Stock Trading- (Day Trading)-10

                                           X.-Cost, Type and Time of (day) trading

1.Cost-Before one starts trading, understanding the cost of trading is very much important as choosing the broker, minimum size for a single trade, type of trade, segment in which to play etc. depends on it. Ignoring this may turn your gross profit (sale price-purchase price) in to a net loss. Including brokerage, there are 7 different type of charges we end up paying to any broker, 1. Brokerage, (Motilal Oswal does not charge for intra- day equity trade) 2. Transaction charges. 3.GST on brokerage. 4.STT.5. Sebi Fee.7. Stamp duty.

 

Let us assume, you bought and sold 1 lot Bank Nifty futures in Intraday. You buy at 32000 Bank Nifty futures and sell at 32010. a ten points profits. Considering, you are trading with 1 lot, which is 20 quantity, then your gross profit is 20*10=200 Rs.

 

Item	Rs.	But in 200 Rs. profit, there are multiple cost you end up paying, Rs.40 is gone for brokerage assuming Rs.20 per order, so buy side Rs.20 and sell side Rs.20. You pay 18% GST on brokerage, which is 18% on Rs.40.Then you pay 0.0019% of turnover as exchange transaction charges. To calculate turnover, simply multiple quantity with entry price/exit price, that (20*32000) +(20*32010). You pay Securities Transaction Tax, which is 0.01% on sell side turnover, which is 0.01% * (20*32010). You pay SEBI Fee, which is 0.0002% on total turnover, which is 0.0002% * (20*32000) +(20*32010). You pay Stamp duty, which is 0.003% on total turnover, which is 0.003% * (20*32000) +(20*32010).
Entry	32000
Exit	32010
Profit	10
Quantity	20
Gross Profit	200
Brokerage	40
GST on Brokerage	7.2
Turnover	(1280200)
Transaction Charges (0.0019%)	24.3
STT 0.01 % on sell side Turnover.	64.00
SEBI Fee 0.0002% on Turnover	2.6
Stamp Duty 0.003 on Turnover	38.4
Total Charges	176.5
Net Profit.	23.5

Adding up all charges, it is around Rs.176.5, so in Rs.200 profit you ended up paying Rs.176 as total transaction cost, so simply we should not carried away by gross profit or take away only Rs.40 brokerage we pay as our charges.

These charges changes from broker to broker and time to time and greatly affect the size and type of trade. Recently, govt. increased STT on Futures and Options (F&O) trading, effective April 1, 2026, contain the increasing volume and losses to retail traders.

 

2.Types of Trading (within a day) -Day trading involves A. trading during the day, whereas B. high-frequency trading is typically done round the clock. Day traders are usually able to make slower, more thoughtful decisions, whereas high-frequency traders are generally looking for "quick in-and-out" trades. (research shows day trading is more competitive in markets with low volatility, whereas it is less competitive during periods of high volatility). Further C. a scalper is who aims to capture small moves with significant quantities and plans to take more trades and uses, 1 min, 3 min, and 5 min timeframe charts.

 

However, both high-frequency trading and day trading draw from the same sources of information (i.e. price chart) that could lead them to the same conclusions or predictions about an asset's future movements. But the chances are very less (of agreeing)

 

Day trading is often touted as being lag-free (without delay or interruption).  Day traders do not have to compete with high-frequency traders because their trades are slower and less frequent. Opportunities exist in all the timeframes, be it 1 min, 5-mins, 15 mins, 30 mins. Hence day traders should pick one trading system that has a positive edge and should take a small risk with each trade. Just ensure to use ‘LIMIT’ or ‘SL-L’ order to avoid any accidental slippages (Loss).

 

3. Ideal Entry time and time frame for day trading- Market tries to settle in an hour, within that period, first 30 minutes are very important, If the price does not go below the first 30 minutes low, then it has meaning. It is considered important because in that period it tries to make day’s high and low and try to find its feet. Sometimes first 15 minutes form as master candle, price rotates in that range till the end of that day, one should master the intraday patterns, thoroughly then one can succeed.

 

Time Frame- One should use time frames around 15 mins to 1hr because it provides the most consistent chart without waiting for a longer time. This provides more time to do more trades within a day. Always remember, the quality of your trades is more important than the quantity.

 

a. Never enter the market at market start. -i.e… at 9.15am. Calculate the formula for both short and long around 9.45 am. Trades should come only after 10.45 am till chart templates bottom cross for buying on bullish days OR indicators top cross for shorts on Bearish days.

 

b. Enter the market at (for analysis) 9.50 am. By that time all amateurs, inexperienced, BTST & STBT people would have left the market.

 

c. Never trade between 10 am to 10.30 am. Many times, all these technical trading signals will be FAKE. So keep yourself busy in doing xl calculations to find out the probable list of stocks to be taken up for that day trading till 10.30am. NEVER DO THE AUTOMATION OF YUR CALCULATIONS.  Do it manually during this time. This will safeguard you from indulging in to wrong trades between 10 to 10.30am.

 

Considering all above ultimately trade only in those stocks which your buy /sell charts templates qualify. Wait patiently till your BUY / SHORT chart templates indicates the trades initiation. Hold on to the trades till your technical charts indicates to book the profit.