How much profit does a Full-time trader deserves in a Month?
- Thread starter soft_trader
- Start date
Hi,
Now my last part. In fact three day back, I was writing my last part. While writing the last paragraph, my computer suddenly hanged, so I had to reboot my computer. Again very sorry for being late.
Anyway, in October 2008, the condition was so severe that nobody in broking/financial community picked up my call. So forget about the job. During the Dushera Festival, I got a phone call from HDFC phone banking service regarding personal loan. Since I was in very miserable state, so immediately I asked them for a personal loan. Since I was not taking my September salary from my office and my salary account was with HDFC bank, so luckily I got a personal loan of 1,45,000/-. My monthly EMI was 4087/- for 48 months. It gave me some inner strength although I knew that I was doing a wrong thing. Actually at that moment my brain was stopped working. The only thing in my mind was to earn some money. I opened an account with my current company and deposited 1,00,000/- as margin money and start trading.
On 25th October, 2008, my boss where I was working, asked me to come to his office to finalise a technical software. At that moment, since there was extreme panic,he wanted my view regarding market. It was Saturday and I told him on Monday, market will form its intermediate bottom and that bottom will hold for next two year atleast.After that Nifty will consolidate for sometime before resuming its upward journey. My target were 4400 and 5000 in the next two year. In fact, on Monday, Nifty made a low of 2252, till today that low has never tested. In the meantime, three months had been elapsed and on trading front I was in loss of 50,000/- and due to my monthly expenses and EMI, my
cash balance was also depreciated by 45,000/-. In fact, I was in a horrible situation.
Suddenly, I got a phone call from my old boss and he again offered me to rejoin his company as he was quite impressed in my analysis. In fact, it was like a ray of light in dark. I immediately joined his company for a salary of 22,000/-. Also there was a commission of 15% in profit. Initially my daily profit was around 15,000/- and I was quite happy with that result. Suddenly, that lady (who made a profit of 1 Crore) again joined in our company as an independent trader who will only trade for the company. In her first three day, she made a profit of 15,00,000/- and got 2,00,000/- as bonus. That performance made my boss a little bit greedy (I think). He immediately told me to trade aggressively and start comparing myself with that lady. One of his other instruction was I must have some overnight position (long or short) everyday. As per his instruction I started to trade positionally and ignore intraday trading. My daily profit and loss (mark to mark) figure went into some lakhs.Someday my profit figure shows 6-7 lakhs and someday my loss figure showed 5-6 lakhs. I always used stop loss and never kept any loosing position beyond stoploss level. In that process, I made around 25 lakhs profit in a single month. On the contrary, my lady collegue started to make loss. In the mean time, my company appointed an analyst with very high salary, who came from sharekhan. When he saw our trading, he gave proposal to my boss to trade on the behalf of the company. He told us that he knew some method where he can make more profit. After listening his proposal, my boss allowed him to trade for the company. In his first two days of trading, he made around 5,00,000/- of profit.On third day within 11 AM he again made a profit of 1,25,000/-. After that my boss came to him and said please trade patiently, in fact he was trading Nifty for three-four points with huge quantity. But he was in uncontrollable state. When my boss went to his cabin, he again started trading. I observed that his body language was telling that he was going to commit a big blunder. In fact, what I was expecting had happened immediately. Suddenly I saw all of our RMS staff rushed to him along with my boss. The fact was he was taking long position of 25000 Nifty and at that moment Nifty was trading 25 points below his entry price. After some hesitation, my boss forcefully closed the position below 32 points of entry price. Ultimately he lost 8,00,000/- in a single trade. After that trade, my boss tried to cool him down and advised for more than 30 minutes but at that moment his moral was so low that from the very next day he stopped coming to office.
Now come to my trading. When my boss saw my account with a 25 lakhs profit, he gradually started to build huge positions in my account. When I asked him about the position, he told me always think big. In fact, there were some situation where I had position in around 25 scrips. When market goes in my favour, I made around 7-8 lakhs of profit but when market went against us, loss was around 5-6 lakhs due to diversification effect. One day, around the closing hour we had some argument regarding position. At that time we had 15-16 long positions and Nifty had moved for seven days continuously upward. So I was interested in taking no position but my boss told me that since market
was moving for seven days, was there any rule which said there will be no upmove in eight day. In fact, in this market everything was possible. All positions were built up in the closing hour of sixth day. In the next day, market opened lower and it subsequently triggered stop loss of all positions. On a single day, my total loss was around 12 lakhs whereas we were making profit of around 1 lakh in the previous day. So that thing made me little disturbed. In fact, my boss got thrill in initiating a position. He was a perennial bull whenever market moved upward he went long with huge quantity and let me to handle those position. In that process I did not make any progress and my profit started to sink. So I started to look other companies for job. Suddenly I found a job as senior technical analyst (Equity) in a broking firm with starting salary 60,000/-. I tendered my resignation and my account balance at the time of resignation was around 12,00,000/-. So I asked for my commission part from that profit and my boss gave me 15% of that 12,00,000/-. In this period my lady colligue had already gone bankrupt and again she had made a net loss of 25,00,000/- and subsequently left our company.
When I join the new company, I saw several top notch analysts working there. Most of them were advising the clients and HNIs. Their salary were very high. My responsibility was to generate call and also to trade for the company. There was no instruction from my boss regarding trading. So it was little bit confusing. There was an analyst who was firm believer in elliott wave analysis and he traded on the basis of elliott wave. He didnot believe in any other study other than elliott wave theory. Although I knew it, I only use it on analysis part not in trading part. Surprisingly, in the next three month out of 15 analysts only four of us left in the company. Unfortunately, that elliott wave analyst had the highest loss on his head. Among these four analysts, two of them never traded for the company. They only generated calls for the client. So I and one from commodity sector (also had responsibility for business development) were trading for the company. My performance was not so good but I generated huge brokerage for the company. In fact I was doing some jobbing activity as my boss never discussed me about trading. His only expectation was profit nothing else.
In this manner seven months had been elapsed. Suddenly I got a message from my home that my father had been diagonised as stage 4 - Cancer. It was again October, 2010. So I had no option but to come to my home state. Fortunately, our company had a branch in my home town. So they sent me as regional manager to my home state. Here my profile was completely changed from research line to marketing line. Here my responsibility was to acquire clients for the company and at the end of each month, I had to justify my salary. That means I have to generate three times brokerage of my current salary, i.e. 60,000/-. What surprised me most was this branch was full of trouble, in fact it was a dead branch. So they sent me here with some hope that I may revive this branch. I miserably failed in this role. So my head office told me to give them some account so that they will trade on my behalf with the condition that the principal amount will be intact. The brokerage part will go on my head. With this assurance initially I gave them two accounts with 2,00,000/- as margin money each. But unfortunately they smashed those two accounts in one and half month time frame.
After three month, I left this company as I neither want to trade for the clients nor I want to give them false hope regarding market. Now this branch has been converted to a master franchise. As my father's condition was deteriorated very rapidly and I was the only son, so I had no option but to stay with him. Gradually my entire savings (around 3,00,000/-) had depleted. In the last four months, I was almost stayed at hospital as attendant as the lower portion of my father has been completely paralyzed. In the meantime, since I had no work, so I opened two accounts with Zerodha and RKSV with a margin money of 50,000/-. Servicewise both were good. I knew in these circumstances trading is a very very difficult job but rightnow I've no option. Tradingwise, I was loosing around 6000/- to 7000/- per month in the past four months. Rightnow, I have stopped trading as I have to stay in hospital. Whenever I got time, I go to the nearby cybercafe. Whatever I am writing here, it is from that cybercafe. In fact, I want start a thread as " Life and journey of a Trader" but I do not know how to start a thread. So I choose this thread as everybody wants to make profit from the market but the question is How much?
Subsequently I will reveal what I learn as a Trader and Analyst? May be in a new thread (I don't know how?). Till then, I wish everybody good luck and I am thankful to everybody who have shown patience and eagerness to know my life as a trader. It is a journey of continuous learning and it will continue till my last breadth.
With best wishes, I complete my story.
Thank you all.
Now my last part. In fact three day back, I was writing my last part. While writing the last paragraph, my computer suddenly hanged, so I had to reboot my computer. Again very sorry for being late.
Anyway, in October 2008, the condition was so severe that nobody in broking/financial community picked up my call. So forget about the job. During the Dushera Festival, I got a phone call from HDFC phone banking service regarding personal loan. Since I was in very miserable state, so immediately I asked them for a personal loan. Since I was not taking my September salary from my office and my salary account was with HDFC bank, so luckily I got a personal loan of 1,45,000/-. My monthly EMI was 4087/- for 48 months. It gave me some inner strength although I knew that I was doing a wrong thing. Actually at that moment my brain was stopped working. The only thing in my mind was to earn some money. I opened an account with my current company and deposited 1,00,000/- as margin money and start trading.
On 25th October, 2008, my boss where I was working, asked me to come to his office to finalise a technical software. At that moment, since there was extreme panic,he wanted my view regarding market. It was Saturday and I told him on Monday, market will form its intermediate bottom and that bottom will hold for next two year atleast.After that Nifty will consolidate for sometime before resuming its upward journey. My target were 4400 and 5000 in the next two year. In fact, on Monday, Nifty made a low of 2252, till today that low has never tested. In the meantime, three months had been elapsed and on trading front I was in loss of 50,000/- and due to my monthly expenses and EMI, my
cash balance was also depreciated by 45,000/-. In fact, I was in a horrible situation.
Suddenly, I got a phone call from my old boss and he again offered me to rejoin his company as he was quite impressed in my analysis. In fact, it was like a ray of light in dark. I immediately joined his company for a salary of 22,000/-. Also there was a commission of 15% in profit. Initially my daily profit was around 15,000/- and I was quite happy with that result. Suddenly, that lady (who made a profit of 1 Crore) again joined in our company as an independent trader who will only trade for the company. In her first three day, she made a profit of 15,00,000/- and got 2,00,000/- as bonus. That performance made my boss a little bit greedy (I think). He immediately told me to trade aggressively and start comparing myself with that lady. One of his other instruction was I must have some overnight position (long or short) everyday. As per his instruction I started to trade positionally and ignore intraday trading. My daily profit and loss (mark to mark) figure went into some lakhs.Someday my profit figure shows 6-7 lakhs and someday my loss figure showed 5-6 lakhs. I always used stop loss and never kept any loosing position beyond stoploss level. In that process, I made around 25 lakhs profit in a single month. On the contrary, my lady collegue started to make loss. In the mean time, my company appointed an analyst with very high salary, who came from sharekhan. When he saw our trading, he gave proposal to my boss to trade on the behalf of the company. He told us that he knew some method where he can make more profit. After listening his proposal, my boss allowed him to trade for the company. In his first two days of trading, he made around 5,00,000/- of profit.On third day within 11 AM he again made a profit of 1,25,000/-. After that my boss came to him and said please trade patiently, in fact he was trading Nifty for three-four points with huge quantity. But he was in uncontrollable state. When my boss went to his cabin, he again started trading. I observed that his body language was telling that he was going to commit a big blunder. In fact, what I was expecting had happened immediately. Suddenly I saw all of our RMS staff rushed to him along with my boss. The fact was he was taking long position of 25000 Nifty and at that moment Nifty was trading 25 points below his entry price. After some hesitation, my boss forcefully closed the position below 32 points of entry price. Ultimately he lost 8,00,000/- in a single trade. After that trade, my boss tried to cool him down and advised for more than 30 minutes but at that moment his moral was so low that from the very next day he stopped coming to office.
Now come to my trading. When my boss saw my account with a 25 lakhs profit, he gradually started to build huge positions in my account. When I asked him about the position, he told me always think big. In fact, there were some situation where I had position in around 25 scrips. When market goes in my favour, I made around 7-8 lakhs of profit but when market went against us, loss was around 5-6 lakhs due to diversification effect. One day, around the closing hour we had some argument regarding position. At that time we had 15-16 long positions and Nifty had moved for seven days continuously upward. So I was interested in taking no position but my boss told me that since market
was moving for seven days, was there any rule which said there will be no upmove in eight day. In fact, in this market everything was possible. All positions were built up in the closing hour of sixth day. In the next day, market opened lower and it subsequently triggered stop loss of all positions. On a single day, my total loss was around 12 lakhs whereas we were making profit of around 1 lakh in the previous day. So that thing made me little disturbed. In fact, my boss got thrill in initiating a position. He was a perennial bull whenever market moved upward he went long with huge quantity and let me to handle those position. In that process I did not make any progress and my profit started to sink. So I started to look other companies for job. Suddenly I found a job as senior technical analyst (Equity) in a broking firm with starting salary 60,000/-. I tendered my resignation and my account balance at the time of resignation was around 12,00,000/-. So I asked for my commission part from that profit and my boss gave me 15% of that 12,00,000/-. In this period my lady colligue had already gone bankrupt and again she had made a net loss of 25,00,000/- and subsequently left our company.
When I join the new company, I saw several top notch analysts working there. Most of them were advising the clients and HNIs. Their salary were very high. My responsibility was to generate call and also to trade for the company. There was no instruction from my boss regarding trading. So it was little bit confusing. There was an analyst who was firm believer in elliott wave analysis and he traded on the basis of elliott wave. He didnot believe in any other study other than elliott wave theory. Although I knew it, I only use it on analysis part not in trading part. Surprisingly, in the next three month out of 15 analysts only four of us left in the company. Unfortunately, that elliott wave analyst had the highest loss on his head. Among these four analysts, two of them never traded for the company. They only generated calls for the client. So I and one from commodity sector (also had responsibility for business development) were trading for the company. My performance was not so good but I generated huge brokerage for the company. In fact I was doing some jobbing activity as my boss never discussed me about trading. His only expectation was profit nothing else.
In this manner seven months had been elapsed. Suddenly I got a message from my home that my father had been diagonised as stage 4 - Cancer. It was again October, 2010. So I had no option but to come to my home state. Fortunately, our company had a branch in my home town. So they sent me as regional manager to my home state. Here my profile was completely changed from research line to marketing line. Here my responsibility was to acquire clients for the company and at the end of each month, I had to justify my salary. That means I have to generate three times brokerage of my current salary, i.e. 60,000/-. What surprised me most was this branch was full of trouble, in fact it was a dead branch. So they sent me here with some hope that I may revive this branch. I miserably failed in this role. So my head office told me to give them some account so that they will trade on my behalf with the condition that the principal amount will be intact. The brokerage part will go on my head. With this assurance initially I gave them two accounts with 2,00,000/- as margin money each. But unfortunately they smashed those two accounts in one and half month time frame.
After three month, I left this company as I neither want to trade for the clients nor I want to give them false hope regarding market. Now this branch has been converted to a master franchise. As my father's condition was deteriorated very rapidly and I was the only son, so I had no option but to stay with him. Gradually my entire savings (around 3,00,000/-) had depleted. In the last four months, I was almost stayed at hospital as attendant as the lower portion of my father has been completely paralyzed. In the meantime, since I had no work, so I opened two accounts with Zerodha and RKSV with a margin money of 50,000/-. Servicewise both were good. I knew in these circumstances trading is a very very difficult job but rightnow I've no option. Tradingwise, I was loosing around 6000/- to 7000/- per month in the past four months. Rightnow, I have stopped trading as I have to stay in hospital. Whenever I got time, I go to the nearby cybercafe. Whatever I am writing here, it is from that cybercafe. In fact, I want start a thread as " Life and journey of a Trader" but I do not know how to start a thread. So I choose this thread as everybody wants to make profit from the market but the question is How much?
Subsequently I will reveal what I learn as a Trader and Analyst? May be in a new thread (I don't know how?). Till then, I wish everybody good luck and I am thankful to everybody who have shown patience and eagerness to know my life as a trader. It is a journey of continuous learning and it will continue till my last breadth.
With best wishes, I complete my story.
Thank you all.
Thanks sibu for sharing the wonderful experience.
Kindly excuse me for posting this irrelevant question here.
I need a favor from all seniors of this thread to decide on my next carrier path.
I am currently working for MNC in I T field and due to work pressure and fascination towards market (I am actively trading in the market since 2006 and slightly at positive side) I decided to take trading as my profession along with part time business which can support my expenditure. In this situation what could be your advice?
Should I go ahead and survive by putting right effort or should I still continue with my current job?
Thanks In Advance
Kindly excuse me for posting this irrelevant question here.
I need a favor from all seniors of this thread to decide on my next carrier path.
I am currently working for MNC in I T field and due to work pressure and fascination towards market (I am actively trading in the market since 2006 and slightly at positive side) I decided to take trading as my profession along with part time business which can support my expenditure. In this situation what could be your advice?
Should I go ahead and survive by putting right effort or should I still continue with my current job?
Thanks In Advance
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