hw mch return %??

[headstrong007]

+3600 per day on 40,000 is a realistic return
dat means using 10X levrage on 40000 n Xpecting 1% return/day

I said it from own real-life trading experience from earlier days when I used the small capital for testing the waters (of course after lots of experience in price action, screentime and paper trading).

NOTE the word maxium. 3600 are for rare jackpot days.
When a stock give one-way trend without hitting the trailing stop.
Even with 5X-6X leverage(Traded value 2L+). So, if the underline move 3-5% and on a jackpot day trader could catch at least 2% move its approx 3600 including the cost of trades.
In purely day trading of stocks people usually, target
1. momentum stocks (stock in the news or critical EOD based breakout breakdown) which usually moves 3-4%.
2. High intraday leverage so both profit and loss widely varied.

************************************
Also important to NOTE, I said,
Try to maintain a buffer money, so that your trading capital remains fixed 40,000

Intraday trading with high leverage is risky you need to keep the separate money for day to day MTM losses or drawdown.
Most traders fail psychologically bcoz they trade with variable capital(no buffer money for MTM losses for few days).

If you have buffer money only then you can trade freely with patience.
If u want to survive in trading, then trade with fixed capital and a buffer money for MTM loss, refill the buffer whenever required.
Set initial buffer(extra money along with capital) for 30 days, which must be maximum 80-100% of total capital.
In a simple way, you can divide the capital into two parts, 50-60% for fixed trading capital and rest 40-50% buffer money to compensate MTM losses.


Read the whole comments(two posts) together so that the whole picture will be crystal clear. Now I have explained it in details. Above comment was based on 40,000 fixed capital and extra separate buffer money to compensate day to day MTM loss. If 40,000 all you have then separate it in two parts and recalculate the maximum return range on fixed capital only which is 20,000-24000. Then the above-mentioned range (minus)1200 to (plus)3600 range will also decrease by 40-50%.
I hope, all is clear now.

Whenever there is one-way momentum trend, try to run on your intraday profit till the square of time using a trailing stop loss. Ultimately it's the few jackpots trades which make all the differences in the long run. Only a few can scalp uniformly, try to catch the jackpots.

 

[Satya.]

ys,it made a perfct sense @headstrong007 txn

 

[Ravii_67]

I instantly connected to your thread, because i just had good start in equity trading
I am trading nifty alone with price action method from 2014.. after testing various ways of trading stocks (littile bit of capital)... i finally got a way that suits me and yielding well as of now.

After backtesting and small quantity forward testing in real time.. i started trading stocks with 10% capital.. below is the result. Now i am slowly going to increase quantity.

Yes,, it is possible to achieve 1% return a day.. but you need solid risk management, position sizing, psychology to handle emotions, emotional balance to let profitable trades run and cut losses.. & then comes the strategy.. unfortunately too many focus on strategy alone!

I hope i am not violating any rules... i posted above statement just to show it is possible trade stocks with good reward.
Have fun!

 

[Satya.]

@Ravii_67 nice performnce on 10% capital