I have just 1.5 lacs to invest … my expected return s per day is around 1500 … my risk appetite is conservative … should I trade in equity or deravative s
I suugest you trade in nifty and Banknifty fno never in stock…
Generating 20% return per month is going to be hard with just equity and trading in fno can wipe out entire captial if something goes wrong in a day or two since it is highly leveraged product.
First of all It’s not Just. Rs.150000/- is Good Amount.
Here, you saying you wanna Invest?
And Here, You wanna Trade?
Let Me know You wanna Invest or Trade?
assuming you want to make 1.5k per day with 1.5L ( 1% return per trading day ) , depending on the stratgies you would lose 6k per trading session as well , are you ready for that ?
even seasoned trader will be with happy with 1% returns per day
Yup it’s 1:2.5RR is ok
Thanks for the advice
Regards
You expect to earn 20% per month, that is not at all conservative. In fact this is the most aggressive risk appetite in my opinion. Even the great Warren Buffet not able to achieve this type of return till date.
Guess you would have to relook at your risk appetite or the expectation of your return.
we havt to consider another aspect as well … whats the success ration
many will says risk to reward is 1:3 , 1:4 etc … but the sucess rate also matters
This is a really interesting query (though unrealistic expectations)
It appears that fellow traders are confusing the EXPECTED RETURN with RISK APPETITE
AOB has simply mentioned his/her expectation - 1500 per day based on 1.5 Lac capital. There is no mention of risk appetite - which is - how much he/she is willing to loose.
@aob
My two cents: your expectations are a bit unrealistic.
Even best of the traders would dream of making 1% per trading day, i.e. 22% per month, or 264% per year. That translates to essentially putting in 100 Rs. and expecting it to grow to 364 Rs over the year. Not possible in reality even for the best of the best ! Only Luck can help.
I think I should reframe my question …
Max capital I have … 1. 5 lacs
Expectation … 1500 a day or 20000 to 25000 a month
Max risk I can take 750 a day … or around 10000 to 12500 a month
The probability of success to make this happen is more if I trade in cash or futures and options ?
Its kind of funny but this how it works. You should completely forget about this daily return thing.
Market does not pay monthly salary or daily wages to anyone. It does its own thing i.e. kicking traders butt.
Yes. This is possible.
This is possible with equities and intraday.
But you should get the skills to do it and understand the market, trend, strategies, etc… and having a basic discipline, you can gain 1.5 to 2 k approx everyday with the initial capital of 1.5 lakhs.
Also this is possible with intraday trading and you should first learn a lot about it. Learn by experience and find out a strategy that works for you. Good luck
Thanks
Thanks for the sound advice … in other words if I buy about 200 shares at a price not more than rs 700 _725 . And it has a daily movement of rs 20 average then I think about 1500 in a day is achievable … pl correct me if I’m wrong
Regards
Capturing 3% move everyday is like picking top stock everyday
What I meant was the movement between high and low and vice versa should be appx RS 20 … and not 3 % as you assume
20/700 is approx 3%
I’ll give you an example … I sold Kajaria at 700 today . Only 25 shares … covered it at 686.50 … net profit 328 rs excluding brickrage … . It went down till 680 which is its 200 dema … so one way movement was rs 20 … it’s today’s high was 704 … … so it moved almost 24 points one way …
From 680 it closed at 687 today so another 7 points … total movement 27 points …
I hope now my point is clear …
Yes… most stocks peiced above 600 will have Rs. 20 movement per day.
But the catch is you can not capture full 20 rupees everyday. Today u sold at 700 and it went down and it was your luck… it will not happen every day…
If you chose a stock with around 10 to 15 rs movement and capture around 2 to 3 rs per stcok, with a quantity of 1000 stock, u can make 1500 a day.
You shou be careful when chosing stock and the entry and exit point.