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You should consider the following points
before engaging in day-trading. For purposes of this
disclaimer, a "day-trading strategy" means an overall
trading strategy characterised by the regular
transmission by a customer of intraday orders to effect
both purchase and sale transactions in the same security
or securities.
Day trading can be extremely risky. Day
trading generally is not appropriate for people of
limited resources and limited investment or low risk tolerance. You should be
prepared to lose funds that you use for day
trading. In particular, you should not put large fund
for day-trading
activities from retirement savings, student loans,
mortgages, emergency funds, funds set aside for
purposes such as education or home ownership, or funds
required to meet your living expenses. Further, certain
evidence indicates that an investment of less than Rs
20,000 will significantly impair the ability of a day
trader to make a profit. Of course, an investment of Rs
20,000 or more will in no way guarantee success.
Be cautious of claims of large profits from
day trading. You should be wary of advertisements or
other statements that emphasise the potential for large
profits in day trading. Day trading can also lead to
large and immediate financial losses.
DOUBLE DISCLAIMER
PRISM Trading Calls is no way responsible for any
loss sustained by any of its customer due to
trading instruction/s issued during the course
of trading or otherwise. There is no scope for
refund or adjustments of the quarterly payment
paid by the client in advance. If dissatisfied,
the client can at best not renew the service
after the end of the quarter.
For those
who are not using the total PRISM Trading Calls
package - which includes the broker selection
also - risks may be higher as often other
brokers insist on closing a day trade much
before the scheduled ending of the stock market
for their own convenience, robbing the client of
valuable time at the end of the day's session
when squaring up activities lead to substantial
change in prices.
Also, many brokers do not extend
Buy-Today-Sell-Tomorrow facility to their
clients. This is also a disadvantage because
some times, a perfect buy signal may be
jeopardised by a sudden fall in the broader
market. It is, however observed, that in almost
every such case, the price of the particular
stock in which a Buy was given, bounces back the
very next day, not only wiping out the loss of
the earlier day, but even delivering a handsome
profit the next day. Without BTST facility, the
client would be forced to book a loss.
Such lack of flexibility by the broker increases
the inefficiency of the trader.
Let it be
understood that it is no longer 1998/9. It is
2006. We are no longer in 3500-6000 Sensex
levels. We are at 12,000-13,500 Sensex levels.
Naturally, many old established trading system -
specially the passive
buy-&-forget-till-profit-booked fashion of
intraday trading of 1999/2000 - are no longer
valid. One has to be flexible and attuned to the
constant and often, very large fluctuations in
the market. So in 2006/7, enter the intraday
trading market with a new approach.
To help
clients to ride the volatile market and emerge a
winner, PRISM Trading Calls has discarded one-time
SMS to five-and-half-hours of online,
step-by-step and interactive system so that
clients are guided every moment, on every
setback or unforeseen happening in the market.
NO OTHER SO CALLED TIPS SYSTEM HAS THIS LEVEL OF
CUSTOMER FRIENDLY INTERACTION. |
Day trading requires in-depth knowledge of the
securities markets and trading techniques and
strategies. In attempting to profit through day trading,
you must compete with professional, licensed traders
employed by securities firms. You should have
appropriate experience before engaging in day trading.
Hence you should actively engage in enhancing your
knowledge of stock market, individual companies and
trading tactics.
Under
certain market conditions, you may find it difficult or
impossible to liquidate a position quickly at a
reasonable price. This can occur, for example, when the
market for a stock suddenly drops, or if trading is
halted due to recent news events or unusual trading
activity. The more volatile a stock is, the greater the
likelihood that problems may be encountered in executing
a transaction. In addition to normal market risks, you
may experience losses due to system failures.
Day trading will generate
substantial commissions, even if the per trade cost is
low.
Day trading involves aggressive trading, and generally
you will pay commissions on each trade. The total daily
commissions that you pay on your trades will add to your
losses or significantly reduce your earnings.
Day trading on margin or short selling may
result in large losses unless you square up your trade
before closing time of the stock exchange. |
