Making Rs 2000 a day!

beginner_av · #51 9th May 2008, 10:22 AM

Quote:

Originally Posted by kkseal

Even with such possibilities, what would you rather have - a 75% or 25% success rate?

(Also in the above e.g. the allocation was not equal in Re terms. However if a trader has reasons & rules for such asymmetric allocations he can always do it - which would be another test for his system/method)

He he he, I'd take 75%. Otherwise I wont even need a "kalo haans". Just a long losing run at the beginning (probability much higher with 25% success system) will wipe me off.

Cactus · #52 9th May 2008, 09:54 PM

Inhee andheron se phute hain roshni ke chirag.........

and here comes the system.........

a system with 7-3 win/loss ration and .5%-2% RR.

I know some one who make average 6 k per day with a capital of 3 lakh.

Guess how.........

Quote:

Originally Posted by columbus

Many people believe that in order to be profitable one should be 51% correct.
That is wrong.

Consider a scenario that a person has invested in 3 scrips at 100 Rs (100 shares) and fourth one at 500Rs(100shares). At the end of day he sold the first 3 shares at 110Rs and the fourth one at 450Rs.His success ratio was 75%. (3 profitable scrips ,out of 4).Still he has made loss.

Similarly the inverse is also true.At the end of day ,let us assume he has sold the first 3 scrips at 90Rs and fourth at 550Rs.His success rate was a mere 25%, but he has made profit.

kkseal · #53 10th May 2008, 01:45 PM

Quote:

Originally Posted by beginner_av

He he he, I'd take 75%. Otherwise I wont even need a "kalo haans". Just a long losing run at the beginning (probability much higher with 25% success system) will wipe me off.

And CV Sir has set a benchmark of 98%

BTW, don't we have a 'kalo hans' (for equities) in crude oil?? Fortunately it has occurred at a time when equities were already in a bearish phase, so the damage will be less.

And it's literally 'kalo' (crude color)

Regards,
Kalyan.

SavantGarde · #54 Yesterday, 02:51 AM

Such Examples Should Be Well Thought Through Before In The First Place.

Nobody Would Buy The Same Quantity For Scrips Priced 100 & 500 Respectively.

This Is Where Position Sizing Comes Into Play For Traders Wanting To Consistently Trade Profitably

SavantGarde

Quote:

Originally Posted by columbus

Many people believe that in order to be profitable one should be 51% correct.
That is wrong.

Consider a scenario that a person has invested in 3 scrips at 100 Rs (100 shares) and fourth one at 500Rs(100shares). At the end of day he sold the first 3 shares at 110Rs and the fourth one at 450Rs.His success ratio was 75%. (3 profitable scrips ,out of 4).Still he has made loss.

Similarly the inverse is also true.At the end of day ,let us assume he has sold the first 3 scrips at 90Rs and fourth at 550Rs.His success rate was a mere 25%, but he has made profit.