A Humble Journey: 200 Points Per Year

#11
Great attitude (of having moderate expectation), but to me your focus seems to be on the wrong parameter.

Using the same attitude you should focus on draw downs and not on targets,
thus your position size will be determined not by the capital (1 lakh) you have for margin
but by the risk profile involved in your trading strategy
(margin + 2 x of max draw down on back test per lot)


Best Wishes


Happy :)
 

SaravananKS

Well-Known Member
#12
ok saravanan tell me is there any mutual fund which has given 24 percent ROI consistently for past five years
Here is two funds on which I have invested.





I am not telling one can get similar return in future.(Past Performance will not assure future). But one can assure that in trading return can not be linear it may have ups and downs..

it is tension free when one has less expectancy (Like 20% PA) But what I am trying to tell is one should not target the return.

one should enjoy the maximum Possible return from trends this would balance whips in Range Bound market.

IMHO instead of targeting the return one should focus on minimizing draw downs then the profit will come effortlessly.

if you share the Strategy or trade Plan on which you are expecting 20% return in linear way then you will get some valuable feed backs.

if you search traderji one can get many strategies on which the Thread name
tells like 100% Return in 3 months etc. that means the Starter expects that much of return.most of us will know that is not Possible over the time. in short if your strategy gave 50 CAGR in last 3 years then one can reduce the expectancy to 20-25% using Spare Margin to reduce the drawdown.

in this case your are expecting only 20% per annum assuming your strategy gave only 20% return in past 5 years then more probability is there to get less then 15% return in future...
if you reduce tax from your return then it may be around 12%(after considering Brokerage+Tax+Slippage etc)

So My question why one need to trade to get 12% return while tension free equity investment is there ?:confused:
 

raynor

Active Member
#13
sara you may be right. but some times mutual funds one year returns very high but
their performance degrade in a time frame of multiple years.

but my spirit of adventure keeps me pushing
into trading ...what to do.. so trading... with less expectations.


just a calculation for rs 100000 and roi 20percent over a period of five years

Year, Year Interest , Total Interest, Balance
1 , 20,000.00 , 20,000.00 , 120,000.00
2 , 24,000.00 , 44,000.00 , 144,000.00
3 , 28,800.00 , 72,800.00 , 172,800.00
4 , 34,560.00 , 107,360.00 , 207,360.00
5 , 41,472.00 , 148,832.00 , 248,832.00

i find it very decent returns... if i get such a return in five years i will be more than satisfied...:thumb:
 
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lemondew

Well-Known Member
#14
Hi sara,
Would love to know more.
When did u invest and how much is it a SIP or one time investment.

Here is two funds on which I have invested.

I am not telling one can get similar return in future.(Past Performance will not assure future). But one can assure that in trading return can not be linear it may have ups and downs..

it is tension free when one has less expectancy (Like 20% PA) But what I am trying to tell is one should not target the return.

one should enjoy the maximum Possible return from trends this would balance whips in Range Bound market.

IMHO instead of targeting the return one should focus on minimizing draw downs then the profit will come effortlessly.

if you share the Strategy or trade Plan on which you are expecting 20% return in linear way then you will get some valuable feed backs.

if you search traderji one can get many strategies on which the Thread name
tells like 100% Return in 3 months etc. that means the Starter expects that much of return.most of us will know that is not Possible over the time. in short if your strategy gave 50 CAGR in last 3 years then one can reduce the expectancy to 20-25% using Spare Margin to reduce the drawdown.

in this case your are expecting only 20% per annum assuming your strategy gave only 20% return in past 5 years then more probability is there to get less then 15% return in future...
if you reduce tax from your return then it may be around 12%(after considering Brokerage+Tax+Slippage etc)

So My question why one need to trade to get 12% return while tension free equity investment is there ?:confused:
 
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raynor

Active Member
#15
Friends further this thread is not only about trading.. i am running this
thread to see discipline in my bloody unstable mind.. yes.. my mind lacks
discipline all the time when it comes to trading...
 
#16
Looks great but considering all other factors like software for charting, Internet. Your target of 20 points can increase a little but I dont think so you should worry about it, I earn more than 300 points sometimes in a month.

Money drives me crazy. Stop your self at maximum 25 or 30 points in month and enjoy your life..Discipline is the only tool which makes traders successful :thumb:
 

raynor

Active Member
#17
my target is not only about 200 points per annum but also to trade
consistently in market for a year and end the year with some decent
returns. have not seen a man who trade constantly and survived in
markets in real life. this thread is all about discipline, survival, staying
afloat in market for an year
 

SaravananKS

Well-Known Member
#18
sara you may be right. but some times mutual funds one year returns very high but
their performance degrade in a time frame of multiple years.

but my spirit of adventure keeps me pushing
into trading ...what to do.. so trading... with less expectations.


just a calculation for rs 100000 and roi 20percent over a period of five years

Year, Year Interest , Total Interest, Balance
1 , 20,000.00 , 20,000.00 , 120,000.00
2 , 24,000.00 , 44,000.00 , 144,000.00
3 , 28,800.00 , 72,800.00 , 172,800.00
4 , 34,560.00 , 107,360.00 , 207,360.00
5 , 41,472.00 , 148,832.00 , 248,832.00

i find it very decent returns... if i get such a return in five years i will be more than satisfied...:thumb:
all the best raynor to achieve your goal. there is always two ways to reach the goal

one is Rabbit Way (Trading)
Another is Tortoise way (investing)

For comparison here is the image


Even though Buffet(Investor) return is less than others he out performed S&P excess 15% for last 55 Years. he is still actively doing investment

Only Soros(Trader) could near to Buffet's Performance But he is not active
(less then 35 Years But Better Return)

for me compounding is easy on investing right companies than trading
 

SaravananKS

Well-Known Member
#19
Hi sara,
Would love to know more.
When did u invest and how much is it a SIP or one time investment.
I Invested in Reliance Small Cap on launch it self(2010).( on that time there was only few funds focused small companies)

for HDFC I am investing from late 2010 (I invested in both SIP+STP ie means Systematic transfer from liquid fund to equity fund) whenever I feel market is priced low I would top up.

at this Point
Reliance Small Cap has given 23% CAGR
HDFC Top 200 has given 29% CAGR for me :)
 

raynor

Active Member
#20
ok sara thanks for ur nice reasearch. now people who read this thread have good choices to earn money.
infact around 2009 2010 there were many mutual funds which produced 100 percent returns but their
returns decreased in subsequent years. no body know about what happened to mutual funds in 2008.
since 2009 for two years market jumped leaps and bounds because of quantitative easing by us federal bank.

but saravana in real world around 2011 i have seen a man who invested 50000 rs in stocks. infact his investment
value decreased by a 10 percent in 2013. 2014 is a wonderful year for trders and investors.

for investing timing is also important it seems.
 
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