How do I generate a decent profit doing intra-day trading online in NSE and BSE?

I use Twitter and BSE Alerts to make decent profits in day trades.

I’ll divide this answer in 3 prominent sections:

Quick Overview.
Live Illustrations.
Risk Management.

There are many ways to make money in day trades. Some traders tends to follow technical parameters like SMA, crossover etc and other try to time the market based on relevant fundamental news.

I’ll throw some light on later.

. . .

Quick Overview.

Whenever a potential news breaks out, it creates chaos among traders. A positive news, spike the price and opposite happens in negative.

Your role - here as a profitable trader - is to act before the markets start shaping the news into price.

Fortunately, in the era of internet, ordinary investors (like you and me) can also easily access all the information useful to time the market.

Only quality you need is to accurately weight the news and act accordingly as soon as possible (which you can gain with experience of some time).

Let’s move on to second section where I’ll explain the tools I use to get fast hold of news (with accurate examples).

. . .

Live Illustrations.

As said earlier, I use Twitter and BSE Alert to make decent profits in Intra day trades so I’m gonna provide image shots of tweets and BSE alerts to justify my point.

Side Note: BSE Alert is an web app which provide instant alerts of BSE announcement.

Let’s start with the recent one. Yesterday, I send an email to all the existing BSE Alert users explaining the recent spike in Aban Offshore:

The instant spike was due to new contract bagged by company. Anyway, you just check out the time above. It's around 1 pm, right?

And at the same time (or we can say few seconds before), an announcement regarding the same appeared on the BSE website:

Now again check the time. Hardy any difference, maybe few seconds.

Remember, here you job is to be quick in deciding whether the news is relevant and accordingly execute the trades.

But the point is who’s gonna tell you that a high potential news is sprinted up on BSE website?

And it’s not practically possible to stay stick to BSE website all day to track announcements (which is probably more than 1000 per day).

This is where BSE Alert comes into action. It provides instant alerts of the subscribed stocks via Email and Pushbullet.

We are trying our best to make this web app a one step solution. BSE Alert provides instant alerts (sometimes delayed by max. 20 seconds) and if you are a Zerodha client, you can trade instantly on the alerts page based on the weightage of the news (have a look at the bottom of this alert page of Aban Offshore):

Now, let’s try twitter.

There are many channels which provides wide news coverage. Though 95% of the tweets will be irrelevant but still, to get that 5% important tweets you need to track all of them (just read the heading).

Here’s one tweet from CNBC TV18whcih states that Vendanta is in talk to buy Bhushan Steel:

Soon after the news break out, market minions started pushing the price upward which leads to…

…a instant gain of 5.26% (multiply this with the margin on trades).

Here’s another stock in line. PNC Infratech. This one from BSE Alert.

Exactly at 11:35, I received an email alert of PNC Infra from BSE Alert, stating some positive news.

The alert states that the PNC declared a bid for any project. The market reacted to the news as a appreciation:

Don’t forget to match the time difference. Market is very fast. You need to be much fast. Your competitor.

Sometimes, market punish the stocks with adverse pricing, for example, Jindal Steel:

Which is why the prices plunged as shown below but this time (don’t know why) the market took 30 minutes to reflect the news. The above tweet was tweeted at around 12:15 and the price drove at around 12:45.

Here’s another case of Sintex Ind which rose up due to approval of some merger scheme. (direct PDF link).

Let me stop with this last and most interesting case of Pfizer Limited. This is gonna blow you mind.

The stock first started rowing down. I too took some positions in it based on the news article which states that the company receive 11 negative node from US FDA.

The news was extreme disappointing as it will directly affect the profit margins of Pfizer but within few minutes, the stock price started rowing up with no specific reasons. Here’s the price graph:

Thanks to Fintrig. I received an push alert, clarifying the News item which was a general clarification given by Pfizer Ltd on BSE website.

After reading the PDF attached by Pfizer India, I came to know why the price spiked up after recent drop.

It states:

Save time: Read the center para.

So the news item doesn’t relate to Pfizer India, instead to an unlisted subsidiary of Pfizer Inc. USA.

All the cases stated above happened in last 2 trading days which is enough to show that opportunity is always there in market, you just need to take the first mover advantage.

By using fintrig you will be the first to know about what’s happening with the stock you track. This tool beneficial is for both, long run investors and day traders.

Disclaimer: Stating above cases doesn’t mean that I had in them. The purpose behind stating them is just to show that opportunity is always available and it totally depends on the trader how much he can grab.

. . .

Risk Management.

If you lack this, you’ll end up messing everything.

You may make lots of money in less time but this also works in opposite direction. You can end up losing everything in these risky trades where you get multiple times of margins on cash.

So a proper risk check up should be maintained. Below are some advice, I myself follow:

Don’t invest all of your capital. My day trades money never exceeds 10% of the total delivery investments. Keep below 10%.
Don’t be greedy. At the time you buy any stock, set the price limit to sell and let the stock get squared off and get flooded away with greed. I see many days where positional stocks were red but eventually at the end of session, end up being red.
Don’t be afraid. Not only you’ll gain. Sometime, you’ll also loss. So just accept your loss and try to square off your positions being a rational being mind.
Never keep your stock holdings as collateral for day trades. Always use pure cash. Collateral also attract interest charges.

. . .

Finally

We will soon come up with keyword-based alerts. The announcements with keywords like order, contract, wins, US FDA, acquisition, bags, buyback etc tends to plunge or spike more as compared to others. This will ensure that you don’t need to add all the stocks in your fintrig account instead just add the high relevant keywords.

I’m also working on a project which automate the whole tasks based on the keywords. i.e. the trade will automatically execute without any manual interaction. However, SEBI not allow automation for mass retail investors so I can’t update the fintrig with the same. If need any personal setup for automation, do let me know, I’ll be happy to assist.

. . .

Side Note:

Though, I’m also indulge in day trades, just for interest but I personally dislikes them as it just a win situation based on how fast you’re, adding no value to society/economy. For every win, there’s someone who lost. What fun in making money out of other’s loss?

So don’t fully rely on day trades and emphasis more on locking up your money for long run in excellent companies. Maintain a perfect ratio of 90:10 (holdings:positions).

. . .

We will keep coming up with more exciting updates. Stay tuned. Stay Awesome. Sign up at bse.sowmayjain.com

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