Trading with 10,000 in one slot of SILVERMIC

Hi all,
I am planning to open an trading account in geojitcomtrade with Rs10,000 as margin. I read lot of post stating to open an account with at least 50,000 or 1,00,00 rs.
But i planning to trade only a single slot of SilverMic, for this i fell this will be enough. I want to learn more about the market practically.
What's ur opinion? Does I need to increase my margin?

Regards,
Siva7891

10000 Rs for silvermic????????????????

6000 approx is margin money so you are actually trading with 4000Rs out of that approx 150Rs is tax + brokerage for buy sell it means that stand at 3850 hmmmmmmmn if you check silver move 4-5000 once in all expiry and this still pending all the best

Word of cautious.

Silver is a very volatile commodity. U need to be careful while trading in this counter.

Sounds ok. I think Margin requirement for 1 SILVERMIC is 3k or less. Rest you can leave for draw-downs and losses.

Additionally, have a plan about how you are going to trade this lot. Mantain Risk-Reward and trade good.

Cheers !!

Hi praveen,
The margin for SilverMic in MCX isn't around 3k to 4k. Can't understand ur second sentence pls explain

Regards,
Siva7891

Hi fanbboy,
I am planning to buy the lot when it is in low price (compared to last week) and sell it in high price with 500 or 1k profit. I am planning to keep stop loss at 1k below the price i am buying. I may hold the lot for few days.

Regards,
Siva7894

Silver is very volatile, watch it for 1 month carefully before start trading. Go for low brokerage. You can achive your goals if you trade carefully.

500-1000Rs profit against 1000rs risk, If this is your plan, than ask your self how much sucess ratio you are expecting from your system. Do a backtest and find it out. If your system cannot be backtested than paper trade for atleast 1 month and find out.

If we take a sucess ratio as 50-50 than end of month either you would be in loss or zero profit (excluding charges).

Thanks a lot for ur suggestion mcxinvest.

Ideally one should have at least 10 times the margin plus 4-5 times for unexpected drawdowns. Otherwise lots of psychological and mathematical factors constantly remain against a trader. Paper trade may help one a little psychologically but not enough to cope with real thing. Given good TA knowledge it is humanly possible for 2 lakh account to bring in 10-15k per month consistently but one would need god's hand for 10k to get even one fourth of the job done. Anyway good luck