Dear Members…pls share your views on some strategies to generate 5% monthly returns from stock mkt in cash segment .
That’s way beyond what a normal human being expects, @Manish_Agarwal
and my experience says, whoever trades with expectation as high as 5% will most likely face disappointment.
Maybe others can share what is the reasonable expectation one can have from markets on yearly basis.
Research your instrument carefully. Possible…
Edit: Forget the above, I was thinking leveraged instruments (F&O), not plain equity, sorry…
It’s possible in a raging Bull market like in 2020 and 2021. When the markets are rangebound or in downtrend even 0.5% a month is a big achievement.
If you are able to find it, please let me know too - i am interested
imo no monthly targets are possible. Trading is not substitute for regular income. You win and you lose and we can have extended periods of no returns / negative returns. Systems that i trade have had 5-6 months+ flat/drawdown periods, it can be more too. A decent system that i don’t yet trade was in DD for more than a year. Now some type of systems with v high win rate might not have such extended periods underwater ( i dont trade such yet and they are not necessarily better long term )
Anyone going into trading with expectation of regular income from markets is in for disappointment. However if you understand and accept it, we can make good money too with time.
It’s possible, but it requires a lot of discipline.
First. As an example, CIPLA which is in a Massive downtrend has given around 4% in last 5 Trading days.
Or HAL about 7%.
How to do it ?
Spot the right stock.
Read charts, look for trending stocks, mark Support / Resistance.
After that you have to time your entry perfectly.
Have the discipline to get out after making a target percentage of say 2-3% every trade.
Or with defined SL.
Frankly in the current market seems too choppy swing trading.