving me whipsaws. Its a result day for VBL. RECL has been on a down trend since yesterday. Eternal is whipsawing too but not as much as VBL. Just holding 3 positions for now.
Don't let the market whipsaw your ass and mind....learn to whipsaw the market's ass and mind instead. Think about your overall approach and understanding and timeframe game. Don't set yourself up to get demolished at the casino table savanna. Dissect the chart like a painter surgeon, and question and process things with an open mind Because that's the only way you're going to survive in this life
Transaction charges for April: In the above Brokerage is avoidable. There are brokers who offer zero charges for futures trading. But I would stick to this broker because of better execution and quality chart data. So total transaction charges including brokerage are now Rs. 14,116. Of this Securities transaction tax is the highest as usual. The realized P&L in this snap is gross profit which is before charges were incorporated. Transaction charges are 14.89% of gross profit. Net profit is Rs. 80.68K This still does not include other non-transaction charges like pledge charges and margin charges.
This is the interest charged in April for Margin Funding. This margin funding is based on collateral shares that I offered. However, they charge only when that collateral has a shortfall. In April I did go into overdrive during the middle of the month.
This is the equity part of the account. I don't trade equity here unless I think some investment was a mistake. I generally buy shares and then offer them for more margin. This snapshot gives the picture on new pledge charges which is Rs. 687.64. Once in a while after accumulating trading profit, I use that to buy more investment shares in this account and offer them on lien for additional margin. So, these transaction charges which are mostly buying charges for the investment shares and other debits which are pledge charges are more or less related to my futures trading activity and hence they are costs to be considered.
Dropped COLPAL and Delhivery for different reasons. COLPAL just whipsaws at my SL points. It hardly moved beyond that distance. So it is out. Delhivery reacts abruptly to market opens. Several times it goes in the opposite direction at open and then reverses. When it goes in the opposite direction it goes big, several times bigger than my SL. So it is out now.
Trading is all about risk management. If losses are within control, profits would roll in anyways. It is all about losses. Imagining and strategizing for losses is more important than aiming for profits.
February was a loss making month for me. Manappuram has contributed to my February losses. While it whipsawed, it went into Securities ban list for Futures and Options trading. So effectively it threw me out of the game when my losses piled up. This is one risk I face and this is not in my control. However scrips entering F&O ban have a penchant to re-enter that list for some time. So I had banned Manappuram from my list. This is Manappuram type risk that I face.