I was in the market since 2016.I am interested only in f&o sigment. I traded options (only buying options) f or the intial one year and lost some money. I had stopped trading since last 1 year to review my mistakes. After the review i found out my mistakes as listed below.
Not having enough capital to trade futures. For example, i start trading whenever i have 1 lakh as capital which is really not sufficient for trading futures and i vl be out after two to three losing trades.
No risk mangement and capital management. If I had done around 100 trades, 80 were closed in profit and 20 were closed in loss but the loss will be huge whereas the profits will be small. The reason i found is that i will not wait until my target is met even if the trade is winner. I closed the trade once it turns in to profit.Again the culprit here being fear of losing the capital.
No hedging while holding futures overnight.I lost around 60k in two trades due to market collapse overnight.
I have corrected most of my mistakes and now i have preapared a checklist. Now iam paper trading with virtual capital of 10 lakhs from last two months and know what i was earning profit of 50k everymonth.
Now i want to start trading in real market but do not have the capital. It will take 3-4 years for me to arrange that amount i.e. 10 lakh by way of savings. Taking a loan had crossed my mind but refrained my self from doing that as it is the first step in destroying my peaceful and healthy life.
Now my request from to all of you is
what should be the ideal capital size required positional trading of futures.
Should i keep on doing the paper trade for another 3-4 years untill my capital is arranged.
Thanks in advance.