seeking advice on nifty, stock options etc

#1
Hi to everybody who seeks knowledge sharing.. The quest of wisdom always expands, so i ended here. I am a newbie who is very much interested in NIFTY, BANKNIFTY, STOCK OPTIONS etc... Just now i finished my MBA in finance.. I had theoretical knowledge abt options, future & shares... I had a question here.. Is it possible to make around 40% profit in options with an initial investment of 1.5lakhs in a month? May it sound very ambitious to some ppls but it is my necessity to make amount for my other commitments.. I hope some intellectuals will enlight some of my ignorance here
 
#2
Hi Ajit,
I m trading in Nifty future only from last 2.5 years but I m lucky as i have a clear strategy with me and till the day i always traded according to single strategy only.
So i can achieve 30% from my strategy from Nifty future in a month with my intra-day trades but will your strategy able to fetch same return?

In calculation
if your strategy is positional then
One lot margin will cost you Rs, 25,000
and divide your capital in two parts
a) Trading capital Rs. 100,000
b) Reserve capital and for loss Rs. 50,000
c) Now you are able to get 4 Nifty Lot ( 200 shares) from your Rs, 1,00,000 trading capital
d) in order you get Rs. 60,000 you need to target at-least 340 points in month
( 200x340 = 68000)
60,000 for you and 8000 for brokerage and taxes

If your strategy is intra-day then
One lot margin will cost you Rs, 12,000
and divide your capital in two parts
a) Trading capital Rs. 100,000
b) Reserve capital and for loss Rs. 50,000
c) Now you are able to get 8 Nifty Lot ( 400 shares) from your Rs, 1,00,000 trading capital
d) in order you get Rs. 40,000 you need to target at-least 190 points in month
( 400x190 = 76,000)
60,000 for you and 16000 for brokerage and taxes ( More trader so more brokerage and tax then positional)

This is what you need to write down with below mentioned questions

.
Look you are Trying to target approx 40% of your trading capital, so its not true that you cant get it but depends
1: What strategy you have ?
2: Have you checked you strategy accuracy by paper trading for more than 6 month atleast?
3: Did you trade previously so that trade execution expertness with you or not?

Please think all above questions and if you get answer in Yes
Then Go ahead.


Best of Luck.



Prashant Gupta
-----------------------------------------------
NSE Certified Market Professional (NCMP LEVEL IV )
 
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