1) I understand that Demat account is controlled by ndsl / cdsl through their agents (DPs) and holds shares in electronic form. But what is Trading accoun, its structure and function? Who opens and control this account? Is it the broker?
2) Other than the opening charges of demat a/c, are their more charges such as maintenance of demat a/c or other hidden costs. NDSL site gives the details of many DPs with their fees etc in table format (which is difficult to understand). What i thought actually was that i had to pay only broker charges+service tax, when i deal with share market. What may be other hidden costs?
3) What are brokrage charges for intra-day and dilevery that can be considered good enough?
4) How vulnerable is share market (specially intra-day) to the market games/manipulations by some experts or parties having big amounts or many computer terminal
Guys, If you cant answer all the parts of my question, you are free to answer portion of it as well.!
If you are new to trading, then you should definitely take a look at trading systems.
Here's why:
Every minute more than 150 Million Dollars change hands in the electronic index futures markets like the e-mini S&P and e-mini NQ. You can win or lose thousands of dollars in a few minutes; the futures markets can make you rich in a few weeks or months or wipe out your account with no mercy.
If you want to compete in the “game of games” and play against the best traders in the world, then you need to get ready. Too many gamblers are entering the arena without any plan or strategy, completely unprepared, and that's why they lose.
Trading a system will dramatically increase your chances to succeed in trading, because it eliminates five of the top six reasons why unprepared traders fail.
Here are the top six reasons why traders fail,
and how a trading system eliminates them
Let's take a look at the reasons why traders lose money:
1. Lack of a Trading Plan
2. Lack of Discipline to Follow the Plan
3. Failure to Control Emotions
4. Failure to Accept and Limit Losses
5. Lack of Commitment
6. Over-Trading
By all means you have to avoid these mistakes if you want to win.
Here's how a trading system eliminates 5 of the 6 top reasons why traders fail:
Solution #1: Having a trading plan
Having a trading system means having a pre-defined set of rules you have developed to guide your trading. Therefore you HAVE a trading plan, eliminating the No.1 cause for failure.
Solution #2: Following the trading plan
The easiest way to follow a trading plan is to automate it. Almost every trading system can be automated, and you could let the computer trade for you. You won't have to worry about your discipline any longer, as the computer mechanically trades every setup for you.
Solution #3: Controlling emotions
Trading with a system removes emotions from trading. If you don't have a strategy and you try to make decisions when the market is moving, you are liable to become emotionally attached to positions. You may experience panic and indecision when the market does not move in your favor, as you do not have a prepared response. That's when most traders lose their money. If you follow a system you will know what to do no matter what the market does.
Solution #4: Controlling your losses
You probably have heard the saying “Let your profits run”. Unfortunately most traders let their losses run. A trading system will get you out of a position when the predefined stop is hit. Unless you override the system to “give the trade a little bit more room” it will stop the loss and therefore limit your losses.
Solution #5: Commitment
You won't believe how many traders show a lack of commitment and therefore lose money. Lack of commitment means that they stop trading after the first loss, and don't give their system a chance to make back the money they lost. Trading is not a one-way street, and losses are part of our business. If you can't accept the fact that there will be losses, you shouldn't trade. Fortunately a trading system can help you to overcome this problem; an automated trading system continues trading according to the rules, and therefore adds much more consistency to your trading.
As you can see, five of the six top reasons why traders lose money in the markets are simply eliminated when you start trading with a system.
Without any guarantee, your chances of making money rise incredibly when starting with a profitable trading system.
Hope that helps.
Capital market trading can be a viable way to make money, if you learn enough about it to do it well. That can take some time and a lot of study and effort and particularly a LOT of discipline.
Thanks for the help!
You don't have enough information. Every stock is traded by a handful of specialists / MMs who have a good feel for it and can easily spot an abnormal activity, an outsider, and outsmart them.
If you want to trade against them you have to do the same – watch the stock until you get a feel for it. There are too many games you have to be aware of to list them all here. Having Level II and knowing who the players are is a first step. How your bid size (5,000 shares) compares to the current ask is a second. Suppose there are 10,000 shares at the ask. You shouldn't have a problem. But what if there is only 1,000? What if there is a seller who is not showing his hand? Or a shrewd trader spots you, jacks up the price on your order, sells you 5,000 shares by going short on the spike, drops the price back and covers? And so on…