How to convert trading to regular income

Deal all,
I am new to trading & need to adapt to trading as my regular means of captial buildup besides my job. To begin with I am tragetting for 8% of weekly appriciation (day trading only). This will provide me double the amount inside a year. I would like to know if this is a practical target or is it too modest? I am trying to figure out a benchmark against which I can measure myself as a biginner. Any advice would be helpful

cheers,
Ashish

your objective should be capital protection with decent returns.

try AW10 thread on low risk option trading strategy - option spreads.

can be implemented with least monitoring.

That target is rather steep. You will have to take too much of pressure to achieve this target.

Target of making 12-17 % of the trading capital in a month is more relaxed and achievable....with this return if achieved consistantly, will double your capital in a year.

Best wishes for your trading success....

Smart_trade

most traders are undercapitalized...and to make the effort of trading worth their time, they have to set such high targets...which leads to overtrading/overleveraging and ultimately to account destruction.

If you were trading with 10 crores, would you still try to make 8% per week?

8% weekly gain can give you 100% appreciation inside 10 weeks why wait for one long year, if you find the answer please let me know, wow that could be biggest bonanza 1.2 billion Indian's can become Billionaires no work no poverty just money every where what a dream .... been waiting for this nearly 15 long years of trading..... may be possible i may be wrong for all these years !!
:clapping:

Manohar, Even if you are proved wrong , not all 1.2 billion can earn as Stock market is a zero sum game!!

equity is not a zero sum game...as wealth is created when stock prices rise...and there cannot be an equal number of short and long positions in stocks

F&O, on the other hand is a negative sum game

seller gets 990 after deducting brokerage for selling a 1000rs instrument...buyer pays 1010 for the same. On paper, however, both bought and sold for 1000.

Hi there nothing bad to trade and target is very easy to acheive.You will meet many people who will misguide you some say do this and that. But stick to your goal. There are certain things you need to do else destruction also is sure. You have to follow for day tarde-
1) First learn art of trading i.e. Technical analysis which is must for a trader.
2) Buy a technical analysis Tool like ambibroker, meta stock etc. As in free nothing is available. I am using ambibroker. I feel it is less expensive than others and very much flexible and easy to use.
3)Dont put your entire capital in market.Use only 20-30% subject to minumum of 50000-100000 as per you capacity.
4) Dont trust tips from broker etc. as they are not going to loose its you only. Make yousr self competent to take your own decision else its worthless.
5) Open your account with a broker with good reputation and low brokeage because brokerage part is very important to survive in market and trading in volume.
6) Dont trade in penny stocks. Opt for Nifty 50 & some stocks lik Aban etc.
4) Prefer stock costing 500-2000 like Jidal steel, Reliance, Lt etc. the usually follow technicals.
5) Use good internet connections.
6) Keep your mind cool try to get rid of greed and fear. Book small profits of Rs 3-20 in BIG STOCKS as the case may be.
7) After getting confidence start trading in volumes not before that.
8) Those who loose can gain i.e. Keep in mind stop loss so that you can protect your capital to be eroded.
9) Keep bird eye on television and your screen i.e. chart else dont trade or some day you will realise.
Hope these things works
I have lost lots of money earlier but after following these things I not only covered my losses but Now trading with good success.

As you are in job televeison to watch and chart is not possibel then dont go for day trade go for swing trading by researching using technical tools, news etc. Buy on breakouts and Oversold good stock.
Regards
Manish

All,
Thanks for your opinions

Manish,
Thanks a lot for specific points & will surely use them as guidelines.

I do infact intend to do day trading. Which I guess requires me to do good home work on TA. I plan to invest 7500 on monthly basis with appriciations targetted per week & no open positions at end of business day.

Attached is a caluclation sheet which I intend to use as a overall objective. Of course, it may not be always possible to achive 8% straight on all weeks, but this is what I am targetting net-to-net.

Would appriciate if you could go through the sheet below & comment if this is something you find feasible. BTW I do realise that appriciation will be lot higher at the end of year provided this really works

Cheers,
Ashish

practical results are always different than theory....