To earn lot of money through Long term investing is less riskier but it requires lot of money.
To earn lot of money through intraday trading is Highly riskier but it requires lof of skills.
I don’t know about Long term investing much more. I will share my practice with intraday trading.
At now I am focusing to earn 1 % per day on my capital with small amount from last 2 months. If succeed this for next one month i will increase my account 5 times. Which will give returns of 200 % per year. I know this is very high and very hard to achieve.
That’s why intraday trading requires lot of skills and Mental toughness which can be achieved through experience only. Try to be in this field at least 2 years with small losses than you can achieve this I hope so.
I lost good amount of money in the starting later on I decreased my account and practicing the strategies.
If you really have that much of patience and mental toughness you can win this battle. I think this is one of best career on this earth if we succeed.
Please try Futures and Options instead of Intraday. You will be able to carry positions till expiry if you are right about trend but the stock or index moved exactly opposite on given day. Long term investing, if diversified, is of course best of all options if you have funds available.
Intraday goods tips coming back from a dependable monetary informatory like MMF Solutions significantly facilitates them during this respect.
Patience is that the foremost approach that specialists recommend during this trading. Intraday is that sort of trading wherever you'll simply drown below sentiments and will take the incorrect calls. Even once you have the most effective MCX commodity tips, you must refrain from haste. this is often as a result of the following tips square measure sent to you when rigorous technical analysis and so there's good bit of trustiness in them.
Shares investment needs lot of knowledge, money and time to study various aspects of investments.
Intraday trading needs just some handful of money (peanut investment) and a solid reliable strategy. Simple !
For truely 2D & 3D integrated trading techniques feel free to download 100% free professional intraday trading strategies here : http://intradaytradingsecrets.blogspot.in/
My personal choice will be Intraday in futures only and in commodity market (Commodity is my Personal preference because of the leverage it offers).
Why I choose Intraday?
1).Probably because I see potential to able to make 6% to 10% of the capital used before the day ends.
2) Risk involved is less compared to long term.
3) Capital required can be much smaller, (especially in commodity market)
4) As you will be monitoring the trade continuously you can exit and enter quickly.
5) Before the day ends you have your account with zero holding.. all in cash with you.
6) You can use the power of compounding your profits and turning it into big ones.
These are the possible reason I could think from the top of my head but again some people may prefer Long term probably if they don't have time (3 to 4hrs) on daily basis to study charts and trade. Best way could be to just do 35-65% in both. Basically if you have 1lac use 35k for intraday while 65k for long term hold this way you get benifits of both plus you learn a lot more about market movements. :D
Traders employ different strategies to get consistent returns from Financial Markets. Some trade on fundamentals, some think Technical analysis is the only way to earn money, and there are amateurs who trade just on news and gut feeling. It’s definitely necessary to learn Fundamental or Technical analysis to get an edge in market, but there are few other factors which are must to become a professional trader. Risk and Money management are one of those factors, and they are imperative for long-term success.
Every trader should focus on one of the most important money management tools called ‘Risk Reward Ratio”. Mathematically, it’s the ratio of Risk (Money that could be lost), and Reward (Target Profit) for any particular trade. For Ex: If you are willing to risk 1000 Rupees for a target profit of 2000 Rupees, then your risk reward ratio comes to 1:2. Before adopting any trading strategy, it’s necessary to gauge its risk reward ratio for a long term. Most of the modern trading platforms have risk-reward ratio in their back-testing report. Risk Reward ratio of 1:2 is considered good for any trading strategy, and anything less than that can vanish your capital in the long term.
Let’s take an example to understand the significance of risk reward ratio. A trader has developed a Trading strategy with Success Rate of 40% (40 out of 100 trades ends up in profit). When he back-tested his system he found the average Risk Reward ratio for the period of 10 years comes close to 1:3. That means his profit his thrice than his losses in the winning trades. If he loses 1000 Rupees in 60 losing trades, and gains 3000 Rupees in 40 Profitable trades, then his overall profit would be (40*3000-60*1000) 60000 Rupees. It’s a good profit considering that only 40 out of his 100 trades are winners. However, we tend to ignore this fact and always try to improve the Success Rate instead of Risk Reward Ratio. Also newbie traders realize profits quickly and allow losses to grow, which makes risk reward ratio miserable.
Essentially, the best way to succeed in market and earn good returns requires discipline and proper risk reward ratio. I hope this answers your question.
Make your full mechanical strategy with full commands - where to buy where to sell, what is stop loss and target and examine your strategies if any hole.
Don't be greed.
start with low trading balance.
Continue update with economic and share market news.
Don't follow TV news and tips provider because if they are smart why they give tips to us.
Keep record of every trade.
It's my views about intraday trading. I make my complete strategy in one year and working on it.
winning ratio is 70 % but profit and loss margin is 1%.
If you ask me to describe Stock Market , i will say "Sky is the limit". Offcourse Stock Market has this capability.Just compare investing in Stock Market with Investing in the Bank,you will realize the fact of return on investments.
You can earn enough money from market but this is based on
1) Trading Style (Intradaty,Swing and Investment)
2) Segment (Equity , Futures,Options,Commodity and Currency)
Since Trading Style and Segment determines the your investment and return.
All in all , how good you about fundamental and Technical Analysis. Without this it's very difficult to earn the money from the market.
If you are focusing on 1% of your capital , how much % of SL you put? your profit of 1% is net or gross i.e. includes taxes also or excludes ? you strictly follow 1% target or let run ur profit more than that with trailing stop loss of whatever % you decided?
Cool.
That sounds a fair idea if i trade on MIS-EQ with the amount you have quoted above,
But on commodity, i have a different view that it requires more capital reqt despite MCX provided margins for MIS.
Say for ex, am allowed to buy only 15 lots, as per todays Mcx MIS margin being 3053 for “CRUDEM16FEBFUT”.
Let’s say i enter (BUY) at CMP 2166 and it goes up to 2180 bef correcting again to a lower level say,2150
Even if i had squared off at 2180, i would be just able to make a profit of ONLY 14*15=210(REalized Profit)
Actual Profit may be close to 140 ONLY after Brokerage of 40 + STT+other Taxes+SEBI Charges+cesses. but the MIS Trades on equity on low/mid caps /bullish blue chip stocks would have got me a min of 800-1200bucks. in each trade, provided i analysed the day’s movements carefully , used the SL properly…
Also, that stocks with huge oscillations are a cushion to play on any single day for multiple trades in it with similar results!!
But don;t find that swing happening on COMMODITY for us to repeat the trades on it again to make recurrent profits in MIS though sensible enough in a way, as its good for consumers , wont impact them finally…
Pls correct me if am missing any tricks of the trade.to make decent profits and not a paltry amt like 140 for the 25K i used where in i would have got a min of 800 to 1200 on leveraging MIS-EQ
Also, the above shows that Commodity MIS may be helpful only for guys with Min capital of 1lakh else with 25-35k even on leveraging, have to trade repetitively (cumbersome, stressful) to earn big.
Thanks for sharing your thoughts!!!
In commodity trading, traders need to deposit a margin amount with your broker which can be near 5 to 10% of the of contract value, which is lower than considering another asset. In such a low initial margin allows you to take larger positions at a small capital.
Commodities are no doubts very riskier form of investments with huge ups and downs in prices. Companies either hit it right or experience heavy losses. Commodity market provides opportunities for traders to make huge profits because it provides you right investment plan.
Many investors often feel insecure about investing in commodities but precious metals like silver, gold, and platinum provide a clear protection during inflation and economic uncertainty. Commodities are very good source of investment during hard times. Financial expert’s gold and silver tips are beneficial for the trader if they want a better result by trading in gold or silver market.