Charges and profit on trading

[naveen_reloaded]

I was recently trying out a stock simulation game and was having profitable returns with it. I just want to know how much one should get in terms of profit , to make trading a profitable activity.
Lets say i buy 100 Rs worth XYZ stocks of 50 in number. AFAIK , the charges all include (1.5 RS - Brokerage fee + 0.155 Rs as Service tax ) 1.6554 Rs while buying
And while selling , lets say , the price of each stock went up by 10 Rs .. so total of selling is 5500 Rs.
So it calculates to
RS 1.65 Brokerage fee + Rs 1.375 as Service Transcation tax + Rs 0.17 as Service tax = 3.195
So total is 4.85 Rs
While the profit is 500-4.85 = 495.15 Rs
Is this correct ?
If that is true , then out of any profit i make , the charges will be

 

[Sushubh]

Make sure you understand about the taxes too. It can become quite a massive headache to calculate your profits from trading if you are going to do regular trading on a daily basis.
Because it can get very complicated to calculate your profit on each microtransaction after all the expenses and charges.
The money you make on every transaction is taxable. Unless of course you wait for a year (?) when is when it becomes tax free I believe.

 

[naveen_reloaded]

Cant i simply take the profit at the end and tax on it directly ? Wont it be the same as calculating tax for each transaction ?
I dont know if i am doing right or wrong here, coz with the stock simulation app , which started with 5 lakhs , after 3 weeks or so i now have 8,10,000 Approx now. The app is called "Stock Trainer" The transactions does include brokerage fee and others fees too at 1%.
Is it just because the market is on upbeat and i am able to get profit ?
Needless to say, this profit with this simulation is making me want to try out with real money ..

 

[Sushubh]

I am not sure how real traders manage the calculations of profit and loss. I can only imagine that the trading service they use do the hard work providing them with the necessary figures for IT return purposes.
I did not get much help with ICICIDirect support when I traded on a daily basis for a few weeks. I still have an active account with them. I am terrified to login to their backend panel to check the progress of the few stock I still own.
The good thing about doing business is that you can use your losses to compensate for the profits when you file your income tax return.
Also it is not easy to calculate profits on a daily basis on your trading manually unless you are going to buy and sell shares in the same amount.
I am sure traders here on the forum would have a better idea than me because I have absolutely no clue how daily traders calculate profit and loss.

 

[naveen_reloaded]

Made profits ?

 

[Sushubh]

Yup. I only played with 'safe' stocks like Infosys, TCS and Reliance. Never ventured out of the select few.

 

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[naveen_reloaded]

I have been trying unheard stocks and made some profits(virtual)
You should give this app a try and Pm me , i will tell you a little secret

 

[Sushubh]

You would not do that when you are trading with real money.

 

[naveen_reloaded]

Why not ? If this is yielding results
Here is the screenshot

 

[Sushubh]

Right. When you are going to lose real money from your bank account. You would realize it is not all fun and games.