Does anyone have more details on this?

Thanks Chaitanya
I feel better now !!

My thoughts are that trading requires some experience with the market, requires more time compared to investing, and a completely different way of looking at things.

With investing, we can follow a particular investing approach, based on any parameter, even as simple as PE or PB, and if you are buying at lows, the chance of the price going even lower is less, generally speaking, as there will be exceptions.

With trading, we are essentially participating where there is activity, where there is momentum in price, we will be buying at high price, in the hope and anticipation based on some thesis that we will be selling at higher price. But if for any reason, the price falls because we bought at the wrong time, stop loss will get hit and that particular trade is lost. And if for any reason the indices that have more association with our stocks fall, mid cap or small cap, then all of our stocks could hit the stop loss, just like it happened a few days ago. The more the allocation, the more could be the potential loss.

Even if we can take the losses financially, psychologically losses bother, because we booked them, and we booked them fast. Losses in trading are absolute, not notional, unlike with investing. Time is a luxury we don’t have in trading, because the losses may go up. I think I changed a trading position to investing, because I did not want to book loss.

If we have some experience with investing, we can definitely use that knowledge and experience we have gained with investing and apply them in trading, but there are a few things that are exclusively to trading.

While your idea is good, it is hard to do unless we reach a point in trading, which will take some time. All in steps I guess. Small losses, breakeven, small profits, little bigger profits, all the while small allocation, slowly scaling up, bigger positions for bigger time frames with technofunda etc. I am not there yet, I am in the middle. And personally, I move my profits to debt.

One suggestion though, presuming you are interested, use a different broker, exclusively for trading, and keep a journal for your trades, for the PnL, you will get clarity w.r.t numbers.

Hope I gave some answer to your question.

You can use https://www.tijorifinance.com/in/markets

It gives the performance of various sectors in different time frames, some time frames are available for free, and others with paid subscription. You can check if this helps you.

You can open your own PF thread, with the current stocks, and members who know about your stocks may reply. And if your PF has any changes, you can record these changes, with reasons, in your thread, and who know may reply.

And if you want to know about anything specific, there is the Investing Basics – Feel free to ask the most basic questions

Are you referring this spread number from the table I added?