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Bharadwaj is one of our oldest clients and has been consistently profitable. If I had to talk about percentage returns in terms of capital in his trading account over the last 3 years, it will be an obscene number, mainly because of his trading style. He has requested us to not disclose his first name and share only the photo given below.
Bharadwaj, apart from being a winner in the Zerodha Day Challenge, has also been up consistently over the 3 years he has been trading with us. My father used to invest in stocks and I got exposed to the world of financial markets pretty early in my life. I started trading in , a bear market which ran until mid This was also a time when there was a lot of trial and error, making less and losing more, actually losing my entire trading capital multiple times. The good thing was that at any point of time I would not have more than Rs.
I realized that there is no point randomly betting on stocks, it was more gambling than trading. My enthusiasm for the markets was growing higher by the day; I started attending seminars, workshops and reading books on the markets. This is also when I realized that there is an interconnection between exchanges, sectors, stocks, news and global markets.
I realized that my strength was to recognize an opportunity in a stock when there was a movement in any of the other factors mentioned above. I also knew now that such an opportunity would only be available for probably a few minutes, hence ended up being an intraday trader. So you are essentially a scalper? For everyone reading, a scalper is essentially a trader who is in and out of a trade within a couple of minutes or so. But why equity and why not futures or options?
Why not the Nifty which is the most active or why not individual stock futures and options? This is my personal view, when trading the Nifty, it reacts to every good and bad news that is out immediately whereas a stock might take a couple of moments to do so, just enough time for a scalper like me to get out if I feel I am wrong or get in if I see an opportunity. I am usually tracking stocks that the tipsters, research desks and media are talking about. Usually these would be the ones which will be the most liquid and also giving you the highest volatility intraday.
Assume that Tata Steel is among the liquid stocks today and has been showing strength. To determine strength and the trend, I follow very basic technical analysis. During the day, if I see Nifty suddenly spurt up, I would get into Tata Steel knowing that it has the highest probability of moving up since it is among the strongest stocks today. Similarly on a bearish day for Nifty, I will look at the weakest stocks and look for opportunities to short.
I also sometimes take counter trend trades, when a stock comes down to its support I would buy expecting a quick bounce and when it comes to its resistance I would sell expecting a small dip. Again, this would be all on the most active stocks for the day. What is the backbone of my strategy is watching the market depth window.
Once I have narrowed down on the stock I want to trade, I open the market depth window and look at the Nifty chart to identify opportunities. No method for this, it is based on how I feel. That is basically just reading the tape or gut based trades, has it worked for you till now? Yep, you could say that the final decision to take my trade or not is gut, but there is a method that goes into choosing the stock I want to track and then trade.
In between and , though I was gross profitable, I ended up paying a lot of brokerage more than Rs. The profitability has gone up considerably since starting at Zerodha because of the extremely low costs. I typically would have only around Rs. Typically, some of the rules I follow on my intraday trades is to exit as soon as there is Rs. Usually when a position of mine is in profit, I ensure that it never runs into a loss by constantly moving up the stop loss.
At the end of every trading day any profit over and above Rs 50, is withdrawn to my bank account. The reason for Rs. Over all the years of trading, I have a list of my favourite stocks, but on a particular day I might end up trading a stock out of this list. If you are talking about trades which meet my objective of getting profits of Rs. I tend to keep it very simple: I can take such a risk knowing that there is only Rs.
Take inputs from books. If you are lucky enough to interact with profitable traders like in the Winners section of this blog, analysts, etc. My challenge is to be able to feel comfortable with a bigger trading capital in my account, only then will I be able to grow as a trader. Getting over this road block is the plan for now. Reading the tape is how people used to trade when the business of stock exchanges started. He is also very aggressive but has a method to it by having rules to identify the stock and when to trade.
We wish he is able to break that 50k mental barrier and continue winning the Zerodha day challenges in future. Love playing poker, basketball, and guitar. If he is making lakh every month on a trading capital of 50,; then he is probably the best trader on this planet. One of the reasons why we avoided mentioning percentage returns in the post above is because this person is not your typical trader, he just keeps money which he is comfortable to loose.
When you look at absolute returns in this case, you cannot look at it based on how much is in his trading account. That said he is a special trader, there are a few other clients we have who follow similar money management strategy.
Hey Mnaisha, I suggest you check out the Kite user manual. I have account balance of say say example: WHY it is so? So, Please can any 1 guide me how to order in intraday with margin. Mahi, the margin requirements are dynamic. It generally takes a few minutes for the margin calculator to update. Nithin Kamath would have left Zerodha and join with this guy if it is true……. Number of trades will obviously be inversely proportional to market volatility!
I usually exit if it moves. Do you change your strategy in a volatile bear market like we have seen recently, December and January , specifically? How do you trade in these markets? I think it would be difficult in these markets. With a 50, capital if cover trades are taken, one can take trades above 5 lakhs on intraday basis.
I do understand that Bhardwaj has a very good and simple trading logic but what i appreciate the most is his discipline to stick to his trading plan each and every hour of the trading day.
Kudos to Bhardwaj and to all traders who have the grit to hold on to a simple higher winning trade logic than loosing trade and repeat the discipline over and over again. For scrip of rupees trade size can be With cover orders and 20 times leverage, earning 1. Both Zerodha and the trader should mention explicitly that this is only a portion of their actual trading capital. We have mentioned it a bunch of times, one of the reason we have not mentioned percentage returns on this blog.
Mahi, the margin requirements are dynamic and based on volatility. If the volatility is high, the leverage offered is lower. I like the simple style of trading giving away a pittance as charges from profits,but it is an eternal pipe dream for me while he realises every day my dream.
I am curious about his list of stock. Three different successful trading styles of winners so far — nifty future,options and equity cash.
Positional as well as intra day players. I can understand shyness of them to reveal every thing but Nithin may perhaps put a review in a seperate write up later as detailed guidance for those groping in the dark.! If its ok with you, can you tell me how you place your stop loss entry. I used to trade intraday months back, but even before I could place my stop entry, price would have gone below my stop.
Hi Rahul, if the stop is being hit even before you click it means the stock you have chosen is not liquid enough for intraday.
I read the trading style part. And this scalping method is a bit riskier than normal way of trading. I mean he invests in futures? My positions are Equity Only. For the 50k buying in MIS enables us margin of 5 to 10 times which is used in entirely for each trade. Then how come you make trades a day in that case. I have same Question. Now I understand whats MIS. It is a very inspiring story.
Anyways, I had a doubt Bharadwaj on intraday short selling of shares. Could you please clarify that? Suppose I do not hold any Axis bank shares in my demat account. Can i buy back the shares in BSE? And if I do not transfer shares from some other demat account, the shares that i short sold in NSE will be bought back by the exchange in the Auction window?
By doing a trade like I have mentioned above, my intention is profit from the arbitrage available because of the difference in pricing in NSE and BSE. Hence, please clarify if it is allowed to do such kind of a trade.