The majority of day traders typically begin with a small account. After that, they gradually increase both their bankroll and their skill set. A great way to reduce your losses and gain the knowledge you need to be confident is to start small. You’ve come to the right place if you’re one of these traders!
1 Like
Investment size is extremely important in stock trading.
Day job offers 10% to 20% hike every year.
Can a retail trader invest around one month salary and be satisfied with 10% to 20% profit in a year of trading?
Stock trading is not like day job. It is business. Either invest big and make atleast 10% to 20% profit per anum OR invest as small as one month salary and earn atleast 10% to 20% per month. Infact in options trading there is more profit making potential.
Retail traders MUST NOT INCREASE their investment but instead MULTIPLY their investment through trading because the REAL INVESTMENT in retail trading is TRADING SKILLS, not money.
For big investors HEDGING is there to almost double their investment every year. Retail traders are not yet there.
I am sharing my insights on trading options with small capital in my thread:
1 Like
Okay everyone says start small but how small is okay when you’re starting out ( given you’ve good time backtested) given the liquidity of the markets and index f&o how small is this start small size of capital.
@viswaram @Gnome @ANKIT_T @jashjacob
@Chetan_Nahata I seriously dont have the answer to that question. One way to approach will be to set the ROI you have in mind and work backwards to derive the initial capital.
For eg: You aim for Rs20000/month ~ 2,40,000 per year which is 25% ROI. Then the capital you require is 9,60,000 ~9.6 lakhs.
Setting the ROI is the difficult part.
2 Likes
I started with ₹ 10000
1 Like
How did you start? Just option buying? as honestly I don’t think any kind of risk management would work with that?
ROI is what?
A number?
No it is not!
ROI is EFFECT and trading skill is the CAUSE.
Setting the ROI l?
Can we set the EFFECT?
We can only work on CAUSE. A good student studies well (cause) and the exam results (effect) simply reflect the efforts.
Good traders work on developing their trading skills (cause) and the ROI (effect) reflects the hardwork.
PSYCHOLOGY/PHILOSOPHY OF RETAIL TRADING
REAL INVESTMENT for retail traders is their TRADING SKILLS, not money.
Price actions are good start for developing the Art of reading plain chart, without any indicators.
Yes, trading is an art! Any business in general s an art. Academic education is good is science, not art. That’s why they fail to create businessmen in classrooms.
Trading business is an art/philosophy/psychology.
1 Like
Size Always Matter - Everywhere 
I just responded to “Setting the ROI is the difficult part”
I am a philosophical personality and occationally express myself. Hope you people get used to it.
2 Likes
Ohh my fault bro I took it wrong sense 
1 Like
Intraday equity. It’s been 8 years no f&o till date. Have moved to Equity delivery and plan to stick to it forever as it gives peace of mind even if less ROI
1 Like
Two days high/low breakout signal?
Yes size does matter in my opinion. 
Having a good capital helps you to diversify your investment portfolio. Helps you take calculated lesser risks in F&O trades (10k account versus a 10L account) Smaller account size is mostly prone to finish off in few trades if you are into F&O trading.
If you are a newbie, start with small and affordable capital. Smaller, the better. And start with Equity swing trades, with that profit try Equity intraday, with that profit try hedged Option selling, and try Option buying only when you think that you have become a Ninja trader! So that you don’t lose much and account grows slowly while you learn.
Comparing PnL doesnt make sense in the size of the account. Looking %, even if your account is 10L or 1Cr, both PnL becomes same in %.
1 Like
Can less experienced traders try options buying?
Let us consider two types of traders. First type of traders have enough experience but not very disciplined traders and hence inconsistent in making profits. The second type of traders who are less experienced yet well disciplined traders and making consistent profits.
Less experienced traders who discipline themselves in the ten commandments I shared in my thread may succeed in trading options on index.
Can you link that down or just DM me
If you don’t have the right size, you cannot grow.
What’s the use of 25% ROI on 1L capital in a year?
1 Like
Well to do people can do hedging and potentially earn upto 100% ROI PER ANUM. In other words for rich people MONEY is the investment.
Rest of the retail traders need to invest time and effort in developing trading skills that helps them double their investment EVERY MONTH. In other words for retail traders trading SKILL is the REAL investment.
I know It is very hard to get what I am saying.
I am a philosophical personality. I say things which usually traders may realise some ten or twenty year later.
Some traders may even mock at me.
1 Like