How to invest 40 lakhs in equity, FnO, commodities etc.

Status
Not open for further replies.

SexyTrader

Well-Known Member
#1
I love trading and I enjoy it immensely.

I'm getting better at it though....

and currently I have an investible capital of 40 Lakhs that I wish to invest or trade....

I wish to have a regular side-income with profits, with this capital. Of course this is excluding my regular income I make from my profession other than trading.

So what do you suggest ? How should I invest this capital across different segments so that I do not end up losing the capital, yet I can keep growing this consistently at minimum risk ?

Appreciate your views :)
 

SexyTrader

Well-Known Member
#2
How to invest 40 lakhs in equity, FnO, commodities etc

I love trading and I enjoy it immensely.

I'm getting better at it though....

and currently I have an investible capital of 40 Lakhs that I wish to invest or trade....

I wish to have a regular side-income with profits, with this capital. Of course this is excluding my regular income I make from my profession other than trading.

So what do you suggest ? How should I invest this capital across different segments so that I do not end up losing the capital, yet I can keep growing this consistently at minimum risk ?

Appreciate your views :)
 

SexyTrader

Well-Known Member
#3
How to invest 40 lakhs in equity, FnO, commodities etc

I love trading and I enjoy it immensely.

I'm getting better at it though....

and currently I have an investible capital of 40 Lakhs that I wish to invest or trade....

I wish to have a regular side-income with profits, with this capital. Of course this is excluding my regular income I make from my profession other than trading.

So what do you suggest ? How should I invest this capital across different segments so that I do not end up losing the capital, yet I can keep growing this consistently at minimum risk ?

Appreciate your views :)
 

SavantGarde

Well-Known Member
#4
STrader,

Considering one is not aware of your trading activity.....just that you love & enjoy trading....

If you are active trader in derivatives segment.... then I would be inclined to suggest..... use 60-70% to invest and use the balance to Trade Positional in futures.... and once you have a good portfolio of Equity there is much more you can do in the Futures to balance your equity portfolio.....

You made a big mistake mentioning the figure of 40 lakhs... and you will be inundated by PMs and posts here from those who would manage it for you and chances are they will show what incredible returns they can generate for you...

Please DO NOT get swayed by such people....


Happy & Safer Investing/Trading

SG

I love trading and I enjoy it immensely.

I'm getting better at it though....

and currently I have an investible capital of 40 Lakhs that I wish to invest or trade....

I wish to have a regular side-income with profits, with this capital. Of course this is excluding my regular income I make from my profession other than trading.

So what do you suggest ? How should I invest this capital across different segments so that I do not end up losing the capital, yet I can keep growing this consistently at minimum risk ?

Appreciate your views :)
 

SexyTrader

Well-Known Member
#5
Hi SG,

You mean invest 60-70% in Equity and the balance in positional Futures ?

Oh ok...

My trading activity has usually been day-trading with a mix of equity and options. But I would like to diversify into other segments slowly as I get the hang of it.

But yes, I enjoy trading coz I find it exciting and I have made profits fairly consistent.

You stated "once you have a good portfolio of Equity there is much more you can do in the Futures to balance your equity portfolio....."

How does balancing work ? I must state that I'm good at equity but not so much with the Futures as yet....barring options coz its safe!

Thanks :thumb:
 

SavantGarde

Well-Known Member
#6
Hi STrader,

Investing requires tons of patience...... it is literally like Lion in a Jungle... who doesn't need to hunt everyday for food....and such patience is well rewarded in terms of equity curve....

Hope with your trading activity and passion for it don't end up loving futures a lot...'cause... with a few good winning streaks.... people usually lose interest in Investing.....

Hmm... balancing equity portfolio with futures is not complicated... but requires a bit of writing on the subject... & since you are yet to build a portfolio ... there is ample time for it...

There is Gangadharan, haven't seen him for sometime... perhaps he may have another ID... he has a equity portfolio and trades options & futures based on his portfolio.


SG


Hi SG,

You mean invest 60-70% in Equity and the balance in positional Futures ?

Oh ok...

My trading activity has usually been day-trading with a mix of equity and options. But I would like to diversify into other segments slowly as I get the hang of it.

But yes, I enjoy trading coz I find it exciting and I have made profits fairly consistent.

You stated "once you have a good portfolio of Equity there is much more you can do in the Futures to balance your equity portfolio....."

How does balancing work ? I must state that I'm good at equity but not so much with the Futures as yet....barring options coz its safe!

Thanks :thumb:
 

SexyTrader

Well-Known Member
#7
Oh ok SG,

The reason I do not have a portfolio is I square-off my positions by the end of the day.

So this fast-paced activity of squaring-off and entering again the next morning is what fascinates me....besides I do not have much knowledge of Futures, except that I know options to be safer than Futures :lol:

But how does building a portfolio help ? I mean if one makes consistent profits in day-trading and short positional trading...does having a portfolio matter ?
 
#8
If you are good in managing different scrips and timeframes in trading I would suggest following break-up.....

1) Swing Trade 2-3 counters with 7.5 to 10 Lakhs allocation to each....Rs 20 L

2) Day trade ( futures) 2-3 counters with 5 Lakhs allocation in each ..Rs 15 L

3) Positional trades ....................................................................Rs 5 L

that makes total of 40 L

Trading on 40 L capital is a serious business...give it your full attention....:)

Smart_trade
 

SexyTrader

Well-Known Member
#9
Thanks ST,

But if I take margin, I can get more exposure...so will these percentages suggested work with the margin exposure too ?

Coz I can get upto 4 times margin exposure on my capital...so will the percentages remain the same if I do on margin ?
 

SavantGarde

Well-Known Member
#10
STrader,

Hmmmm..... Trading on Margin... while i have usually frowned upon it.... but I will say this that is ONLY for a very very good Trader... otherwise sooner or later you will find the deck stacked against you....

To You... I would say... hone your skills at first without straying into margn trading.

I am sure ST will have some more to say on this subject...


SG

Thanks ST,

But if I take margin, I can get more exposure...so will these percentages suggested work with the margin exposure too ?

Coz I can get upto 4 times margin exposure on my capital...so will the percentages remain the same if I do on margin ?
 
Status
Not open for further replies.

Similar threads