Robinhood Traders; Intraday Traders

 

There are following types of traders in Stock market;-

1.       Short term traders

2.       Long term traders

3.       Intraday Traders also called a Robinhood traders

In this I am here discuss about these Robinhood traders. These traders are generally new comers into the share market and do following things;-

1.       Getting tips from News channels, Newspapers and word of mouth from other similar persons:-

Robinhood traders generally take tips from above mentioned sources and they don’t any research before getting into purchase of any stock. They will look after each and every stock especially volatile stocks. If there is news about a particular stock then they will try to buy that particular stock in maximum quantity without looking into the impact of news on that stock. They even if book profit into the stock in single trade but they will keep on looking to trade again and again in the same stock and ultimately ending up in booking loss in that stock.

 

2.       Uses the maximum limit available;-

These traders will look to trade maximum and try to get richer in a single day by using the maximum available limit and even request the broker to increase the limit. They will never get satisfied with the available limit.

 

3.       Trading for whole day:-

They don’t do one or 2 trades even when they booked the profit, they will keep on trading through the day i.e. from 1^st ticker opening time to last ticker closing time. They want to book maximum profit in a particular day.

 

4.       Covering up the brokerage and charges:-

If these traders booked loss in initial trades and somehow cover up loss amount but they keep on looking for another trade for covering up the brokerage and other charges so that ultimately they will book some profits.

 

5.       Try to show their knowledge in stock market:-

These traders will keep on showing their expertise in stock market and even give tips to other persons and never disclose the loss they had made in stock market. Actually these traders don’t know about the fundamentals of any company they only know is the movement. They try to predict the movement.

 

6.       Try to get loans from available source for trading:-

They always try to generate funds by any means i.e. either taking personal loan, credit card loans or other means to do the trading and try to cover the losses they had made over the period of time. After losing that money also they shift their focus towards work and make a commitment to themselves that they will never trade again in share market.

They even withdraw the amount from the investment which they have planned for long term.

 

7.       New Strategy of trading every time:-

Every time they made a loss they come with new strategy for trading so that they will not money this time around but in this share market all strategies get failed when your losses getting mounted.

 

8.       Teasing others:-

They will tease others which are not intraday traders by keep on saying them that there are lot of opportunities in intraday market so you can go for intraday trading. They even tease other intraday traders by saying that you are such a dumb by picking such a wasteful stock.

 

9.       Negotiations with broker for reduction in Brokerage:-

They are the best at negotiations with brokers for reduction of brokerage. When they do heavy volume of trading, brokerage and other charges started to haunt them.  As they are able to get reduction in government, NSE, BSE, SEBI charges so they try to reduce the brokerage amount by negotiations with the brokers. They even threaten them to reduce the brokerage as otherwise they will shift their account with broker firms as they are offering lower brokerages.

 

10.   Reliability on brokers:-

They have more brokers as they sometimes even give their accounts to brokers for trading as brokers convince them they will make profit in your account with their trading skills. How can they earn profit for your?? If they are so much expert then why not they trade with their own money and make profit.

So don’t fell in trap with brokers.

 

So you can see that how these Robinhood traders are always directionless. They don’t have any goal or fixed strategy to achieve their desired results. They simply more here and there and always try to prove their logic in intraday trading.

 

These the traders which apart from intraday will trade in F&O, Commodities, Currencies, Crude, Bullion etc. as they are never get satisfied and they always keep themselves busy in all types of trading options available in market. As stock market hours in India are from 9:15 to 3:30 PM, So what they can do with remaining hours so look for commodity, Crude and Bullion trading as market for the same will remain open upto 10:00 PM.

 

They want to be expert in all traits but infact they are just losers and will not generate any money at all and they always remains in tension as losses are getting increased day by day and he/she get overburdened by increasing debt. Sometimes they were even sell their houses to do the trading. They get so much addicted to trading that they don’t like anyone. They don’t any work at all as they are always busy in trading.

 

Unauthorized trades such as dabba trading:-

They even explore unauthorized ways of trading i.e. called dabba trading where you can call a person and they will place order against your call and they will pay you if your trade generate profit and will amount if you get into loss. They charge certain brokerage against these trades. They generally provide service in Futures only. They even threaten you with dire consequences if amount isn’t get paid timely to them.

 

Why they are called Robinhood traders??

 The reason why these are called Robinhood traders as Robinhood was fearless so as these traders they live the everyday by keeping all the savings at risk of losing them as that of Robinhood  who keep always his life at risk to help poor’s and these traders help the brokers only. They are not helping themselves they are helping brokers to get richer day by day.