ITS MY DREAM TO BECOME A MILLIONERE.
I HAVE RS.50K IN MY TRDING AC. HOW CAN I ACHIEVE MY DREAM WITHIN A SPAN OF 5 YEARS.:clapping:
Probably no one will take it seriously as they have lost lots of money and finding it difficult to sustain in this tough market and will discourage you. I will not encourage you to trade or bet your 50k without knowing anything about what you doing, but I would also not discourage you.
I think what you need to understand is that by taking stock deliveries and waiting for them to ripe you with gains will not make you millionaire in your lifetime with 50k. Its the leverage that gives you good return. So instead of trading directly into stocks and taking deliveries... I would recommend to learn and work with Options Trading. Become an Options Trader and you can leverage like anything.
Consider this example, the moment TATASTEEL's bad news came their stock price was trading at 444-450 and their 400PA was trading merely around 3-5rs, given that their lot size is 764 I bought 7 lots at average of 6rs in 3 transactions.
Sold them yesterday for average of 18rs....
here is the calculations...
1 lot cost you 764x6 = Rs. 4584 (7 lots cost you Rs. 32088)
I sold them all yesterday for Rs. 96,264... return on investment ? 300% in just 5 trading sessions. Can you beat it with Futures or Stock deliveries?
Buying Options limit your risk as well, as you know what max you can lose is entire sum invested but not more than that.
So learn Options, make sure your brokerage is less... mine is just 1% + 10.3 Service Tax.
Here is the strategy I am working on...
1) find a liquid stock with high volumes , like suzlon or Unitech
2) make sure that the stock is less than Rs. 200 in Spot value and their near money call is less than Rs. 10
2) find their support & resistance levels
3) buy near money put when the stock reach near resistance level, and switch to call when it reach near support level.
with leverage you can buy in bulk.. my current position is in Suzlon...
I have 12000 (4lots) 100CA at avg of Rs. 5.3 and LTP is 6.7.. already in a profit of 16k (23%) for the day... and my cost was 63k
Best of luck and see you in millionaire club soon, I might come in my Ferrari