Notesale: Turn your study into money

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STOCK BROKER GUIDE
SUBBROKER career seems small but it is a very big business of huge
turnover
...
03% & 0
...

What are the expenses to SET UP a sub broking terminal
Refundable deposit

50,000 to 1lac

Connectivity
(leaseline/broadband) 12000-30000 PA
Trading Software

12000PA

Registration fee

15000

Computers

25000

UPS –Invertor
TV+cable

15000
5000

Running expenses
Office

10000

Phone

2000

Subroker terminal needs investment less than smallest traditional
business & it can give earning more than 4times
...
It will be free
in first 1-2years & will keep giving extra income lifelong
...
You can do this business from part of
your home or part of any office
...
Air conditioned office and
revolving chairs may be good, but if losses are frequent then client may
sweat in AC too
...
They came
here to trade & invest
...

Broker is not responsible for client’s profit or loss anyway, but if he is
supporting with live resources then client is going no where leaving
him
...
live tips with win/win modelMeans broker is getting more brokerage with client safety & profit
...
That is short
term benefit ,but if client is losing then broker is losing finally
...
Trader –Investor educationIt may reduce risk of any sub broker to one fourth & safe turnover may
go up 10times
...
70% of them leave trading
after losing their capital
...
Each clients is
like an asset to broker
...
You spend money, time
and energy to maintain that
...

If you keep him alive, his turnover and your brokerage earning will
increase exponentially
...
So proper growth keep
first thing first
...
If
your monthly expenses are limited to 15-20000 only then brokerage
from 5-6clients can bring you to break even point
...

There is a best speciality in this business- your running expenses are
limited with growing business
...

A marketing officer is also a live expense who is bringing new clients
...

Some medical representative used their old contacts
...


They bought short term delivery of best nifty stocks in 1/2/3 parts and
sold weekly
...
Doctors can give 1lac
cheque easily, so they gave
...

If someone is doing buying 15lac & selling 15 turn over in delivery
...

During my seminar tour,I saw one fellow was maintaining sub broking
id with his medical shop
...

Selected clients were trading over phone
...

This fellow has just calculated that what is input & what output
expected minimum?
He started and added his income, skill & a new thrill in life
...
near 52 week high stocks
When you see nse india site- equity stock
You see nifty/Nifty next50/ Nifty midcap list
...

Then see if nifty 1 m 3m chart if it’s supporting
...

Then you can see sectors According to sectors
...

See MF holding to select better quality stock
...

2
...
volume increase price rise
4
...
It will give you detail procedure
...
Account opening charges and time required for procedure
2
...
Online & offline account details
4
...
Turnover limit and pay-in/pay out conditions
6
...
Tipping service/portfolio management service/contract note
8
...
For stock market,
See nseindia
...
List them all daily from 9
...
40am
...
Nifty future /bank nifty future may be placed at top
...
Keep A group stocks only in the market watch so any beginner may
not be trapped in low quality stocks
...
Keep a distance in similar name and similar price stocks,It may lead to
mistakes many times
...
Keep re arranging market watch daily, because it will include new
stocks with news
...
Include some stocks from main screeners like volume increase price
rise, recovery from intraday low and gap up opening
...
If you can manage another portfolio for options specially then make a
new scrip portfolio(market watch) for them
...


Trading Tricks
1
...

2
...
Book profit from there directly
...
Trade huge volumes with limit price only and keep booking part
profit
...

Don’t trade big volume with market price order
...
Keep buying order in dips with very small stop losses in series order
strategy
...

5
...
Ask the SL always from client
and tell them all to have stop loss in half quantity at least
...
Keep stop loss buying above high in top gainers & stop loss selling in
top losers with profit booking order with 0
...
(trading robot model)

7
...

If there is very small gap in order price and current price,then sell by
changing order only
...
Use f3-F3 to keep checking order book & keep deleting all use less
orders time to time
...
29pm before market close or
in any crisis
...
Keep experimenting with new strategy with low volume and show it
to clients
...

10
...

11
...
It is more
necessary to save them from losses instead of more profits
...
It is good to speak less
...

13
...

14
...
29pm and sell it on next day
on9
...
keep prior off market order before 9pm if it is possible
...
Promote each client for 2small trades with strict stoploss
...

16
...
It happens generally in odin diet
...
keep stop loss buying in top 6gainers just before circuit filter from
volume increase price rise screener
...


Back office co ordination
A broker invest in exchange membership by investing 1-3crore
...

Sub broker takes cheques of deposit from clients to provide margin
accordingly
...
If sub brokers are safe then broker(member) is safe
automatically
...

There are many departments in a broker’s head office
...


1
...
Forms may be in printed or digital format now a days
...


2
...
It manage the turnover limit for each
client
...


3
...

if he has credit & want to encash, he can request PAY OUT here
...


4
...
All demat process are done here
...

Many investors are holding very old share certificates and still they did
not dematerialized these
...

If any sub broker is supporting in such extra efforts, he will get a
potential client, because those 100 share certificates might be turned
into 1500shares due to bonus issues
...


5
...
Mobile trading is also going to become popular
...

If you keep talking to them frequently in friendly manner, you will know
many technical things which will make you more efficient
...
Research & advisoryEvery broker is having a special department for in house technical &
fundamental analysis team
...

Sub brokers & clients keep watching and trading on their trading calls
but never try to inter act with them properly
...
Ask precise question and learn
the science behind their trading tips
...
Marketing
Marketing department is most important department in bad or good
times
...
Seminars, events and marketing effort by a team are
done here
...

This department can support you officially or unofficially according to
company’s business policies
...
In charge OR Co ordinatorThere is one head or in charge who co ordinates the working of all
departments
...


Sub broker can gift them occasionally and invest in relationship
...

Try to understand minute things of all departments working
...

If you think that it’s not my job, then you will remain a sub broker only
...

Good sub broker will try to answer all the questions of his clients which
may not be directly related to him but this make a client feel “all
solution under one roof”
He goes nowhere else and keep bringing new clients to us more than
any marketing executive
...
Know capacity of your client well- this is the first principle of risk
management
...


2
...
If one want
to buy stocks worth 1lac then suggest him buy 20,000 in first
dip,then30000 & finally 50000in last dip
...


3
...
This will make you give
unlimited leverage or margin to clients
...


4
...
Tell them their debit /credit regularly
...


5
...

So debit in report may not be including last 2days debit
...
Don’t let any client indulge in Stcok futures from beginning
...


7
...
You can’t
keep watching movement of all the stocks
...
All sub broker call clients for debit generally, You learn to call for
credit as well
...
If fund of some
clients is useless there
...
This is the method to cultivate big clients
...


9
...
So that you can talk in urgency
...

You can call to open client limit fast to place trade at right time
...
You can give some regular sitting clients’ numbers to the client who
is trading over phone
...

Some novice trader may be time killers so any other client may
entertain him with answers to very basic questions
...
Everyone feel
fear from lengthy accounts in any business
...

This is the only business in where your accounting & documentation is
done by big staff whom you are not paying at all
...

One can see reports by entering user id & password in broker’s official

Website
...

Choose sub broker or client option
...

RMS report will help you manage bad debt clients who are having debit
more than their stock value
...
Scrip wise
holding will help you to act accordingly during crisis in any particular
company stock
...

Lack of communication & miss information is the basic problem in small
level broking in India
...

STT report is needed on the income tax return filing of
clients
...
Settlement number is
made up of year & trading day counting
...

Enter scrip name DLF
Enter party code or date option and submit details
...


Turnover brokerageEnter date
...
Choose date & summary and
submit
...


FINANCE REPORTS

Daily report viewEnter party code (from & to) and date in all segment party ledger
...
We can know the amount we earned every day
...

These 10minutes of back office are most important
...

Lack of management will not reduce your income but it may create
huge losses here which can’t be recovered in next 5-10years
...

Even a good trader may not be successful as a good sub broker
...
That is completely different line of working
...
The following is
a summary of these characteristics:

Delta –

Deltas range from zero for far out-of-the-money call to 100 for deeply
in-the-money call, and from zero for out-of-the-money puts to – 100
for deeply in-the-money puts
...

As time passes, or as we decrease our volatility assumption, call deltas
move away from 50, and puts deltas away from – 50
...


Gamma –
At-the-money options have greater gammas than either in-or out-ofthe-money options with otherwise identical contract specifications
...
As we decrease our volatility assumption, or as time to expiration
grows shorter, the gamma of an in – or out-of-the-money option falls,
while the gamma of an at-the-money option rises, sometimes
dramatically
...

The theta of an at-the-money option increases as expiration
approaches
...

As we increase (decrease) our volatility assumption, the theta of an
option will rise (fall)
...


Vega –
At-the-money option have greater vegas than either in-or out-of-themoney options with otherwise identical contract specifications
...

The vegas of all options decrease as time to expiration grows shorter
...

The vega of an at-the-money option is relatively constant with respect
to changes in volatility
...


Various strategies for option trading
1) long call - bullish
...

3) synthetic long call - buy stock / buy put
...

7) long combo - sell a put , buy a call
...

9) covered put = sell stock + sell put
...

11) sell put + sell call = short straddle
...

13) sell otm put + sell otm call = short strangle
...

15) bull call spread buy 7500 call + sell 7700 buy itm call + sell otm call
...

17) bear call spread sell 7600 + buy 7500 / sell lower strike call + buy otm
call
...


Sub broker terminal project
It is most important decision to choose
broking firm to take franchisee or sub
broking terminal
...

1) refundable deposit (nse,bse,&f-o
2) software & leaseline charges
...

5) sebi registration (time/amout & ncfm id)
6) brokerage sharing
...

8) reporting & contract note system
...

10) broker's background & network
...

12) Nse- cash/fno/bse cash/ commodity-system terms
...

stock future buy abv high in strong sector (last month loser)
sell below Low in week sector (last month gainer)

2nd week
(more focus on options)
Collar strategy
buy nifty future+ buy put + sell call
sell nifty future + buy call + sell put
same in banknifty & monthly gainer/ loser stocks
...
54 or 1
...
54 pm or 1
...


4rth week
buy @ high + sell @ low in index future & stock future
book fast in 5 minute only

Day trade repair in short term
admit your mistakes & these will go away
If you are justifying these will penetrate deep down in your personality
...

it is going down - sell 400 then 200shares more@low
...
sell the weakest share and
buy other stock / sector which is going up
...

still sl hitting - keep a sl cap in mind
...

wait for next time slot 1
...
29 pm short term
...

In this way, we are controlling loss in holding and gaining profit in current
opportunity
...


Stock OPTION project
check 4 promising sectors
...

2 with clear uptrend
...


Observe two different combinations
Uptrend1
...
Buy near out of money call+sell far out of maney
call

Downtrend1
...
Buy near out of money PUT+sell far out of maney
PUT
Keep record of nifty %up or down with sector %up &
down for 3month continuously
...


Call - put & future repair
...
in nifty
...

keep sl buy abv high in call & put
...

in case of stock option you saw a bullish sector made option & it went
downbrok a little loss & switch to up coming sector
...
5 call + 20 put
now if came down to 20 sudenly there was a loss of 30 paisa in combo
...

ril come down & new it started reversal
...

call started giving projit - & put not aetirated
...

ril give me good projit
...

now after 2-3 day's raye umitech call put combo was again there in less
price
...
when realty sector was on top
...

got 1 pt straight in that
...

If you can generate clients, then all other infrastructure & experienced team
of professionals will be provided by many broking firms
...

1
...
When you explain the benefits with total knowledge, then all
of them will be interested on their own and hard selling is not needed at all
...


expecting instant

Someone is learning something from you then he will prefer to work with
you first
...
Personal invitation to nears & dears with high tea
b
...
If we are meeting
100 fellows in 100hrs & spending petrol worth rs30/- per person
...

Half of them may not be right prospect for your product
...

100 fellows are coming to you in 1hour due to advertising
...

Brokers are trying to snatch clients from other brokers but these clientel
is still 10-15% of capable population
...
But educating them
properly is the only way to get them involved
...
Personal callingYou should have a pocket diary to keep noting to be called list
...

Prefer capable & less complex people first
...
You are calling 30-40fellows per
day
...
80(10%) out of them will listen to you
attentively,8-10will start process but 3-4 will be finalized in the end
...
if 15active clients are giving 200/- per day brokerage
...

You need to waste some money till the training of right employee but it is
like an asset which will give you return for many months
...
Tie up with investment agents
There are so many old investment agents may have network of 50
to200clients who are having trust built in years for financial matters
...
Deal with

him professionally on a royal dinner projecting huge extra income with
safety & without extra efforts
...
You can convince him to get recurring income from the clients
who have been giving commission once a year with more efforts in case of
insurance or fixed deposit
...

4
...
So it seem difficult to open free account, but if you are not
spending on branding, that saving may be used for new account opening
...

Why should not we spend half of that in beginning to take a kick start
...

Business becomes rather easy after reaching break even point
...


Details of main commodities in mcx
Gold –
This is the most traded commodity scrip in mcx india
...
Any mistake done will cause very little loss
...
Gold shows a
clear direction in single side
...
40p to 100p
Rs
...

Hedging- It goes along with silver so hadging is suitable with silver
...

Daily hedging with same commodityBuy goldm jan+sell goldm feb@11
...
29 &5
...
This is
specially effective in bottoms & picks of goldm
...
Any mistake done will cause very little loss
...
silver shows a
swing in both sides
...
80p to 180p
Rs
...

Hedging- It goes along with gold so hedging is suitable with Gold
...

Daily hedging with same commodityBuy 3silvermic feb+sell 3silvermic apr@11
...
29 &5
...
This
is specially effective in bottoms & picks with flexible target
...

Stop loss value- min
...
5point to 1pt
Rs
...

Hedging- It goes along with nickel so hedging is suitable with nickel
...

Daily hedging with same commodityBuy 1copperm feb+sell 1copperm apr@11
...
29 &5
...
6p
tg1
...
This is
specially effective in bottoms & picks with flexible target
...
It may
swing from red to blue and blue to red twice a day
...
1
...
150 to 300/- in nickel mini
...

1copperm with 1point stop loss +3nickelm with 1pt stop loss is a
suitable hedging combination
...
54/2
...
54pm sl2p tg512point
Single side daily tradeKeep stop loss buy@high +sell@low with 3 to 7points target
...

It may show a reversal of 15-25points from bottom and pick
...
5 to -1
...


lead–
There are 2different lot siszesLEAD

-5MT

leadM

-1MT

lead & zinc shows almost same moves and behaviour in base metal
sector
...

It may show tight range for hours then a sudden move of2-3%
...
0
...
4pt
Rs
...

Hedging- It goes along with zinc so hedging is suitable with zinc
...
3pt stop loss is a suitable
hedging combination
...
8-0
...
5pt
Daily hedging with same commodityBuy 1leadmini dec+sell 1leadmini jan@11
...
54pm sl03p tg12point
Single side daily tradeKeep stop loss buy@high +sell@low with 0
...

This is specially effective in bottoms & picks with flexible target
...

Average daily move-(12of 22trading days)
+1
...
5%
Extreme move-(3-4 out of22trading days)
+3% or -3-4%

5-6days will show extreme volatility with both side swing or very tight
range bound dull day after any big move
...
These are not directly coupled with copper-nickel
...

Stop loss value- min
...
25pt(25paisa) to 0
...
250 to 400/- in zinc mini
...

1leadm with 1point stop loss +1zincm with 0
...

Even if there is a movement of 80paisa,it will give profit of0
...
3=0
...
54 &6
...
7 to 2points target
...


It may show a reversal of 2-4points from bottom and pick
...


CRUDE –
There are 2different lot siszesCRUDE

-100 BBL

CrudeM

-10 BBL

Crude & Natural Gas NG are totally different and de coupled in ENERGY
sector
...

Crude shows continuous movement in afternoon & evening
...
6pt to 15pt
Rs
...
We can buy or sell 6-8 mini lots
...
Can’t be hedged
with NG natural gas
...

Even if there is a movement of 17points,it will give profit of 10pt
...

Daily hedging with same commodityBuy crudeM dec+sell crudeM jan@11
...
29pm &6
...

This is specially effective in bottoms & picks with flexible target
...

Average daily move-(12of 22trading days)
+1 to -1%
Extreme move-(7 out of22trading days)
+3% or -3%
4 or 5 inventory days are there on every Wednesday in a month
...
Open hedging just before 1minute
and book fast at dot time big move
...
forexfactory
...

5-6days will show extreme volatility with both side swing after a
continuous fall or rally forming double top/double bottom reversal
...
Single lot size is there
...
There is no co relation between these two like any other sector
...

Stop loss value- min
...
40pt to 1pt
Rs
...

Buy defensive near ATP or resistance/support level,So that small
stoploss may work
...

Hedging- same commodity hedging is possible only
...

Buy 1NG December+sell 1NG january stop loss0
...

Even if there is a movement of 1point,it will give profit of 0
...

It will be 800/- in single lot
...
54/2
...
4p tg1-3point

Single side daily tradeKeep stop loss buy@high +sell@low with 1 to 3 points target
...

It may show a reversal of 3 to6points from bottom and pick
...
Inventory
timing may be 8pm/9pm
...

Buy NG dec+sell NG jan@ dot7
...
70pt tgt2-5pt
...

But you may get 4-5 points on 2 inventory day
...
Single lot will give+10000
...

Timing should be confirmed by www
...
com website
economic calendar
...


MENTHA OIL
No mini lot available
...

NATURALGAS

-125 BBL

MENTHA OIL is traded from 10am to 5pm only
...

Stop loss value- min
...
5pt to 3pt
Rs
...

Buy defensive near ATP or resistance/support level,So that small
stoploss may work
...

Hedging- same commodity hedging is possible only
...
60pt
...

Daily hedging with same commodityBuy mentha dec+sell mentha jan@4
...
5pt 4-8point
Single side daily tradeKeep stop loss buy@high +sell@low with 1 to 3 points target
...

It may show a reversal of 12 to30points from bottom and pick
...
Single lot will give+20000
...

Timing should be confirmed by www
...
com website
economic calendar
...

NG fundamentals
Natural gas is a vital component of the world's energy supply
...

Natural gas is a combustible mixture of hydrocarbon gases
...
When compressed at a pressure of 250
bars, natural gas is called compressed natural gas (CNG)
...
Natural gas is primarily
used in homes, businesses, and factories for heating, cooking, and
cooling
...
CNG is
commonly being used as a fuel for public transport vehicles
...

Global production
Global natural gas production grew by 1
...
5%
...
The U
...
(+1
...
4%) and China (+9
...
Nigeria (-16
...
3%), and
Norway (-5%) recorded the largest volumetric declines
...
4%, below the historical
average of 2
...
And, as was the case for primary energy, consumption
growth was above average in the OECD countries (+1
...
1%)
...
India (-12
...
Globally, natural gas accounted for 23
...

Factor affecting NG price
Natural gas inventory data
US weather conditions and active hurricane season poses a threat to
US Gulf Coast’s natural gas production
Price of crude oil Industrial and
residential demand in the U
...


Trading unit 1250 mmBtu
Maximum order size 20,000 mmBtu
Tick size (minimum price movement) 10 paise (0
...

Whenever the base daily price limit is breached, the relaxation will be
allowed upto 6% without any cooling off period in the trade
...

Initial margin Minimum 5% or based on SPAN whichever is higher
...

Maximum allowable open position* For individual client: 60,00,000
mmBtu or 5% of the market wide open position, whichever is higher
For a member collectively for all clients: 6,00,00,000 mmBtu or 20% of
the market wide position, whichever is higher
...


The quantity of natural gas bought or sold under any contract will be
delivered at the uniform hourly rate (with maximum of 10% variation)
during the period of eight hours covered under the contract

GOLD fundamentals
Gold (Au) is primarily a monetary asset and partly a commodity
...
=
It is an important element of global monetary reserves
...
7 tonnes (t) in 2014
...
9 t, but 5% above its fiveyear average
...
6 t, although that in bar and
coin fell almost 40% from the 2013 record of 1765 t
...
2 t of gold in 2014, close to a 50-year high
...
= Total supply of gold in 2014 was
flat—mine production was a record 3,114
...
7 t
...
In each of the applications it is used, gold
provides an outstanding performance due to its unique technical
properties of being one of the most malleable and ductile metals with
high melting point and easy recyclability
...

In recent years it has emerged as a key nanomaterial
...

FACTORS INFLUENCING PRICE
Above-ground supply of gold from central bank sales, reclaimed scrap,
and official gold loans
...
=
World macroeconomic factors, such as movement in the dollar and
interest rate, and economic events
...
=
In India, gold demand is also influenced by seasonality, that is,
marriage and harvesting
IMPORTANT WEB SITES
www
...
co
...
lbma
...
uk | www
...
com |
www
...
com
...
gold
...
kitco
...
dmcc
...
iab
...
tr | www
...
com

NICKEL FUNDAMENTALS

Nickel is the main alloying metal required in the production of certain
types of stainless steel
...

Nickel is primarily used (65 per cent) in the manufacturing of stainless
steel
...
7 per cent of the nickel is used in electro-plating,
with about 6 per cent being used in coins and chemicals
...
Nickel-cadmium and other nickel alloys have been
used to make batteries for electronic gadgets—mobile phones,
computers, digital cameras, and so on—that need small, light weight,
high capacity power sources
...
93 million metric tonnes (MMT), almost at
that of 2013 at 1
...
70 MMT as against 1
...
For private circulation only
...
The exchange facilitates
online trading in commodity futures contracts across segments,
including bullion, base metals, energy, and agricultural commodities,
besides offering clearing and settlement services
...
MCX is a
leading commodity exchange in India, with a market share of 84
...
=
Economic events, such as national industrial growth, global financial
crisis, recession, and inflation, affect metal prices
...
=
Trade policies set by the government (implementation or suspension of
taxes, penalties, and quotas) affect supply as they regulate (restricting
or encouraging) material flow
...
=
As societies develop, their demand for metal increases based on their
current economic position, which could also be referred to as the
‘national economic growth factor’
...
lme
...
uk
www
...
com
www
...
com
www
...
com
www
...
org | www
...
org | www
...
com
|www
...
com
|
www
...
com
www
...
standardbank
...
futuresource
...
metalsmarket
...
metalsplace
...
metalprices
...
brookhunt
...
gfms-metalsconsulting
...
KITCO
...
CRBtrader
...
lme
...
reuters
...

intraday normal range +_ 1%
extreme +_ 3%
big swings are there
methods to trade
(a)2
...
54pm
see charts & buy with recent support level or ATP
...

(c) hedge it at above ting with 2p sl
...

when there is clarity in buy or sell direction,add 1 or 2 more lots with
2pt sl
wait for 10 minutes , book extra lots cost to cost
...
if it broke + 0
...
it may move upto 1
...

there will be a dip from 6 to 7
...

it may come to first or second support level
...
2% and
method
...
25 pt sl
...
7 to 1
...

2) hedge with next month 2 zincmini
...

4) sell on picks, buy on bottom stop loss 20 paisa 2 times
...
in google
...
way2wealth is showing monthly chart
...

say
open

low

high

close

142
...
5

143
...
9

10 am

12
...
40 pm

11
...

if avery scrip is breaking 5 day's highest lavel then buing will iaiti be
...

& stoploss of higher high in selling
...
com
see 6 month chart
...

see r1 - r2
...

to catch in botlour
or in pick
you need to hir minimum 3-4 sl so - sl should be very small
...


Crossoverif you want to get a huge profit in minutes
...
keep charts open of 3 to 4 commodity
scrips chart
...
which is touched man
...

in case of stock market
...
sector in every 2 hours
...

if away sector or stock is coming suddenly up
...
25% dimate book
profit within 10 or 30 min & exit
...

types of crossovers
1) if anything from red to green or green to red
...

3) breaking strong resistence or support
...

test your core belief know every thing around you
...
invest watever you have
...

It is again trying to break it's all time low
...

2865 was low & 2878 was high
...
23pm and made a low 2861
...
made a high 2911@13
...


TRADING ROBOT MODEL
We have told you about trading robot model means keeping
stoploss buying & selling in 9 popular commodities of mcx
...

so we miss the opportunity same was the cass today
there was big change in base metal & energy sector
...

And suddenly bullion started goldm showed a positive breakout
@1
...

such big moves always comes , when very few trader are expcting
this
...

List this series & next series for all mini lots mainly of 9
commodities
...


We can keep a gap between lines and big font size here due to
less scrips
...

Choose scrips more than 0
...

4
...
4charts in
4quarters
...


1
...

Keep booking part profit while price going upside with trailing stop
loss
But do not trail sl after second wave
...

2
...

Forget where had you bought
...

if you sold at little loss and it goes up again after this
...
but that small loss can be recovered easily in new rally
...
you may start blame yourself

for hrs
...

3

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