100% NET PROFIT IN ONE MONTH

Will you believe if I say so? “NO” right?

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Example

Assume Nifty is at 5000 on Sep'11 Expiry, and you are in September series

Buy NIFTY 4900 Put @Rs.20 (take any lot of nifty which is at 20-30 Rs / Any Expiry series )

Quantity 250 i.e. Rs.20 x 250 = Rs.5000.

So you have Rs.10, 000 in your trading account , do day trading with half of the amount to average if the market fluctuates suddenly because you wont have margin for averaging.

So you bought at : Rs.20 x 250(Qty) = 5000

and sold it at Rs.21.and took only Rs.1 as profit and your profit is Rs.250 in a single trade.

Now lets calculate brokerages and taxes and your net profit behind this single trade.

Brokerage 40.00(flat) (Rs 20 to Buy + Rs 20 to Sell)

Stt Total 0.89 Total Tran Charge 8.20

Stamp Duty 1.025 Service Tax 4.82

Education Cess 0.10 Higher Edu Cess 0.05

Total Tax and charges 55.08

**Net Profit in this Trade = 194.92**

So if the brokerages are less while trading in options, we can retain the profit made with small price fluctuations.

To get the lowest Brokerage in Industry

chat with me on [email protected]

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If you do 10 trades in a day which is quite possible it will add up to Rs.1000 per day (Rs.100 -200 per trade as per above example).

Now let’s see how the taxes are calculated which is common to all brokers by NSE

>The current minimum intraday brokerage offered in Options is 30-45 Rs per lot (you may even have high brokerage and if you are paying more brokerage then you should either negotiate or change your broker)

> The service tax is of 12.36% only on brokerage.

> The STT (Security Transaction Tax) is of 0.025% only on selling amount.

> The stamp duty on total turnover for a day is 0.002%.

> Regulatory charges on total turnover for a day is 0.004%

Don’t worry all these taxes will add up to very small amount RS 14.98 for a single trade on above example.

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Have a look at below example, how much money you can make in a month.

> Rs.100 per trade as net profit

> 10 trades per day (how many trades are possible, you will come to know by doing your own

paper trading, according to my estimation 10 trades are quite possible)

> 100x10 = Rs.1000 per day.

> total approximate 20 trading days in a month. So Rs.1000x20 = Rs.20,000

On the other side let’s imagine that you have made losses on some days or not able to trade on some days.

So let’s consider Rs.10000 as compensation for that.

Then also you are making straight 100% (Rs.10000) profit per month.

Can you believe you are just making your investment double in one month? What else you want?

You can make 50% -100 % net profit in one month

Take small profits and do multiple trades

This will assure you that you make profits, and all the profits that you do through out the day will add up to good amount and this is what you want, right?

**So the bottom line is forgetting greed factor and taking small profits will make miracle to your investments.**