Jobbing Trading Strategies

Depending on their experience, and Luck's mood swings, in a month, a jobber earns between Rs 20,000 and Rs 1 lakh. 

A jobber is one who buys and sells equity frequently and has half a minute's view on the market vis-à-vis each transaction. Punching in trades frequently, one wonders at the high-pressure profession. It require a high level of concentration. Doing this kind of work is not so easy.

A jobber trades for a profit of 0.25-0.50%. If you make 0.50%, that's good. But the important thing is that whether you make a profit or a loss, you should square up in 30 to 60 seconds; if you don't, and allows the price to go up or down by a couple of rupees, you are speculating and will not succeed on maximum ocassions.The important thing is to exit quickly either way; and re-enter even at a higher price if you think you can make a further gain of 0.25-0.50%.

This confession made one wonder what would happen to the jobber's "half-minute view of the market. The benchmark for success: Of 10 trades, 7 to 8 should be profitable. But comparing with speculators, latter would fail because they will not be able to square up trades that are not favourable. When some trade goes in your favour, you can square up. But success comes when you can square up fast when a trade goes against you. This is why it does not matter whether the market is going up or down. Your job is only to look for that 0.25-0.50% profit by buying and selling or vice versa.

I would like you to consider the following points before trading on our strategy:

1. You should be infront of your terminal during trading hours. If you have personal terminal or online trading a/c then it is best else you can trade from your broker office. Placing orders over the phone would be risky and ineffective as our calls are time sensitive.

 2. We follow BUY ABOVE and SELL BELOW strategy. So you must be aware how to place orders in such type of trades like TRIGGER PRICE, LIMIT PRICE, etc

 3. We cover our trade within 1minute. So dont hold on to your position for more than 1minute unless instructed by me. If you hold for more than 1min then it would divert away from our strategy and we wont be able to help you out further.

 4. We usually dont keep profit margin of more than 0.50%. So your brokerage tariff should not be high. Standard rate of brokerage + taxes are 0.08% for both legs for intraday trades. Means we would end up making 0.42% net gain per trade approx. It may vary at times.

 5. You should not overtrade. You should divide your trading exposure in 5 equal trades. Means if you have trading exposure of 5lakhs then trade for 1Lakh worth per trade. We recommend not to trade in bulk, atleast initially.

6. We wont give more than 5 calls per day. After 5successful calls we wont initiate further trade. So preserve that profits and dont trade further after that.

 7. Illustration: Suppose I am tracking Educomp Solutions and consider the price is currently quoting at 2400 and it has made intraday high/low of 2430-2370. Suppose technicals indicating comparative strength then I would recommend trigger buy at 2428 and limit buy of 2430. At the same time given you target of 2444.

So you have to place trigger buy at 2428 with limit buy price of 2430 and at the same time place sell order at 2444. SL would be updated.

8. For any trading query regarding the aobve, you may call me at 92308-92309. I would be available during market hours.

Anurag Dujari
Mobile: 92308-92309
E-Mail- anurag130@gmail.com
Yahoo Messenger ID - trading_picks, jobbing_strategies

Disclaimer and Terms of Use: Stock market is subject to risk. High risk high gain is the key to stock market. We are not responsible for any loss or profit associated with stocks mentioned on this site/ by us. Under no circumstances will we be held liable for losses incurred due to information presented anywhere on the site or given through yahoo messenger or SMS. Please do your own research before establishing an equity/ derivatives position in a company. Not all stocks recommended by us are suitable for your investment needs. Carefully evaluate your own risk appetite. Any error in this document cannot be claimed by anyone. The articles on this site are not written by a registered investment advisor. The author may or may not be holding a position in companies that are being analyzed. More likely than not, the author will have an interest in the stock mentioned....