How to make Rs 10 LAKS in 3 years and from how much?

Gentlemen,

A gentleman came to me and quietly asked a question.
I thought I knew the answer but honestly speaking,I know I am guessing things without real time impact.

My view is presented here. Learned members may please present a realistic
solution to this problem which every new investor and trader begin thinking
intesively.
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The question you have asked is not a simple one.
there may be more than one answer.

time peroid=3 years=36months each having 22 trading days.=792 days of trading.
medium to invest=stocks(simple),index futures,options-both the last 2 need study
10laks=target amount at the end of 792days
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Assuming you make 4% a month, or 10% a quarter of three months,

If you start with Rs 3 laks, assuming no losses, at 4% gain every month, you will end up reaching a target amount of 12.31 laks after 36 months.

If you just trade for for 31 months you reach 10.11 laks.
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Assuming you make only 2% a month on 3 laks, you reach a conservative estimate of
6.12laks at the end of 36 months. if you dont loose any thing.
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Assuming you manage to make 3% every month by your trading, you reach a
target level of 8.69 Laks at the end of 36 months.
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That is calculations to begin with.

The fact remains in trading losses are always there. How much and how do you control it decide the maximum loss one can encounter. so you have to make allowances for the losses apart from profits.
The only way you can do it is by trying for more profits and less losses.

How do you handle these losses?
Fix up your maxium loss level in advance and get out of market once your loss levelk is hit.
Money management is the key. trade ten trades,have 6 losses at 2% each,gain 4 trades at 8% each,net gain=32-12=20%

If you want to make 4% a month, you need to aim at making 8% , and even if you loose 4%, still you reach your target.

What is thing you will trade? one of these= stocks,futures,options
Which is the method you will use? daytrading,swing trading,long term trading
Day trading.
Not an easy thing if you dont know what giant evil demon you are dealing with, and if you dont have right kind of weapons,you might loose all you got.
weapons=a trading software, auto squareup facility, a very low brokerage at 0.02%,faster trade execution,and right stocks with high volatility to trade,and above all
a strict risk control strategy in the face of sudden market crashes. Smart people with smart techniques can only do this.
swing trading.
you buy stocks at right timing ahead of uptrends,well before a trend really begins, and you exit after weeks and months with maximum profits. If a marketcrash occurs after you bought stocks,you must have an automatic exit from all your positions minimising major losses. point is you invest along with major indices and exit fast if the indices begin to dive down.Trendline techniques can help a lot.
Long term trading.
Here I have two great people who proved to the world.
Part-1 Warren Buffet Value investor in the lines of GRAHAM,his mentor
Part-2 Nicolar Darvas A hungarian dancer who used a DARVAS BOX theory

Part-1 WARREN BUFFET STYLE
Every one says Dont buy and hold-you will loose.
Warren buffet is one guy who proved to the world that you can make maximum profits doing a buy and hold,but only if you select best of the stocks and buy them at best of times at lowets of prices. it means vision,waiting,long period of time,proper evaluation and selection of stocks,above all right timing to enter.

Part-2 Nicolas Darvas (Big daddy of momentum investors)
Darvas came out with a box theory.
BOX theory that made millions
He believed stocks have the prices consolidate before they rise or fall.The consolidation period varies from few days like 3 to 6 days or so.
Highest price in the consolidation zone is the top of the box. YOU BUY JUST SLIGHTLY ABOVE THE BOX TOP,only if the price crosses above the box top.
The bottom of the box is made of the lowest price in the consolidation zone.
You use the bottom as stoploss, and exit if price begins to fall through the bottom of the box.
How do you generate the box?
There are rules not so simple. but you can buy a software that draws you the boxes on a chart and you just follow the rules.

Millionaire makers in India.
People who bought Infosys shares at 90 rupees or 150 rupees reached a value level of 3 laks from 9000 or 15000 rupees in a span of three years. these people just bought and stayed cool.Wipro -same thing happened.
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Now think about all these methods pick your vehicle and travel to your destination.

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Rvlv....what is the mininmum amount we need to invest in
stocks...to make 10 lakhs in 3 yrs???...

Hi

Which broker is giving you .02 % and how much volume do you give him a month

About broker

Truth
I saw in the forum Religare offers 0.02%,at what volumes,only people using it can tell. I plan to use Religare soon.

Currently I use Indiabulls.com at 0.03%,
I found no one else in this low brokerage zone.
5paisa.com was charging 0.05% but agreed to offer 0.03% based on volumes of above 5 to 25 lacs a month. Fact is I stopped daytrading on 5paisa.com as they dont have autosquareup facility and hidden charges are difficult to verify. To add more their servers crash frequently forcing relogin,wasting time,and resulting in losses due to auction.
To make matters worse,the service is poor,help is not forthcoming when you need it most.
They blame my internet supplier while the supplier proved by arriving on the spot emergency request that problem is with 5paisa.com servers not the internet as all other sites are up and running fast as usual.
Rvlv

Hi,

I was of the opinion that I would earn more than 3 lakhs in 3 yrs span .
But how , please guide ?
I have read all the articles found regarding R. Junjunwala .Was much enthu. about stock and shares.

I wanna know how to earn more in day trading ?

Any suggesstions and help ?

Raju

I was of the opinion that I would be able to earn more than 10 lakhs in 3 yrs span .
I have read all the articles found regarding R. Junjunwala .Was much enthu. about stock and shares.

I wanna know how to earn more in day trading ?

Any suggesstions and help ?

Dear Raju Garu,

First thing

Daytrading is most dangerous thing.
What are the chances? 90% of the time you loose.
It might so happen that beginning of a trading career can become ending.

PLEASE READ posts on daytrading,AND SERIUOSLY.

Real time trading is totally different from bookish views.

To trade properly
selection of one of stocks,futures options etc to suit your personality and mentality.
1.you need a mentor,
2.education in real time
3.use of a good software
4.a trading plan,tried and tested
5.stoploss and trailing stop tactics
6.money management
7.solid calculated risk control strategies that work

Time being forget about daytrading.

regards
rvlv

Hello Raju , which articles about R.Junjunwalla do u mean?i couldnt´ find any .

Ok my two pennies on the issue.

Three years - net profit of 10 lakhs

Interesting. There are two kinds of investors/traders.
1. You have lots of time to give to the market. You do research, day trade and stuff and spend good amount of time.
2. you dont have a lot of time. You check your demat account once a week may be to see any appreciations.

I right now fall in Catergory 2. My aim is not to loose money and if I dont loose money, my second aim is to match the index. Realistically speaking - both are very difficult for someone in category 2. So I would want to start with 25 lakhs to make 10 lakhs in three years (I know for FACT - and this is a bold statement - that bull run cannot continue forever and in these three years, atleast one year the market would be bearish). Basically a ROI of about 15% p.a.

I cant really comment on Category 1 people.

Comments? Criticism? I shall be glad.

Regards,
http://pseudosocial.blogspot.com

I believe forex has greater potential than stocks as here is so much volatility every day and you can earn money when market rises and also when falls. under some conditions and discipline I believe that it is possible to earn as much as 100% in a month or two it depends on market conditions. A friend of mine increased his depo over ten times in 40 days, starting from 1500 USD, but he is rather a gambler . sometimes his system works, sometimes not.

Regards

P.S Starting from 1000 USD and earning stable 10% a month (I strongly believe that it is possible, as i know system that could earn a 100% a month) - after 36 months you get over 28 k dollars which multiplied by 40 (1 usd = 40 Rs ???) gives over 10 lakh if i understand properly what lakh is.

Regards

P.S Starting from 1000 USD and earning stable 10% a month (I strongly believe that it is possible, as i know system that could earn a 100% a month) - after 36 months you get over 28 k dollars which multiplied by 40 (1 usd = 40 Rs ???) gives over 10 lakh if i understand properly what lakh is
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Where can i learn/buy these system