20% ROI per month on captial above 1 Cr possible?

AJK

Well-Known Member
#41
First positive response..

Actually we already had/having live example of making 20% in month as on average basis...but we tend to ignore which is simple
People make insane profits, like 10s of lacs per day, but they don't show off it, and lose it on a bad bet too...

Real estate is a great investment, it would take time, but it'd be worth it... i had some ideas on excellent return from real estate...
 

vivektrader

In persuit of financial independence.
#44
4-6% ROI on consistent basis is excellent in my humble opinion, that too on a large capital.
20% ROI one may get rarely with excessive risk (of ruin) and psychological trouble associated with such large trading positions at individual level.
 
#46
Friends,

Is it possible to make 20% per month on avarage basis with capital above 1 crore in trading ( without gambling, means no F&O)
Well, Its a kind of trickiest question I've faced so far.

Things we can breakdown is like this...

20% a month i.e. almost 1% a day without any losing streak. Is it possible to be consistence for a long run ?? I doubt it. But at the same time I could say its not impossible if the market conditions r in ur favor. As u said, this must not include any fno trading, all u need is a hyper bull run or some magic stock picking skills. Like whatever the stock u pick must have to be a multibagger i.e. 240% return per annum. Now do u think its possible that each stock u pick is a multibagger?

The otherway around is u bet in FnO , which will require a hell of a skill set with nerves of steel and the bestest luck possible.

I dont want to discourage u. Neither I say I havent meet people who have earned alot in market. But the smartest investors also get about 2-3 multibaggers out of 10 stocks they pick.

But still, I would like to see how u fare out. If I were u, I would be pretty happy with 20% per annum, stress free with 1Cr account size.

Cheers and best of luck...
 
#47
First of all, you mentioned no F&O segment...
Now, to get an average of 20% per month in trading is unlikely, yet not impossible.. but would require a lot of expertise and thorough research and analysis.. picking the right stocks at the right time and having the right entry and exit points is the key... also , since it is focused on trading and not on investment, taking into account that you are not doing compounding of returns, it is difficult to get an average return of 20% per month...
 

sridhga

Well-Known Member
#49
Okay ...please forget about 1 crore...

say about 1 lakh,, is it possible to earn 20% average per month,??????????

Boss,I won't say that its impossible. But it is very difficult to do on a consistent basis. We would normally face March 2020 and Sept 2020 type slides in the market. Then we would be stuck with our investment.

I would look at it like this. I would start with 5 lacs. I would place them in 5 buckets consisting of 5 stocks, or 5 industries etc. I would be extremely happy even if just one bucket gives 20% per month. And the other bucket with tweaking and averaging gives its 20% in the next month etc. So finally, that is 20K profit on 5 lacs investment. This kind of returns I did earn several times when I bought shares and held them over bigger time frames. Please note very often. it is just one or two shares that perform. Many others become temporary duds or sleeping gaints. Most of these gaints wake up once every 3 months either before the results or after the results or on some news etc. You need to do both fundamental analysis along with technical analysis. Things like De Mark indicators might help here. But I also like Heiken Ashi charts on higher time frames. You also need to keep track on latest happening themes like 'Pharma', 'IT' etc. Some such sector will deliver every month. On the Fundamental analysis side you need to make sure that latest quarterly results are positive and also they must have induced positive sentiment in the market. Industry specific metrics like NPAs or Monthly automobile volumes should be good for the companies you hold. Don't get into penny stocks. Be careful with High P/E. Maybe they start cooling off. Also avoid low P/Es as compared to industry average. This is a sign of a dull stock or it is a non-performer in some ways. One of your buckets may hold you up for 6 months as well and be prepared for this. Identify that bucket and stop averaging. Don't throw good money after bad. I have been doing this for years now. There will still be months when you are left holding heavy buckets and you have no income for that month.

PS: One of those buckets could sometimes be "cash ready for deployment".
 
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sridhga

Well-Known Member
#50
One example of a sleeping giant that I am stuck with is Muthoot Finance. It has slowed down this month because of the Supreme Court case on Loan interest on interest. But if any NBFC has to bounce back in this country fast it has to be this one. Why? The magic of gold loans is better than any other loans in the market. But I am currently stuck here. Why?

Some one said: "Trade what you see and not what you think and feel"
This is the problem with Fundamental Analysis.

And with technical analysis, what you see changes once you enter the trade. That is why you should have several buckets and hope to see that one of them delivers for the current month.

You can try this. The current running themes are Pharma. IT. But, I feel (I clearly said "feel") pharma theme may get over this September. IT may open up now. Good NBFC's may take off even if Supreme Court judgement is not as bad as expected or if the bad news is considered as "already factored in." Some sector rotation may take place in the end of Sept and beginning of Oct.

This is how I go about normally doing it.
 

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