1 Lac per month

[manjunnovates]

Thanks Dear MSM for your query --

What about Money Management? -- 3% per trade and max 10% total trades
What is your risk per trade? - max 2500 inr
And finally, what is your strategy? i have developed 5 indicator system.. if any 3-4 gives trade signal, i would enter the trade and if any 2 indicators give exit signal, i will exit.
What commodities you intend to trade? I would not trade gold and silver
(Does it involve momentum? Trend? both
What about handling volatility? i would not trade in volatile market.
Booking profits and SL's?) at least 1:1.5 ratio

Please suggest if anything wrong

1. 2% risk is industry standard! As you r new, stick to 0.5%! Its hard. But Life is hard.

2. Combining indicators is called indicator piling. Its not as easy as it looks. As commodities trend frequently, indicators seem to work. But its not the indicators that pitched in the profits but the very nature of price being trending. Indicators are lagging, so i feel they dont make any sense. So if possible find a strategy that makes sense like pure price action e.g. http://www.traderji.com/day-trading/89395-master-one-trick-only.html

3. So you dont want to trade in volatile markets. But how do you know that the markets are gonna be volatile. Predicting? Astrology? GOD? In fact the commodities itself are volatile. Not trading volatility is as good as not trading at all.

4. a. Soft suggestion - Paper trade your strategy for atleast 2 months and youll know better than what you know now and then trade for real.

b. Hard suggestion - It seems that you have that last 50k and you want to fly off from here. But the hard truth- Life is ****. Its not that easy to earn a lakh a month. So take time and get familiar with the markets. And when you r ready, enter naked without expectations of 1 lakh, 100% a month,etc. Take what markets gives you and who knows it might give you more than 1 lakh!

 

[niftytaurus]

Hi Netapep
I have read some of your posts..What I observed
1) that you have terminated from your job & in those 2 monthes, you have learnt trading
2) you have 50, ooo rs investement & you want to earn 1 lac per month..
3) you have never traded in your life..
4) you dont know the expectancy of your system..
so I have seen those observation, & I can see some problems here..
according to my observation,
1) you have lost ur job & you are desperate to make money..desperation is very bad for trading..you will be more prone to loose..as you have no other source of income & you put all your saving to trading
2)you have just 50,000 capital..u want to earn 1 lac rs per month..means you want to earn 200% profit in one month..& every month ...think my friend..you are demanding 200 % profit, ..think mutual fund manager ..earn 15 -20 % per year...they are people whom are best in their fields
3)u have never traded in your life..have u ever done positional trading before this..have u done swing trading before it? now you want to trade intraday..it same as a nursery student want to do PhD ..u want to earn 1 lac per month ..have u ever tried to make 10,ooo per month & make it consistently month by month..my dear friend, think...how many years you have studied to get a job which u used to do? how much that job paid u..even if I calculated by normal education, it takes 15 years to do normal graduation ..17 years to post graduation....& if you have some technical graduation , so graduation itself will take 16-17 years..so how much a average person get after that hard work of years ., ..??? in share market, you expect ,you learn 2 months & market will give u 1 lac??
4) you make a tradign system with some indicators..do u back test it? do u paper trade it? ...do u check that system in every market condition..if it has positive expectancy, then it will be profitable..

Problems has not finished yet...i am not disheartning you..but I am telling you the reality of markets &trading..& Trying to save u from coming disaster..why I am doing so? because I am member of traderji family,where we care about fellow traders & try to stop them for mistakes..
so i have some my humble request to you
1) go & find a job in the same field where you used to be..& after getting job..learn soem system , test it, paper trade it...if your system has consistently profitable for at least 6 monthes in paper trade, then start with 1 lot..when get profitable with 1 lot, another 6 month in real trading..then think about increasing position size..
2) if you have enouth money that u done need job or you have another source of income, ..means if you want to day trading full time..then you have to forget money for 1year ..have to pay tution fees to market & have to do same steps as no 1 suggestion..

I have just expressed my opinion according to my experience...if you want to do it or not..its totally depend on you..its your life & your money..
but think about it my friend...on other side of trade, there is a skillful & experienced traders, who is ready to transfr your money from your account to his account LEGALLY..
All the best

 

[netapep]

Thanks niftytairus and manjunnovates,
I have backtested my trading plan. Last 3 weeks, i have done papar trading and demo account trading from foriegn websites. I got decent success.
In paper trading, i had done 37 trades out of which 26 were spot on. I demo trading also i started with 3000 usd, now my demo account had 7000 + usd.
Till you are experienced traders, still you think i should not do trading as of now?

 

[SaravananKS]

Thanks niftytairus and manjunnovates,
I have backtested my trading plan. Last 3 weeks, i have done papar trading and demo account trading from foriegn websites. I got decent success.
In paper trading, i had done 37 trades out of which 26 were spot on. I demo trading also i started with 3000 usd, now my demo account had 7000 + usd.
Till you are experienced traders, still you think i should not do trading as of now?

yes you can Start now with since Rs 50K is not Big amount any thing less than that would not sufficient to trade in commodity Market.

But your expectation is too high. if we conduct a Poll (the poll should come from heart ) among traders who know many good systems as well as have good experience asking question rate of the return they gained in last five years?

I doubt most of them might failed to build wealth @ CAGR 25%(the earning many funds delivered in last 20 years)

coming to your aim to make 200% Return in one month

for a fun I have calculated the return for next two years

if one earn 200% Percent per month then he would have 4700 Zillion Amount after two years

even you achieved less than 1% of above income you would become most talked person in the world

in trading nothing is impossible then what % Probabilities you have to attain the achievement? ( it may be less than the probabilities of winning first prize in a lottery ticket)


one trader earned 17 Millions from 1600 dollors
Personally I think the above post would give good advertisement and some clients for that author apart from that it will not use full for any trades at all..

I Just Subscribed this thread and hoping atleast the aim this thread would continue for next 6 months(I have not seen any success full thread or online trading dairy which started hoping great return like this thread)

All the best :thumb:

 

[lemondew]

The return which you have drawn should be an eye opener .

yes you can Start now with since Rs 50K is not Big amount any thing less than that would not sufficient to trade in commodity Market.

But your expectation is too high. if we conduct a Poll (the poll should come from heart ) among traders who know many good systems as well as have good experience asking question rate of the return they gained in last five years?

I doubt most of them might failed to build wealth @ CAGR 25%(the earning many funds delivered in last 20 years)

coming to your aim to make 200% Return in one month

for a fun I have calculated the return for next two years

if one earn 200% Percent per month then he would have 4700 Zillion Amount after two years

even you achieved less than 1% of above income you would become most talked person in the world

in trading nothing is impossible then what % Probabilities you have to attain the achievement? ( it may be less than the probabilities of winning first prize in a lottery ticket)


one trader earned 17 Millions from 1600 dollors
Personally I think the above post would give good advertisement and some clients for that author apart from that it will not use full for any trades at all..

I Just Subscribed this thread and hoping atleast the aim this thread would continue for next 6 months(I have not seen any success full thread or online trading dairy which started hoping great return like this thread)

All the best :thumb:

 

[netapep]

Ok.... I WILL DO PAPER TRADES FIRST..... That too i shall post on daily basis on this forum....

 

[netapep]

Thanks all for your valuable suggestions

 

[laotze]

Ok.... I WILL DO PAPER TRADES FIRST..... That too i shall post on daily basis on this forum....

Right Decision...next 1 month, just record your paper trade in this thread..and review..

Market everything is possible..but, not on daily basis fixed profit (101% not possible).

Take Care.

 

[umeshmandal]

Ok.... I WILL DO PAPER TRADES FIRST..... That too i shall post on daily basis on this forum....

You have said that you have already done Paper trades for 3 weeks ! What purpose would further Paper trades serve??!!
Do keep in mind that Paper trades can give you confidence on the 'system/strategy' you are following but the results shall NOT be same in actual trading!
All emotions are absent in Paper trading ! Greed and fear both are absent.
My suggestion is to risk some real money and do actual trades in market, maybe smaller lots than what you actually wish to trade! You will get a better feel of your own mentality and ability to handle a Profit making/Loss making trade, your ability to be strict with your SL levels and exit levels etc. Also stability of your Laptop/PC, Software etc. too!!
Aim for just Rs.10000/- per month for first 2-3 months !
Just my 2 cents!

 

[umeshmandal]

My suggestion : Trade Crude for just 15 points gross per day! This should give you around approx 12 points net per day after expenses and slippage! (Slippage can be big at times which please keep in mind)! Now with a lot size of 100 and no. of trading days being 20 in a month , this translates to :
12X100X20=24000/- This is paper calculation hence expect the actual results to be lower as there shall be loosing or less profitable days, and even if you can manage to get 50% of this , that comes to 12000/- per month ! Not bad return on 50000/- !
I suggested Crude Oil because a friend of mine trades Crude for just 10 points Net every day and he has been consistently doing it for last 17 months with not a single week going in loss ! He started in July last year with trading a single lot for first 6 months, till dec 2013 and then traded 2 lots till Mar 2014 and now trades 4 lots and shall increase the qty to 8 lots from January 2015 and this 8 lots will continue till Dec 2015!
Now coming to the main point why I shared my friend's story : I used the same set of indicators and strategy to trade crude from 1st Sep.2013 myself and my results though profitable overall but no where near his ! I have not yet progressed beyond trading 2 lots of crude as have had quiet a few loosing weeks also ! So do remember more than anything else its the "Trader" who earns or looses and not the Strategy or Indicators!