Transaction Costs in Trading

Active trading involves huge transaction costs. In my experience as an intraday trader and running a trading office predominantly consisting of short term traders

1. Huge amount of energy is expended in the form of Transaction Costs, Taxes
2. Some of the items in the Broker's charges that need clarity is the Stamp Duty in case of Brokers having regd office at Hyderabad.
3. Turnover Charges being charged in excess of NSE Charges from clients ?
4. Victor on the effect of VIG

Stocks in Play 19th June 2010

As an intraday trader I want to be in stocks with volume and volatility. Trading gurus often emphasise stock selection. Some of my random observations are

1. Asian Markets not picking up weakness displayed in US. US futures mildly positive.
2. EVERONN : This is a stock in play. Board meeting today. Reports of stake buy by Nikhil Gandhi

         stock up 18% in 2 days. Everonn Business education a rehash of
        ICFAI NationalCollege ?    Everonn trades violently ahead of earnings as witnessed last  time    . I would like to choose my spots and reduce size and honor stops and try to avoid revenge and aggressive trading in the scrip. Previous Day High of 613 may be good resistance but beware of false breakouts. Stock is only in Cash segment that adds to lack of flexibility to express negative view. I would have to allow the market to show that it has made a top.

3. Other stocks likely to be in play : TCS, Cromgreaves, HDFC Bank, Sesagoa, CanBank, DCB, Escorts, PFC, Mindtree, Zylog Systems on Results meetings and as active securities for the previous day.