It depends on capital deployed too. 100% agree if incremental gains are only few lakhs for example. But if you have this already, best will be to try keep it running and try to make money from outside markets too and increase capital and then keep compounding. After a point, extra returns becomes very useful - esp since all of the incremental gains will be real returns so increase in real returns is much more as a %.
I would certainly trade overnight systems if they pay say 25-30% annualized returns and have much better control over drawdown vs index.
Even 20% + annualized over long term is quite high, and i don’t think we can expect indices to pay that much. People are getting carried away by good markets if they expect that much imo. I have seen both 20% markets ( ~2000 decade) and 10% markets(~2010 decade) and also single digit over 5+ years.
Also 1 year return doesn’t mean too much - both out-performance and under-performance.
At cagr level for past 5 years, it is wowww. I would take that return any day.
One can trade with any capital. But personally I wouldn’t recommend anyone to trade with an amount less than 30lakhs. It’s not worth it.
Even if you generate 30 percent return, you are making only 9lakhs per year. 15 percent return you can get from mutual funds. So you are only getting 4.5 lakhs more. You can get better package than this in some MNC.
I am talking about full time trading.
Classic case of how enticement / allurement works in Stock Markets.
Initial claim: Make 5000 on daily basis
But if you see the person assuring you of daily 5000 himself / herself is not earning that much on their verified link.
Even if you take avg it comes to around ~1290 (Jan to Aug) as per PnL link.
To make such a return on daily basis the capital needed.
Next assurance, you can earn 2-5 % per month with the above capital
Now the entire assurance goes haywire. Claim 1: 5000 daily Claim 2: 2% monthly with capital of 20L results in daily return of ~1,900
Can I know about your expense ratio
And can I also know about why that your trades buy value ranges from ₹ 10000 to ₹ 1 L for each stocks.
Is this some sort of portfolio diversification
I heard somewhere,we should invest only 5% of our portfolio in single stock and not more than that
In my trades,I like to trade less
On an average,I execute 4 trades of both buy andsell in a month.so that,I can minimise the taxes and charges.
For ₹ 48700 profit,I have incurred expenses of ₹2700.
I have additional profit of ₹3000 from the dividends.
So total profit amount to ₹51700
So net rate of return is 17 %
For 15/04/2024 to 31/08/2024
My capital ranges from 2.5L to 3 L
99% of us will earn more money by buying just index momentum etfs that has given 20-22% return historically.
If you have have a capital of less than 50 lakhs, there is no need to do trading at all. Even if you are able to make 30% after learning and tons of experience, you are just making 10% above a momentum index etf. That’s just 5 lakhs of additional money for all your time in a year. You will earn more than 5 lakhs easily in any other day job.
Learnt something new - Never knew of this ETFs. Thanks will look into this. A initial search in google indicates Nifty 200 momentum 50 or 30. Does this mean that out of the 200, the best 30 will be included in this etf. Need to check if SBI or UTI has this.
Asking I will do my own study, if someone is invested in Nifty 50, Nifty next 50 and Midcap 100. These represents the top 200 - is it not?
In raging bull markets its all easy, risk seems far away. All numbers including long term look rosy.
Not saying momentum index is bad, but trading has its own place.
But yeah, need capital else no point. Still one can do this part time until one has enough capital to be full time.
I was talking about the average of 5 years or 10 years CAGR. During bull market they can go up 60-70% as well. But during bear market they fall more than Nifty as well. However, if you hedge it with 30-50% Gold etc. the drawdown is a lot lower. I usually hedge based on Nifty’s PE. Like right now, I am only 50% exposed to the market.
I may be wrong but this does not look like a good exit strategy. It looks like you have the patience to wait out a year most good stocks tend to go up not just 5% but more and we have to ride a part of it if not all of it.
I use PB, PE and Dividend yield multiples for exits and entry, not a fancy one but it suits me, I recommend you read “What Works on Wall Street” book. You have to have a strategy that tells you the stock is undervalued and overvalued as per set parameters. I sure did miss the rally in railway and shipbuilding cos but I did capture part of the run.
In a bull run stocks multiply so settling for 5% does not seem logical unless you have backtested it and defined exit and entry. Try learning valuation methods (Peer comparison PE, PB, DDM etc) it will seem daunting but helps in the long run or go for technicals. The winners usually will cover more than your losses and there will be losses. You can feel lucky getting 5% but there will be a stock that can go down 90% and we can be holding a lot of stocks like that.
Go back to the drawing table and find a strategy that suits you and made money in the past either by technical or fundamental analysis.
Holding 3 stocks is not a diversification if we do not know enough, diversify to at least 30 stocks or more.
“Diversification is protection against ignorance ,” Buffett
I hold 137 stocks know absolutely nothing about any of them ( I hold GMMPFAUDLR and know nothing about it, I swear!)
I have used this summary of parameters to select the stocks
(It was some sort of fundamental analysis)
After zerodha replaced tickertape with Tijori Tool
It was hard to adjust
After some time , Tijori Tool was very useful.
I have learned around 50 % of fundamental analysis
I use parameters of these for stock selection
I want to have an investor mindset
Trade less in year
Buy stocks and wait for a fews month to a year
Currently,I am unable to do this because of monthly financial commitments.But in 2 years I can be free of these
I hope that
I currently have profit target to make 50 % in year
And in 2 years .I want it to be 100 % profit target.
After that ,I want to have a reasonable profit target of 20 % in a year and to be consistency profitable following years to come.
In reality,for 4 and half months I have achieved my profit target around 17% .
I hope to finish my profit target of 50% in the year from
15/04/2024 to 15/04/2025
i also before trade in cash market - when market is going in one direction its give good profit ,in bear and sideways its SL hitting continusely - so i stopped trading in equity
i believe Mutual fund - let professional do - in 1 crore capital i invest in BOND , Equity , Gold - without tension 25% i am getting + i trade in option also through colleterial - only per month 2% , yearly 24% + 24% from investment - no tension -
in option i am trading only monthly calender spread , No intrady - nothing - happy in the market
this is my current portfolio
recently i park money in GSEC fund - because of rate cut
know absolutely nothing about any of them ( I hold GMMPFAUDLR and know nothing about it, I swear!)
