Earn 15 lacs in 21 months with 1 lot of Minifty??
- Thread starter leo_3455
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Hello Seniors:
Consider this scenario. We start trading with 1 lot in Minifty Fut (investment/deposit of 24,000). We get a monthly gain of 300 points (i.e. 300 x 20 = 6000 in profit). We do this for 3 more months. In the 5th month (6000 x 4 = 24000), we trade with 2 lots, etc. Please see the excel sheet attached.
Extending the above, in 21 months, we will have a profit of 15 lacs + your investment of 24,000.
As you would have rightly guessed from the above ambition, I am a newbie.
Now, how far this is possible? How easy or difficult is it to maintain +300 points monthly. Is it a reasonable target to achieve and achieve every month? I plan to trade with a 20 point stop loss, is it a good idea?
What would be your advice to me?
Consider this scenario. We start trading with 1 lot in Minifty Fut (investment/deposit of 24,000). We get a monthly gain of 300 points (i.e. 300 x 20 = 6000 in profit). We do this for 3 more months. In the 5th month (6000 x 4 = 24000), we trade with 2 lots, etc. Please see the excel sheet attached.
Extending the above, in 21 months, we will have a profit of 15 lacs + your investment of 24,000.
As you would have rightly guessed from the above ambition, I am a newbie.
Now, how far this is possible? How easy or difficult is it to maintain +300 points monthly. Is it a reasonable target to achieve and achieve every month? I plan to trade with a 20 point stop loss, is it a good idea?
What would be your advice to me?
OF COURSE MANY WOULD HAVE BECOME ROAD PATI ALSO
:lol::rofl::lol::rofl:
TWENTYONE MONTHS ARE OVER. I HOPE MANY WOULD HAVE BECOME CRORE PATIS AND LAKPATIS.............
OF COURSE MANY WOULD HAVE BECOME ROAD PATI ALSO - munde_77
The above was quoted in post #22
If by losing 24,000 you are going to become a roadpati, you were already a roadpati to start with. :clapping::clapping::clapping:
OF COURSE MANY WOULD HAVE BECOME ROAD PATI ALSO - munde_77
Very valid question.
As one of the members had rightly pointed out, the margin required for MINIFTY is around 14-16K. Until the extra 8000 is exhausted will be able to trade. Approximate calculation is for every 20 point loss, we lose 400. So the 8000 will last for 8000/400 = 20 trades.
Remember our capital is 24,000. Even after 20 negative trades, if we want to continue, give 8000 again and then 8000. So to answer your question, we will lose the capital of 24,000 after 60 negative trades continuously without profit. For this you will have to infuse 16,000, which you can take back after 60 losing trades.
I am not going to trade after 60 losing trades. I better forget the market.
The main point I wanted to drive was it is not the capital that is important to see big money in market but discipline. It is not whether I make 15 lakhs in 2 years.
Also in stock market as you will agree with me, it is with the risk capital we have to trade with -- even if you are an experienced trader. If you are worried about the capital, dont lose your day job.
Action may not always be happiness, but there is no happiness without action.
As one of the members had rightly pointed out, the margin required for MINIFTY is around 14-16K. Until the extra 8000 is exhausted will be able to trade. Approximate calculation is for every 20 point loss, we lose 400. So the 8000 will last for 8000/400 = 20 trades.
Remember our capital is 24,000. Even after 20 negative trades, if we want to continue, give 8000 again and then 8000. So to answer your question, we will lose the capital of 24,000 after 60 negative trades continuously without profit. For this you will have to infuse 16,000, which you can take back after 60 losing trades.
I am not going to trade after 60 losing trades. I better forget the market.
The main point I wanted to drive was it is not the capital that is important to see big money in market but discipline. It is not whether I make 15 lakhs in 2 years.
Also in stock market as you will agree with me, it is with the risk capital we have to trade with -- even if you are an experienced trader. If you are worried about the capital, dont lose your day job.
Action may not always be happiness, but there is no happiness without action.
If by losing 24,000 you are going to become a roadpati, you were already a roadpati to start with. :clapping::clapping::clapping:
There is nothing wrong in conceiving an idea. The key of success lies in putting into work and spinning the money. This gap between the two is so wide and usually unimaginable for novice traders.
It starts from backtesting it on historical data, deriving some tweaks, discounts for execution flaws, unusual volatility (which hits stops ruthlessly), selecting suitable instruments, capital adequacy to withstand a row of losses, building unshakable confidence in the system etc.
If we start from 50:50 win loss ratio as in random theory, making adjustments for loss trades minimizing losses and keeping win trades to run maximising profits, i think we can.
Nothing is impossible as well as everything is not possible.
Regards
veluri
It starts from backtesting it on historical data, deriving some tweaks, discounts for execution flaws, unusual volatility (which hits stops ruthlessly), selecting suitable instruments, capital adequacy to withstand a row of losses, building unshakable confidence in the system etc.
If we start from 50:50 win loss ratio as in random theory, making adjustments for loss trades minimizing losses and keeping win trades to run maximising profits, i think we can.
Nothing is impossible as well as everything is not possible.
Regards
veluri
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